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Home My WebLink About2025-4573 - Ordinance - 02/13/2025ORDINANCE NO. 2025-4573 AN ORDINANCE OF THE CITY OF COLLEGE STATION, TEXAS, PROVIDING FOR THE IMPOSITION OF A LIEN AGAINST AN OWNER'S PROPERTY FOR DELINQUENT UTILITY BILLS FOR MUNICIPAL UTILITY SERVICE TO THE PROPERTY PURSUANT TO TEXAS LOCAL GOVERNMENT CODE §552.0025(D), AS AMENDED; PROVIDING FOR THE COLLECTION OF INTEREST, FEES, AND COLLECTION COSTS, PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE; AND CONTAINING OTHER PROVISIONS RELATED THERETO. WHEREAS, Texas Local Government Code §552.0025(d), as amended, authorizes the City of College Station, a Texas municipality to impose a lien against an owner's property for delinquent municipal utility bills provided (1) the property is not a homestead property as protected by the Texas Constitution, (2) the proposed liens are not imposed on delinquent utilities that are in the tenant's name, (3) the tenant has incurred the delinquency, and (4) the property owner has provided notice to the City of College Station that the property is a rental property; and WHEREAS, the City of College Station has determined that it is in the public interest to ensure the payment of delinquent utility bills; and WHEREAS, the City of College Station, pursuant Texas Local Government Code §552.0025(d), from the date of the passage of this ordinance forward, may impose a lien on the real property of delinquent municipal utility service account holders, thus ensuring payment; and WHEREAS, the City of College Station deems it in the public interest to pass this ordinance authorizing the imposition of liens against an owner's property for delinquent municipal utility service bills subject to the restrictions found in Texas Local Government Code §§552.0025(e)-(f); now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: FINDINGS. The foregoing recitals are found to be true and correct and are adopted by the City of College Station and made a part of this ordinance for all purposes and as findings of fact. PART 2: CODE OF ORDINANCES. That Chapter 40, "Utilities", of the Code of Ordinances of the City of College Station, Texas, be amended to add a new Section 40-16 — "Lien for Delinquent Municipal Utility Bill" as set out in Exhibit "A" attached hereto and made part of this ordinance for all practical purposes. PART 3: PENALTIES, INTEREST AND COLLECTION COSTS. In accordance with Texas Local Government Code §552.0025(g), upon perfection of the lien by filing in the real property records of the county where the property is located, the delinquent bills subject to said property liens shall include penalties imposed by the City of College Station, interest at an annual rate of ten percent (10%) per year from ORDINANCE NO. 2025-4573 Page 2 of 4 the perfection date of the filing of the lien, and a collection cost of $100.00 per utility account. PART 4: LIEN PRIORITY. In accordance with Texas Local Government Code §552.0025(h) the liens that are the subject of this ordinance shall be inferior to a bona fide mortgage lien that is recorded before the recording of the City's lien in the real property records of the county where the property is located. The City's liens are superior to all other liens, including previously recorded judgment liens and any liens recorded after the City's lien. PART 5: SUIT TO FORECLOSE. The City Attorney, at the request of the City Manager, may file suit to judicially foreclose the lien in a state court of competent jurisdiction. The suit may not be filed earlier than sixty (60) days after the perfection date of the lien being filed. PART 6: OPEN MEETINGS. It is found and determined that the meetings at which this ordinance is considered are open to the public and that notice of the time, place and purpose thereof was given in accordance with the provisions of the Texas Government Code, Chapter 551, as amended, and that a quorum of the City Council was present. PART 7: SEVERABILITY. That if any provisions of any section of this Ordinance shall be held to be void or unconstitutional, such holding shall in no way affect the validity of the remaining provisions or sections of this Ordinance, which shall remain in full force and effect. PART 8: EFFECTIVE DATE. That this Ordinance shall take effect immediately from and after its passage. PASSED, ADOPTED and APPROVED this 13th day of February, 2025. ATTEST: 42v-/-4_ City Secretary APPROVED: IOLA, Q , I aista City Attorney APP VE:L'` Ma or ORDINANCE NO. 2025-4573 Page 3 of 4 EXHIBIT A That Chapter 40, "Utilities" of the Code of Ordinances of the City of College Station, Texas, is hereby amended by adding a new Section 40-16 "Lien for Delinquent Municipal Utility Bill", as set out hereafter to read as follows, in all other respects said Code of Ordinances and Chapter to remain in full force and effect. Section 40-16. — Lien for Delinquent Municipal Utility Bill. (a) Delinquent Municipal Utility Bill. (1) Pursuant to Texas Local Government Code §522.0025 and this ordinance, when delinquent charges imposed by the City of College Station ("City") and the Code of Ordinances of the City of College Station, Texas for municipal utility service remain unpaid, the City Manager, or their designee, may impose a lien against the real property to which such utility service was delivered. (2) The City Manager, or their designee, shall perfect the lien by filing a notice of lien, signed by the Mayor of the City of College Station, in the real property records of the county where the property/tract is located. (3) The notice of lien shall contain: i. a legal description of the property/tract and physical address (if ascertainable), ii. the utility's account number for the delinquent charges, iii. the amount of the balance due, iv. penalties imposed by the City, v. interest at an annual rate of ten percent (10%) per year from the perfection date of the filing of the lien, and vi. collection costs of $100 per utility account. (b) Lien Inapplicability. (1) The lien authorized in this section shall not apply to utility bills for utility service connected in a tenant's name after written notice by the property owner to the City that the property is a rental property. (2) The lien authorized by this section shall not apply to homestead property as protected by the Texas Constitution. (3) The City's lien is inferior to a bona fide mortgage lien that is recorded before the recording of the City's lien in the real property records of the county where the property is located. ORDINANCE NO. 2025-4573 Page 4 of 4 (c) Lien Superior to All Other Liens. The City's lien is superior to all other liens, including previously recorded judgment liens and any liens recorded after the City's lien. (d) Suit to Foreclose. The City Attorney, at the request of the City Manager, may file suit to judicially foreclose the lien in a state court of competent jurisdiction. The suit may not be filed earlier than sixty (60) days after the perfection date of the lien being filed. (e) Release of Lien. Upon certification by the Director of Fiscal Services or their designee, that all delinquent charges, the balance due, penalties, interest, and collection charges which existed against the property have been fully paid, the City Manager is authorized to execute a release of the lien. The release shall be prepared and approved as to form by the City Attorney and shall be duly acknowledged. After execution, the City must timely file the release in the deed or lien records of the county in which the property is located.