National City Municipal Code Ch. 4.06 Administration and Collection

A. Except as provided otherwise by ordinance, franchise or an agreement approved by the city council, penalties or interest, or both, shall be charged against unpaid taxes, debts and other revenues owed to the city as follows:

1. Interest. Interest shall be charged at the rate of one and one-half percent per month or fraction thereof on the unpaid balance, exclusive of penalties, of all taxes or debts owed to the city after the date the remittance first became delinquent until paid.

2. Penalty. Penalty shall be assessed on the unpaid balance after the due date against unpaid taxes, revenues and other fees established by ordinance at the rate of ten percent or at the rate of twenty-five percent for the intentional or fraudulent failure to pay the amount due. The penalty shall be assessed on a one-time basis.

B. The finance director may authorize the execution of an agreement to pay the delinquencies in subsection A and any interest and penalty due in monthly installments over a period not to exceed one year. Execution of the agreement shall not exonerate previously accrued interest and penalty against the account, but no further interest shall accrue on amounts included in the agreement while the debtor is not in breach of the agreement. If, however, a default in payment occurs, then the deferred interest on the unpaid balance shall reattach back to the date of execution of the agreement and shall become due and payable.

C. The city manager or the finance director, upon the concurrence of the city attorney, may waive penalties or interest, or both, in whole or in part, when it is determined that such waiver is in the best public interest.

(Ord. 2234 § 1 (part), 2003)

The costs and related charges incurred by the city in auditing tax and revenue accounts are subject to cost recovery when an underreporting of tax or revenue is determined by audit. Recoverable costs shall include the costs paid to an auditor or audit recovery service, or the salary and overhead of city staff auditors performing the audit. Interest and penalties shall be due on the underreported revenue or tax deficiency from the date the amount was due until it is paid in accordance with Section 4.06.020. When appropriate, collection costs shall also be subject to cost recovery pursuant to Section 4.06.040.

(Ord. 2234 § 1 (part), 2003)

A. Whenever charges are not paid within a reasonable time following demand, the director of finance and the city attorney, as applicable, are authorized to prosecute the claim to judgment in an appropriate court with jurisdiction and to take any other action appropriate for collection without further direction from the city council after demand has been refused. The council shall be notified when litigation is initiated.

B. The city attorney is authorized to collect any amounts due by civil or administrative action, or both, together with all costs incurred in the collection of that indebtedness after demand for payment has been refused. Costs for legal services shall be based on actual billings for legal services or, when performed by the city attorney, the charges for comparable and customary hourly attorney fees charged in San Diego County.

(Ord. 2234 § 1 (part), 2003)