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File #: 2014-0638    Version:
Type: Ordinance Status: Passed Finally
File created: 7/15/2014 In control: Committee on Finance and Law
On agenda: Final action: 7/22/2014
Enactment date: 7/22/2014 Enactment #: 14
Effective date: 7/24/2014    
Title: Ordinance amending the Pittsburgh Code at Title Two, Fiscal, Article I: Administration, Chapter 201: City Treasurer by adding a new section at §201.12 Collection of Fee for Nonsufficient Funds for Payments Made by Bank Check.
Sponsors: Darlene M. Harris, Natalia Rudiak
Indexes: PGH. CODE ORDINANCES TITLE 02 - FISCAL
Attachments: 1. 2014-0638.docx, 2. 2014-0638 VERSION 2.docx

TITLE
Ordinance amending the Pittsburgh Code at Title Two, Fiscal, Article I: Administration, Chapter 201: City Treasurer by adding a new section at §201.12 Collection of Fee for Nonsufficient Funds for Payments Made by Bank Check.


BODY
WHEREAS, the City of Pittsburgh accepts personal checks drawn on accounts of funds held by a bank as a form of payment for taxes, fees, permits, police reports and various other legally levied fees for services; and,

WHEREAS On July 3, 2014, the City Controller issued a report that noted that the city had incurred approximately Three Hundred Eighty-One Thousand Dollars ($381,000.00) in fees assessed by banks when checks were returned due to insufficient funds on account; and,

WHEREAS, the City Controller noted in a letter to the Council and the Mayor, "As the volume of checks received by the City of Pittsburgh in the normal course of business has increased, so too has the number of returned checks. Over the past six years, check payments deposited into the City's General Fund that were returned by the bank have ranged from an annual low of $30,391.79 in 2009 to $91,619.47 in 2011. Actual checks returned in the six-year period examined, 2008 to 2013, totaled $380,772.05, averaging over $63,000 per year; and

WHEREAS, as a fiduciary of public funds, the Council of the City of Pittsburgh has a responsibility to insure that the taxpayer is held harmless in such transactions and as such, has a responsibility to recover such charges, levied by banks, from the person or persons who provided a check as payment to the City without sufficient funds on account.


The Council of the City of Pittsburgh hereby enacts as follows:

Section 1. The City Code is hereby amended at Title Two, Fiscal, Article I: Administration, Chapter 201: City Treasurer, by adding a new section §201.12 Collection of Fee for Nonsufficient Funds for Payments Made by Bank Check as follows:
§201.12 Collection of Fee for Non-Sufficient Funds for Pa...

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