§ 20-114. Interest assessment.

(a)

Interest shall be assessed and paid automatically with respect to an account payable commencing on the later of thirty-six (36) days after the invoice date or the date to which the interest accrual date is adjusted as set out herein, unless an unresolved dispute between the city and the contractor is pending.

(b)

The manager of finance is authorized to calculate interest due, charge the applicable appropriation, and automatically pay interest to the contractor at the time payment is made on the principal of any account payable.

(c)

Any interest paid by the city pursuant to this article shall be paid at the rate of one (1) percent per month on the unpaid balance of an approved invoice evidencing an account payable upon which interest is owing, until the invoice is paid in full, provided that if the calculated interest on a single such invoice is less than fifty dollars ($50.00), such interest shall not be payable by the city.

(d)

Pursuant to section 7.2.2 of the Charter, interest when payable under this section shall be subject to, limited to, and paid from, funds already appropriated, or identified in a fund not subject to appropriation. Funds for the payment of interest under this section shall be allocated and encumbered as determined by the manager of finance or as otherwise provided by law.

(e)

When federal, state or private grant regulations or statutes prevent the city from charging the federal, state or private funds with interest assessment, the city shall identify an alternative source to assess interest on late payments.

(Ord. No. 1121-01, § 1, 12-26-01; Ord. No. 1026-02, § 5, 12-16-02; Ord. No. 570-03, § 2, 7-14-03; Ord. No. 775-07, § 56, 12-26-07; Ord. No. 604-12, § 7, 11-26-12)