Title
Consider/Discuss/Act on an Ordinance Approving Revisions to Chapter 110 of the Code of Ordinances Regarding Utility Billings, Deposits, and Reconnections
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: January 5, 2016
DEPARTMENT: Financial Services / Revenue Collections
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
Adopt the changes to utility bill due dates, required deposits and payments for reconnection.
ITEM SUMMARY:
• Changes will help to:
o Prevent confusion between any prior balance owed and new charges due by establishing revisions to the new charge due date.
o Deposits on non-residential accounts will be required as long as the account remains active.
o Ensure that customers with a history of unpaid prior balances are held accountable for any prior balance and provide a deposit of twice the base rate.
o Require customers who have been disconnected for non-payment to pay the delinquent amount and associated fees plus their current balance due.
BACKGROUND INFORMATION:
• Currently, utility payments are due 25 days after the statement print date. Approximately every 30 days, a new statement is mailed with any delinquent amount reflected as a balance forward. The short window between a due date and receiving a new bill causes confusion. Posted payments may not reflect on the new bill, which upsets customers. Also, the due date of a delinquent balance can be overlooked and create a system-generated disconnection for non-payment. (Section 110-143)
o By changing the due date to 16 days from 25 days, the overlap between any delinquent balance from the prior month and the current amount owed will be eliminated. This will result in reduced confusion and help eliminate system-generated disconnections.
o Recently, Council approved a 5-day grace period from the due date before a 10% late fee is assessed. By giving this grace period, customers will not be negatively impacted as a result of the reduced due date timeframe.
• Retaining a deposit for non-residential customers for the duration of the activity of the account will protect the City from loss if the account becomes delinquent. Currently the Ordinance is vague as to how deposits are handled or refunded. For example: The ordinance speaks to satisfactory and established credit rating as determined by the City. This proposed change will establish that the deposit will remain with the City while the account remains active. (Section 110-40)
• Requiring an additional deposit of twice the base deposit for customers with a history of unpaid final balances will also protect the City from lost revenue. (Section 110-43)
• Requiring payment in full for prior balances, fees and current balance prevents a non-payment disconnection in the subsequent month and protects the City from loss. (Section 110-46)
FINANCIAL SUMMARY: N/A