1. Proposed Utility Deposit and
Commercial Delinquent Fee
Revisions
May 14, 2012

2. Outline
Background
Current Utility Deposit Status and
Recommended Changes
Current Commercial Delinquent Fee and
Recommended Changes
Conclusions

3. Background
Utility accounts sent to collections
FY 08 2,062 $587,499
FY 09 2,356 $727,653
FY 10 2,681 $948,838
FY 11 2,508 $1,038,759
22% increase in number of accounts
77% increase in amount

4. Background
Increase in write-offs due to non payment
FY 10 $553,213
FY 11 $623,466
FY 12 YTD $554,797
All good paying customers pay for these
write offs.

5. Current Utility Deposit Status
Currently deposits are only required on
late accounts.
Residential Deposit
$105 Electric
 $30 Water
$135 Total (Regardless of actual bill)
Commercial Deposit
2 times average monthly bill

6. Recommended Changes –
Utility Deposits
Residential Customers
Homeowner – No deposit required
Unless late more than 2 times in a 12 month
period,
No deposit required if they enroll in auto pay
New Renter Connects – Require deposit
Unless they enroll in auto pay

7. Recommended Changes –
Utility Deposits
Residential Customers
Deposit of 1 ½ times the average bill
Deposit will vary based on utility bill
Average deposit is estimated to be $350

8. Recommended Changes –
Utility Deposits
Commercial Customers
Continue collecting deposit of 2 times the
annual estimated monthly bill.
Collect it up front unless exemption applies.
Exemption
Letter of Credit from a utility company
This could include a letter from CSU

9. Current Commercial Delinquent
Reconnect Fee Status
$25 delinquent fee for failure to pay
Does not cover the cost of this
disconnect/reconnect service.

10. Recommended Changes
Commercial Delinquent Fee
Proposed fee is $150
Covers cost of providing this service.

11. Conclusions
Staff recommends Council approve the
ordinance revisions at the May 24 Council
Meeting.
If approved, new deposit criteria and commercial
delinquent fees would be effective in June 2012.

12. Conclusions
This change will reduce write offs which have
been increasing.
Implementation focus will be on new customers
and higher risk accounts.
Staff will work to educate our customers on
these changes.