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A utility deposit for residential customers shall be required as set forth in this subchapter. The amount of the deposit shall be as follows:
(A) For electric (electric only), or for electric and water, and/or sewer, and/or sanitation.
(1) Residential customers owning the home where the utilities will be used shall, prior to obtaining utility service, deposit a sum of $100 to guarantee payment for service used.
(2) Customers renting their residence or who own a mobile home which is located on leased real property, shall pay a $200 deposit to guarantee payment for service used, $100 of which shall be paid before utility service is provided and the remaining $100 will be billed on the first month's bill and shall be due when the first bill is due.
(B) For sanitation or water or sewer.
(1) All residential customers where one of the listed utilities will be used shall, prior to obtaining utility service, deposit a sum of $40 to guarantee payment for the service used.
(2) All residential customers where two of the listed utilities will be used shall, prior to obtaining utility service, deposit a sum of $80 to guarantee payment for the service used.
(C) (1) The city will accept a letter of credit from another utility in lieu of a cash deposit from residential customers; provided, the letter of credit is provided at the time of application for service and is in the customer's name. The letter must state that the customer has had 12 months of continuous utility service within the last 18 months and have had no more than two late payments, no collection charges, no cut-offs, and no returned checks within the service year.
(2) If a letter of credit as provided in this section is accepted and the customer becomes delinquent in the payment of their utility bill, the Utility Department may require the customer to post a utility deposit as otherwise provided in this subchapter. If such a deposit is required and the customer fails to post the deposit, the customer shall be subject to termination of utility service procedures.
(D) Except as otherwise provided for in this subchapter, any deposit posted under the provisions of this section shall remain with the city until the customer terminates service and will be applied to the final billing. Such deposit may also be applied by the city toward payment of any customer delinquent bill for electrical service. No interest shall be paid to the customer on deposits.
(Ord. 98-30, passed 7-20-98)