(a) Accounting requirements. The director shall keep:
(1) accurate records of all security deposits, including, but not limited to, the depositor’s name, amounts deposited, and deposits refunded; and
(2) separate accounts of all security deposits.
(b) Administration of deposits. The director shall administer cash security deposits in accordance with the following rules:
(1) A deposit will be applied toward payment of the final bill amount due the city when a service account is closed or becomes inactive due to delinquency, transfer of ownership or other reasons. A deposit made to secure service to premises may be transferred or applied toward payment of a final bill due on any other premises within the city where service is provided in the depositor’s name.
(2) Deposits earn simple interest at an annual percentage rate to be fixed by the director each year, which rate shall approximate the average interest rate earned by the department on its cash deposits for the previous year, less two percent.
(3) Interest ceases to accrue on a deposit when service is discontinued.
(4) A deposit and accrued interest, less amounts due for service, will be returned to the customer when service is discontinued unless the deposit is transferred to another address, either at the request of the customer or as provided in Subsection (b)(1).
(5) Deposits may be invested or used for capital improvements, but sufficient cash shall be accounted for and kept on hand to meet the normally anticipated level of refunds. (Ord. 19201)