(a) The City shall require a deposit as security for the payment of water, sewer, and electric utility bills from every customer prior to the initiation of the utility service, unless the customer has a prior record of receiving utility service from the City or other utility company that reflects timely payment of utility charges. Payment of utility charges shall be considered timely if the total amount of indebtedness due the City or other utility company is fully discharged within thirty days of billing.
(b) The deposit amount shall be based upon an average monthly utility billing cost during the preceding twelve months at the customer’s location. The deposit will be equally applied to the water, sewer, and electric services utilized by the customer (e.g., a one hundred fifty dollar ($150.00) deposit will apply equally to each service, fifty dollars ($50.00) water; fifty dollars ($50.00) sewer; and fifty dollars ($50.00) electric.
(c) The City reserves the right to require an additional deposit if customer’s past record of payment on accounts and/or utility usage indicates that such deposit is required to assure payment from that customer. Such deposit includes, but is not limited to: a history of past delinquency with the City, poor credit rating as evidenced by a credit report, a history of bankruptcy, disconnection for nonpayment of bill, checks returned for insufficient funds, and/or increased utility requirements.
(d) No interest on deposits shall be accrued or paid.
(e) At the end of one year of continuous utility service, the deposit may be refunded to the customer upon written request if the customer has established and maintained a record of timely payment of all utility charges as defined herein.
(f) A deposit may be applied to the customer’s current utility service bill (water, sewer, and electric) or any deposit or portion thereof not needed to pay customer’
(g) Utility service shall not be granted until such time that a deposit is made, unless waived by the City. (Ord. 2006-50. Passed 7-11-06.)