A. Power To Require Deposit: The city may require a deposit from any current customer or applicant for service or a written guarantee from the owner if a tenant is the customer or applicant, with evidence that the customer or applicant is likely to be a credit risk or to damage the water system of the city.
B. Amount Of Deposit: A deposit required as a condition of service shall not exceed one-sixth (1/6) the amount of reasonably estimated billing for one year at rates then in effect. This estimate is to be based upon the use of service at the premises during the prior year or upon the type and size of customer's equipment using the city's service. The city shall provide the applicant an opportunity to pay the deposit in two (2) installments. The applicant shall be allowed to pay one-half (1/2) of the deposit amount at the time of application, with the remaining installment payable in one month.
C. Interest: Interest will be payable on all deposited amounts at the rate of six percent (6%). Interest will accrue from the date the deposit or deposit installment is made until the deposit is refunded or applied to the customer's utility bill. Interest will not accrue on a deposit or deposit installment if:
1. Service is terminated temporarily at the request of a customer who leaves the deposit with the utility for future use as a deposit; or
2. Service has been permanently terminated and the utility has been unsuccessful in its attempt to refund a deposit.
D. Return Of Deposit: The deposit, with accrued interest, will be refunded promptly by the city or applied to the customer's bill when the customer establishes and maintains good credit. Upon termination of service, the deposit, if any remains, with accrued interest, shall be credited to the final bill. The balance of the deposit remaining, if any, shall be returned promptly to the customer. (Ord. 213, 9-11-1990, eff. 10-1-1990)