(a) At the time of making application for utility service, the property owner or customer shall make a cash deposit to secure payment of accrued bills or bills due on discontinuance of service. Receipt thereof shall be issued to each such depositor.
(b) The deposit(s) required by division (a) above shall not exceed an amount equal to the expected average bill for a three-month period for such utility service(s). At its discretion, the city may require a single utility deposit to be paid by the property owner or customer. If a single deposit is requested, the total amount of the deposit shall not exceed an amount equal to the expected average bills for a three- month period for all such utility services provided by the city.
(c) The deposit so made shall be kept by the City Clerk in a separate account and deposited in a fund designated as the Meter Deposit Fund. Interest shall be payable at the rate determined by the State Corporation Commission yearly and credited to the customer’s account January 1 of each calendar year.
(d) On the second interest payment date following the deposit required above, the City Clerk shall refund the deposit of any depositor who is owner of the premises wherein such utility service is being furnished and has not been delinquent in payment of any utility service charge during the past year. Interest due and accrued shall not draw interest.
(e) Upon the discontinuance of any service at the request of the depositor, the deposit shall be refunded upon surrender of the original receipt therefor, together with the accrued interest thereon, less any amount due and owing the city for services furnished prior thereto or it may be credited toward the payment of the final bill rendered to the customer.
(f) Any security deposit not refunded within three years after discontinuance of service shall be deposited in the Utility Fund of the city upon compliance with the provisions of K.S.A. 12-822, as amended.
(K.S.A. 12-822)