Explanation
The Division of Power collects deposits at the time new electricity service is established. The amount of the deposit varies from property to property and is based on 200% of the average bill amount of that property for the previous 12 months of usage. The minimum deposit amount is $100.00. Those deposits are received in the Electricity Customer Deposit Fund, where interest is accrued. When a customer closes their electricity account with the City, any remaining deposit on hand is credited on their final bill. However, if their remaining deposit funds are in excess of the amount owed on the account, the excess money is not automatically refunded to the customer. The refund needs to be requested by the customer because the City does not always have access to a forwarding address, and needs to ensure that the money is returned to its rightful owner. Since 2014, the refunds have been issued from the four enterprise operating funds, rather than directly from the Electricity Customer Deposit Fund. Because of this, the Electricity Customer Deposit Fund can accumulate large balances and any excess money in the fund needs to be re-allocated into the proper enterprise operating funds on a regular basis in order to balance the funds with actual deposits on hand. Previously this balancing was performed on an annual basis but going forward will be done monthly.
This ordinance authorizes the Director of Public Utilities to properly re-allocate revenue funds by way of a transfer from the Electricity Customer Deposit Fund to the Water Operating Fund, the Sanitary Sewer Operating Fund, the Storm Sewer Operating Fund and the Electricity Operating Fund to repay those funds for all past deposits already returned to the customers; and authorizes the re-allocation of revenue as needed between the various funds for all present and future deposits returned to the customers.
This ordinance authorizes that the City Auditor shall establish such accounting codes as ...
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