Explanation
BACKGROUND: 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 toward the balance on their account. They are also notified of any remaining credits on their account 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 make sure the money doesn't end up in the wrong hands. 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 transferred into the enterprise operating funds on an annual basis in order to balance the fund with actual deposits on hand.
FISCAL IMPACT: There are no expenditures associated with this ordinance.
Title
To authorize the Director of Public Utilities to transfer $489,000.66 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 deposits returned to customers.
Body
WHEREAS, excess funds have accumulated in the Electricity Customer Deposit Fund and need to be transferred to the various enterprise operating funds, and
WHEREAS, it has become necessary in the usual dail...
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