Memorandum

City of Lawrence

Finance Department

TO:	Tom Markus, City Manager
FROM:	Jeremy Willmoth, Finance Director
CC:	Casey Toomay, Assistant City Manager
DATE:	November 30, 2018
RE:	Public comment concerning utility deposits

Background

A question about utility deposits being returned to customers after eighteen months was brought up during the public comment period of a recent meeting.

Our customer refund of deposit policy states:

1. The City reserves the right to retain deposits indefinitely to assure payment of utility charges. However, the City may elect to refund deposits in the following situations provided the account is at a zero balance:

• For residential customers, after 18 consecutive months of payments received on time and without instances of returned payments of any type; or

• For commercial or multi-family customers, after 36 consecutive months of payments received on time and without instances of returned payments of any type; or

• Upon customer request for termination of service; or

• Other circumstances satisfactory to the Finance Director that all future utility bills will be paid in their entirety and in a timely manner.

2. The City retains the option of effecting refunds in cash or applying to outstanding or future utility charges. If the customer has an active account credit balances will be transferred to their active utility account. No refund checks will be issued for amounts less than $5.00.

Our current software doesn’t allow for this process to be automatic, which is why we wait until the customer request the deposit to be refunded.

Staff Recommendation

Should the City wish to change this policy to an automatic deposit refund when the above rules are followed, we have been told the new system could accommodate that request so my suggestion is that we wait until that new system is implemented and functional and then bring up the policy for discussion and possible revision.

Action

No action is requested at this time.