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| DATE:
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9/20/2016 7:00:00 PM |
| SUBJECT: |
| An Ordinance Amending and Revising Chapter 17, Section 2(b) and 2(c) of the Gillette City Code Regarding Utility Deposits for Electrical Customers. |
| BACKGROUND: |
Ordinance 1st reading 5/0 (Councilmen Jerred and Montgomery were absent)
Ordinance 2nd reading 7/0
This ordinance has been prepared to amend sections (b) and (c) of section 17-2 of the Gillette City Code concerning utility meter deposits. The amendment to section (b) concerns the method that is used to verify a new customer's credit history. The current language reflects a procedure in which a customer would furnish a letter from a prior utility showing that, "within the last 12 months they had a utility payment history of no more than two (2) late payments, no insufficient funds checks, no non-pay disconnects and that their final bill was paid on time." The new language provides that the same credit history will be verified through an on-line credit service, which is the system used by the customer service division, since it is more efficient and yields accurate information. The amendment to section (c) ends the policy of paying interest on electrical meter deposits. In the current economy, the deposits earn essentially no real interest and cost the City money to calculate. This ordinance was enacted originally to provide for interest at a time when interest rates were substantially more than they are today. The change will fully impact accounts established after October 1, 2016. Accounts established before October 1, 2016 will be refunded with simple interest for the preceding year, but will no longer earn interest after that time. No existing deposit accounts will lose any accumulated interest, but will not earn any additional interest after October 1, 2016. |
| SUGGESTED MOTION: |
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I move for the Approval of an Ordinance Amending and Revising Chapter 17, Section 2(b) and 2(b) of the Gillette City Code Regarding Utility Deposits for Electrical Customers on Third and Final Reading.
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| STAFF REFERENCE: |
| Charlie Anderson, City Attorney |
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