12-A Report regarding water deposits.
DAction
CITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
MEETING DATE: I March 26, 2007
I:8J Discussion Dlnformation DRefer to:
SUBMITTED BY:
I Gene Anderson, Finance Director
DESCRIPTION:
Report on survey of water deposits and related charge offs.
BACKGROUND INFORMATION:
The City Council wished to discuss the amount of the water deposit after one
landlord complained about the amount. The deposit was raised to this level in mid
2005 not only to cover the outstanding amount of any utility bill but also to cover
the costs of landfill fees related primarily to rental property. It is a common problem
for renters to move leaving a large amount of trash and old furniture behind.
Landlords haul this trash to the curb and the City ends up having to haul it off to
the landfill. The increased deposit was intended to help cover these costs. Charge
offs declined from $103,678.07 in 2005 to $83,441.75 in 2006 after 6 months of
activity under the new deposit. Based on charge offs through February 2007,
charge offs are expected to drop to $55,655 for the year. This represents a 46%
drop in annual charge ofts. This topic could be further researched as part of the
current water/sewer rate study.
FISCAL AUTHORITY:
BUDGETED: Yes No Account #:
GRANT: Account #:
BOND / C 0 Account #:
Other: See attached for recommended funding
LEGAL REVIEW:
I
MANAGER'S RECOMMENDATION:
City of Paris
Water Billing Charge Offs
February 2007
Fiscal Year
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007(41.6%)
Amount
$ 52,598.23
$ 47,420.45
$ 71,796.41
$ 61,658.01
$ 53,636.58
$ 104,203.42
$ 103,678.07
$ 83,441.75
$ 23,152.47
$ 55,654.97 annualized
Utility Deposit Survey
March 2007
The following questions were asked of the cities surveyed.
1.What is your utility deposit amount?
2. Do you have a different rate for seniors, long-time customers, or other special groups?
3. Are your deposits for the life of the account or do you refund them at some point?
4. What is the amount of your utility charge offs?
Question 1 Question 2 Question 3 Question 4
Mt. Pleasant $ 50 no 3 years never charges off
Sulphur Springs $ 60 no life never charges off
Marshall 80-1 00 no life $ 31 ,200
Sherman $ 50 no not returned $ 94,000
Denison $ 50 no life $ 83,000
Greenville $ 135 no 2 years $ 48,000
Rockwall $ 50 no 3 years $ 36,000
Waxahachie $ 80 no life $ 55,000
Farmers Branch $ 50 no 1 year $ 15,000
Lancaster $ 45 no life not available
LCWSD $ 50 no life $ 4,735
Paris $ 150 no life $ 83,441