§ 110-4. Application of utility deposits.

(a)

Upon termination of service, all utility deposits held with the city shall in addition to securing the payment for utility services received, also secure and may be applied to any other debt or obligation owed the city by the person(s) having made the utility deposit. The remaining balance of any and all utility deposits collected by the city for electric, water, sewer or trash disposal shall be credited to the account of the individual who secured the deposit in his or her name, as designated by subsection (b) herein. The deposit will first be applied to any outstanding utility bills, then to any additional outstanding debts to the city prior to any refund being offered. Additional outstanding debts of the individual seeking return of a utility deposit include, but are not limited to:

(1)

Other utility services which have been provided under said person's name and that have an outstanding balance due and owing to the city;

(2)

Balances owed for EMS, fire or other emergency services;

(3)

Liens placed by the city upon any property owned by such person;

(4)

Any outstanding fees, charges, court costs, fines or warrants payable by such person by virtue of any record, action or proceeding in the municipal court;

(5)

Any balance owned for Galloway Hammond Recreation Center;

(6)

Any balance owed for Delaware Springs Golf Course.

(b)

Residential customers refund of deposits to the customer account.

(1)

Residential utility customers who have placed a deposit after December 31, 2004 and who have shown an excellent payment history over a period of five years or more, shall have their utility deposit refunded as a credit to their account after December 31 of the fifth year of service. For purposes of this section "excellent payment history" shall mean the customer has not had a disconnection of service for nonpayment of service, no dishonored checks for utility payments, and has had no late payments for a period of at least five years.

(2)

Upon adoption of this section, the city shall refund deposits as a credit to the customer accounts for residential utility customers who placed deposits prior to December 31, 2004 and who have excellent payment histories over five years, based on a scale from oldest to newest, to be credited over a period of three years, beginning January 1, 2009, until all applicable deposits have been refunded.

In the event a customer whose deposit has been refunded is disconnected due to nonpayment, that customer must place a new deposit on the account prior to reconnection of the account, at a rate as required and prescribed in this Code at the time of the reconnection.

(c)

Whenever the utility department applies a deposit to any outstanding debt, the individual seeking return of a deposit held in their name may, if not satisfied with the decision of the director of the utility department, appeal the decision to the city manager.

(Ord. No. 97-2, §§ 1—3, 7-8-97; Ord. No. 99-2, § 2, 2-11-99; Ord. No. 2008-07, § 2, 4-8-08; Ord. No. 2012-30, § 1(exh. A), 9-25-12)

Editor's note

See editor's note at § 110-1.