The College Station City Council will take formal action later this month to increase deposits for some utility customers and increase reconnection charges.
The council learned Monday night the amount of overdue accounts College Station Utilities (CSU) sent to collection agencies grew from $587,499 in fiscal year 2008 to $1.038,759 in FY 09. And the amount written off by CSU has grown from $550,000 in FY 10 to $623,000 in FY 11 and in the first half of FY 12 to $554,000.
Chief Financial Officer Jeff Kersten asked for final action during the council’s May 24th meeting in order to implement the changes in June. Kersten says that would be ahead of the traditional move-in period associated with the fall semester at Texas A&M University.
Jeff Kersten comments on implementing changes in June.
Currently, a residential deposit of $135 is required only when late payments are made twice in a 12 month period. The proposal calls for a deposit one and a half times the average monthly bill, which is estimated at $350.
The proposal calls for no deposit when customers enroll in automatic payment. However, the first time there is an autopay returned for lack of funds, customers will be charged a deposit in their next bill. Homeowners could also have deposits waived unless two late payments are made in a 12 month period.
Councilman Dave Ruesink & Mayor Nancy Berry endorse autopayment.
The deposit for commercial customers would continue to be twice the estimated monthly bill unless an exemption is granted.
If CSU disconnects a residential customer, the reconnect charge remains unchanged at $25. And CSU could increase the deposit of an account that was disconnected.
If CSU disconnects a commercial customer, the reconnect charge would increase from $25 to $150.
Click HERE to read the background information that was part of the council agenda.
Click HERE to see the powerpoint presentation shown to the council.