Effective – NOVEMBER 1, 2011
The City of Henderson has amended its policy and ordinances as it relates to service termination, security deposits and a reduction in the reconnection fee. These changes are being made in order to improve the City’s utility business practices and reduce bad debt exposure. These changes will take effect on 1 November 2011.
It is recognized that some customers may need special one-time Payment Agreement in order to catch up any arrears as well as keep their current bills paid on-time. Any customer that needs such assistance should speak with a Customer Service Representative at City Hall, during normal business hours, to work out a Payment Agreement in order to keep utility service on. Additionally, customers that work in good faith with the City to catch up their account’s arrears and keep their current bills paid on-time will not be subject to the security deposit requirement unless; however, they fail to honor the terms of the Payment Agreement.
Water Termination (cut-off) policy amendment:
A Customer’s account will be subject to termination should his/her bill not be paid prior to the cut-off date as articulated on the monthly utility bill. Customers will no longer be allowed to carry one month’s bill in arrears, effective for bills rendered on or about November 1, 2011 and all bills thereafter.
Customers needing one-time assistance to catch up bills in arrears may request a special Payment Agreement (prior to the December cut-off date) be provided to assist them in paying off the amount of their account that is in arrears while keeping the current monthly bill paid in full, effective for bills rendered on and after November 1, 2011.
Security Deposits Required:
All new customers opening a utility account for the first time must pay a security deposit as established in the City’s Fee Schedule or provide an original letter of good credit reference from his/her most recent water/sewer utility provider that demonstrates a good payment history for at least the most recent rolling 12-month period of time.
Customers that exist at the time of the adoption of this ordinance (November 1, 2011) shall not be required to pay a security deposit unless his/her account ceases to be an account in good standing. An account in good standing is defined as one in which the customer’s service has not been disconnected, or turned off, for non-payment during the most recent rolling 12-month period of time. An account is determined to be not in good standing when a customer’s account has been disconnected, or turned off, for non-payment during a rolling 12-month period of time. Existing customers whose service has been terminated, or disconnected, for non-payment shall be required to establish a security deposit prior to service being reestablished. A residential security deposit for in-city is $150 and for out-of-city is $200.
If a customer has to pay a security deposit, his/her security deposit will be kept by the City Finance Department for a minimum 12-month period of time. Once the account has met the definition of being an account in good standing, the security deposit will be credited to his/her utility account. The City shall not pay interest on security deposits. Medium and large commercial/industrial customers that cannot provide a good credit letter of reference as described in paragraph 1 above may utilize a Letter of Credit in lieu of a cash deposit provided; however, said Letter of Credit is approved by the Finance Director and the City Attorney.
Additionally, the City’s Disconnect Fee will be reduced from $40 to $25 on 1 November 2011. All other fees for service remain the same.