Return of Utility Deposits (BF-20, Rev. 2)
City of ADMINISTRATIVE
POLICIES AND PROCEDURES
MANUAL SUBJECT:
Return of Utility Deposits
Delray NUMBER REVISIONS EFFECTIVE PAGE 1 OF 2
Beach BF-20 z DATE:
June 1, 201a
SUPERSEDES ~
APPROVED BY: ~, ~
; BF-20, Rev. 1 ~
~,~1C ~1
~ David T. Harden, City Manager
BF-20.0 Purpose:
To establish an administrative policy with regard to the return of customer guaran#ee-of-
payment utility deposits, the payment of interes# on utility deposits, and the
requirements that must be sa#isfied in order for the City of Delray Beach to refund a
customer deposit.
BF-20,1 Polic
A guarantee-of-payment deposit for all utility bills shall be made by each cus#omer or
property owner in the amounts shown in Section 52.33 of the Code of Ordinances of the
City of Delray Beach.
After a residential or commercial customer or owner establishes a satisfactory payment
record and has had continuous service for a period of twenty-four (24) months, the City
shall refund the guarantee-of-payment deposit, providing that the customer or owner
has not, in the preceding twenty-four (24} month period; (a) made mare than one late
payment of a bill (payment following the expiration of thirty days from mailing date}; (b)
paid with a check refused by a bank; (c) been turned off or disconnected for non-
payment; or {d) used service in a fraudulent or unauthorised manner.
BF-20.2 Interest on Deposits:
The City shall pay a minimum interest rate annually on all accounts. The interest rate for
the new fiscal year shall be the interest rate the City is receiving on the City's operating
investment account as of the last business day of the fiscal year preceding the new
fiscal year. Payment shall be accrued monthly, deferred, and paid annually by the
issuance of a credit on the current bill at the established interest payment date, or on a
final bill, or on a refund of deposit. Interest shat[ be paid from the effective date of this
policy forward. All new deposits received following the effective date of this policy will
accrue interest from the date of the receipt of the customer deposit.
The interest rate may be adjusted by the Finance Department, with the approval of the
City Manager, on an annual basis by revising this administrative policy based upon a
reasonable comparison to the interest rates received on other City investments.
SUBJECT: Return of Utility Deposits
NUMBER: BF-20, Rev. 2
PAGE 2
@F-2 .3 When New De osit is Re wired:
The City may require, upon reasonable written notice of not less than fifteen (15} days,
a new deposit, where the deposit has previously been returned, if the customer has: {a}
made one or more delinquent payments; (b} paid wi#h a check refused by a bank; {c}
been turned off or disconnected for non-payment; or (d} at any time used the service in
a fraudulent or unauthorised manner.