§ 25-51. Security deposit.

(a)

A deposit shall be required for all permanent or temporary service connections to the city's public water supply system as security for the payment of bills, except when waived under the conditions hereinafter provided. The cash deposit shall be required prior to provision of service applicable to both residential and commercial accounts. If the city shall connect water service for reasons of its own convenience prior to payment of the cash deposit, and thereafter if the customer shall fail to pay the cash deposit within the time specified by the city, the service may be disconnected. Deposits shall be made according to the schedule as follows:

(1)

The deposit required for service shall be eighty dollars ($80.00), or an amount equal to twice the anticipated monthly utility bill, or an amount based on the applicant's previous deposit history, as estimated by the finance director, whichever is greater.

(b)

If an applicant for service shall have previously established a satisfactory record payment of city utility services for a period of twenty-four (24) consecutive months immediately preceding the date of the customer service contract with less than four (4) delinquent payments within the last twelve (12) months of service, then the requirement of an initial deposit shall be waived. If an owner of property applies for a service connection, and is not going to occupy the premises to be served thereby, and has executed a lessor responsibility contract with respect to the premises, then the requirement of an initial deposit shall be waived. This waiver shall only be available for premises used as one- or two-family dwellings.

(c)

After a customer has established a satisfactory record of payment of a particular account for a period of twenty-four (24) consecutive months, with no delinquent bills during the time period, then the initial deposit for the account, if any, shall be applied to the account. Deposits on file effective with the date of this section will be subject to the requirements of this section. The customer shall be eligible for a refund of deposit upon termination of service, provided all bills are paid to the date of termination. The finance director will deduct the amount of any unpaid bill from the deposit and credit the account of the customer in such amount. The customer shall be given an automatic refund of any balance of deposit remaining mailed to last known address. Unclaimed refunds will be retained by the city for a period of three (3) years and then will be turned over to the State of Missouri. The city has the right to apply any refund to any outstanding bill owed to the city in the customer's name.

(d)

Reinstatement of deposit; increase of deposit. If a customer's service has been disconnected for nonpayment of a bill, then the following shall apply:

(1)

A deposit shall be required, regardless of whether previously waived or refunded. Such deposit shall be equal to three (3) times the anticipated monthly bill, including anticipated penalty fees, as estimated by the finance director, or one hundred eighty dollars ($180.00), whichever is greater.

(2)

Anyone who shall violate sections 25-90(d), 25-90(e) or 25-90(f) of this article shall be required to pay the city an increased customer deposit equal to the estimated loss of water over the period of time of the violation or two hundred fifty dollars ($250.00) whichever is greater.

(e)

No deposit shall be required for industrial customers or governmental agencies.

(f)

If an applicant for service is not the owner of the property, the deposit will be either the minimum of one hundred eighty dollars ($180.00) or an amount based on the applicant's deposit history under subsection 25-51(a), whichever is greater. The deposit will be held by the city until either the applicant/customer is no longer a customer of the city utility services or becomes the owner of the property served and subject to subsection 25-51(c). The requirement of a deposit shall be waived if the owner of the property signs a waiver acknowledging the owner's responsibility should the utility account become delinquent.

For those tenants having a deposit on file as of January 1, 2009, which is less than one hundred eighty dollars ($180.00), no additional deposit will be required unless service is disconnected due to nonpayment then subsection (d) will apply.

(Ord. No. 10911, § 2, 4-2-90; Ord. No. 11378, § 6, 3-15-99; Ord. No. 11615, § 1, 4-7-2003; Ord. No. 11642, § 10, 11-17-2003; Ord. No. 11848, § 1, 11-17-2008; Ord. No. 11850, § 1, 12-1-2008; Ord. No. 12036, § 1, 12-17-2012; Ord. No. 12052, § 1, 4-1-2013)