§ 122-267. Deposits.

(a)

In order to guarantee prompt payment of all amounts due to the city for water, sewer and sanitation services, where applicable, and by way of advance payment for services to be furnished, a deposit shall be required of each applicant for services by meter size. All accounts where payment is made directly by the U.S. government, the state, the county or the city shall be exempt from this section.

(1)

A deposit of $100.00 is required when application is made for a residential unit where the consumer takes water through a metered service.

(2)

A deposit of $155.00 is required when application is made for any five-eighths-inch meter for commercial purposes.

(3)

A deposit of $360.00 per inch of meter size is required when application is made for any meters for commercial units in excess of five-eighths inch.

(b)

When the city acquires an existing water system, a deposit shall be required of each consumer of water by meter rate of such system as provided in subsection (a) of this section. However, at the option of the consumer, such deposit may be paid as follows:

(1)

In one payment in the consumer's first bill after the city commences operation of such system; or

(2)

In ten equal monthly installments in the consumer's bill after the city commences operation of such system.

(c)

The city may, upon review of any account, require an increase in the deposit where it appears the current deposit is insufficient to secure payment for service. In such cases the deposit will be increased to an amount equal to at least two times the average of the customer's monthly water usage. Each consumer who shall fail to increase his deposit as provided in this subsection after ten days' notice so to do shall be in default, and the consumer's water shall be shut off and the service discontinued until such deposit shall be increased as provided in this subsection.

(d)

Deposits shall not be used in automatic settlements of current water bills but shall be applied in payment of past due water bills only in cases where default has been made and the water supply is shut off by reason of such default.

(Code 1971, § 29-77; Ord. of 9-20-94; Ord. No. 2010-38(5), § 4, 11-30-10)