§ 28-245. Utility deposits.

(a)

Account deposits. Deposits for water and sanitary sewer service shall be hereafter known as "utility deposits" and shall be required prior to service connection on all buildings used for residential, commercial, industrial, or other purposes. A deposit may be waived only for service applicants who were department customers within the twenty-four-month period immediately preceding the date of service application, where department records establish a "good payment history," as defined herein, for such prior service.

(b)

Establishment of deposit amounts. Utility deposits are to be established by, and amended by, resolution of the Hernando County Board of County Commissioners as adopted at an advertised public hearing. Notice of such public hearing setting forth the schedule or schedules of rates, fees and charges shall be given by one publication in a newspaper published in the county at least fifteen (15) days, including weekends and holidays, before the date fixed in said notice for the hearing.

(c)

Deposit of refunds. The department shall refund the utility deposit on each owner-occupied residential utility account with a "good payment history" and a minimum of twelve (12) combined total months of active service, during the preceding thirty-six (36) months, less an administrative fee not to exceed five (5) percent of the deposit.

Good payment history. During the preceding thirty-six (36) months, the customer or returning customer has:

(1)

Maintained a total of at least twelve (12) combined months of active service.

(2)

Never had service disconnected for a delinquent bill.

(3)

Never had a check returned for nonpayment or an electronic fund transfer rejected by the bank; and

(4)

Has no more than two (2) instances involving the delinquent payment of a bill.

Nonresidential or residential accounts which elect to seasonally suspend their water/sewer account with a good payment history shall be eligible for deposit refunds prior to account termination, based upon department records establishing that such financial risk to HCUD of waiving an individual's deposit is minimal. HCUD does have the ability to request a deposit on an account, if warranted, at a later time. Additionally, HCUD may place a lien on owned property on any unpaid balance on a closed home owner's water/sewer account.

(d)

Deposits not refunded prior to account termination. In the event the utility deposit is not refunded prior to termination of the utility account, the deposit shall be applied to the final bill at termination of the account and any balance remaining shall be refunded to the customer.

(e)

Additional deposit for payment delinquency. The department shall have the authority to increase a utility deposit or to require a "new" utility deposit up to three (3) times the customer's average monthly water and/or sewer bill upon the second occurrence of scheduled interruption of service within any consecutive twelve-month period, or upon application for and prior to reconnection of disconnected service. In any such case not involving disconnection of service, the department's determined new deposit shall be added to the next billing with the notice that failure to pay the billed amount, including any past due or service charges, and new deposit may result in disconnection. In cases where service is disconnected, the past due charges, any other service charges assessed by the department, and the deposit amount required to increase the utility deposit to three (3) times the average monthly bill shall be paid in full before disconnected service is restored. This shall apply for all customers, even if a utility deposit has been previously refunded to a customer based on a "good payment history". The increased deposit shall be refunded to residential customers where the premises are owner-occupied during any subsequent, consecutive twelve-month period that the customer meets the "good payment history" criteria.

(f)

Interest earnings on utility deposits. Deposit interest earned, if any, shall be paid annually to all customers with utility deposits on account. Actual interest earned on a customer's utility deposit, if any, shall be posted as a credit to customers' accounts each September billing cycle. Any deposit interest accrued, if any, between September 30 of each year and the return of the deposit or account termination shall be credited to the utility account. Any interest balance remaining after final billing will be paid to the customer with the final refund of the deposit.

(g)

Non-interest bearing account. The department shall have the right to retain utility deposits in a non-interest bearing account, such that interest shall not accrue on utility deposits nor be due for payment to customers.

(Ord. No. 2005-19, § 10, 10-18-05; Ord. No. 2014-24, §§ 1, 2, 10-28-14; Ord. No. 2017-28, § 1, 6-27-17)