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“UTILITY BILLING BEST PRACTICES”
The trials and tribulations of dealing with water/sewer customers and
their bills
Florida Government Finance Officers Association (FGFOA)School of Government Finance – November 18-22, 2013
“UTILITY BILLING BEST PRACTICES” Presentation by Ingrid Gaskin-Friar
November 21, 2013 – 10:00 a.m. – 11:40 a.m.
City of Melbourne Website
I Introduction
II Overview – Hierarchy and Responsibilities of Staff
III City Code – Chapter 32
IV Bill Samples and Billing Rates
V Bad Debt
VI Refunds
VII Mandatory Hook-up
VIII Application Process
IX Collections
X Cut-Off Policy
XI Opportunity to Increase Payment
XII Questions and Answers
XIII Appendix Material
IntroductionSection I
LEADERSHIP
A) Wren, J.T. (Ed.). (1995). The Leader’s Companion: Insights on Leadership Through the Ages. New York: Free Press, p.70.
Water: “The wise leader is like water.
Consider Water: Water cleanses and refreshes all creatures without distinction and without judgment; Water freely and fearlessly goes deep beneath the surface of things; Water is fluid and responsive; Water follows the law freely.
Consider the Leader: The Leader works in any setting without complaint, with any person or issue that comes on the floor; the Leader acts so that all will benefit and served well regardless of the rate of pay; the Leader speaks simply and honestly and intervenes in order to shed light and create harmony.
From watching the movements of Water, the Leader has learned that in action, timing is everything. Like Water, the Leader is yielding. Because the Leader does not push, the group does not resent or resist.”
The City of Melbourne bills approximately 58,000 utility customers monthly.
Staff address 8,000 to 10,000 calls monthly.
The City utilizes Tyler, MUNIS CIS-software for its utility billing.
Water and Sewer rates increased by an average of 7% in this fiscal year, in accordance with a five-year rate plan approved by Melbourne City Council in May 2012.
The water and sewer system budget is proposed to increase by $1,897,846 from this past year.
Total water sales: $24,000,000 Sewer charges: $18,000,000
Note: The City of West Melbourne utilizes the City’s bulk water sales at the inside City rate. The City of West Melbourne utilizes 9% of the City of Melbourne’s water sales.
B)
Overview – Hierarchy & Responsibilities Of Staff
Section II
Financial Services
Director of Finance
Customer Service
Manager
Financial Systems Administrator
Utility Billing Special
Chief Accounts Clerks(3)
Sr. Accounts Clerks(5)
Accounts Clerks(5)
Accounts Clerks– Part Time (2) –
AARP
SwitchboardOperator
STAFFING RESPONSIBILITIES RELATING TO CUSTOMER SERVICE CALLS:
Four (4) Accounts Clerks provide cashiering function in conjunction with Customer Service at the front office.
Chief Accounts Clerks and Senior Accounts Clerks assist with Customer Telephone calls in conjunction with other daily assignments.
Utility Billing Specialist addresses customer complaints transferred from staff, prior to forwarding to the Customer Service Manager.
Financial Systems Administrator is responsible for all technological improvements/upgrades and month end closing.
Customer Service Manager addresses customer complaints that are forwarded from the Utility Billing Specialist, Director of Finance, and City Manager/Council.
Finance Director assumes the customer complaint, if the customer refuses to speak with the Customer Service Manager.
City Manager delegates customer complaints to Director of Finance and/or Customer Service Manager for resolution.
99 % OF CUSTOMER ISSUES ARE ADDRESSED AT THE STAFFING LEVEL
City Code – Chapter 32Section III
City of Melbourne Utility Billing
City Code
City Manager: (Reference City Code Sections below)
MELBOURNE CITY CODE Sec. 32-11
Administrative Adjustments to Utility Bills
MELBOURNE CITY CODE Sec. 32-79
Authorized to provide adjustments to Water Bills
MELBOURNE CITY CODE Sec. 32-308
Sewer Service Rate
Bill Samples and Billing RatesSection IV
* Water and Sewer Security Deposits vary by size of meter or number of units for multi-family establishments and by city
** Commercial customers -2 ½ times the average monthly bill at same location
METER SIZE WATER COST SEWER COST
¾” $43.00 $77.00
1” $107.50 $192.50
1 ½” $215.00 $385.00
2” $344.00 $616.00
3” $791.00 $1,416.80
4” $1,075.00 $1,925.00
6” $2,150.00 $3,850.00
8” or larger To be negotiated
Residential Customers’ Water and Sewer Security Deposit¾ inch meter - $120.00
A customer may tap a fire hydrant for construction use only with permission from the City and after placing a meter deposit and payment
for the water used based on volume registered by the meter.
METER SIZE DEPOSIT AMOUNT
¾ inch $150.00
1 inch $300.00
2 inch $1,000.00
Deposit is refunded when the meter is returned.
City Code Sec. 32-78Construction Meter Water Sales:
1. View a Typical Bill Charges:WaterSewer
GarbageRecyclingYard Trash
2. Advisory Notes on back of utility bill: City of Melbourne water, sewer, garbage, recycling and yard trash, reclaim
water City of Melbourne water, Brevard County sewer, garbage, recycling, yard
trash, and utility tax City of Melbourne water, City of Cocoa Beach sewer City of Melbourne water, City of Palm Bay sewer (Lakes of Melbourne) City of Melbourne water, City of West Melbourne sewer*
Late Fee, Shut Off Fee, Lien Fee are also included on the bill Bills include a Shut Off date where applicable
*The City of West Melbourne utilizes the City of Melbourne’s bulk water sales at the inside City of Melbourne rate.
TWO TYPES OF BILLING
Billing Functions are outsourced with AXIS
Bill due date: 25th day of the cycle
Late Fee Applied: 26th day of the cycle
ACH Bills with bank draw: 25th day of the cycle
Final Bills: Security deposit credit refunded
Regular paperbills via
U.S. MailE-Bills
Each week of month is a regular billing period for 12,000 to 16,000 Bill Accounts. Approximately 700 – 800 accounts are finaled monthly.
AMOUNT RATE CALC. TOTAL
Water Base Charge (inside) $7.58
Water Consumption 8,000 Gallons $4.66 +37.28 $ 44.86
Sewer Base Charge (inside) $11.21
Sewer Consumption 8,000 Gallons $6.49 $51.92 $63.13
Utility Tax (none)
Garbage * $6.50
Recycling/Yard Trash * $4.07
Sanitation Service Charge ** $.27
Shut Off ChargeLate Fee 1.5% Minimum
$30.00$5.00
SAMPLE RESIDENTIAL ACCOUNT COMPUTATION
* Waste Management Contract ** Funds utilized to manage Recycling Division
*Waste Management Contract ** Funds utilized to manage Recycling Division
Shut Off Charge $30.00 Late Fee 1.5% , Minimum $5.00
AMOUNT RATE CALC. TOTAL
Water Base Charge (inside) 14 ERCs $7.58 $106.12
Water Consumption 112,000 Gallons $4.66 +521.92 $628.04
Sewer Base Charge (inside) 14 ERCs $11.21 $156.94
Sewer Consumption 112,000 Gallons $6.49 $726.88 $883.82
Utility Tax None
Garbage * 89 units $6.50 $578.50
Recycling/Yard Trash * 89 units $4.07 $362.23
Sanitation Service Charge ** 89 units $.27 $24.03
Shut off Charge***
Late Fee 1.5% Min. $5.00
Total Bill $2,476.62
*** Call Commercial Customers or use Door Knocker
SAMPLE COMMERCIAL ACCOUNT COMPUTATION
The City of Melbourne
City of Melbourne Beach
City of Indialantic
City of Indian Harbour Beach
City of Satellite Beach
Town of Palm Shores
The City of Melbourne provides billing services for the following cities at “outside” City rates for city water and Brevard County sewer charges:
The City of Melbourne provides billing services for Utility Taxes - charges each City a billing service fee:
The City of Melbourne
Indian Harbour Beach
6% Tax
Indialantic10% Tax
Melbourne Beach
9.5% Tax
Melbourne Village6% Tax
Palm Shores10% Tax
West Melbourne
8% Tax
Notably absent: City of Melbourne customers have no Utility Tax
The City of Melbourne bills sanitation services for the following companies under contract:
Waste Management
(Back door, curbside, multi-family)for garbage, recycling and
yard trash
Waste Pro
(Back door, curbside, multi-family)for garbage, recycling and
yard trash
Customer Contacts:
Letter
Telephone
Outside Drop Box
Lobby Drop Box
Fax
Customer Walk Ins
Bad DebtSection V
A) Write off/bad debt 1) 3 years history of write offs 2) write off as a percentage of water sales
WATER SALES
2011 • $26,291,280
2012 • $27,694,566
2013 • $27,579,821
011
2011 • $207,959.11
2012 • $228,473.46
2013 • $128,143.18
BAD DEBT
PERCENTAGE OF BAD DEBT TO WATER SALES
2011 • 008% less than 1%
2012 • .008% less than 1%
2013 • .005% less than 1%
B) SEWER CHARGES
2011 • $17,536,902
2012 • $17,928,518
2013 • $18,220,110
2011 • $309,767
2012 • $315,000
2013 • $267,000
2011 • $8,803
2012 • $8,600
2013 • $8,991
RECONNECTION CHARGE $30.00SHUT OFF FOR NON PAYMENT
3% UTILITY TAX BILLING FEE
2011 • $21,119
2012 • $28,000
2013 • $20,062
2011 • $165,295
2012 • $170,000
2013 • $164,319
SERVICE FEEBROKEN METER OR CURBSTOP
SERVICEINITIATION FEE
2011 • $300,453
2012 • $306,000
2013 • $285,119
2011 • $13,274
2012 • $12,600
2013 • $14,787
WASTE MANGEMENTBILLING FEE
$.79 PER BILL
WASTE PROBILLING FEE
$.79 PER BILL
BILLING FEES
2011 • $2,812
2012 • $3,000
2013 • $2,925
2011 • $7,660
2012 • $7,700
2013 • $7,710
MELBOURNE VILLAGE3% UTILITY TAX REVENUE
PALM BAY (SEWER)$1.59 PER BILL
BILLING FEES
2011 • $382,256
2012 • $384,500
2013 • $366,819
2011 • $12,885
2012 • $12,650
2013 • $13,401
BREVARD COUNTY (SEWER)$1.59 PER BILL
COCOA BEACH (SEWER)$3.00 PER BILL
2011 • $167,519
2012 • $175,000
2013 • $177,689
2011 • $526,433
2012 • $550,000
2013 • $509,505
RECLAIMED WATERSALES
LATE FEES 1.5%$5.00 MINIMUM
2011 • $27,700
2012 • $35,000
2013 • $21,973
RECORDING FEESAdministrative Fee $25.00Recording Fee $25.00
RefundsSection VI
A) History of water and sewer adjustments
B) Approval process
C) Melbourne City Code Sec. 32.308(d) LEAK ADJUSTMENTS:
Pool Fill Pool Refill Slab Leaks Special City Manager Request
SEWER CREDITS WILL NOT BE GRANTED FOR: Broken or leaky water lines where the water enters
the sanitary sewer system (leaky toilets or inside faucets)
Water used for irrigation Negligent use of water Undetermined use of water
YEARNUMBER OF ACCOUNTS
GALLONSIN THOUSANDTHS
DOLLARAMOUNT
2011 436 15,036.1 $91,953.47
2012 466 22,031.5 $140,102.79
2013 424 26,571.8 $113,108.70
SEWER ADJUSTMENTS
WATER ADJUSTMENTS
YEARNUMBER OF ACCOUNTS
GALLONSIN THOUSANDTHS
DOLLARAMOUNT
2011 130 12,243.5 $52,183.58
2012 117 13,338.4 $57,376.08
2013 101 11,178.2 $49,869.64
Mandatory Hook-upSection VII
WATER AND SEWER IMPACT FEES
WATER AND SEPTIC SYSTEM
WATER ONLY
ANNEXATION – BILL GARBAGE ONLY (TEMPORARY)
MAY BILL BASED ON A FIVE-YEAR LINE EXTENSION PAYMENT PLAN – INTEREST INCLUDED
Application ProcessSection VIII
A) Refundable Security Deposit – Residential ¾” MeterB) $43.00 Water and $77.00 SewerC) Non-refundable Initiation FeeD) Rental LeaseE) Picture Identification – Driver’s License/PassportF) Ownership Documentation or HUD StatementG) Annual Water and Sewer RatesH) ERC Where ApplicableI) ERC Computation for Multi-family & Commercial Accounts
Exemption from Security Deposit: Twelve Consecutive Months of Good Pay History at a Prior Address
Note: May Relinquish Capacity in Writing or After 12 Months, Pay Impact Fees or Pay Water and Sewer Base Charges
CollectionsSection IX
BANKRUPTCY
A) Bankruptcy Court Documentation – Bankruptcy Date
B) Compute Bankruptcy Amount – Amount Written Off
C) New Account Established – Post Bankruptcy Date
D) Type of Bankruptcy – Chapter 7, Chapter 11, etc.
E) Receivership – Receiver Pays Utility Bills(legal document) Required to Change Name
LIENS AND COLLECTION AGENCIES
A) $100.00 Minimum Balance to Place a Lien
B) Lien on Owner Account
C) Probate Documentation/New Owner to Establish Service
LIENS FILED LIENS RELEASED
LIENS
Following Lien Schedule for Liens and Lien Releases
2008 – 2011 Liens Gradually Increased
YearNo. ofLiens
Revenue
2011 237 $68,661.80
2012 455 $149,482.55
2013 303 $91,479.97
YearNo. ofLiens
Revenue
2011 215 $57,871.09
2012 333 $97,981.32
2013 403 $137,667.36
Cut-off PolicySection X
Automatic Meter Reader (AMR) Meter
ADE Meter with AMR Data Profile Capability:
Hourly Water Consumption Program – Graph
Downloaded and Formatted into Word Format
Manual Meters are Converted to AMRs
Remote Meter
Commercial/Multi-Family Units
5 Days Before – Notice Posted on Premise at Individual Units
Certified Letter Sent to Owner - $250 Connection Fee
BILLING ERRORS
A) Billing Adjustments for Incorrect ReadsB) Utilize the High and Low ReportC) Estimated Bills – Flooding, etc.D) Utilize Skipped Bill Report
THEFT OF WATER
A) Fraudulent LeaseB) Squatters – ResidenceC) Former Owners Renting Their Foreclosed PropertyD) Account in a Different Customer’s Name – to Avoid
Existing BalanceE) Accounts Left in Owner’s Name
COORDINATION WITH CHARITIES
A) VouchersB) Shut Off for Delinquent BillsC) Utility Bill Balance – No Security Deposit
CUT OFF POLICIES AND PROCEDURES
A) Threshold Balance–Equal to or Greater than $75B) Monday, Tuesday, Wednesday, ThursdayC) Melbourne, Beaches, Eau Gallie (Schedule)D) Shut Off Date is Noted on BillE) Shut Off a Week After date Stated on Bill;
i.e., Shut Off Date 9/16/13; Shut Off 9/23/13
Approximately 900 Accounts Shut Off Monthly
PROCESS
Check Special Condition Notes
Date Generated
Work Orders
EFT
Text
Account Inquiry
900 Metered Accounts Shut Off per Month
MAY JUNE JULY AUG SEPTC1 611-650 35 53 50 49 31C1 110-119 44 42 45 44 37C1 120-124 24 22 38 28 26C1 205-221 39 43 55 53 45
C2 655-745 65 34 59C2 127-139 40 68 26C2 140-150 58 75 34C2 222-250 43 79 47
C3 817-870 34 37 43 57 44C3 151-155 21 23 32 40 26C3 156-162 70 54 30 81 62C3 254-337 52 68 28 58 74
C4 912-957 14 28 27 37 20C4 170-181 72 85 83 85 62C4 182-191 37 28 40 43 27C4 341-411 14 10 16 24 15
# OF ACCTS ON SONP LIST
MAY JUNE JULY AUG SEPTC1 611-650 $75.00 $75.00 $75.00 $75.00 $100.00C1 110-119 $75.00 $75.00 $75.00 $75.00 $75.00C1 120-124 $75.00 $75.00 $75.00 $75.00 $75.00C1 205-221 $75.00 $75.00 $85.00 $75.00 $75.00
C2 655-745 $75.00 $115.00 $75.00C2 127-139 $75.00 $75.00 $115.00C2 140-150 $75.00 $75.00 $115.00C2 222-250 $75.00 $75.00 $85.00
C3 817-870 $75.00 $75.00 $75.00 $75.00 $75.00C3 151-155 $75.00 $75.00 $75.00 $75.00 $75.00C3 156-162 $75.00 $75.00 $100.00 $75.00 $75.00C3 254-337 $75.00 $75.00 $125.00 $115.00 $75.00
C4 912-957 $75.00 $75.00 $75.00 $75.00 $75.00C4 170-181 $75.00 $75.00 $75.00 $75.00 $75.00C4 182-191 $75.00 $75.00 $75.00 $75.00 $75.00C4 341-411 $75.00 $75.00 $75.00 $75.00 $75.00
MINIMUM $$$ ON SONP LIST
Opportunity To Increase PaymentSection XI
OPPORTUNITY TO INCREASE EASE OF PAYMENT BY: Drop Box Outside City Hall Drop Box in the Lobby of City Hall ACH – Checking, Savings (Requires ACH Form) Online Payment Access - Website
PAYMENT VIA PAYMENT PROCESSOR: Visa Mastercard Discover American Express
($2.50 FEE FOR INCREMENTS OF $100.00)
PAYMENT VIA E-CHECK: Checking Account Savings Account
($2.70 FEE FOR E-CHECK)
Questions & AnswersSection XII
Appendix MaterialSection XIII
Ingrid Gaskin-FriarCity of Melbourne Customer Service Manager
321-608-7160 [email protected]
Ms. Ingrid Gaskin-Friar joined the City of Melbourne in 1989. Ms. Gaskin-Friar has been the City of Melbourne Customer Service Manager for the past15 years, where she manages Utility Billing and Collections and the Revenue Division, supported by a staff of 21 employees.
Prior to serving as the City’s Customer Service Manager, Ingrid worked as the City of Melbourne Grants Administrator for 9 years, where she prepared grant applications and managed thousands of dollars in grant projects. Ingrid worked as a Tax Auditor with the State of Florida Department of Revenue in 1988, after holding several positions as staff accountant in the private sector and banking institutions.
Ingrid received a MBA in 1993 from Florida Institute of Technology, Melbourne, FL and a BS in Public Accounting from Fordham University, Bronx, NY.
Ingrid served as President of the Space Coast FGFOA Chapter from 2011-2013, is a 2013 Chairperson on Treasury/Debt Section Subcommittee of FGFOA School of Government Finance, and since 2005 has served as Treasurer of the Laurelwood Home Owners’ Association.