9.1. SR 05-15-2017Request for Action
To Item Number
Mayor and City Council 9.1
Agenda Section Meeting Date Prepared by
Work Session May 15, 2017 Cal Portner, City Administrator
Item Description Reviewed by
Policy for Over/Under-Billed Utility Accounts Jennie Nelson, ERMU
Reviewed by
Jesse Dorn, Asst. Finance Director
Action Requested
Receive information and provide staff direction.
Background/Discussion
Elk River Municipal Utilities (ERMU) has migrated to a robust, state-of-the-art utility billing and
management system and had previously reorganized their customer service division to improve
accountability and meet growing demands relating to territory acquisition.
They are now able to more effectively internally audit their utility accounts to ensure accurate billing. The
city contracts with ERMU for garbage, sanitary sewer, storm water utility, and franchise fee (streets).
As a result of ERMU’s internal audit work, there a number of accounts that will be corrected. Some of
which favor the customer and some of which impact the customer. There is very little statutory direction
or city policy regarding over/under-billed utility accounts. The electrical utility may only collect up to one
year of past billing and is required to remit payment back three years.
Because these are enterprise funds, the customers (ratepayers) cover the annual operational and capital
costs and if there is a deficit, rates are increased.
This discussion will provide policy guidance where none exists for over/under billing.
Financial Impact
N/A
Attachments
N/A