4.6. SR 09-18-2017 EGty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.6
Agenda Section Meeting Date Prepared by
Consent September 18, 2017 Cal Portner, City Administrator
Item Description Reviewed by
Under/Over-billed Utility Account Billing Policy Lori Ziemer, Finance Director
Reviewed by
Jennie Nelson, ERMU Customer Service Manager
Action Requested
Approve,by motion, a policy to guide the billing for over and under billed utility accounts.
Background/Discussion
Occasionally staff will find utility accounts which were under or over billed due to clerical or other
oversite.
The city contracts with ERMU to provide utility billing and collection. ERMU has recently migrated to a
state-of-the-art billing software which enables a more efficient audit of accounts to ensure proper billing.
With ERMU's recent territory acquisition within the City of Elk River,we have identified accounts that
were improperly billed.
The Council expressed consensus in work session to bill city utility accounts in a similar fashion as
ERMU corrects their water and electrical accounts. The new policy reflects that direction.
Financial Impact
N/A
Attachments
■ Under/Over-billed Utility Account Billing Policy
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAWRE1
city of
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Over/Under-billed
Utility Account
Policy
Over/Under-billed Utility Account Policy
Overview
Purpose
This policy provides guidance for City of Elk River utility accounts in cases in which a customer was over-
billed or under-billed due to a clerical or other error on the city's part.
Authority
This policy is approved by the Elk River City Council and may only be amended by City Council motion or
resolution.
Policy
Overview
The city contracts utility billing and collection to Elk River Municipal Utilities. Due to policy,procedural,
clerical or other changes and errors the potential exists for residential and commercial properties and/or
entities to be under-billed or over-billed for city utility accounts. This policy provides a fair and consistent
means to rectify such accounts with respect to the City of Elk River,its residents, and account holders.
Under-billing
In a situation in which it is found a utility account was not identified or under-billed, the city shall bill and
receive payment for past billing for a period not to exceed 12 months from the current billing cycle. The
city shall not receive or accrue interest charges for under-billing.
Over-billing
In a situation in which it is found a utility account was improperly over-billed, the city shall reimburse the
customer the full amount of the excess billing for the period of error not to exceed the previous three years
from the date of the last billing. The city will include interest at a rate in accordance with Minnesota
Statutes Section 35E.02 for the period of overbilling. Refunds and/or credits will be determined by city
staff.
Policy History