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Council discusses utility shutoff notices, surcharges and push for online/ACH payments
Summary
Staff presented utility billing trends, a drop in shutoffs for 2025, and options to improve customer notification and payment enrollment, including a proposed text-notification pilot and incentives to sign up for ACH payments; no formal ordinance change or motion was made.
City utility billing staff updated the Dell Rapids City Council on shutoff trends, billing procedures and possible improvements to customer notification and payment options.
Britney Nelson, who identified herself with utility billing, said the city stopped sending separate shutoff letters in January 2024 after bringing billing in-house; since then shutoffs in 2025 have declined compared with 2023, when a staffing gap caused a spike. Britney said most shutoffs are repeat customers and that shutoff and reconnection fees can make delinquency expensive for customers.
Council members raised concerns about mid-month double surcharges when customers change service locations; staff said surcharge language is written into the ordinance and would require an ordinance change to prorate or alter. Staff also discussed notification practices: current practice uses the billing statement (with a past-due stamp) as the notice; some council members asked whether a more direct notification (text, email, or door hanger) could be used for shutoff-day warning. Staff said challenges include incomplete phone or email records, the manual effort of door hangers, and the variable timing of shutoffs due to weather or staffing. The city has an automated messaging system that could be used for messages to groups but may need configuration to target shutoff lists.
Council expressed general support for exploring a text-notification pilot and for staff efforts to increase online billing and ACH enrollment; staff said a council motion would be needed to offer incentives (bill credit or similar) for sign-ups. Staff will draft options for an outreach push to increase electronic payments and examine notification approaches; no binding directive or ordinance change was adopted at the meeting.
Why it matters: Changes to notification and surcharge practices could affect many utility customers and city revenue timing; staff emphasized staff capacity and ordinance constraints for any immediate changes to surcharge proration.
