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Graham council approves new letter-size utility billing format, permits $5,000 startup cost
Summary
Council authorized the finance director to implement a new full‑size letter billing format (replacing postcards) and approved up to $5,000 for initial equipment and setup; staff said the change will enable emailed bills and long-term savings.
The Graham City Council on May 20 authorized the finance director to implement a new letter-size utility-bill form and approved up to $5,000 for initial costs. Councilmembers and staff said the change is intended to improve postal processing, reduce manual labor and enable emailed billing in the future.
Finance Director Marcy explained the change is driven by postal-sorting problems with postcards and the limited local ability to maintain a specialized cutting machine. Staff provided a cost comparison: current postcard postage averages about $0.44 each; a first-class letter postage estimate of $0.69 was used in the packet while Marcy seeks final confirmation from the postmaster. Marcy said buying an output-processor server from Encode (to enable emailed bills and other system outputs) carries an annual cost of about $2,800 plus a one-time professional-services setup fee.
Startup cost: staff presented a reduced initial outlay of $5,000 (down from earlier estimates) to lease a folding/envelope-stuffer machine and cover initial expenses. Recurring costs include the Encode output processor (approx. $2,800 per year) and quarterly lease payments for the folding/stuffer (quoted at $766.20 per quarter). The department estimated the city mails just under 4,500 bills per month; staff said electronic billing uptake could materially lower postage and printing costs over time.
Motion and outcome: Councilmember Jack moved to approve item 13; Councilmember Shanna seconded. The motion passed by voice vote.
Staff direction: Finance staff will finalize postage-rate verification with the postmaster, proceed with leased equipment and set up the Encode output processor to enable future emailed bills and other digital outputs.
