Castle Dale council discusses two‑billing‑cycle utility deposit proposal; public hearing set for October

Castle Dale city staff presented a proposal to require new utility customers to pay a security deposit equal to two billing cycles — described in the meeting as roughly $150 — to reduce the number of accounts that close with unpaid balances.

City staff told the council that, historically, when customers move and leave unpaid utility balances the city often absorbs the loss; the two‑cycle deposit is intended to cover at least one billing cycle so the city is not left liable. Staff described the proposal as a change to the fee schedule that will require a public hearing and a formal ordinance amendment.

Council discussion focused on notice and process. Council members asked staff to circulate the proposed language to the public and to advertise a hearing at the October meeting so residents and stakeholders can comment before a vote. No final action or vote was taken at the September meeting.

What was said: Staff described the deposit as "around $150" and noted the city’s current late‑fee and shutoff practices; the preferred approach was to capture two cycles up front so the city has coverage if a customer leaves before paying a first bill. Council asked whether the deposit would be posted on the utility application and discussed the legal requirement to publish and hold a hearing for fee schedule changes.

Next steps: Staff will draft ordinance language, post public notice for an October hearing and circulate the proposal to council members for review. Council members requested time to provide suggestions during the month.

Ending: The item remains a discussion item; the council directed staff to return a public‑notice package and draft ordinance for the October meeting.