Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Billing Dividend Fee topic
No spam. Unsubscribe anytime.
Hastings staff to add 'dividend fee' to October bills; council to set final amount Monday
Summary
Staff told the Hastings Utility Board they will add a newly named "dividend fee" (replacing the prior PILOT line) to October bills and run test billing; council will consider a possible $500,000 increase on Monday, and staff urged clear public messaging to avoid customer confusion.
Hastings Utility staff told the board on Sept. 11 that the city council has passed ordinances changing the existing PILOT line on utility bills to a new "dividend fee," and staff plan to include a simplified explanatory item on October bills. The simplified illustration will appear on the bill printout while a more detailed breakdown and explanatory web page will be available for customers seeking further information.
JC presented two bill examples — a simplified version for the bill insert and a more detailed breakdown for the website — and staff emphasized the intent is not to change customers’ net charges if the fee percentage remains the same. Several board members warned the word "dividend" can mislead customers into thinking they will receive money back; staff acknowledged the naming risk and said the city chose the label to align with regional peers.
Staff told the board the council will consider the fee as part of the budget and may adjust the amount at its Monday meeting. The presenter said the original plan was to hold the fee flat, but budget pressures mean the council is being asked to consider roughly $500,000 more than originally planned; staff said they would update outreach materials if council changes the amount.
Carl, who oversees utility billing, briefed the board that most legacy billing issues have been resolved, that dividend-fee line items will be inserted for October billing and testing is scheduled, and that budget-billing customers will see a normal bill in October (September is the reconciliation month) before budget billing resumes Nov. 1. Board members raised complaints about automated shutoff texts displaying an 877 number and asked whether 24-hour shutoff notices can be extended for medically vulnerable customers. Carl said customers receive multiple prior notices and that medical extensions (often up to 30 days with documentation) are available; staff encouraged customers with concerns to contact customer service.
Staff requested the board’s help in ensuring clear communications to customers if the council’s Monday decision differs from the examples provided.
