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Fountain Council adopts updated utilities fee schedule, increases some deposits and switches to a percentage late fee
Summary
After extended debate, the Fountain City Council on April 28 adopted Resolution 26‑025 to update its utilities fee schedule. The council approved higher initial deposits for some services, removed the double‑deposit penalty, set a supplemental‑deposit rule and changed the late fee to 6% of the bill; the motion carried 6‑1.
The Fountain City Council voted April 28 to adopt an updated utilities fee schedule designed to recover specific costs for water and electric services without raising base rates.
Council and staff spent more than an hour on the proposal, which staff characterized as “fees” not a general rate increase, and said the changes aim to align charges with current costs and minimize upward pressure on monthly rates. After a motion and amendment, the council adopted the schedule with measures including higher initial deposits for some accounts, elimination of a planned “double deposit” surcharge for new customers with poor utility credit records, retention of a supplemental‑deposit rule for recurring nonpayment or diversion, and a shift from a flat $10 late fee to a late fee equal to 6% of the unpaid bill (applies to residential and commercial accounts). The motion carried 6‑1.
Staff overview and rationale Brett Robinson, the utilities customer‑service manager, told the council the proposed changes do not raise monthly rates but target one‑time or situational fees for customers who request special services or who create additional costs for the utility, such as after‑hours reconnections or meter testing. Robinson said the update uses current cost data and, in some cases, the Consumer Price Index to bring fees up to date. He gave examples: staff will continue to provide an in‑house electric meter test for the first request, but repeat or specialized testing may carry a fee; some removal/reinstallation charges were removed; and after‑hours field work will be billed at full burden labor costs to recoup overtime and equipment expenses.
Deposits, credit screening and supplemental deposits Council members asked how the utility determines whether to waive an initial deposit. Staff said the city uses a third‑party utility scoring service (Online Utility Exchange) that draws on utility, phone and cable payment histories (soft inquiry). Customers with a qualifying score may have the deposit waived; otherwise they pay the standard initial deposit. The package proposed increasing initial deposits (for electric from $150 to $195, for water from $50 to $65, and an illustrative combined initial deposit from $250 to $320 depending on services). Council debated a proposed “double deposit” (for new customers with poor scores); after discussion the council removed the double‑deposit rule from the adopted language.
Supplemental deposits apply to existing customers who are considered “high risk” — examples given included three disconnections for nonpayment in 12 months, multiple bounced checks, or diversion/ theft. In those cases staff said they may require either three months’ customary billing or a minimum supplemental deposit; during debate the council approved the supplemental‑deposit approach and specified the minimum used in the motion.
Late fees and nonpayment charges The council approved replacing the flat $10 late fee with a percentage approach to make late charges proportionate to account size. Staff said 6% of the unpaid bill would better equitably allocate charges across low‑use and high‑use accounts and applies across residential and commercial accounts. Staff also confirmed that a portion of collected late fees (12%) funds the utility assistance program.
After‑hours reconnection, physical reconnects and labor costs Council reviewed fees tied to physical reconnections (meters that cannot be remotely controlled) and after‑hours work. Staff said some meters remain on older technology or were opted out by customers, requiring a crew to travel and physically reconnect; fees are meant to recover crew time and equipment, with charges placed on the customer’s next bill. Council also accepted staff’s proposal to bill field labor at a “full burden” cost (wage plus benefits) and to allow adjustments as labor costs change rather than returning to council every time.
What was adopted Council members summarized the changes on the record before voting. The final motion as read into the record eliminated the double‑deposit penalty, kept the supplemental‑deposit provision as described in the adopted motion, updated initial deposits for electric and water as proposed, adopted the 6% late‑fee structure, and authorized staff to apply full burden labor costs for field work going forward. The motion passed 6‑1.
Why it matters City staff said the fee schedule updates are designed to ensure customers who request or cause additional services bear the direct cost, reducing pressure on the base rate structure shared by all ratepayers. Council members pressed staff on protections for low‑income or fixed‑income residents; staff and some council members noted existing assistance programs and said they will continue outreach to sign up eligible residents for bill assistance and autopay options.
The council approved Resolution 26‑025 and moved the updated fee schedule into effect as directed by the adopted motion. The city clerk recorded the vote as 6 yes, 1 no.
The next step Staff will implement the revised fee schedule, update billing systems, and continue outreach about assistance programs and online payment options.
