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Lowell considers ending penny change for cash utility customers
Summary
City staff reported about 25% of Lowell's roughly 660 utility customers pay by cash and presented a rounding model that would change customer balances by an estimated $0.12–$0.18 per month across the system; staff recommended applying any residual cents as a credit and will await Banner Bank guidance before returning with a recommendation.
City Administrator Max Baker said the city is evaluating whether to stop providing penny change to cash-paying utility customers, noting about 25% of the city's roughly 660 utility accounts (approximately 165 customers) pay in cash. City Accountant Layli Nichols presented a rounding model based on a formula used by a peer municipality that produced a negligible net difference across customers—about $0.12–$0.18 per month in aggregate effect, according to the staff analysis.
The simplest operational option discussed was to forego penny-level returns and apply any residual cents as a credit to the customer's next utility bill. Baker said staff will await guidance from Banner Bank and monitor peer responses before bringing a formal recommendation to the council. No formal action was taken during the work session.
