The amount of deposit required for a utility deposit may be lowered for some Clinton residents in the future.
Clinton City Manager Frank Stovall asked Council to consider amending city policy for utility deposits during Monday’s council meeting. He explained that the city contracts with a reporting agency, similar to a credit agency, in determining the level of deposit required. The agency rates based on the prior history of new customers with other utility providers.
The problem, according to Mr. Stovall, is that there are some who have a lengthy good payment record already with the City of Clinton utility department but are still rated as high risk. The reason?…….if they’ve been customers of Clinton’s utilities for years they probably have no other utility history to check. So, if a good paying customer moves from one side of town to another they may face what they deem a high deposit in order to start service again. Mr. Stovall asked council for the authority to take the known payment record of those customers into account and not rely completely on the credit agency. Council approved the change unanimously.
Council also approved another change specifically for individuals who are rated as high risk and therefore are required to pay a higher deposit. Mr. Stovall asked council to amend policy to allow him to offer a 50% discount on the required to deposit IF the customer would agree to participate in the city’s bank draft payment program.
He explained that with the bank draft the city knows on the due date whether payment will be made that month. They can react quicker and not allow huge bills to be created while they search for the customer to ask for payment. Council also approved that change, again by unanimous vote.