Utility Fund Billings/Collections
The village, as a public body, is accountable for the manner in which utility services are billed, funds are collected, and operations reported.
New Customer Accounts
The utility services cut-off policy is explained to all new customers when they complete/sign the town’s utility services agreement.
Prior to providing utility services to a new customer, the new customers must pay:
$50.00 connect fee for water and sewer services
$40.00 connect fee for gas services if the customer owns the home
$125.00 fee for gas services if customer is renting the home.
Upon termination of services, these connect fees will not be refunded.
The new customer account is to be created/set-up in the utility system software. A work order is generated to secure meter readings for billing the prior customer at that address and establish the beginning reading for the new customer.
Customer Billings
Meter readings are taken on or about the 20th of the month. The town’s meters are manually read and entered into the billing system.
Utility bills are generated and printed in house and the bills are mailed out by the 1st of the month.
The total amount billed each month for each type of service is recorded in the accounting system as an increase in customer receivables and as an increase in revenues of the municipality (e.g., water, sewer, gas, etc.)
All billing adjustments are clearly documented on a Customer Billing Adjustment Report and evidence signed by the person who did the adjustment for review in audit.
Collections
All employees who collect monies or have access must be adequately bonded for insurance purposes.
Customer payments are accepted online, at the town hall drop box or during regular business hours, or through postal services addressed to the town.
Employees who are working with cash register shall ensure that their drawer remains locked while not in use, and shall not permit anyone else to work out of their drawer.
All collections are documented on a receipt slip. Daily payment documentation is maintained in a binder dated for the day a deposit was done.
At the end of a deposit, the billing clerk must prepare a collection/balancing report and ensure that the register balances to $165.00. Any shortages or overages noted must be investigated and resolved immediately.
The total amount collected/deposited each time for each type of service is to be recorded in the accounting system (general ledger) as an increase to cash and as a decrease in customer receivables.
The town clerk is to review and initial the collection reports showing that the report reflects exact amounts on the deposit slips. The town clerk and/or mayor should conduct surprise cash counts periodically during the year.
Monthly Reconciliation of Customer Receivable Balances
Each month, the customer receivable balance reflected in the general ledger is to be reconciled/agreed to the total of customer balances recorded in the utility billing system (subsidiary ledger). Any differences must be investigated and resolved immediately.
Collection of Delinquent Accounts
All accounts are due on the 20th of each month and are considered delinquent after that date. Any accounts not paid in full by the 5th of the following month (unless that date falls on a weekend in which case will be the following Monday) will be disconnected until balance and reconnect fee is paid.
Emergency Situations are considered by the Mayor and Council on a case to case basis at regular town meetings.
