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Request for Action <br /> <br /> <br />To Item Number <br />Mayor and City Council 9.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session May 15, 2017 Cal Portner, City Administrator <br />Item Description Reviewed by <br />Policy for Over/Under-Billed Utility Accounts Jennie Nelson, ERMU <br />Reviewed by <br />Jesse Dorn, Asst. Finance Director <br /> <br />Action Requested <br />Receive information and provide staff direction. <br /> <br />Background/Discussion <br />Elk River Municipal Utilities (ERMU) has migrated to a robust, state-of-the-art utility billing and <br />management system and had previously reorganized their customer service division to improve <br />accountability and meet growing demands relating to territory acquisition. <br /> <br />They are now able to more effectively internally audit their utility accounts to ensure accurate billing. The <br />city contracts with ERMU for garbage, sanitary sewer, storm water utility, and franchise fee (streets). <br /> <br />As a result of ERMU’s internal audit work, there a number of accounts that will be corrected. Some of <br />which favor the customer and some of which impact the customer. There is very little statutory direction <br />or city policy regarding over/under-billed utility accounts. The electrical utility may only collect up to one <br />year of past billing and is required to remit payment back three years. <br /> <br />Because these are enterprise funds, the customers (ratepayers) cover the annual operational and capital <br />costs and if there is a deficit, rates are increased. <br /> <br />This discussion will provide policy guidance where none exists for over/under billing. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> N/A <br /> <br /> <br />