Section 12.10.040 Customer deposits.

1. The director may require from any customer or prospective customer a deposit intended to guarantee payment of bills for utility services rendered by the city. A new or additional deposit may be required upon reasonable notice of the need for such a requirement in any case where a deposit has been applied to an unpaid bill, refunded, found to be inadequate, or where a customer's credit standing is not satisfactory to the director. The total deposit shall not be less than forty dollars per service requested nor more than the maximum estimated charge for service for thirty days.

2. The city shall keep records to show the name and address of each depositor, the amount and date of the deposit, and each transaction concerning a deposit. The city shall issue a receipt of deposit to each customer from whom a deposit is received.

3. The deposit may be refunded upon request of the customer after twelve consecutive months of prompt payment of utility bills and without such request shall be refunded by the city after thirty-six months of prompt payment, unless the city has evidence to indicate that the deposit is necessary to insure payment of bills for all utility services. The deposit shall be refunded when the customer has paid the final billing upon termination of his service.

4. A record of each unclaimed deposit must be maintained for at least one year, during which time the city shall make a reasonable effort to return the deposit. Unclaimed deposits, together with accrued interest, shall be disposed of pursuant to Chapter 556 of the Code of Iowa. (Ord. 2002-0692; 98/U-6342; 96/U-3987; S-40615, 1980)