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Published: August 14, 2008
DADE CITY - It's a privilege enjoyed by those who dutifully pay their utility bills on time and don't forget to make a final payment before moving away: a deposit refund.
Dade City has no such provision on the books for its water and wastewater customers, but city officials are weighing a proposal to follow the lead of other Pasco County cities.
Under the proposal, customers who don't miss a payment for at least 24 months would be eligible for a refund on their initial deposits. Customers whose utility service is shut off for not paying their bills would have to pay a second deposit, along with the overdue bill.
Most other cities in the county, including Pasco County Utilities, which serves tens of thousands of households, issue refunds to customers who keep accounts in good standing.
The measure, briefly discussed at Tuesday night's commission meeting, was tabled, but city leaders expect to hold a public hearing on the ordinance.
At issue is whether the city can afford to refund thousands of deposits at a time when it is struggling to maintain services with a drop in property tax revenue.
Mayor Scott Black wondered whether the issue was something residents were concerned about.
"I haven't heard people around town asking for their deposits back," he said.
Black and other commissioners said they were concerned that the loss of revenue could hurt the city financially, especially if customers who are refunded don't pay their final bills.
"This is really just a safety net for the city," City Manager Billy Poe said.
City Clerk and Finance Director Jim Class said he wasn't sure how many customers would qualify for a refund but said a majority have missed payments.
"More than one in four customers pay late," he said.
Class said the city has about $450,000 in deposits in the bank. Commissioners are expected to take another look at the proposal at their next meeting, after city staff members estimate how many utility customers would be eligible.
"I'd like to know how many people are skipping, leaving town without paying their bill," Commissioner Curtis Beebe said.
Reporter Christian M. Wade can be reached at (813)948-4216 or cwade@tampatrib.com.
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