For the purpose of guaranteeing payment of utility bills, there is hereby established a utility security deposit to be required from each customer requiring residential or general utility services from the municipal electric, gas, or water utility systems. Upon the discontinuance of such utility service, the city may apply the said security deposit or so much thereof as is required, toward the payment of any accrued utility bills due from the consumer to the city.

(Code 1961, 4-8-1; Ord. 2638; Code 2023)

The city shall establish and keep a separate account for each customer posting a security deposit, indicating the date the deposit was established, the name of the depositor, and the amount of the deposit.

(Code 1961, 4-8-2; Ord. 2139; Code 2023)

(a)   All residential utility customers receiving electric service, gas service or both such services together with water service shall post a utility security deposit of three hundred fifty dollars ($350.00).

(b)   All commercial utility customers receiving electric service, gas service or both such services together with water service shall post a utility security deposit of one thousand dollars ($1,000.00). On a case by case basis, the City Manager is authorized to reduce the amount of such deposit, taking into account applicable factors tending to suggest lower utility consumption levels, including, but not limited to, the historic consumptions at such location or for a similar type or class of commercial or business at any location; and the nature of the commercial or business activity, particularly the extent to which extensive lighting, refrigeration equipment or other similar, high consumption equipment is not employed. In no event, however, shall such security deposit be reduced below five hundred dollars ($500.00).

(c)   All utility customers of whatever class receiving only water service shall post a utility security deposit of fifty dollars ($50.00).

(d)   Any utility customer, or any person applying to the city for any utility services whose services have been suspended, terminated, or shut off by reason of nonpayment of the charges therefor, or who has failed to pay in full when due any final billing for such, within a period of five (5) years immediately last past, whether such suspension, termination, or shutoff was by the city of Garnett or other utility supplier to the customer at a prior location, or whether such failure to pay final billing as billed by the city of Garnett or other utility supplier, shall be liable to post and maintain a deposit as provided in this article, but equal in amount to twice the amount of the deposit set out and provided otherwise by this section.

(Code 1961, 4-8-3; Ord. 2328; Ord. 3881; Code 2023)

The city shall pay interest on all utility security deposits required, at the rate established by the Kansas corporation commission under the authority granted by K.S.A. 12-822, or any act amendatory thereto. Such interest shall be credited once a year or credited on January 1 succeeding such deposit and on each January 1 thereafter in accordance with K.S.A. 12-822 and acts amendatory thereto.

(Code 1961, 4-8-4; Ord. 3038; Code 2023)

(a)   All utility security deposits shall be refunded, with accrued interest, upon termination or discontinuance of service:

(1)   To each customer who owes no outstanding account for such utility services, in full; or

(2)   To each customer who owes some outstanding account for such utility services, the balance, if any, after applying the deposit and accrued interest to the payment of such outstanding account.

(b)   The city may, in its uncontrolled discretion, refund security deposits and any accrued interest prior to termination or discontinuance of service in those instances in which the customer has established a twelve (12) month consecutive period of on time payment of monthly utility bills or otherwise has demonstrated credit worthiness. Any customer whose security deposit has been refunded under the provisions of this subsection, but who fails to maintain thereafter consistent on time payment of monthly utility bills, may be required again to post a security deposit in accordance with the deposit requirements then in effect for new customers. A customer who fails to redeposit such security deposit after ten (10) days’ notice thereof, shall be subject to termination of all utility services provided by the city until such deposit is again posted. Notice of the redeposit requirements shall be given by first class mail, postage prepaid, and addressed to the customer at his current billing address.

(Code 1961, 4-8-5; Ord. 2883; Code 2023)

After application for utility service by the customer, such services as required shall be provided upon the customer’s placing the utility security deposit as provided by this article.

(Code 1961, 4-8-6; Ord. 2638; Code 2023)

Any amount of utility security deposit posted under the requirement of this article, together with the accrued interest thereon which remains in the account of any customer who has discontinued service, shall be declared unclaimed upon the following conditions:

(a)   Such money has remained on deposit with the city for a period of more than three (3) years from the date such utility service or services have been discontinued;

(b)   No demand for such money has been made at any time during the said three (3) year period;

(c)   The whereabouts of the person to whose account the money is credited is unknown and remains unknown after a reasonable effort has been made by the city to determine the same; and

(d)   Following the expiration of said three (3) year period the city has published, once each week for two (2) consecutive weeks in a newspaper of general circulation within Anderson County, Kansas, a notice listing the name and last known address of the said person whose deposit remains on account, and notifying such person that demand for such monies must be made within sixty (60) days from the date of the last publication of such notice.

Any security deposit remaining after the said notice has been run shall then be placed in the appropriate utility operating fund.

(Code 1961, 4-8-7; Ord. 2785; Code 2023)