|The city uses Frey accounting software for utility billing, accounts receivable, accounts payable, and payroll. This software encompasses three integrated modules: the Cubic utility billing and control system, the Chips payroll system, and the Bucs general fund accounting system. The city administrator has reported that together, these systems operate effectively, particularly the utility billing and control module. The payroll and general fund modules are not as user-friendly as the others, but still meet the utility's accounting needs. A manual receipt book system is used to record incoming funds, which are subsequently entered into the Frey accounting system. The same receipt book is used for all payments made to the city. Bank deposits for incoming funds are deposited weekly, bills are paid once or twice per week as they are received, and bank reconciliations are performed monthly. The utility uses both purchase orders and request for checks which are reviewed and signed by the city administrator.
The governing body has an adopted collections policy which is strictly enforced with delinquency notices, service disconnections, late fees, and reconnection fees. By actively enforcing the policy contained within their utility ordinance, the city has achieved an acceptable collection rate.
Utility bills are sent out on the first working day of the month and late fees are assessed on the 25th of the month. If an account is delinquent for more than 60 days, the account is brought before the utility committee for recommendations on collection actions, which typically include disconnection of service. |