2018-014 CS Credit & CollectionsDate: February 9, 2018 Report No. 2018-014
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Credit and Collections follow-up information regarding uncollectable debt by category for fiscal
years 08/09-15/16 and payment options available for customers.
BACKGROUND:
Customer Service presented information to the Public Utilities Board and City Council in
October, November, December 2017 and January 2018, regarding the Credit and Collections
policies of the Utility system. On January 9, 2018, City Council approved changes to the Credit
and Collection policies in Ordinance 2018-16.
Two items were requested by the Public Utilities Board as follow-up for information. The first
item request is the breakdown of uncollectable debt by category for fiscal years 08/09-15/16. The
second item was clarification on customer payment options and fees associated with payments.
DISCUSSION:
Uncollectable Debt by Category
Debt is deemed uncollectable 180 days after the final bill has been produced. The type of debt is
broken down by category (Multifamily, Residential and Commercial). The fiscal years 08/09-
15/16 uncollectable debt by category is provided below:
Payment Options
The City of Denton offers multiple convenient payment methods and channels to pay a utility
bill. These options include:
Online at www.cityofdenton.com
o Electronic Check
o Credit/Debit Card
o Capability for one-time payment, future date and re-occurring payments
Calling Customer Service (940)349-8700
FY 08/09 FY 09/10 FY 10/11 FY 11/12
Multifamily $275,775 Multifamily $272,322 Multifamily $200,637 Multifamily $217,854
Residential $522,500 Residential $454,425 Residential $310,359 Residential $299,680
Commercial $676,558 Commercial $410,229 Commercial $161,100 Commercial $105,762
Total $1,474,833 Total $1,136,976 Total $672,096 Total $623,296
FY 12/13 FY 13/14 FY 14/15 FY 15/16
Multifamily $218,944 Multifamily $255,627 Multifamily $228,558 Multifamily $210,674
Residential $268,548 Residential $306,439 Residential $297,665 Residential $245,442
Commercial $111,512 Commercial $132,066 Commercial $89,147 Commercial $80,364
Total $599,004 Total $694,132 Total $615,370 Total $536,480
Date: February 9, 2018 Report No. 2018-014
o Pay directly with a Customer Service Representative
o Pay through the Interactive Voice Response (IVR) system
Signing up for auto draft using a checking/savings account
In person at our Customer Service lobby located at:
o City Hall East, 601 E Hickory St. Suite F. Monday-Friday, 8-5
Payment Kiosk located at:
o City Hall East, 601 E Hickory St. Suite F.
o Available 7 days a week, 24 hours a day
Drop Box Locations
o Blue drive through drop box located in City Hall East parking lot
o Outside drop box located at the front door of City Hall East
Both above options are available 7 days a week, 24 hours a day
o Lobby drop box located inside Customer Service lobby. Monday-Friday, 8-5
Mail payment to:
o PO Box 660150, Dallas, TX 75266-0150
Any retail location that has Fidelity Express or Money Gram
The only time a Residential customer would pay a fee is at a retail location (Fidelity Express and
Money Gram). The fee is collected by the retailer and varies depending on what the customer
chooses but typically ranges from $0.88-$2.00.
Commercial accounts have all the same payment options as a Residential account however, they
are charged a 2.7% fee when paying with a credit/debit card online, over the phone with a
Customer Service Representative or by using the Interactive Voice Response (IVR) system.
The above fee was implemented on December 1, 2014 (City Ordinance 2014-073), in response to
the excessive and increasing fees being charged to the City of Denton as a result of the increased
use of reward cards being used by Commercial accounts. Prior to the 2.7% fee being
implemented, Commercial cards accounted for 58% of processing fees, while only being 8% of
total credit/debit card transactions. After the fee was implemented, processing fees decreased by
50%.
Commercial accounts are alerted to the 2.7% fee prior to making the credit/debit card payment
and are provided the option to either accept the fee or opt out and choose a no cost payment
method. They are also able to use any of the other payment options available to Residential
customers as a way to avoid the cost.
The City does not charge a fee to Residential accounts that choose to pay their utility bill using a
credit/debit card. Furthermore, there is no charge associated with Residential or Commercial
accounts to change the credit/debit card, or banking information for draft that is on file.
STAFF CONTACT:
Tiffany Thomson, Customer Service Manager
(940)349-7401
Tiffany.Thomson@cityofdenton.com