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DATE April 22, 1986 <br />TO Honorable Mayor Benson and City Council Members <br />FROM Marilyn G. Anderson, Clerk -Treasurer <br />SUBJECT: Municipal Water System Deposits <br />Attached you will find Mr. Hawkins opinion on the legality of <br />the water deposits the City presently requires of all new re- <br />sidents on the City water system. <br />As I have told Mr. Hawkins, the new computer system cannot acc- <br />ount for the deposits. Although I am sure we will not have an <br />accounting problem I am asking the Council to remove this sect - <br />tion from the City Code and as each homeowner moves from his <br />current residence the staff will return the deposit. Event- <br />ually all these deposits will be returned and we will not have <br />to account for them. <br />There are two reasons I make this request. First, the amount <br />of the deposit, $35.00, rarely covers one quarters charges let <br />alone six months charges. The second reason is that in October <br />of each year I certify to the County all past due accounts. I <br />have always collected past due accounts in this manner. This <br />also makes bookkeeping simplier. <br />I have never had a problem returning the $35.00 deposit by re- <br />ducing the final bill by that amount. I have never returned <br />any interest. I would ask for your opinion as to whether or <br />not I should be returning interest as well. <br />Thank you for your consideration of this matter. <br />• <br />