C. Update on Utility Billing Auto Pay (ACH)
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone 952.227.1100
Fax 952.227.1110
Building Inspections
Phone 952.227.1180
Fax 952.227.1190
Engineering
Phone 952.227.1160
Fax 952.227.1170
Finance
Phone 952.227.1140
Fax 952.227.1110
Park & Recreation
Phone 952.227.1120
Fax 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone 952227.1400
Fax 952.227.1404
Planning &
Natural Resources
Phone 952.227.1130
Fax 952.227.1110
Public Works
1591 Park Road
Phone 952.227.1300
Fax 952.227.1310
Senior Center
Phone 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
e
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MEMORANDUM
TO:
Mayor
City Council Members
&,tzo'l-- i~
FROM:
Greg Sticha, Finance Director
DATE:
October 9, 2006
SUBJ:
Update on Utility Billing Auto Pay (ACH)
BACKGROUND
One of the goals of the Finance Department in 2006 was to implement ACH, or an
auto pay system where utility customers can have their payment deducted
automatically from a checking or savings account. In June of 2006, the Finance
Department began accepting enrollment forms in the A~to Pay program.
We started out by having a kick-off campaign to encourage registration in the
program. This kick-off campaign ran from July 1st to September 30th, and
includes a drawing for four $50 utility bill credits to those who registered during
this time. Tonight we will be drawing the winners of this early registration
contest.
To promote enrollment in the program, we have advertised in all forms of media
the city has including the website, Chanhassen Connection, Maple Leaf, cable
access, and at the vendor displays during the Fourth of July celebration. We plan
to continue our aggressive promotion of this program.
The industry average for ACH or Auto Pay participation is about 12% to 15%. It
is the Finance Department's goal to achieve a 20% (or 1,700 accounts)
participation rate within one year of starting the program. If the goal is reached, it
could save the department at a minimum two to four hours a week in processing
utility payments, which on an annual basis would be hundreds of hours or as much
as $4,000 per year in wage costs to be performing other finance duties.
As of September 30, 325 accounts have been enrolled in the Auto Pay program.
This is about a 4% participation rate during the early kick-off program.
The City 01 Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A glllat place to live, work, and play.