BILLING AND COLLECTIONS AWWA Leadership Forum Session Two November 10, 2009

Billing Employees Software: Billing Meter reading Customer service Service/work orders Payment processing Report generation Notes on accounts Hardware: Desktop/laptop computers, servers Meter reading equipment GIS equipment

Meter Reading Meter readers Gather readings from downloaded customer inf. Read, touch-read, radio read, fixed network Read by route within cycle Read daily, weekly, monthly Seasonal readings

Billing Department Download customer information into reading equipment Upload readings into billing software Review readings Generate report for re-reads, etc. (set threshold for high reads)

Billing Department Electronically compile reading data into bills Information on bills include usage, payments, reading dates, due dates, messages, etc. Send bill file electronically or print bills Be flexible on contents and format of bill

Printing Bills In-house Staff reviews, approves, and sends Control in timing of billing and mailing Labor intensive Specialized equipment Investment in equipment Supplies, i.e. paper, toner, Higher postage costs

Printing Bills, cont’d. Outsource: Send, review, approve electronically Process statements quickly Save money Labor, mailing costs, inventory mgt. expenses, decrease equipment acquisition, and maintenance costs Update addresses each billing period Increase productivity-reallocate staff time to higher valuable uses Offer other services such as online and over-the-phone payments

Elements of Billing Statements Easy to read Professional appearance Include pertinent information Electronic statements; view online and/or send via Supply return envelope

Billing/Due Dates Billing frequency Utility sends out weekly, bi- weekly, monthly, etc. Customer receives monthly or every other month Bills need to be sent out timely Lag time from reading to bills to customers Due date 30 days from date of billing Penalty or interest charge for late payments

Paying the Bill Payment of bill: Offer multiple payment options Auto-pay, online, financial institution, over the phone, in person, mail, night drop, external vendors, equal pay Pay by credit/debit card, check, cash Possible incentive for auto- pay/online participation Credit/debit payments are processed through 3 rd party

Receivables Accounts Receivable: Receivables processed daily Receivables processed daily Balance daily Balance daily Bank deposits daily Bank deposits daily Check processing equipment Check processing equipment Provide G/L codes for various types of payments Provide G/L codes for various types of payments

Collections CSR’s are primary contact with customers and act as collection agents Empower CSR’s to provide great service and work with customers on payments Most customer’s pay on- time Special Circumstances: Special arrangements Payment assistance programs Adjustments

Collection of Delinquencies Have a tracking system for missed payments Have a collection policy Set monetary/date threshold trigger Send out past due letters Make arrangements Send out “final notices” Make arrangements Reduce disconnects Disconnect (daily, weekly, monthly)

Collection of Delinquencies Reconnection fees Reconnection fees Same day reconnects Same day reconnects After-hours reconnects After-hours reconnects Illegal reconnects-fines Illegal reconnects-fines Lien properties Lien properties Outsource Outsource

Collections Staff has to understand billing process Customers should understand billing process Outreach programs: Local Newspapers Newsletter Website CSR’s Billing messages New sign up inf. Public meetings, etc.

In Summary Good sound billing program + Consistent collection policy + Happy informed CSR’s + Happy informed customers = A Happy You!