Effective Billing and Collections Strategies

1. BILLING AND COLLECTIONS AWWA Leadership Forum Session One November 14, 2017

2. Billing System • Billing provides revenue • Software: • Billing • Meter reading • Customer service • Service/work orders • Payment processing • Report generation • Hardware: • Desktop & laptop computers, and tablets • Meter reading equipment • GIS equipment

3. Meter Reading • Meter readers • Manually, electronically, radio read, fixed network, • Read daily, weekly, monthly • Number of connections • Download reading information into billing software • Billing department reviews readings, generates reports • Re-reads, high reads, and errors

4. Generating Bills • Billing department electronically compiles reading data into bills • Auxiliary information for bills include usage, payments, reading dates, due dates, messages, etc. • Be flexible on contents of bill • Send bill file electronically or print bills • Lag time from reading to bills to customers

5. Printing Bills • Outsourcing • Process statements quickly • Save money • Labor, production and mailing costs, inventory mgt. expenses, decrease equipment acquisition, and maintenance costs • Increase productivity-reallocate staff time and equipment to other valuable uses • Enhance quality and maintain control • Send, review, approve electronically • Update addresses each billing period • Bills easy to read and have a larger font size • Return envelope supplied • Electronic statements; view online and/or send via email

6. Printing Bills, cont’d. • In-house • Control in timing of billing and mailing • Labor intensive • Specialized equipment • Investment in equipment • Supplies, i.e. paper, toner, envelopes • Equipment/computer support costs • Higher postage costs • May save money

7. Billing/Due Dates • Billing frequency • Utility sends out weekly, bi-weekly, monthly, bi-monthly • Customer receives monthly or bi-monthly • Bills need to be sent out timely • Due date 30 days from date of billing • Incentive to pay on time • Penalty or interest charge for late payments

8. Collections • Payment of bill: • Offer multiple payment options • Auto-pay & monthly pay online, equal pay, financial institution, in person, mail, night drop, over the phone. External vendors offer service • Pay by credit/debit card, check, cash • Possible incentive for auto-pay participation

9. Collections • CSR’s are primary contact with customers • Empower CSR’s to provide great service and work with customers on payments • Special Circumstances: • Special arrangements • Adjustments • Payment assistance programs • Notes on accounts

10. Collections • Accounts Receivable: • Receivables processed daily • Provide G/L codes for various types of payments • Balance daily • Bank deposits daily • Check processing equipment or outsource

11. Collection of Delinquencies • Have a tracking system for missed payments • Have a collection policy • Set monetary threshold or due date trigger • Send out past due letters • Make arrangements • Send out “final notice” • Make arrangements • Can cut disconnects by up to 75% or more • Disconnect (daily, weekly, monthly)

12. Collection of Delinquencies • Do not accept payments online if disconnect notice is received or review periodically • Reconnection fees • Same day reconnects • After-hours reconnects • Illegal reconnects-fines • Lien properties • Outsource

13. Collections • Customers should understand billing process • Have online access to their bills • Outreach programs: • Website • Newsletter • Community Events • CSR’s, field personnel • Billing messages • New sign up inf. • Public meetings, etc. Conservation is a tool: • ims-awwa.org • Conserve.utah.gov • EPA WaterSense

14. QUESTIONS??