HomeMy WebLinkAboutResolution 2004-36 Bank Draft Policy
RESOLUTION NUMBER 2004-36
A RESOLUTION OF THE CITY COMMISSION OF WINTER
SPRINGS, FLORIDA, ESTABLISHING A BANK DRAFf POLICY
FOR THE RESIDENTS OF THE CITY; PROVIDING FOR BANK
DRAFf FOR UTILITY SERVICES; PROVIDING FOR THE
REPEAL OF PRIOR INCONSISTENT RESOLUTIONS;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, from time to time Residents make requests to make payment to the
City by automatic bank draft; and
WHEREAS, the City desires to provide additional payment options for our
customers; and
WHEREAS, the City desires to adopt a uniform policy allowing draft of such
payments from the customer's bank or credit union accounts; and
WHEREAS, the City desires the policy to be fair as well as to encourage
customer participation in the bank draft program; and
WHEREAS, for purposes of this resolution, the term "bank draft" shall mean a
check automatically drawn by the City's bank against funds deposited into the City's
utility customer's account at another bank authorizing the customer's bank to make
payment to the City for utility services rendered and/or invoiced by the City; and
WHEREAS, the City Commission of the City of Winter Springs deems that this
Resolution is in the best interests of the public health, safety, and welfare of the citizens
of Winter Springs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS
FOLLOWS:
Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and
correct and are hereby fully incorporated by this reference.
Section 2. Bank Draft Policy. The following policy is adopted regarding the use
of bank draft to pay for utility services:
2.1 The use of bank draft to pay a utility account is encouraged by the City of
Winter Springs. Any utility customer ("customer") who desires to use bank draft shall be
required to sign an appropriate authorization form before bank draft commences.
City of Winter Springs
Resolution Number 2004-36
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2.2 Every customer should have the opportunity to participate, except for
those customers who are required to pay for utility services by cash or money order. An
account must be in good standing with no previous returned checks in order to be eligible
for automatic bank draft privileges.
2.3 Any account deemed not eligible for bank draft will be notified by the
City's Revenue Officer.
2.4 Bank draft will be for the entire monthly balance due and any outstanding
charges. Partial bank drafts will not be accepted.
2.5 Funds will not be debited from a customer's bank account for at least
fourteen (14) days after the bill date on the utility statement. The bank draft shall become
due immediately upon the City's submission to the City's banking institution.
2.6 Billing disputes must be received in writing by the City no later than
eleven (11) days following the bill date on the utility statement to prevent the bank draft
from being processed. All bill payments during the time period of the dispute must be
paid by means other than the automatic bank draft. Customers shall be required to
provide a detailed explanation for the dispute. Notification of a billing dispute received
after the deadline could result in the bank draft being processed for that bill.
2.7 Bank draft will continue until cancellation notice is received from the
customer. Bank draft cancellation must be received in writing by the City no later than
eleven (11) days following the bill date on the utility statement to prevent the bank draft
from being processed.
2.8 A customer shall not temporarily suspend a bank draft. Any written
request received by the City to suspend a bank draft for one month will be deemed a
cancellation request, unless said suspension is required to change banks or prevent fraud
on the customer's bank account.
2.9 Any bank draft returned for insufficient funds will result in the customer's
bank draft privileges being suspended and a fee will be assessed. Further, an interruption
in utility service could occur. Two insufficient fund notifications will result in permanent
cancellation of bank draft privileges as well as payment of future utility statements to be
in the form of cash or a money order.
2.10 At the direction of the City, bank draft privileges may be reinstated six (6)
months after cancellation or suspension of bank draft privileges as discussed in Sections
2.7 and 2.8 of this Resolution.
City of Winter Springs
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2.11 If an existing bank draft customer desires to change banking institutions,
the bank change must be received by the City in writing, no later than fourteen (14) days
after the bill date to avoid any insufficient fund fees being assessed to the customer. In
the event of extraordinary circumstances including, but not limited to, fraud and closing
of a bank, exceptions to this rule may be made by the City. However, if fourteen (14)
days notice is not provided, the City can not guarantee the cancellation and/or
modification ofthe customer's bank draft.
2.12 All past due billings must be paid in full before a customer enrolls in the
bank draft program.
2.13 All customers participating in the bank draft program must permit the City
to conduct pre-draft testing with the customer's bank, as the City deems necessary.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior resolutions or
parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word,
or portion of this Resolution is for any reason held invalid or unconstitutional by any
court of competent jurisdiction, such portion shall be deemed a separate, distinct and
independent provision and such holding shall not affect the validity of the remaining
portion hereto.
Section 5. Effective Date. This Resolution shall become effective immediately
upon adoption by the City Commission of the City of Winter Springs, Florida.
RESOLVED by the City Commission of the City of Winter Springs, Florida, in a
regular meeting assembled on the 23rd day of August 2004.
JOHN F. BUSH, Mayor
ATTEST:
ANDREA LORENZO-LUACES, City Clerk
Approved as to legal form and sufficiency for
the City of Winter Springs only:
ANTHONY A. GARGANESE, City Attorney
City of Winter Springs
Resolution Number 2004-36
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