§ 26-19. Security deposit.

(a)

Applicants for water and/or sewer service shall be required to pay to the city a security deposit to guarantee all amounts which may be come due to the city for water and/or sewer service. The deposit shall be in an amount estimated by the water office manager or their designee to be equal to the charges for an average two-month period, but in no event to be less than seventy dollars ($70.00) for each dwelling unit or eighty dollars ($80.00) for each commercial occupancy.

(b)

A building contractor or realtor shall make a security deposit of seventy dollars ($70.00) for each standard service requested, or make a floating security deposit of one hundred dollars ($100.00) which shall be applicable to all services in his name at a given time. This arrangement shall cover only unoccupied premises which are being shown for sale or on which construction is taking place.

(c)

If the amount of the security deposit required exceeds two hundred dollars ($200.00), the requirement for the security deposit may be met by providing a surety bond which shall be in the amount of the deposit otherwise required. Such surety bonds shall be subject to the approval of the city attorney and shall be supported by powers of attorney as he may direct.

(d)

If the amount of the security deposit required exceeds ten thousand dollars ($10,000.00), the requirement for the security deposit may be met by providing a certificate of deposit assigned to the City of Hurst or by providing a letter of credit with a minimum one-year term in the form required by and subject to the approval of the city attorney. No such security instrument shall be approved unless issued by institutions insured by the Federal Deposit Insurance Corporation and located within fifty (50) miles of the Hurst City Hall. Expiring letters of credit shall be replaced by substitute letters of credit at least thirty (30) days prior to the expiration date on the letter of credit held by the city. Should any such replacement letter of credit not be provided at least thirty (30) days prior to expiration of the letter of credit which it would replace, the city staff is directed to immediately make demand upon the letter of credit prior to its expiration and to hold the proceeds therefrom for such security deposit. The city manager is directed to cause record keeping to be implemented to ensure enforcement of this provision.

(e)

The security deposit for an applicant for service from a fire hydrant for water shall be established administratively to ensure recovery of equipment and costs and will be reviewed periodically.

(f)

Any person who has maintained a security deposit for a period of more than two (2) years may upon request be refunded such security deposit if a review of such individual's service account does not indicate that there have been any cutoffs due to late payment and no more than two (2) late penalties assessed during the same period. This provision shall not be applicable to multioccupancy commercial accounts, to multifamily dwelling units nor to any account for which a security bond, rather than cash security deposit has been provided.

(g)

Security deposits for single-family residential rental units shall be one hundred dollars ($100.00).

(Code 1965, § 26-21(a)—(e); Ord. No. 1227, § 1, 4-12-88; Ord. No. 1314, § 1, 1-8-91; Ord. No. 1395, § 1, 2-9-93; Ord. No. 1973, § 1, 1-24-06; Ord. No. 2132, § 1, 1-12-10; Ord. No. 2395, § 1, 9-25-18)