Reduced fees, easier online payment among changes to Lawrence’s utility billing

Incoming updates to the city’s outdated utility payment system aim to make things easier for both residents and city staff. Changes will include lower fees for credit card payments, an easier process to set up automated payments, and automated notices for delinquent accounts.

Currently, customers have to pay $3.25 per transaction to use a credit card to pay their bill over the phone. Also, any bill greater than $200 can not be paid through a single credit card transaction.

More than 40 percent of people pay by mail or in person, and the city is hoping a reduction in the fee and an easier process for automatic payments will bring that number down.

“Honestly, that benefits us, the more people who are set up for auto-pay, and I think it benefits the average customer as well,” said Kristy Webb, the city’s utility billing manager.

Once the changes go into effect, the credit card processing fee will be reduced to $1.95 per transaction, and the limit for each transaction will increase to $2,500. The cost of the fee reduction will be absorbed by the city, and is estimated to cost about $150,000 per year.

There will be an improved customer service portal. The portal will allow people to sign up for automatic payments with only internet access. Sign-up for automatic payment currently requires customers to submit documents by mail or electronically, which requires access to a printer or scanner.

“Right now it’s a little bit cumbersome to sign up for auto-pay,” Webb said. “…This is going to be a much easier process to sign up for it, and with auto-pay it gives you the option to either have it drafted from a bank account or from a credit card.”

Along with those improvements, there will also be automatic notification for delinquent account holders, which will prompt customers to pay over the phone before their water is shut off. Webb said the goal is to reduce the number of disconnections and re-connections, which cost the customer $25 each.

“A phone call saying you’re going to be shut off in a couple of days, that might catch somebody’s attention,” Webb said. “And that’s what we’re trying to do; we don’t want to get anybody caught surprised when their service is disconnected.”

Currently, when someone doesn’t pay their bill, notices of delinquent accounts go out by mail. Webb said there are 800 delinquent accounts each month, and city staff physically go to homes to try collect payment during business hours. Webb said many times no one is home, and 75 percent of the time staff end up turning off the water.

The changes to the utility payment system are part of the City Commission’s consent agenda for Tuesday, and all changes will go into effect by January.