BILLING AND BILLING AND COLLECTIONSCOLLECTIONS

AWWA Leadership ForumAWWA Leadership ForumSession TwoSession Two

November 10, 2009November 10, 2009

BillingBilling 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 ReadingMeter 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 DepartmentBilling 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 BillsPrinting 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.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 email

Supply return envelope

Billing/Due DatesBilling/Due Dates

Billing frequencyUtility 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 BillPaying 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 3rd party

ReceivablesReceivables

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

paymentspayments

CollectionsCollections

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 DelinquenciesCollection 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 DelinquenciesCollection of Delinquencies

Reconnection feesReconnection fees Same day reconnectsSame day reconnects After-hours reconnectsAfter-hours reconnects Illegal reconnects-finesIllegal reconnects-fines Lien propertiesLien properties OutsourceOutsource

CollectionsCollections

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 SummaryIn Summary

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