Utility Deposit Bond - City of Mesa, AZ in Arizona

Brief Summary

Mesa lets commercial utility customers post a surety bond instead of tying up a cash deposit worth two and a half months of utility bills. You keep that cash in the business and the city still gets the security it requires before turning service on.

The City of Mesa requires every new commercial and multi-unit utility customer to post a security deposit before service starts. Under the Commercial Utility Agreement the deposit is two and one-half times the highest monthly billing for the service address, and the customer may post it as cash or as a surety bond in the same amount, with the City of Mesa as obligee.

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How to Apply for a Utility Deposit Bond:

• Complete the Mesa Commercial Utility Agreement and gather articles of incorporation or LLC documents.
• Get the required deposit amount for your service address from the City of Mesa.
• Order a surety bond for that exact amount naming the City of Mesa as obligee.
• Pay any interim cash deposit Mesa requests while the bond is issued.
• Deliver the original bond within the 10 business day extension to avoid disconnection.
• Pay the $11.00 utility administrative fee and the per meter connection charges.

Detailed Information About the Arizona Utility Deposit Bond:

How Mesa sets the amount

There is no single bond figure. The Commercial Utility Agreement sets the security deposit at two and one-half times the highest monthly billing for the service address or like services, as determined by Mesa. The city's commercial service page describes the same thing as the estimated total of bills over a 2.5 month high billing period. If there is no billing history at the location, Mesa estimates it from the type of business and how it operates. The bond must equal the required deposit, so your bond amount comes from the city, not from a price list.

Timing

Mesa may ask for a cash deposit equal to one month of service while you wait for the bond. The full deposit requirement is extended for 10 business days. If the full deposit or the bond is not in place after that, service is subject to disconnection. Once the bond arrives, the interim cash is applied to the account or refunded if nothing is owed.

Getting the bond back

On request, Mesa reviews commercial deposits, including bonds, after 36 months of service. They are returned if the customer has not been late more than twice in each of the three prior 12 month periods and has not been disconnected for nonpayment in the last 12 months. A new or increased deposit can be assessed on accounts with a poor payment history.

Who this applies to

This is a commercial requirement. Commercial solid waste only customers post a deposit equal to one month of service. Confirm the current bond form and filing steps with Mesa Credit Services before the bond is issued.

Eligibility and Requirements for a Arizona Utility Deposit Bond:

• Bond amount equal to the required security deposit, which is 2.5 times the highest monthly billing.
• City of Mesa named as obligee.
• Business name on the bond matching the utility account.
• Bond kept in force until Mesa releases it.

Arizona Utility Deposit Bond FAQs:

Official and Additional Resources for the Arizona Utility Deposit Bond: