Utility Deposit Bond - City of Clearwater, FL in Florida

Brief Summary

A Clearwater business opening a utility account normally has to hand the city a cash deposit before service is connected. The city lists a surety bond as an accepted alternative for non-residential accounts, so you can keep that cash in the business and pay a premium instead. The bond answers to the City of Clearwater, and the city reviews it before accepting it in place of cash.

The City of Clearwater requires most new utility accounts to pay a security deposit equal to two times the average monthly bill. Non-residential applicants must place a cash deposit before service is connected, but the city accepts a surety bond or an irrevocable bank letter of credit as an alternative, subject to acceptance by the City of Clearwater. Residential customers do not use this bond. They can usually have the deposit waived with a letter of reference from another utility.

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How to Apply for a Utility Deposit Bond:

• Open the non-residential account request with Clearwater Utility Customer Service and ask for the calculated deposit amount.
• Ask whether the city requires its own bond form and how the original bond should be delivered.
• Provide the legal business name and service address exactly as they appear on the utility account.
• Complete the surety application with owner information for the credit review.
• Pay the premium and receive the executed bond naming the City of Clearwater as obligee.
• Submit the bond to Utility Customer Service and confirm acceptance before the service start date.

Detailed Information About the Florida Utility Deposit Bond:

The surety bond option is for business accounts

The most common mistake is assuming any Clearwater customer can bond around the deposit. The city's own guidance lists the surety bond as an alternative to a cash deposit for non-residential accounts. Homeowners and renters have a different route: Clearwater Utility Customer Service can waive the residential deposit with a letter of reference from another utility company showing good payment history.

How the deposit amount is set

There is no single flat figure. The city states that, in general, the security deposit equals two times the average monthly bill for the service location. A restaurant or laundry with heavy water and gas use will see a much larger number than a small office. The bond amount should match the deposit the city calculates for your account, so get that figure from Utility Customer Service before ordering the bond.

Accounts that later become past due may be subject to a deposit increase. If that happens to a bonded account, expect the city to ask for a larger bond or additional security.

What the bond guarantees

The bond stands in for the cash deposit. If the account closes with an unpaid balance, the City of Clearwater can claim against the bond up to its face amount, and the surety then looks to the business for repayment. It is not insurance for the customer. It is a guarantee to the city.

Acceptance and alternatives

The city states that bond and letter of credit alternatives are subject to acceptance by the City of Clearwater. Ask Utility Customer Service at (727) 562-4600 or CustomerService@MyClearwater.com whether a city bond form is required and where the original should be delivered before the bond is issued.

Eligibility and Requirements for a Florida Utility Deposit Bond:

• A non-residential utility account. Residential customers use the deposit or a utility reference letter instead.
• Bond amount matching the city's deposit calculation, generally two times the average monthly bill.
• City of Clearwater named as obligee.
• Acceptance of the bond by the City of Clearwater.
• Photo ID and proof of occupancy for the service address, such as a lease, deed or settlement statement.

Florida Utility Deposit Bond FAQs:

Official and Additional Resources for the Florida Utility Deposit Bond: