Utility Service Bond - City of St. Petersburg, FL in Florida

Brief Summary

St. Petersburg is one of the few Florida cities that spells out a surety bond as a deposit alternative. Commercial and multi-family utility customers can post a bond on the City's own form instead of cash, keeping working capital free while the City holds the same level of protection.

The City of St. Petersburg accepts a surety bond in place of a cash utility deposit from commercial and multi-family residential customers. The bond must be on the City's original form, issued in the account owner's name, and equal to the account's full-service deposit requirement. Accounts with less than full service, such as water only, are not eligible for a bond. Deposits start at $100 and depend on the property location.

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How to Apply for a Utility Service Bond:

• Confirm the account is commercial or multi-family residential with full utility service. Water only and other partial service accounts are not eligible.
• Get the full-service deposit amount for the account from St. Petersburg Utility Accounts.
• Obtain the City of St. Petersburg's original surety bond form.
• Complete the bond application in the utility account owner's exact name.
• Have the surety execute the bond on the City form and attach its power of attorney.
• Deliver the original bond to the City and raise the bond amount if the six month review shows coverage is short.

Detailed Information About the Florida Utility Service Bond:

Who can use a bond, and who cannot

The bond is not open to every customer. The City's Utilities Account Setup page says multi-family residential and commercial customers can provide a surety bond or an irrevocable letter of credit in place of a cash deposit. Single-family homeowners use a different route: a utility reference letter from a water utility, on that utility's letterhead, which can waive the deposit when new service is activated at a single family residence. Accounts with less than full-service activity, such as water only, are not eligible for any alternative deposit coverage.

The rules the bond has to meet

The City sets these conditions on its page:

• The bond must be issued in the name of the account owner.
• Coverage must equal the account owner's full-service deposit requirement.
• The bond must be on the City of St. Petersburg's original form.
• The City reviews surety bonds every six months to make sure coverage is still adequate, so a growing account may need a larger bond.
• If the account goes unpaid, the City files on the bond for payment up to its limit.

Deposit amounts depend on the property location and begin at $100.

The letter of credit option

Customers can use an irrevocable letter of credit instead. It must be in the account owner's name, drawn on a bank in Pinellas, Hillsborough or Sarasota County, renew automatically unless the bank gives 60 days written notice by certified mail, and be on the City's original form. A bond avoids tying up a bank credit line.

How premium is set

The surety sets the premium after a credit review of the owner or business. It is a small share of the bond amount, paid yearly and not refunded.

Eligibility and Requirements for a Florida Utility Service Bond:

• City of St. Petersburg named as obligee, on the City's original bond form.
• Bond amount equal to the account owner's full-service deposit requirement.
• Bond issued in the name of the utility account owner.
• Surety company authorized to do business in Florida.
• Credit review of the owner or business to set the premium.

Florida Utility Service Bond FAQs:

Official and Additional Resources for the Florida Utility Service Bond: