Utility Deposit Bond - City of Tallahassee, FL in Florida

Brief Summary

For a business opening City of Tallahassee utility accounts, the deposit is set account by account by Customer Operations and can tie up real cash. A utility deposit bond, where the City agrees to take one, replaces that cash with an annual premium so the money stays in the business.

City of Tallahassee Utilities requires a deposit on new utility accounts. Residential deposits follow a fixed table by service type and are billed in three installments, while commercial deposits are set individually by Customer Operations. A Utility Deposit bond names the City of Tallahassee as obligee and guarantees payment of the account in place of a cash deposit. The City's public deposit pages do not describe bond terms, so get written acceptance and the required amount from Customer Operations before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Call City of Tallahassee Customer Operations at 850-891-4968 for the commercial deposit amount on the account.
• Get written confirmation that the City will accept a surety bond in place of the cash deposit, and ask for any required form.
• Complete the bond application in the account holder's exact legal name.
• Pay the premium and receive the signed bond with the surety's power of attorney.
• Deliver the original bond to Customer Operations as directed.
• Renew the bond each year for as long as the City requires security on the account.

Detailed Information About the Florida Utility Deposit Bond:

Commercial deposits are not on the published table

The City's deposit page lists fixed residential amounts by service combination, for example a $160.00 deposit plus an $18.50 service charge for electric only, up to a $325.50 total for electric, water, sewer and natural gas together. Those figures are for homes. For commercial deposits the City says to contact Customer Operations at 850-891-4968, so a business should not size its bond from the residential table.

Residential rules worth knowing

Residential deposits are billed in three installments on top of regular charges. They come back as a credit after three years of good payment history, or when the account closes. A letter from a previous or current utility showing at least one year of service with a good payment record may waive the deposit. Customers who cannot waive or pay the deposit can call the City about referrals to outside assistance.

What the bond does

A utility deposit bond is a three party agreement. The account holder is the principal, the City of Tallahassee is the obligee, and a surety company guarantees the account will be paid. If the account closes with an unpaid balance, the City can claim against the bond up to its face amount, and the surety then collects from the account holder. The City's public pages do not set out bond terms, so ask Customer Operations to confirm it will accept a bond for the account, the amount, and any required form before ordering.

How premium is set

The surety sets the premium after reviewing the owner's credit and, for a business, its financial condition. It is a small share of the bond amount, paid yearly and not refunded.

Eligibility and Requirements for a Florida Utility Deposit Bond:

• City of Tallahassee named as obligee.
• Bond amount equal to the deposit Customer Operations assigns to the account.
• Surety company authorized to do business in Florida.
• Principal name matching the utility account holder exactly.
• Credit review of the owner or business to set the premium.

Florida Utility Deposit Bond FAQs:

Official and Additional Resources for the Florida Utility Deposit Bond: