Farewell, utility bill postcard

COEUR d’ALENE — For decades, utility bills from the city of Coeur d’Alene have been delivered to customers the old-fashioned way, through the mail, in the form a postcard.

That's going to change.

“I would just like to thank the city for, 24 years into the 21st century, joining the 21st century,” said Councilman Dan Gookin.

“I’ll second that,” added Councilman Woody McEvers.

The City Council on Tuesday unanimously approved a three-year agreement with Billing Document Specialist, based in Caldwell, for utility bill statement services that include handling print, mail and electronic payments. BDS will be paid $14,150 in February and $13,500 per month from then on.

It gives about 20,000 utility bill customers the option to log in online and pay their bill each month or establish an automatic bill pay where the amount of their utility bill will be automatically debited from their bank account or charged to their debit/credit card. 

It will also offer customers the option to establish text message or email reminders and pay their bill from text or email. 

“That is going to save city staff a ton of time and utility bill users a ton of frustration,” City Accountant Stephanie Padilla said.

The processing fees for paying with a credit card will be 2.35% or $2 minimum, and $1 for an electronic funds transfer.

There will be no fee for paying with cash or check at City Hall.

BDS will also provide merchant services so that debit/credit card payments can still be made in person at City Hall.

Padilla said some residents have been asking for an automatic bill pay system and staff have said it’s long overdue.

“I think it’s time for the city to bring something like this forward to our constituents," she told the City Council.

While breaking from the traditional postcard, the move is expected to be well-received.

“Staff is confident that the option for automatic bill pay and full-page utility bills statements will not negatively affect constituents, as all things will stay the same if a constituent so chooses,” a city report said.

The city currently pays about $107,000 a year in hard costs for postage, paper and ink cartridges, and another $77,000 in labor, to prepare and mail the postcard utility bills.

Costs under the new system are expected to decrease.

BDS will charge the city 68 cents per mailing, “which is amazing,” Padilla said.

As more people pay their utility bills online, fewer hard copies will go out by snail mail, eliminating that cost, over time.

“It is anticipated that by June of 2024 there will be at least 300 utility bill users signed up for e-statements, reducing the monthly fee,” according to a city report.

The February bill will have information directing people to a website where they can set up online payments.

BDS will handle the printing and mailing of the new utility bills that will be on an 8 1/2 x 11 sheet of paper with additional graphics and information on utility usage, and a QR code to arrange to receive the bill electronically. 

Councilwoman Kiki Miller asked if there were security risks involved.

“I know we’re all real sensitive to have outsourced information,” she said.

Padilla said it is a secure system, not in the cloud, that was reviewed by the city’s IT personnel, adding that testing has gone well.

Gookin said he has long wanted an automatic utility bill pay system. 

“Every other city in the county does this. We’re the last,” he said. “This is the only bill I have to print a check for anymore.”

Padilla said that is a common complaint.

“I hear that daily," she said. 

Gookin questioned why there was a $1 fee for an electronic funds transfer and said there generally is not one associated with it.

Padilla said it’s a processing fee charged by BDS.

"That has to be covered by somebody," she said.

Gookin suggested the city utilities incorporate that cost rather than passing it on to residents. After checking with Post Falls, he said that city doesn't charge for using what is called the Automated Clearing House network to make an electronic funds transfer.

He said there are people who would prefer to avoid the $1 monthly fee and instead make a trip to City Hall.

"Twelve dollars is $12," he said.

Mayor Jim Hammond was pleased.

“It’s something we should have been doing, and I’m glad we’re finally getting there,” he said.