HomeMy WebLinkAbout3347-26 Authorizing Rounding of Certain Cash Payments Nearest Five Cents Establishing Related Administrative Procedures2
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RESOLUTION NO. 3347-26
A RESOLUTION BY THE BOARD OF DIRECTORS
OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT AUTHORIZING ROUNDING OF CERTAIN
CASH PAYMENTS TO THE NEAREST FIVE CENTS AND ESTABLISHING RELATED
ADMINISTRATIVE PROCEDURES
WHEREAS, the South Tahoe Public Utility District ("District") is a public agency organized
and operating under the laws of the State of California; and
WHEREAS, the District receives certain customer payments in cash at District payment
locations; and
WHEREAS, the Board of Directors finds that the availability of one -cent coins may affect
the efficient processing of cash transactions and the District's ability to make exact
change; and
WHEREAS, California law authorizes a local agency, upon action by its governing body,
to round eligible payments made wholly or partly in cash to the nearest five cents
($0.05); and
WHEREAS, the Board desires to establish a clear, neutral, and auditable cash -rounding
practice that preserves the exact amount of the underlying District bill, rate, fee,
charge, deposit, or other obligation.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the South Tahoe Public
Utility District as follows:
SECTION 1. Recitals.
The above recitals are true and correct and are incorporated into this Resolution.
SECTION 2. Authorization.
To the extent authorized by applicable California law, the District may round an eligible
payment made wholly or partly in cash to the nearest five cents ($0.05), subject to the
terms of this Resolution and implementing administrative procedures.
SECTION 3. Eligible Transactions.
A. This Resolution applies only to payments made wholly or partly in United States
currency at an authorized District payment location.
B. This Resolution does not apply to payments made entirely by check, credit card,
debit card, electronic funds transfer, automatic payment, online payment, or another
non -cash payment method.
C. This Resolution does not require the District to accept cash for a transaction when
cash is not otherwise an authorized payment method.
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SECTION 4. Cash -Rounding Method.
A. The District shall first calculate the exact amount due to the cent under the
applicable District rate, fee, charge, deposit, penalty, or other obligation.
B. For an eligible payment made wholly or partly in cash, the amount of the cash
payment accepted shall be rounded to the nearest five -cent increment as follows:
1. Amounts ending in one cent ($0.01), two cents ($0.02), six cents ($0.06), or seven
cents ($0.07) shall be rounded down to the preceding five -cent increment.
2. Amounts ending in three cents ($0.03), four cents ($0.04), eight cents ($0.08), or
nine cents ($0.09) shall be rounded up to the next five -cent increment.
3. Amounts ending in zero cents ($0.00) or five cents ($0.05) shall not be rounded.
C. Cash rounding under this Section applies only to the amount of cash payment
accepted and does not modify the underlying District rate, fee, charge, deposit,
penalty, or other obligation, which shall remain calculated to the exact cent.
D. The rounding method shall be applied consistently, neutrally, and without selectively
favoring either the District or a customer.
SECTION 5. Customer -Account Treatment.
A. The exact amount of a customer's bill, rate, fee, charge, deposit, penalty, or other
obligation shall remain unchanged. Cash rounding under this Resolution does not
amend a Board -adopted rate, charge, or fee.
B. When the cash payment amount is rounded, the difference between the exact
amount due and the cash amount collected shall remain as a balance due or credit
on the applicable customer account.
C. The General Manager, or designee, may establish reasonable procedures to ensure
that rounding differences do not independently trigger collection activity, late
charges, shutoff notices, or other adverse account action.
SECTION 6. Administrative Implementation.
The General Manager, or designee, is authorized to develop and implement written
procedures consistent with this Resolution and applicable law, including procedures
regarding:
A. Point -of -sale and utility -billing -system configuration;
B. Mixed -tender and partial -cash payments;
C. Customer receipts and account statements;
D. Cashier reconciliation and general -ledger entries;
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E. Customer -service communications and exceptions; and
F. Periodic monitoring and reporting of aggregate rounding differences.
SECTION 7. Customer Notice.
Before implementation, the General Manager, or designee, shall provide reasonable
notice of the cash -rounding practice at District payment locations and on the District
website. The notice shall explain that:
A. Eligible cash payments may be rounded to the nearest five cents;
B. The customer's underlying bill will continue to be calculated to the exact cent;
and
C. Any rounding difference will be reflected as a small customer -account credit or
balance, as applicable.
SECTION 8. Effective Date.
This Resolution shall take effect upon adoption. Cash rounding may begin on October
16, 2026, after the District has completed necessary system configuration, staff training,
customer notice, and internal -control procedures.
SECTION 9. Severability.
If any provision of this Resolution, or its application to any person or circumstance, is
held invalid, the remainder of the Resolution and its application to other persons or
circumstances shall not be affected.
WE, THE UNDERSIGNED, do hereby certify that the above and foregoing
Resolution No. 3347-26 was duly and regularly adopted and passed by the Board of
Directors of the South Tahoe Public Utility District at a Regular meeting held on the
15th day of October 2026, by the following vote:
AYES: Haven, Romsos, Henderson, Sheehan, Exline
NOES:
ABSENT:
Shane Romsos, Board President
South Tahoe Public Utility District
A'i) EST:
Melonie r�uttry, Executive Services Manager/
Cierk of the Board
South Tahoe Public Utility District