The Richland City Council on Oct. 7 approved Ordinance No. 2025-28, amending chapter 3.26 of the Richland Municipal Code to change utility security deposits from a usage-based formula to lower flat rates. The measure passed by roll-call vote with all members present voting yes.

City staff told the council the existing policy charged new tenants deposits equal to roughly two months of historical utility usage, an amount staff said can average more than $400 and create a financial barrier to moving into a rental. Brandon Allen, a city staff member presenting the proposal, said the city proposes flat deposits to simplify administration and reduce upfront costs for customers.

Allen said the proposal sets a $100 deposit for apartment units and a $250 deposit for single-family or house rentals. He told council the change will lower the administrative burden of calculating usage-based deposits and make move-ins less costly for renters. Allen said deposits already held by current customers would not be reduced retroactively.

Allen acknowledged a potential increase in loss risk — customers leaving with unpaid balances — but described the risk as small. He said the city’s total held deposit balance is currently “around $700,000 to $800,000” and estimated the balance would fall over time under the new flat-rate scheme. Council member Kent asked for specific data on the frequency and dollar amount of unpaid accounts; Allen said he did not have exact counts at the meeting but offered to provide the information to the council.

The ordinance retains waiver and refund provisions Allen described: customers may have a deposit waived if they provide 12 months of good payment history with a prior utility provider, and deposits are refundable after 12 months of good payment history with the city. Allen and Mayor Pro Tem Kent both noted the change had been reviewed by the Utility Advisory Committee, which recommended moving forward.

The ordinance was moved and seconded, then approved by roll call: Mayor Richardson — yes; Mayor Pro Tem Kent — aye; Councilmember Jones — yes; Councilmember Luxon — aye; Councilmember Meyer — aye; Councilmember Winton — aye; Councilmember Van Dyke — aye.

City staff said the change is intended to reduce move-in costs for renters while maintaining options to pursue collections for unpaid accounts. Staff also said they would report back to council with more detailed loss-rate data after compiling historical account information.

Councilmembers and staff did not propose further amendments at the meeting. The new deposit amounts will be incorporated into city billing procedures as directed by the ordinance.

Ending: The council adopted the ordinance unanimously; staff will finalize administrative changes and provide requested historical data on unpaid balances to the council at a later date.