City of Fernie provides explanation for 1 cent utility bills.
In October 2009, the City of Fernie mailed out the fourth quarter utility statements to all property owners in the City. Due to a computer software error the 190 property owners that had prepaid their annual utility bills by the end of February in order to receive the 5% discount were mailed a statement that indicated that they had 1 cent owing.
The City of Fernie sends out 2,666 utility statements in January of each year to all property owners. Those that pay their accounts for the full year by the end of February receive the 5% discount and are then not sent second and third quarter statements but are sent a fourth quarter statement that usually shows the account paid in full for their records. The mailing of 1 cent bills did not in any way increase the cost to the City as a statement would have been mailed if the balance was $0.00 in any event.
On October 23 City staff became aware of this error and adjustments were made to those 190 utility accounts to bring their balances to $0.00. This problem was discussed with the City’s financial software provider and it was determined to be caused by a rounding error when calculating the discount in the program. That program will be repaired and to save money in the future the City will discontinue mailing fourth quarter statements that show a $0.00 balance.
The City of Fernie apologizes for this error and any inconvenience it may have caused.
