Logo courtesy of the City of Gridley

GRIDLEY, CA (MPG) – Gridley utility customers who switch to paperless billing will receive a one-time $10 credit under a new incentive program the City Council approved Monday, a move city officials hope will reduce long-term operating costs paid through the utility system.

Finance Director Martin Pineda said the city expects to spend about $38,000 this fiscal year printing, stuffing and mailing more than 3,100 monthly utility bills. If every customer enrolled in paperless billing, the one-time credits would total about $31,700, less than a single year's mailing costs, with savings continuing well into the future.

Pineda said the incentive was inspired by a presentation at the Government Finance Officers Association annual conference, where one city described achieving a high participation rate after offering customers a one-time credit to receive bills electronically. "They had a huge success," Pineda said, adding that about 95% of customers ultimately enrolled.

Pineda told the council the biggest expense is postage, which now accounts for more than three-quarters of the annual cost after postal rates increased to 78 cents per envelope. Paper, envelopes, printer costs and staff time make up the remaining expenses.

Electronic billing has become increasingly common as more households pay utility bills online or through mobile devices. Besides reducing paper use, it eliminates recurring printing and mailing costs that cities incur each month for every paper statement.

Customers already receiving electronic bills also will qualify for the one-time credit. Those wishing to participate can enroll through the city's website or contact City Hall for assistance. Participation is voluntary, and customers may continue receiving paper bills if they prefer, officials said.

Council members supported the incentive, noting that while the immediate benefit to customers is a $10 credit, reducing recurring mailing expenses could help lower administrative costs over time.

"If we can at least get 80% sign up for this, you know that's a huge savings," Pineda said. "You can save the city a lot of money over the years."

The council approved the incentive unanimously. Under the staff proposal, the credits will be issued once to eligible utility accounts that enroll in paperless billing.