Update: Common Council voted to limit the maximum water bill for undercharged municipal water customers to $1,000 in a 10-1 vote at its May 1 meeting.
ITHACA, N.Y. — The City of Ithaca is in the early stages of a campaign to replace thousands of water meters that have aged past full functionality.
When those old meters are replaced, some customers using city water might find out they’ve been overcharged or undercharged for potentially years.
City officials stated they’ll reimburse customers who were overcharged. However, for those that the city has been undercharging, a surprise water bill is coming down the pike. It’s up to Common Council to decide how high that bill can be.
A divided council approved a resolution to limit water bills for undercharged customers to a maximum of $1,000 at their April 17 study session. Council is scheduled to make a final decision on the matter at their May 1 meeting.
The City Chamberlain’s office will have to develop a system to limit the bill amount for people who have been undercharged before they send out their next wave of water bills, which are issued quarterly.
The cause of the impending water bill snafu stems back to the COVID-19 pandemic, according to Ithaca’s Superintendent of Public Works Mike Thorne. He told Common Council that the city began relying on transmitters in 2005 to give remote readings of water usage in the city. Those transmitters have a battery life of about 15 to 20 years. When it came time to start replacing them, the pandemic had hit and city resources were stretched thin.
“COVID hit. Priorities changed,” Thorne said.
Thorne told council that just prior to the pandemic, the Department of Public Works (DPW) started to notice increased numbers of meter failings. Now, nearly 25% of the city’s 5,500 water meters have failed transmitters.
The city has billed customers with estimates based on historic water usage in place of accurate remote readings. While some transmitters have failed, the meters continue to accurately record water usage.
The city’s water & sewer division has replaced about 10% of the city’s meters so far, with the goal of replacing 50% of water meters by the end of 2024, and the other 50% by the end of 2025. DPW reviewed the difference between the estimated and actual readings on the water meters it has replaced so far. Thorne told the council in a memo that for customers that owe the city money from being undercharged, 7% owe more than $1,000, and 5% owe more than $2,000.
Thorne told council that there are some anomalies among the water bills. He said one customer owes the city over $30,000.
“I can’t in good conscience send out a water bill for $30,000,” Thorne said.
Any customer the city owes money to will be fully reimbursed. Thorne recommended Common Council limit all water bills to $1,000 for customers who have been undercharged.
Council narrowly approved a resolution with Thorne’s recommendation in a 6-5 vote. An amendment to reduce the total to $500 failed 4-7, and an effort to change the total to $250 failed 3-8. An amendment to reduce the city’s retroactive water bill to $0 failed 2-9.
Thorne cautioned the council ahead of the votes that the funds the city would collect through retroactive water bills “could end up being millions of dollars.” Thorne said the $1,000 bill cap should allow the city to pay down what it owes water customers that were overcharged. He told council that if the city didn’t collect enough money to pay back what it owes, the difference might result in higher water rates in 2025.
Alderperson Margaret Fabrizio said she understood the financial burden a surprise water bill could prove to be, but she felt the council needed to be responsible when making a decision that might implicate millions of dollars of potential city revenue.
“I would like to go with what our staff is recommending for this and just ensure that we also have some kind of appeals process that’s reasonable for people, because there will be some extraordinary circumstances,” Fabrizio said.
Alderperson David Shapiro said he thought city residents should pay the full bill. He said, “I’m sure I’m in the minority in this, so it is what it is.”
“I would vote for that they should pay 100% of what they owe,” Shapiro said.
City Manager Deb Mohlenhoff told council she would work out some language about an appeals process and payment plan to add to the final resolution.
Customers with a city water account can schedule an appointment to have their meter replaced with the city’s water & sewer division.
Questions related to water bills can be directed towards the City Chamberlain’s office.
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