Baltimore collects $56 million in overdue water bills as city faces $188 million deficit

Baltimore's Board of Estimates convened on January 22, 2025, to address pressing financial issues, particularly concerning the collection of outstanding water bills. The meeting revealed that the city has successfully collected approximately $56.5 million from a subset of 46 commercial accounts, representing 42% of the total amount owed. However, a staggering $188 million remains uncollected, with $133 million attributed to commercial accounts.

City officials discussed the challenges of collecting the remaining debts, particularly from residential accounts, which are expected to be more difficult due to fewer available collection tools. The city is currently focusing on large commercial accounts while developing strategies for smaller, residential debts.

The discussions highlighted the historical context of Baltimore's water and sewer billing practices, noting that for decades, funds collected were often diverted to the general fund rather than being reinvested into the water infrastructure. This has led to significant deferred maintenance issues that the city is now facing.

As part of the meeting, officials emphasized the importance of raising water rates to ensure that necessary funds are available for infrastructure improvements. The Comptroller expressed support for the rate increase, underscoring the need for effective spending to prevent future system failures, such as water main collapses.

The meeting concluded with a commitment from city officials to continue working on improving collection efforts and ensuring that funds are utilized efficiently for the benefit of Baltimore residents. The ongoing efforts aim to address the city's long-standing infrastructure challenges and enhance the reliability of essential services.