Commission directs staff to develop policy for large utility-bill spikes and to work with family with disputed bill

The Panama City Commission on Sept. 9 voted unanimously to direct public-works staff to (1) work with the Saviston family to reach a technically acceptable solution for their disputed water account and (2) return to the commission with recommended policies for handling unusually large water-bill spikes and one-time forgiveness mechanisms used by other utilities.

The item grew into a broader public discussion after multiple citizens raised concerns about sudden, very large utility bills and about the city’s dispute-resolution tools. The Saviston account was presented as an archetype: the family’s typical monthly usage was described by staff as roughly $150, but one bill after a disputed cross-connection or leak was reported at about $880 (sewer charges had been removed); the commission discussed whether the bill reflected real usage through the meter or a cross-connection that caused water to return to the ground.

At the meeting, public works and utility staff described ongoing system upgrades and remote meter-reading restoration that will enable high-usage alerts to customers. City utilities staff said remote-reading and customer-alert capabilities are expected to be available during the next several months as meter-reading hardware is rebuilt.

Several commissioners urged staff to draft a clear, staff-usable policy for “tsunami” usage spikes—e.g., a threshold multiple of typical usage that would trigger an administrative review, a one-time forgiveness (a “mulligan”) with guardrails, and processes to protect bond-covenant requirements for the water enterprise fund. Janice (city clerk/treasurer/customer service manager) explained the city’s current dispute-resolution steps: customer service, manager-level review, then a hearing to the city clerk/treasurer; the city clerk’s decision is final under existing policy and unpaid balances can be recorded as liens or sent to collection.

Following discussion, the commission approved a motion directing staff to: (a) work with the Savistons and resolve their account by public-works verification of the household’s plumbing and any cross-connection; and (b) research and return with recommended dispute-resolution options for large billing deltas, including one-time forgiveness policies used elsewhere and an implementation plan tied to the planned meter-telemetry upgrades. The motion passed 5–0.

Commissioners emphasized the need to balance customer relief and the water enterprise fund’s bond and revenue covenants, and asked staff to coordinate with bond counsel before proposing forgiveness policies that could affect fund covenants.