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City finance and utility staff cite aging meters, billing backlog and tampering concerns; customers offered payment plans
Summary
Finance staff reported July 2025 figures and said water and sewer revenues reflect timing of receipts and a large loan payment; staff and council discussed meter-reading errors, an aging remote-read system, suspected meter tampering, and steps to offer payment plans and upgrade systems.
The Nogales finance director and revenue staff presented the July 2025 monthly financial report at the Sept. 3 council meeting and briefed council members on work to resolve utility billing and meter-read issues.
Finance Director Jean King told the council July was the first month of the fiscal year and that some funds look low because of timing; she reported the general fund had receipts of about $1.38 million (about 5% of the annual budget) and noted large encumbrances for items such as new fire trucks. She reported sewer and water funds had revenue and early loan payments, explaining that a recent WIFA loan payment affected the month’s water and sewer expenditures.
Why it matters: Several residents in the meeting and in prior sessions have complained about unexpectedly large water bills. Council members asked for details on meter accuracy, whether meters are read on consistent cycles, and whether the city’s remote-reading system is performing.
What staff said: King and city revenue staff said July appears “slim” because of the timing of deposits and large one-time payments. The revenue manager said the city is working through learning curves after recent staffing changes in the revenue office and that staff are meeting residents, offering payment plans and assisting customers who report unusually large bills. The city said there are currently about 6,140 active utility accounts; 73 accounts are on contract plans totaling about $59,564, and 127 delinquent accounts in the Valle Verde area equal about $345,588.
Meter technology and tampering: Council and staff discussed the aging Itron remote-reading system and some meters that have stopped reporting accurately. Staff said some meters are damaged, inaccessible or tampered with and that the city is working with IT to update the meter-reading vehicle and the hardware. City Manager Albert Kramer said staff have discussed deploying locks and chains for hydrant meters and taking enforcement steps if meters are tampered with; staff said they will coordinate with the police department if criminal tampering is suspected.
Customer assistance and next steps: Revenue staff said they have sat with customers, arranged payment plans and expect to clear the backlog and improve read timeliness by September. Staff said they will provide council updates as meter-replacement and remote-reading improvements proceed.
