Staff flags errors in outside water-user contracts; five contracts located

Staff told the Ogdensburg City Council that outside water-user billing formulas are set by the city code but several existing contracts do not implement the code’s equalization-rate adjustment, and only five signed contracts could be located in city records.

According to the presentation, outside users are billed for water use in a manner similar to city residents but also require individual contracts. Staff said the billing formula in the municipal code uses estimated property value multiplied by the city tax rate and a utilization/equalization adjustment; in practice, the town’s equalization rate recently fell below 100 percent, and some contracts do not include the correct equalization adjustment language.

Why it matters: staff said the inconsistency means some outside users are billed according to the contract language rather than the current formula in code; correcting the discrepancy could require revising or re-executing contracts. The presenter said they have located five user contracts and will return to council after further review about options and remedies.

Staff described one practical complication: the city has accepted assessed value rather than an equalization-adjusted value in billing practice, and a set of older contracts (the presenter cited a contract from roughly four years ago) does not reflect current equalization treatment. The presenter said they will add the item to the work list and follow up to determine remedies for the five signed contracts and assess other outside-user agreements.

The council did not vote on a remedy at this meeting; staff framed the item as an administrative compliance and contract-management issue.