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Residents press Panama City for policy after repeated estimated water bills and surprise back-billing concerns

July 13, 2025 | Panama City, Bay County, Florida


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Residents press Panama City for policy after repeated estimated water bills and surprise back-billing concerns
Several residents at the Panama City town hall raised complaints about long-running estimated water bills, surprise retroactive charges and confusion over meter reads and billing practices, prompting commissioners to request a formal policy discussion and staff follow-up.

Residents described cases in which meters were estimated for months or years while the customer was billed a flat or minimum amount, then later faced large adjustments when meters or MXU (remote-reading devices) were installed. One resident said they had been estimated since 02/2022 and feared a large retroactive charge; another described month-to-month swings (bills of 286, 312, 356 and then a $15 bill) and asked staff to explain. Multiple speakers framed the situation as a combination of equipment failures, delayed MXU/meter replacement and a lack of clear notice to customers that their usage was being estimated.

Commissioners and staff acknowledged the problem and described steps the city has taken to replace meters and remote-reading units. The city manager and staff said the billing system should label estimated bills clearly and that customers may request manual reads or true-ups. One commissioner proposed a written “temporary forgiveness” policy to prevent retroactive billing where the city’s meter or system caused underreported usage; he said he had drafted a policy that would bar retroactive back-billing in the event of meter or system error and require quarterly true-ups where useful.

Staff noted practical accounting constraints: governments encumber funds and do not always record invoices until vendors submit them, and meter-replacement work is labor-intensive and will take time to complete across the system. Commissioners encouraged a policy that protects customers from surprise large bills — for example, by notifying customers of estimated reads, offering periodic manual reads to reset averages and adopting a forgiveness/credit policy where the fault lies with city-owned equipment. The commission directed staff to place a draft policy or discussion item on a near-term agenda so the commission can vote on any new billing rules.

No ordinance was adopted at the town hall; staff were asked to prepare the proposed policy language (the speaker said he had circulated language) and add it to an upcoming meeting agenda so the commission can decide whether to adopt billing protections for customers who have been charged or who received estimated bills because of city equipment or process problems.

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