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DPW defends 9% rate increase as collections push continues; $207M in aged arrears cited
Summary
DPW officials described drivers of proposed FY26 water, wastewater and stormwater rate increases — inflation, chemical costs and capital obligations — and outlined recent collections work that recovered significant commercial balances while noting about $207 million in outstanding arrears.
Council members asked DPW to justify the proposed FY26 rate increases and to describe collections progress and arrears.
Director Zaid said the July 1 rate increase would be 9% for water and wastewater and 3% for stormwater, and tied the request to three main drivers: inflation, compliance costs (including higher chemical prices) and capital investment needs tied to deferred maintenance and consent-decree obligations. "The capital project costs are roughly 30% higher than pre‑COVID levels," Zaid said, adding that prior rate increases had not matched inflation and operating pressures.
DPW and its finance team described an aggressive collections push on commercial accounts: the department said it had collected roughly $72 million recently from large commercial delinquencies and was continuing targeted collection work. DPW staff said the audited arrears picture showed roughly $207 million in outstanding balances and that collection strategies vary between commercial and residential accounts because of statutory and practical constraints.
Council members asked about enforcement tools for unpaid residential balances. DPW staff said the city has increased collections staff and created a dedicated collections team inside DPW; they also signaled a willingness to discuss additional enforcement tools but said any such policy would need council discussion because of equity and public-health implications of water shutoffs.
Ending: DPW said it will supply additional detail requested by council (e.g., the monthly dollar yield of the proposed rate increase, the aging breakdown of arrears and the collections plan), and emphasized that recovering outstanding balances is a multi‑year effort tied to billing accuracy and improved outreach.
