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Mission to bill missed utility charges back up to 12 months after audit; workshop scheduled
Summary
City staff told Mission City Council an audit identified about 900 utility accounts missing sewer, garbage or brush charges. Council instructed staff to begin back-billing up to 12 months and scheduled a follow-up workshop to review accounts and controls.
Mission City Council voted Jan. 27 to pursue collection of utility charges that were not billed to some residential, commercial and institutional accounts after an internal audit identified gaps in billing controls.
City staff told the council the review found roughly 900 accounts missing one or more service charges — primarily sewer, trash and brush pickup — and estimated the one-year unbilled receivable at about $300,000. Staff said state law limits retroactive collection to 12 months, and the city will start sending bills in staggered batches this week.
The findings first surfaced during public comment, when resident Virginia Townsend urged council members for a workshop and clearer answers about whether utility bills include water, sewer and trash and how the city identified missed charges. A staff member replied, “We actually sent somebody out to check every place where there was a water meter … What we found is some people were not paying for sewer. And we found a lot of people who were not paying for garbage. And all of those we’re putting back in.”
Why it matters: The unbilled charges affect the city’s revenues and many customers who will receive retroactive bills. Staff emphasized the city has limited legal authority to collect beyond 12 months and will offer payment plans for balances over $25.
What staff told the council and public
- Staff said accounts were checked physically at meter locations and that the city will send billing notices in six batches to avoid overloading city hall with inquiries. “Anyone who did not — that they were receiving services for the last 12 months — are gonna get charged,” a staff member said on the record.
- The staff estimate to recover from the prior 12 months is “around — probably close to $300,000,” according to the presentation. Staff said they expect to collect most of the amount but could not guarantee a precise collection rate; one staff speaker estimated “a good 98%” as a working expectation but acknowledged errors are possible.
- Staff told the council the lapse likely occurred during a system conversion two years ago and when sanitation services moved from contractor to in-house operations; reconciliation between utility-billing and sanitation accounts broke down during that transition. The council was told city ordinance also requires sewer charges for properties within 80 feet of a sewer line even if the property is not connected.
Council direction and next steps
Councilmembers asked for more detail and requested a follow-up workshop. Staff agreed to provide a summary and the individual-account backup that will show the accounts and amounts being billed. The council scheduled a workshop on the issue for the 6th at 4:00 p.m. to review the accounts, the audit results and newly implemented internal controls.
City steps to prevent recurrence
Staff said new controls require supervisor signoff from both utility billing and sanitation when accounts are opened or changed. The city also contracted an internal auditor and will have the audit committee — which includes two councilmembers — review the new processes after implementation.
Ending
Councilmembers said they want to recover as much revenue as possible while giving customers due process to challenge erroneous charges. Staff said residents who dispute a charge will be able to meet with billing staff; any requests for lists of account-holders will be handled through public-information channels and may require review by the Texas Attorney General’s office.
