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City manager reports 44% water loss, ongoing water‑sewer fund deficit and planned meter replacement bidding
Summary
City staff reported a multi‑year deficit in the water and sewer fund, estimated water loss of about 44%, planned bids for a new water‑meter system, and recent shutoff activity resulting from past‑due accounts.
The city manager reported to council that the water and sewer fund has been operating at a deficit for two years and that staff are closely monitoring the fund and upcoming grant and loan changes.
Staff said the city has an estimated water loss of about 44%. The city attributed the loss to water main breaks and a significant number of failing meters that prevent accurate reads; the city currently adjusts bills based on prior usage where meters are unreliable. Staff said they are finalizing bid specifications for a new water‑meter system and expect to publish them within a week.
The city also discussed revenue and cash‑flow items: audit work is scheduled to begin Sept. 22, and the city projects a slight contribution to fund balance but noted it is early in the fiscal‑year closeout. The manager said the city had budgeted to use about $1 million of fund balance for the year and that current tax revenues are running slightly better than expected through the first two months.
On water billing and collections, staff reported they sent shutoff notices and red‑tagged accounts: the city sent notices to roughly 4,529 residents, red‑tagged 663 homes, and has shut off 112 accounts (21 remain off to date). Staff said many shutoffs are for likely vacant properties. The city said it has sent notices for approximately $1.4 million in past‑due amounts compared with roughly $1.16 million last year (city staff noted two additional districts remain to be processed). Staff said the city will continue to work on meter replacement and grant/loan opportunities (including SRF funding and Act 51 road funds) and will return to council with proposed budget amendments if additional revenue becomes available.
Councilors asked about verification procedures for vacant homes and winter shutoffs; staff described mail returns, usage patterns and in‑person checks as methods used to verify vacancy and said winter shutoffs are handled cautiously to avoid frozen pipes.
