City manager: Lincoln Park—s water fund shows high losses; 4,529 shutoff notices sent, 112 accounts shut off

Lincoln Park — City officials told the City Council on Sept. 8 that the water and sewer fund has an ongoing deficit and that the utility shows roughly 44% water loss, prompting a stepped-up effort on meter replacement and collection actions.

City Manager (reporting for finance and city management) said the city has sent 4,529 shutoff notices for past-due accounts in the current cycle, has red-tagged 663 properties and has shut off 112 accounts so far; 21 of those remained off at the time of the report. The manager said the city sent notices for about $1,400,000 in past-due amounts during the current effort and noted last year—s total past-due figure was approximately $1.6 million.

Why it matters: A high rate of unaccounted-for water and increasing water-main breaks put pressure on the water-and-sewer fund and on rate-setting. The city is balancing needed infrastructure improvements against shrinking loan-forgiveness programs and uncertainty in state road-funding allocations.

Key points from the city manager—s report:

• Water-loss estimate: The city reported estimated water loss of about 44% at the end of the prior fiscal year. The manager attributed the loss to a mix of large water-main breaks, failing meters that produce inaccurate reads, and billing estimates made to cover gaps in meter data.

• Collections and shutoffs: The city sent shutoff notices to 4,529 residents in the most recent round, red-tagged 663 homes and shut off 112 accounts; 21 remained off at the time of the report. City staff said many customers enter payment arrangements, and the city tries to work with residents to avoid shutoffs. The manager said the second round of shutoffs remains to be completed in two districts.

• Billing and meters: The city is finalizing bid specifications to replace the water-meter system and expects solicitations to go out within about a week. The manager said the new meters are intended to improve reads and reduce estimated-billing errors.

• Grants, loans and fund monitoring: The manager noted that some previous assistance came as loan forgiveness through the State Revolving Fund (SRF); as those forgiveness amounts taper, the city will need to more carefully prioritize projects. The manager also reported monitoring the state—s budget process because potential reductions in road funds could affect local plans to use Act 51 funds for repairs.

• Audit and fund balance: The fiscal-year audit was scheduled to begin Sept. 22. The manager said the city currently projects a small contribution to fund balance for the last fiscal year but cautioned that year-end closeouts and remaining adjustments remain pending.

Council members asked for operational clarifications. The manager said the water office tracks returned mail to help identify vacant properties, and staff may send a service worker to verify extremely low or zero usage. For payment arrangements, the manager said typical plans run 90 days for small balances and longer (up to six months to a year) for larger balances; shutoff-status accounts follow an ordinance-driven process.

What—s next: The city will issue bid specs for a new meter system, continue the second round of shutoffs in two remaining districts, and monitor potential state funding changes. The audit that begins Sept. 22 will also inform final numbers for the fiscal year.

(See transcript for verbatim figures and the city manager—s full report.)