Balch Springs approves billing audit fixes, policy and retroactive account adjustments after staff findings

Balch Springs City Council on Monday approved staff recommendations to correct utility-billing errors, issue credits for overbilled accounts and recover underbilled amounts for the period Jan. 1, 2024, through the present, and adopted a formal utility-billing policy to standardize account handling.

City staff told the council an internal audit of utility billing found multiple account-setup errors, meter serial-number mismatches, missing reads and instances where customers were charged minimum (base) bills for extended periods instead of usage-based billing. The council voted unanimously to allow staff to apply verified credits and pursue recoveries where audit findings show underbilling or overbilling.

The measures come after staff described several high-profile corrections, including one apartment account adjustment described by staff as exceeding $103,000 and multiple residential accounts receiving adjustments in the hundreds of dollars. Staff said some errors dated back into 2022 and that correcting complex accounts can require coordination with field crews, meter-system vendor records and the city’s billing software. Council approved a staff recommendation to limit retroactive adjustments and collection activity to the window of Jan. 1, 2024, through the present.

City staff told council the response includes technical fixes, revised procedures, staff training and new supervisory controls. Specific steps listed to improve accuracy and transparency included: verifying meter serial numbers against meter IDs that feed the automatic read system; flagging and reviewing unusually large-consumption bills; requiring supervisor approval for high-consumption adjustments; adding audit logs for manual edits; weekly operational coordination among utility billing, customer service and field crews; and customer communications and education materials on the city website.

Council also adopted a written utility-billing policy that spells out account setup, deposit and identification requirements, payment and disconnection procedures, dispute and appeal routes, and protections such as language access and data-privacy measures. Staff said the policy is intended to create a single, consistent framework so residents and businesses know how accounts are handled and what to expect when errors surface.

During discussion council members asked whether staff had reviewed every account (staff said they had not; work prioritized accounts flagged by customer complaints and additional spot checks), how business and landlord accounts are handled, and whether the city would offer payment plans when a corrected balance is owed. Staff said they will contact affected customers, explain corrections and, when appropriate, offer payment arrangements rather than immediate collections.

The council motion to authorize adjustments and recovery passed with the following recorded votes: Council member Hill — yes; Mayor Pro Tem Garcia — yes; Council member Gabriel — yes; Council member Patino — yes; Council member Miles — yes; Council member Salal — yes.

Council commentary highlighted the customer-service impacts of past billing errors and stressed the need for clear communication. Staff said more than 75 adjustments had already been made in recent months and that some complex accounts require extended analysis, particularly when adjustments must be applied across different rate structures and billing-system conversions.

Ending: Staff will proceed with the corrections and implementation of the new policy, and council asked that the city post a general notice on utility bills and on the city website explaining that some residents may see adjustments or spikes while the audit corrections are applied.