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Council approves $214,214 abatement after Providence Water Supply billing error
Summary
Scituate council accepted a $214,214.14 abatement request after a compounding error on a private water bill; finance said the mistake resulted in an effective 6.9% increase instead of the agreed 4%, creating a revenue shortfall that the council will address at upcoming budget review.
The Scituate Town Council voted to accept an abatement request that reduces a private water bill to the contractual 4% year-over-year increase, returning a net of $214,214.14 to the affected account.
Karen, the town finance staff member, explained the error: when the private water levy was calculated the increase was compounded in error so that the bill reflected an approximately 6.9% increase rather than the agreed 4%. Karen said the mistake was hers in calculating the compounded levy and that it had not occurred previously.
Councilors discussed budget implications. One councilor noted the abatement creates a revenue shortfall in the relevant line item ("a $214,214 hole" in the budget), and members asked for a special budget meeting to identify safeguards and potential offsets. Karen and other staff said monthly budget-to-actual reports are prepared and that the broader budget will be reviewed to see if the shortfall can be absorbed before year-end.
The council moved to accept the abatement and approved the motion by voice vote. Councilors said they will schedule follow-up discussions on quarterly budget reporting and potential process fixes to reduce the risk of future calculation errors.
