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Councilors press finance on water billing problems after $258,000 enterprise shortfall
Summary
Councilors raised alarms about water and sewer billing delays and software errors that left the water enterprise with a retained-earnings deficit and a $258,004.91 shortfall to be covered by the general fund; finance said it hired a consultant and will revisit rates in spring.
Councilors at the Dec. 9 Peabody City Council meeting pressed finance staff for explanations after the water and sewer enterprise showed a retained-earnings deficit and an approximate $258,004.91 shortfall once debt service was factored in.
Councilor Turco described billing anomalies and customer complaints, saying a resident recently received an $8,000 erroneous bill and noting that many meters had not been read on a timely basis. Turco said the billing data used in the FY25 closeout does not reflect accurate timely reads and asked whether the city should delay any rate increases until readings and collections are stabilized.
Finance Director Mike Gingras acknowledged long-running problems with the Munis water-billing software that scrambled readings and forced the department to use estimates in order to maintain revenue flow. Gingras said the city has hired an outside consultant to resolve issues, is working to return to normal billing cycles and plans to bring a water and sewer rate reevaluation to the council in spring.
Implications: Gingras said the shortfall was primarily timing-related (delayed collection) rather than caused by the rate structure; nonetheless, once debt-service obligations are applied the enterprise showed a deficit and the general fund will cover the $258,004.91 amount for the current year. Councilors stressed the need for accuracy before authorizing any rate increases and asked for clear timelines and reporting back to the council.
Ending: Gingras said the city would continue troubleshooting with Janice and her team, and the council requested updated reporting on billing corrections and any proposed rate changes before the next budget cycle.
