Ithaca council renews water‑meter underpayment caps, amends residential cap to $1,040 and adds sunset

The Ithaca Common Council moved to renew its program limiting underpayments when old water meters are replaced, adopting new caps and a sunset for the policy.

Council members approved a measure that sets a $10,000 cap for commercial properties and, after an amendment, a $1,040 cap for residential properties adjusted to 2026 dollars. The change was presented as a way to balance credit to customers whose meters under‑register and the city’s responsibility for aging equipment.

Scott, who described the meter replacement program and data trends, told the council that about two‑thirds of the city’s meters have been replaced with the Neptune system and that the new dataset shows average underpayments have risen compared with earlier limited samples. “We have about 2/3 of our meters replaced with this new Neptune system…in this case now that we have 2/3 of the meters replaced, we’re looking at around $1,000,” Scott said, explaining the staff recommendation to set the residential limit higher than the prior $1,000 cap.

Alderman Keel moved to amend the proposed residential cap from $1,500 to $1,000 and to peg the cap to 2026 dollars; councilmember Keel later accepted the calculation adjusting that figure to $1,040. The amendment to set the residential cap at $1,040 carried with council voting in favor by recorded count described in the meeting as 8–1, with Mr. Kirby opposing. Council then added a sunset clause for the program; after debate on an appropriate end date the council adopted an extension (the final sunset date recorded in the meeting was set during debate).

Council members repeatedly emphasized outreach alongside the policy change. Staff said Eastern National, the third‑party contractor the city uses to schedule meter changeouts, can install roughly 60–100 meters per week and that the administration will continue targeted notices, postcards and landlord outreach to maximize replacements and minimize the number of accounts that rely on the cap.

The council’s action applies to the underpayment program tied to the city’s ongoing meter‑replacement project and will appear on the April consent agenda with the adopted amendment language and the sunset provision.

What’s next: staff committed to provide full underpayment totals for 2025 and to continue aggressive outreach to encourage owners to schedule meter replacements so accounts can receive accurate readings instead of estimated bills.