Town says missed utility fees left water and sewer funds short by about $240,000 combined

Acting Town Manager Scott reported that two fees approved in the town’s fee schedule were not included in the billing program for roughly six months, creating a revenue shortfall in the water and sewer enterprise funds.

"We are now behind in water by about $80,000, and we are behind in sewer by a $160,000," Scott told the council, explaining that a $6 O&M per-capita fee and a $12 sewer capital fee were not applied to bills during the period. He said billing for July had already been issued and proposed that staff rebill with explanation or begin correct billing starting in August rather than imposing large retroactive bills on customers.

Council members and staff discussed options. One member said retroactive billing would be particularly hard on businesses that use more water; others suggested spreading any recapture over time or addressing the shortfall through next year’s rates. Town consultant Carrie McDonald and staff said they would return with more precise numbers on July 21. The town attorney was asked to confirm the legality of any proposed rehbilling or recapture approach.

Why it matters: The missed fees affect enterprise fund revenues and could require rate adjustments or internal transfers to maintain service levels. Council discussed not passing one-time large retroactive bills to businesses and instead recommended charging the correct fees going forward and considering adjustments in the 2027 rate schedule.

Next steps: Staff will provide detailed numbers and legal guidance at the July 21 meeting and proceed with corrected billing beginning in August; council indicated support for recapturing some funds over time rather than retroactive large bills.