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Council members agreed to postpone that issue, as well as a planned report from the Finance Department, at last week’s meeting at City Hall.
The controversy stems from a three-year period when American Water Enterprises, an outside customer-service and billing company for 14,000 water users in the city, undercharged 15 homeowners associations.
Mistakes made by the company cost the city $800,000 in uncollected revenue, city staff has reported. The city has said it wants the company to cover half of that loss and homeowners associations to cover the rest.
An initial memo that went out to council members from the Finance Department recommended back-billing the homeowners associations but allowing collections to be made over a year to minimize the impact on residents. Monthly back bills would range from 1 cent to $4.35 per month.
The city also plans to work with associations to improve water conservation to reduce future water bills.
New rates, approved by City Council in December, lowered the cost of water use for low-volume users, but upped the cost to high-volume users, a category that often includes homeowners associations.
The City Council met briefly in executive session last week, then postponed discussion of the water billing issue. Mayor Joan Shafer confirmed after the meeting that members discussed legal issues concerning the water situation.
She declined to elaborate further, citing confidentiality rules of executive session.
Councilman Gary “Doc” Sullivan, meanwhile, gave assurances to the residents.
“It’s coming to a resolution,” he said.
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