Friday, February 2, 2018

Snow forces city to average monthly water bills

The recent snow has affected Marion water customers’ bills, according to City Administrator Adam Ledford.

For the billing period of Dec. 15-Jan. 15, the city is using a 12-month average usage to bill water customers. That is due to snow and ice covering most meters during the time they would normally be read. This temporary action will be reflected on February bills mailed at the end of January and due for payment by Feb. 10.

Ledford said the city’s utility billing software has the ability to conduct the process seamlessly. He said reading meters after the snow had cleared late last week was considered, but it would have had an adverse impact on low-usage customers since several cost factors are based on usage during the typical 28- to 31-day billing period. Extending that period could push some customers beyond 1,500-gallon minimum, upping usage charges and an incremental environmental assessment fee.

“By using the average usage method, we are avoiding those financial impacts to low use customers,” the city administrator said.

Since water usage can vary widely month to month for some customers, it is possible the 12-month average will be noticeably different than a typical February bill. There has been no change to either water rates or fees, and sewage billed will remain at 75 percent of water usage.

Ledford said the city’s software has a built-in function to adjust March bills when actual readings from mid-February are used for billing. So a customer on March 10 will pay only the difference between total usage over the two-month period beginning Dec. 15 and what they were billed in February based on average usage.

“It is designed to factor in what usage was paid during the month of averaging and adjust the new usage amount to compensate for usage paid since the last reading on the meter,” he explained.
For example, a customer’s bill is for 5,000 gallons based on the average, so on Feb. 10, they will pay that amount. However, actual usage was 4,000 gallons during Dec.15 to Jan. 15 and 6,000 during the current billing period that ends in mid-February for a total of 10,000 gallons. Ledford said the system will automatically recognize that the customer paid for 5,000 gallons in February, so the March 10 bill will be for only the remaining 5,000 gallons of the two-month total.

If a water leak adversely affected the 12-month average, like the previous example, the system will adjust to bill for only the difference between actual two-month usage and what was already paid.
This is not the first time the City of Marion has been forced by some unavoidable circumstances to use this process.

“However, we wish to make the public aware of what is going on,” Ledford said. 
For anyone with further questions, they may call city hall at (270) 965-2266.