Late payment fees and utility shut offs are being reinstated in Billings after penalties were paused in the wake of the city’s troublesome switch to a new billing system last summer.
Now, with about 4,000 accounts past due, City Administrator Chris Kukulski said consequences are needed.
“Some people are just flat out making a financial decision not to pay their bills,” he said.
Thousands of Billings utility customers questioned charges after being hit with higher than expected bills for water and waste services in the summer and fall of 2024.
Ratepayers’ frustrations prompted the city to hire the Minneapolis-based consulting firm SL-serco to audit the utility system. The investigation cost Billings $33,000 plus another $18,000 for meter testing.
Although there were initially thousands of inaccuracies after the city’s new software went live in June 2024, SL-serco CEO David Allen said, staff had either corrected them before the audit started or the error favored the customer.
The investigation found no evidence of systematic overbilling and auditors confirmed the city’s water meters were reading accurately, Allen said, during a presentation of the audit findings in February.
But the investigation did little to answer residents’ questions or regain their trust. Many have since taken their complaints to a Facebook group called Billings Water Dispute — Citizens REACT.
Organizers said they started the page to collect stories from other ratepayers in hopes their collective concerns would prompt the city to work to resolve them so they could avoid taking legal action.
Even as questions remain, the city council on Monday evening directed staff to start charging a monthly late fee of 1.8% in December on past due utility balances. Shut offs will begin early next year for those with delinquent bills who have not made a payment plan.
“Any customer who has an outstanding balance, needs to pick up the phone and work with our staff,” Kukulski said.
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Amy Nile
City/County Government Reporter
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