Residents in Silver City, Iowa, received an expensive surprise when their June water bills arrived with totals far higher than expected, with some households seeing charges double or even triple due to a sewer billing software glitch, according to city officials.
What happened?
Mayor Joseph Jaworski said the problem caught both residents and city leaders off guard after PeopleService, the Omaha-based company, told the city there was an issue with its sewer billing formula, according to KMA News.
He said his own family was among those affected.
"Our water bill runs about $88 each month — our family of six," he said. "In June, it was $263. And, the units went from 3.5 to 11.7 that we were billed for."
He said other residents also received June bills that were double or triple their normal amounts.
Jaworski said PeopleService has told the city it is recalculating the charges and preparing replacement statements.
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"At this time, PeopleService has made a statement that they are currently redoing bills," Jaworski said. "Those will be sent out this upcoming week."
Why does it matter?
Jaworski suggested the billing issue could be part of a broader pattern in Silver City's relationship with PeopleService.
"But, that is kind of one of just one of the few issues that we're dealing with with PeopleService," he said. "We're dealing with a lot more than just billing issues."
At the same time, the city is pursuing a major infrastructure project intended to improve water quality.
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What's being done?
Residents are still waiting to see the revised bills.
Jaworski said PeopleService has indicated that "the problem has been corrected," but added, "We just have yet to physically see it being corrected through bills to residents."
Silver City is moving ahead with a major water infrastructure project.
In April, the Silver City City Council voted to hire Eagle Engineering for a full engineering design tied to rebuilding the city's existing water system.
Jaworski said the city could choose between two project routes based on available funding once permits are in hand, which he expects to be next spring or summer.
"So, we're looking at anywhere from a $2 million to $4 million water project — and that will hopefully boost the water quality, significantly."
The city qualifies for Community Development Block Grant funding, and Jaworski said Silver City "did hit 89% LMI," putting it in a strong position as officials await the Iowa Department of Natural Resources' preliminary engineering report.
City officials said that if the financing is secured, they want the project finished by summer 2028.
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