Council to send letters after audit finds $180,000 underbilled to large water and sewer users

Denison — City staff reported Dec. 29 that an audit of the utility billing system uncovered errors in tiered billing formulas that underbilled several large users over the past two years. The largest underbilling identified was the Central Utah Correctional Facility, which staff said was underbilled about $118,000 for water and about $62,000 for sewer; staff estimated total recoverable amounts in the roughly $170,000–$180,000 range.

Staff said the billing formulas were corrected following the audit and recommended sending letters to affected customers to recover the underpayments, offering a reasonable repayment period. Council members agreed staff should send the letters and pushed for improved oversight to prevent similar errors. Staff noted it will provide council with a top‑10 list of affected accounts and exact figures.

Council discussed how the error evaded earlier review and whether the city’s auditor could have caught it sooner. Staff said the auditor meets state minimums and that the city has tightened the billing and audit processes since the error was discovered.

Next steps: staff will prepare and send correction letters to affected customers, provide council with detailed account figures and a plan for preventing recurrence.