Utility Billing Updates

A contract was signed with SL-serco on Oct. 31, 2024. 

Headquartered in Minneapolis, MN, SL-serco has offered utility consulting for over 60 years. They specialize in field troubleshooting, data analysis, project management, and industry training for water, electric, and gas utilities.

A representative from independent contractor SL-serco Inc. will travel to Billings and begin examining residential meters on Wednesday, Nov. 6, 2024.

The firm randomly selected residential customers they would like to visit to conduct an electronic review of the home’s water meter and began scheduling appointments on Nov. 1, 2024.

The following is a list of tasks agreed to by the City and SL-Serco. 

CONSULTANT RESPONSIBILITIES:

•Communicate the impact of client requests for adjustments to service

•Perform project status and compliance reporting monthly.

•Determine if the measurement of water consumption was converted appropriately and billed accurately in accordance with data stored in Neptune 360.

•Determine if the last meter reading in the legacy system was imported correctly into VertexOne.

•Determine if customers were billed according to approved rate schedules.

•Determine if prorations between fiscal years and tiers was calculated accurately.

•Determine if the billing data from VertexOne was correctly reflected on the bill image.

•Determine if wastewater charges were calculated correctly.

•Determine if storm and garbage fees were billed correctly based on the abnormal billing periods. Verify proration if applicable.

•Verify that billing cycles and periods were maintained correctly (i.e., no double billing for same or overlapping periods).

•Verify that automatic payments for customers on autopay match what was billed (i.e., no extra debits have been taken).

•Review the CITY’S decision-making process and public communication related to the bills in question. Document where CONSULTANT observes opportunities for process and communication improvements.

•Review summary bill process and multi-account holders online access compared to the industry best practice.

•Report findings to staff and council including a description of the processes used throughout the review and a presentation at a public council meeting.

CITY RESPONSIBILITIES:

•Tracking and payment of invoices within 30-day terms.

•Provide feedback as needed throughout the project as well as at the end.

•Provide data from current and past billing systems as needed.

•Provide access to the Neptune Advanced Metering System.

•Assist with access to meter locations.

•Make staff available to discuss billing processes, fees, rates, etc.

•Review data and findings as the Audit proceeds, as needed.

SL-serco will select accounts at random to thoroughly examine every detail of the billing process.

The number of meters and accounts examined will be determined by the firm to provide the necessary statistically valid data needed for the audit.

The firm will select accounts at random. This allows the firm to create statistically valid data needed for the audit.

Findings will be available once the entire audit is complete. Upon completion, a representative of SL-serco will present the audit results to the Billings City Council during a public meeting.

The price of the audit service is $33,000.

The City also decided to proceed with additional meter testing, which will cost an estimated $42,500. This optional step brings the audit’s total to $75,500.

During the additional meter testing, residential water meters will be randomly selected, and with the property owner’s approval, will be physically removed and tested for accuracy.

SL-serco will hire a third party to conduct the water meter testing and will compile the results into a secondary report.

Since the firm selection process began, residents have been understandably concerned about who will pay for the audit’s cost.

At this moment, the payment will come from utility finances. If the audit reveals that another entity is responsible for any errors, the city will pursue a remedy.

City administration will update our community on SL-serco’s progress via social media and the City website. Although the results won’t be shared until the report is complete, we will announce when the firm reaches significant audit milestones.

During the firm selection process, the City researched several agencies and requested additional information from three finalists. SL-serco was selected because they can analyze everything from meter to bill, whereas other companies specialized in a subset of the desired audit.

We encourage you to use the information provided on this page to assess your bill. 

Alternatively, you can email, call, or direct message us on Facebook, but please be aware that, given the volume of questions, the response could take up to two weeks. 

We understand there is a due date on the bill, but if you have sent a message and are awaiting a response, you can wait to pay until you hear back from us without a penalty or late fee. 

Isolated errors primarily due to human error have been found. While errors have not been found in the new billing software process to date, an audit is underway to ensure the accuracy of the bills. Visit the Audit FAQs tab to learn more.  

Bills have been mailed at unusual times compared to historical 30-day utility bills.  

We've put together an example of a monthly billing schedule to help you review your bills and know what to expect moving forward. 

Your schedule may have different dates, but the general example of the billing periods should be the same unless you were one of the few customers who received a 3-month bill.  

To check your billing period, look at the top right side of the bill for the period of each billing cycle.  

The dates should be the same from the end of one period to the beginning of the next (e.g., 8/5-9/5 and 9/5-10/5). 

To avoid overlap, the time of day meter readings are taken will rotate from one billing cycle to the next. For example, for the first bill, meter readings are taken during the day, and then for the following bill, the meter will be read in the hours after. 

•Rate increases were effective at the start of the new fiscal year on 7/1.  

•Stormwater fees were previously part of your taxes. The stormwater fee was removed from taxes and placed onto your utility bill. 

•The garbage charge is based on the bill date, not the service date, so it sometimes covers periods longer than 30 days. See the FAQ below - Why doesn’t my solid waste (garbage fee) look right? 

•On average, water, wastewater, and solid waste fees increased by 7.8%.  

•Learn about Water, Wastewater, and Stormwater  fees. 

We understand if you need a few months to catch up on your utility bill. If that's the case, you do not need to contact us for now.

We are not currently offering payment plans because we are not charging late fees. 

You can make payments as you can, and if you are not caught up when late fees are reinstated, we can set up a payment plan at that time. 

The meter that records water consumption has not changed with this conversion. Meters are tested before they are installed; if they fail, they read low or do not read at all. Due to the type of meters in the system, they do not increase consumption over time or when they have problems. Click here to watch a video to see how meters are tested for accuracy.

Due to the hot weather, the city's overall water consumption increased by 29% from the same time last year, as shown in the graph. While not everyone's use was 29% higher, the overall system demand was 29% higher, which means usage increased for some properties and decreased for others. 

 As a large-scale gut check, we looked at how much water was produced in June, July, and August 2024 and how much the meters read for all accounts. The plant produced 3,453 MG, and we billed for 2,932 MG, which is a difference of 15%. The last estimation for unaccounted-for water was 14%, so these numbers are reasonable. We will continue to monitor our unaccounted-for water to ensure it continues to track consistently. 

Please remember that charges for solid waste services are based on the date the bill is posted. Since the bills have been mailed more than 30 days apart, the service period for solid waste has been greater than 30 days for many customers. The garbage fee will be at the normal monthly rate when the cycles are back to 30 days, and there will be a month that is less than a full 30-day fee before that. See the images below that further explain the calculation. 

The 2020-2023 summer water consumption numbers are available here. Instructions will guide you in looking up your past account balances. 

Late fees and shut-offs were suspended when the billing conversion went live due to concerns about the accuracy of the bills.  Since the conversion, the City has worked with customers to ensure bills are accurate. After almost 1 ½ years, the regular process for late fees and shut-offs is set to commence for outstanding balances from the November bill.  Depending on the billing cycle, late fees will start in December and January and turnoffs will commence in January and February.  In order to avoid late fees, please pay the balance on the bill.  If that is not possible, we are happy to work with you to set up a payment plan.  Entering into a payment plan and meeting the plan's requirements will avoid shut-off of service.   

Our previous system had no reporting capabilities, making data retrieval nearly impossible. It couldn't send service orders electronically to our meter service technicians, so we used paper, manually divided tasks between the service techs, and arranged them by location as best we could.  The legacy system also lacked accurate data needed for our Geographic Information System – GIS, which plays a vital role in managing our critical infrastructure.

The new system offers a robust electronic service order system and routes the service orders to be most efficient geographically. With over 500 miles of water main, more than 32,000 water meters, 13 pump stations, 18 storage reservoirs, over 4,700 fire hydrants, and soon-to-be two water treatment plants, we rely on accurate data to make smart decisions about maintaining and improving our system. This new billing system will ensure we can manage these resources efficiently and provide reliable service for Billings. 

The primary reason for the long delays in issuing bills is the data in the software system we converted from. We have always had issues with that software when trying to get data out of the system. While every effort was made to transfer as much accurate information as possible and test it thoroughly, there was still a large amount of missing data and corrections needed before issuing bills. The billing system “bugs” have been addressed, and while we expect more might come up, the bills should be back on schedule after mid-November. We do not anticipate any future bills covering longer than a 30-day period. 

The upgrade was initially planned for February but had to be delayed twice due to issues with the old system. The conversion took place in May, and the first bills on the new system went out in June. The delay didn't occur until after we got through the first cycle. If the problems had appeared before the first bills went out, we would have waited until the fall to transition. 

Our team is working closely with the vendor to ensure all bills are accurate, which is why the process has taken longer than expected. While we’re committed to getting this right, we understand the frustration this has caused and truly appreciate your patience! We agree that the timing of the system conversion wasn't ideal, and we sincerely apologize for the inconvenience.

If you enrolled in paperless billing before the conversion, your enrollment should have carried over, and you’ll be able to view your statements online. If you receive statements in the mail and want to enroll in paperless, sign in to your account online and update your bill delivery preference under your profile. 

For customers enrolled in automatic bill payment, the total amount due will be deducted on the due date listed on the bill. 

Use the online account portal to make adjustments by selecting 'payments,' then 'payment methods.' If you encounter any issues, message us on Facebook, call us at (406)657-8315 (option 3) , or email utilities@billingsmt.gov . Be sure to provide your service address and autopay cancellation request, and our customer service team can turn off autopay.

If you have any questions about your bill, please do not hesitate to reach us at 1(406)657-8315, option 3, or by email at utilities@billingsmt.gov