from: http://www.azcentral.com/news/articles/0429waterbill.html

$3,000 water bill? Phoenix tab stuns residents in county pocket
Yvonne Wingett
The Arizona Republic
Apr. 29, 2003 12:00 AM

For years, Jeffery Marques thought he was filling his pool and watering his lawn with water he had paid for.

He was wrong. So were hundreds of others living in an unincorporated area of Maricopa County who last week were zinged with water bills as high as $3,000.

"I just couldn't believe it, I thought it was a misprint," said Marques, whose water bill was $2,165.

Phoenix water officials say they've been underbilling homeowners in the unincorporated area of Desert Hills for 12 years. The county residents should have been charged one and a half times, or 50 percent more, than Phoenix residents, according to city code. Instead, they were charged the same rate for basic water services.

"We're not trying to be unfair . . . but if these costs aren't recouped, it affects water bills throughout the city," Phoenix Water Department spokesman Ken Kroski said. "This doesn't happen often. We don't like going back and sending letters that they owe money to the city, but we're required to by city law."

Adjusted bills for the past three years were sent to 335 homes.

Phoenix's ordinance prohibits officials from collecting money going back more than three years.

Not only do residents of the Desert Foothills North Homeowners Association believe it's unfair but they also believe it's wrong.

A private well owned by North Valley Water Co. provided water services to the area until 1988 when Scottsdale bought it with an agreement that they would be charged Scottsdale rates.

Phoenix acquired the well around 1990 with the provision that residents there would pay "inside" Phoenix rates, since they have no sewers, fire hydrants or trash collection, according to longtime residents.

Phoenix officials are not aware of the deal, but Kroski said it would be honored if indeed one exists.

Water officials and residents are scrambling to dig up paperwork regarding the well transfer and purported agreement.

The records could be difficult to track down.

No single state or local agency regulates privately owned water companies. The state Department of Water Resources issues permits when a company or other provider drills a well, but once the well is operating, the agency has little additional contact.

The Arizona Corporation Commission regulates rates and some operational issues, including customer service and a company's ability to provide water. Water quality falls under two Maricopa County departments and the state Department of Environmental Quality.

Residents have up to three years to make interest-free payments, Kroski said. Still, residents said, it's going to be tough to ante up.

"This is a real sock between the eyes," said Joe Gilleland, president of the Desert Foothills North Homeowners Association. "(The higher rates) make sense. What doesn't make sense is the retroactive charges. How can we be charged for a product that you cannot return or have any control over?"

Kroski doubts the debts will be cleared.

"If this does amount to several hundred thousand dollars, every penny counts," he said. "And code requires us to get that money back. It's an equity issue."

Reporter Shaun McKinnon contributed to this article.

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