(Radio Iowa) – A report from the state auditor’s office has identified a costly error in a small northeast Iowa town’s utility billing system. About 500 people live in the town of Elma. Staff in the state auditor’s office reviewed the city’s financial records for the 2022 fiscal year and found the city had deficits of over 441-thousand dollars in its Enterprise, Sewer and Water Funds. The review by auditors discovered the sewer and water bills for Elma residents and businesses hadn’t been raised, as required by a city ordinance.

Starting in 2019, the utility rates were to go up three percent every July 1st.

The state auditor’s report says the rates in the billing system have not increased as required. The report did not indicate whether the error was made in just one year or over several years.