Michelle Thomas, the city's financial consultant, said the department needs to collect 75 percent of the bills it is sending out to break even in the department, an amount equal to about a $13 million increase for the next eight months of the fiscal year that ends Sept. 30.
She said the department is on pace to collect about $45 million in that time frame, or just over $4 million a month.
If the revenue shortfall continues, the city's bond rating could be downgraded more than it already has. The shortfall also hampers the city's ability to comply with the 7-year-old federal consent decree it's under from Environmental Protection Agency and would reduce available funding for water and sewer maintenance.
Last summer, the department had to borrow about $5.7 million in emergency funding to cover shortfalls in the city's water and sewer departments before the end of the fiscal year. Moody's Investors took note and lowered the city's bond rating as a result.
The shortfall in billing revenue is also jeopardizing compliance with the city's federal consent decree which requires costly upgrades to the city's water and sewer department and the Savanna Wastewater Treatment Plant.
Miller said there's about $52.3 million in uncollected revenue for active accounts in Jackson or those accounts which are still getting city water service. There is another $57.5 million in uncollected revenue from inactive accounts, which have been turned off but remain unpaid.
Adding to the department's problems, there's also an almost 50 percent staff shortage in the water and sewer maintenance divisions.
Miller agreed with Councilman De'Keither Stamps, who scheduled Monday's meeting, that the shortage of employees is important, but also said employee competence and capability and a "willingness" to work are also factors.
Miller last summer identified that more than a third of Jackson water customers were not getting a bill. He then worked to get accurate bills out. But so far, collection has been the biggest obstacle, he said.
The department increased the number of cutoffs to customers from 10 to about 30 a day as the new year began, but the cutoffs haven't reversed a "culture" of nonpayment, Miller said.
Councilman Charles Tillman asked Miller to give a brief statement to water and sewer customers in the city.
"If they believe they (bills) are not accurate, they need to contact us so we can work out payment arrangements. If the bill is accurate and there's no difficulty in paying it, or if it's not being paid and we haven't heard back from the customer, then we will pursue all means including water cutoffs," Miller said.
Contact Justin Vicory at 769-572-1418 or jvicory@gannett.com. Follow @justinvicory on Twitter.