BILLINGS — Billings property owners are seeking legal action regarding expensive water bills, which began after a billing software change in 2024.
That software change caused some issues, leading to late and expensive bills for customers before the city eventually hired an independent auditing company called SL-serco, Inc.
Watch this video to learn about the potential class action:
Those audit results were finalized in February, and according to the findings, there were no discrepancies found with the billing process. According to the city, all bills were accurate.
Despite those findings, many residents were still upset with some vowing to not pay their bills.
Gary Zacc manages dozens of properties in Billings and was among the many who called the city with concerns.
"There was a mistake somewhere, like this is not real," Zacc said of his first expensive bill. "I figured we'd get some answers, and instead it's like 'We're going to dodge the question and don't bother me. Go away and just pay your bill.'"
Ed Johnston, another Billings property owner, was also upset with the lack of communication from the city.
"I figured it was just an error," Johnston said. "I thought, let me just reach out, bring it to somebody's attention and they'll get back and it'll be fixed. The response I got pretty consistently was, 'Yeah, that's your usage.'"
Johnston and Zacc weren't alone in their confusion.
As of July 31, Billings Public Works confirmed that there were 4,256 bills still unpaid and overdue of at least 30 days. When the audit was first finalized in February, there were 15,000 bills unpaid.
"Everybody was up in arms," Johnston said. "It wasn't happening to two or three people, it was happening to many, many people. At that point, I realized we've got some concerns."
That's when Zacc and Johnston started working together, collecting data from other disgruntled residents, and contacting two attorneys about representing them in a class action suit.
Matthew Monforton of Bozeman was one of the attorneys the duo contacted, who Johnston said would represent them if they could produce more data from Billings residents. Monforton is the same attorney to represent plaintiffs in a class action suit against Billings in 2017 over franchise fees, which resulted in a settlement by both sides.
In an effort to drum up more interest, Zacc and Johnston created a Facebook group, called Billings Water Dispute — Citizens REACT, and are hoping more residents come forward to provide billing information.
"We'll see what we can do as far as gathering information," Zacc said. "The more people that can step up and give us information, the more interested attorneys can get in it."
Both Johnston and Zacc said they would rather see the city engage in discussions with disgruntled residents than turn to legal action.
"It would just be nice for somebody with the city to step up and say it's my job to take responsibility for this and there's clearly something that needs to be addressed," Johnston said. "Admitting a mistake is not a weakness. There's nothing wrong with that."
MTN News reached out to Billings City Administrator Chris Kukulski about the potential class action suit. While he declined to speak on camera, in an email, he said he would be happy to meet with residents in person.
"If a group of litigants wants to meet, I will meet with them anywhere and at any time," Kukulski wrote.
That's the kind of accountability Zacc and Johnston are hoping for, understanding how complicated a lawsuit could be.
"I would rather see the city say, 'Okay, for those months, let's take an average of what you've been paying in the past or the amount of usage you had in the past and let's just adjust everything and keep on going,'" Zacc said. "Anytime you go legal, it's not good for anybody."
