The City of St. Louis is set to resume water shut-offs for residents with unpaid utility bills, bringing an end to a five-year moratorium initially implemented during the COVID-19 pandemic. This pivotal decision, anticipated for over a year, marks a significant shift in the St. Louis water division’s approach to increasing financial delinquency and ensuring operational stability.
For years, the water department has grappled with escalating financial challenges. A staggering quarter of all utility bills currently remain unpaid, contributing to a total outstanding debt nearing $13 million, which represents over 14% of the division’s projected annual budget. This rising level of delinquent bills, coupled with the mounting costs of maintaining and repairing a century-old water infrastructure, has placed immense strain on the department’s ability to sustain essential services.
Mayor Cara Spencer underscored the critical necessity of this measure during a recent press conference, stating, “We have to start making sure that people are paying their water bills and that the water department has the income it needs to function. We just have to.” Her remarks highlight the pressing need to address the deep-seated issues impacting municipal finance within the city’s essential services.
While the exact number of households immediately affected by the resumption of water shut-offs is yet to be precisely determined, over 13,000 residential accounts across the St. Louis city currently show delinquency. However, a crucial exemption has been announced: residents whose properties were impacted by the May 16 tornado will continue to be protected from service disconnections, offering a vital lifeline during their recovery.
The initial pause on water service disconnections was a widespread response by water departments nationwide in early 2020, as the global pandemic began to take hold. While many other major cities across the United States gradually lifted their moratoriums throughout 2022 and 2023, St. Louis had maintained its policy, despite the growing financial precarity of its water department.
The call to normalize utility shut-offs gained momentum following a June 2024 hearing, where then-Water Commissioner Curt Skouby informed aldermen that the time had come to revert to pre-pandemic collection practices. At that point, the number of seriously delinquent accounts — those owing over $500 or more than 90 days past due — had alarmingly swelled to approximately 19,000, representing nearly a fifth of all water accounts in the city.
In recognition of the potential hardship, the city collector has been developing a new payment plan designed to spread make-up payments over an extended period. Furthermore, a substantial $1 million in federal pandemic relief funds has been allocated to provide public assistance to customers in arrears. This program will offer eligible households up to $500 to significantly reduce their outstanding balances.
City officials announced that applications for this vital financial aid would commence on August 20, earnestly urging all customers behind on their St. Louis water bills to proactively reach out for support. Eligibility criteria include being a city resident with a household income no higher than 60% of the area median income, or approximately $61,920 for a family of four, aiming to assist up to 1,800 households facing financial hardship.
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