Did you pay for a water meter and not even know it?

Why you need to find out

Have you ever paid for something and forgot about it? I know that I have.

The most common one for me is a publication for work. I'll renew my subscription and then the publisher will send another notice. Thankfully, I am rather good about keeping records, so they rarely get me to renew too early.

What about paying for something when you don't even know it? You know, a situation where the amount is added to your bill without telling you — the gratuity was already added, yet the "tip" line still shows a blank? You then add 20 percent only to find out while you're in the car that the price included the gratuity.

Well, a situation like that has probably happened to hundreds of people in Lodi, and I want them to know about it.

Beginning in the early '90s, the Lodi Public Works Department started collecting "deposits" for water meters. If you had a construction project, including a new home, where the value of that project exceeded a certain level, the party paying for the permit paid that "deposit." Today, the valuation level where they begin collecting for the water meter is $39,400 and the amount is $340, increasing very soon. In other words, if you take a permit to remodel, build a new house or something else and the value of that project is $39,400 or more, you will pay, at least in part, for a water meter. And if you did it yesterday or since the early '90s, you already did pay, at least in part, for a water meter.

Did you know that? If you didn't, I hope you do what I did.

In 1998 I did an extensive remodel on my house. As part of that remodel, I was required to pay to the city of Lodi $1,603.84 for my permit. (Yes, I still have the receipt.) When the remodel was completed, I reviewed my paperwork, including that receipt, and noticed a line on that receipt — WATER METER DEPOSIT $140. Since I knew I didn't have a water meter, I called the Lodi Public Works Department and was told that they didn't install the water meters, they just collected the deposits.

I then told them I wanted the deposit back because they didn't give me anything. While I bet you think the answer was just "No", I got one that was even better — sorry, we don't give the money back and we don't have it to give back because we spent it.

Bad Answer!

Well, after a call to the city attorney explaining what I thought was a rather simple position, I got a water meter. While I didn't need for them to install it, they did and — note to the city of Lodi — I'm not paying for another one.

My point with sharing this story with you is that many of us in Lodi have already paid for at least part of our water meters through the deposits, and the city of Lodi has spent the money. Even though our city management has known for many years that water meters would need to be installed, they did not hold the money for future use and they did not buy water meters with it. They used the money, our money, for other things, and I think that is wrong, very wrong.

Beginning in 2010, Lodi will begin installing water meters, and that is going to cost a lot of money. There is no doubt in my mind that our city management is going to charge, or try to, you and me for these new meters. Before you pay, I hope you check to see if you already have paid so you don't pay twice.

All you have to do is go to the planning department and ask to see the file for your property. If you already paid your "deposit," ask them for your money back. When they tell you that they don't have it, tell them you want a water meter. I doubt that you will get one, but if enough people make a "run at the water meter bank," perhaps our City Council will see that they have an accounting nightmare on their hands and they will do something to fix it.

John Johnson, CFA is a Lodi-based business appraiser. You can reach him at john@johnejohnson.com or at (209) 369-1451.