Biddeford to Issue $1.35 Million in Sewer Bill Refunds After Years of Overcharging

The city of Biddeford is preparing to send roughly $1.35 million in automatic refunds to nearly 4,300 households and businesses that were overcharged on their sewer bills over a six-year period, according to a letter from Mayor Liam LaFountain released this week.

The overpayments occurred from 2019 to 2025, when an error in the city's billing system caused many sewer customers to pay more than they owed. Under Biddeford's tiered sewer rate structure, higher rates are supposed to apply only to customers who use larger volumes of water. However, the billing system mistakenly applied the top-tier rate to all customers, not just those with the highest water usage.

Individual refund amounts will vary based on each household's or business's water consumption, ranging from $314 to $2,500. The city will issue the refunds automatically, meaning affected customers do not need to take action to receive them.

The error came to light after the city transferred its sewer billing operations to Maine Water last year. Following the transition, an auditor reviewing the billing process identified the calculation mistake that had been in place for years.

In his letter to residents, LaFountain acknowledged that city officials do not know when or why the incorrect billing structure was originally established, but confirmed the problem existed for several years before its discovery.

"We are committed to being transparent about both what happened in the past and what to expect from your sewer bill going forward," LaFountain wrote. "The refund process addresses the past billing error."

The mayor also addressed what he described as ongoing public skepticism toward city government, acknowledging a string of recent financial controversies. In January, the city finance committee reviewed a downtown parking plan that had been approved by former Mayor Martin Grohman and former acting City Manager Brian Phinney without going before the City Council or the finance committee, a violation of city code. In February, it was revealed that Biddeford owed the Internal Revenue Service more than $520,000 in late fees for delayed tax filings. Those penalties were later waived after U.S. Sen. Susan Collins intervened on the city's behalf.

In April, City Manager Truc Dever resigned after less than a year in the position, citing "the scope and complexity of issues facing" the city.

LaFountain said the current administration is working to address the city's financial challenges head-on.

"We're not sugarcoating the real issues we inherited," he wrote. "We're taking actions to prevent these types of errors from reoccurring and restoring the city's finances."

The mayor's letter did not specify when the refund checks would be mailed. The city has not announced whether it will pursue reimbursement from any individual or vendor responsible for the billing error.