Flint - The city's much-maligned water billing system will be replaced by next June as part of a technology overhaul that could save the city as much as $1.5 million over the next five years.

The new technology also should improve city revenue collection and code enforcement, and allow residents to review bills online and close out water accounts easily, officials say.

The city's water, sewer, assessing, permits, tax, financial and payroll systems all will operate with the same software, replacing one system that is 20 years old and other newer systems too complex and too expensive to maintain.

"We just got oversold," Finance Director Peter Dobrzeniecki said of the newer systems purchased in the late 1990s. "The city bought the 18-wheeler, and now we're going to get the bicycle."

The system will be installed over the next five fiscal years and the $632,000 purchase price is a third of the price tag for the current software, which handles the city's water billing, general finances and payroll.

Of the projected savings, about $690,000 come in lower annual maintenance costs.

The change also would save the city $700,000 in upgrades, net as much as $100,000 in selling some of the current equipment, and drastically reduce the costs of replacing servers.

Emergency financial manager Ed Kurtz approved buying the tax and water and sewer billing software in recent weeks for $220,000 from BS&A Software, an East Lansing-based company.

The problems in water billing, which first surfaced in 1999 shortly after installation, included late and inaccurate bills and estimated bills.

In 2001, the city spent $210,000 on a contractor to fix the water billing system and used part of a $190,000 grant to temporarily rehire retired employees familiar with the system.

Even so, the problems still continue, although officials stress they aren't as prevalent or severe.

Sixth Ward Councilman Mark A. Horrigan, a longtime critic of the software system that was initiated under former Mayor Woodrow Stanley, said the water billing system and a $8.7-million contract to replace the city's water meters was flawed from the beginning.

The council approved the purchases to get the city Y2K compliant and replace a water meter reading system that was understaffed, which led to complaints about estimated bills.

"I told you so, I told you so, I told you so, and I told you so," Horrigan said. "Now the financial manager is telling us so. Mayor Stanley wouldn't admit it, but the financial manager has and I applaud him for it."

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