{"id":558,"date":"2026-05-15T18:01:54","date_gmt":"2026-05-15T18:01:54","guid":{"rendered":"https:\/\/floridamovingchronicle.com\/?p=558"},"modified":"2026-05-15T18:01:54","modified_gmt":"2026-05-15T18:01:54","slug":"how-hialeahs-mayor-uncovered-that-the-city-faces-millions-in-hidden-water-bill-debts","status":"publish","type":"post","link":"https:\/\/floridamovingchronicle.com\/?p=558","title":{"rendered":"How Hialeah\u2019s mayor uncovered that the city faces millions in hidden water-bill debts"},"content":{"rendered":"<article><!-- --><!-- --><!-- WPS-5038 -- removed the script from WPS and added the placeholder for trinity player --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- CONTENT --><!--[--><!--[--><\/p>\n<p>Hialeah has a hole in its finances that the new mayor is now uncovering, stemming from a long-running problem that remained largely hidden from the City Council for years.<\/p>\n<p>Read more <a href=\"https:\/\/floridamovingchronicle.com\/?p=556\">Indictment of Raul Castro for 1996 shoot-down expected to be unsealed in Miami next week<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Since taking office in January, Mayor Bryan Calvo has begun confronting what high-ranking city hall officials had long treated as a quiet but growing financial problem within the Public Works Department: millions of dollars in uncollected water and sewer bills tied to two of Hialeah\u2019s major hospitals, as well as businesses and condominium associations.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>That bill accumulated over several administrations and were not disclosed to the City Council.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>The Public Works Department, which oversees the city\u2019s water and sewer system, is carrying about $4.5 million in uncollected payments, including a combined debt from Palmetto General Hospital and Hialeah Hospital that has grown to roughly $3 million, according to city records obtained by the Miami Herald.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Calvo is taking an aggressive stance in seeking to collect outstanding balances from the debtors, including the hospitals, arguing that the city cannot continue allowing large private institutions to accumulate unpaid debt while enforcing strict payment rules on residents.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cHow can I tell a senior resident living alone on a fixed income that if they don\u2019t pay their water bill, service will be shut off, while at the same time allowing a for-profit hospital to accumulate millions in unpaid bills?\u201d Calvo said. \u201cSmall number of violators are currently creating a $4 million problem.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<h3><b>Broader utility debt<\/b><\/h3>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>According to a report from the Public Works Department obtained by the Herald, on top of the hospitals\u2019 outstanding balances there are nearly $1.2 million in unpaid bills tied to residential buildings. The largest delinquent account in this group is the Village of Hialeah Condo on 12th Avenue, with more than $362,000 outstanding, making it the highest non-hospital debtor.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Other residential accounts with unpaid water bills, according to the city records, include:<\/p>\n<p><!--]--><!--[--><\/p>\n<ul>\n<li>El Para\u00edso at Hialeah Condo Association on 76th Street, with more than $281,000 in outstanding debt.<\/li>\n<li>Westland Eden Condominium, with more than $118,000.<\/li>\n<li>Villa Catalina, with more than $98,000.<\/li>\n<li>Westland Plaza Gardens Condominium, with more than $69,000.<\/li>\n<li>Bella Luna Condo Association on 24th Street, with more than $50,000.<\/li>\n<li>Flamingo Apartments on 4th Avenue, with an unpaid balance of $41,000.<\/li>\n<li>Bonterra Community Development District, with an unpaid balance of $39,000, located in the newer development area of Hialeah near the west Interstate 75 corridor.<\/li>\n<li>Imperial Terrace Condo on 44th Place, with an overdue balance of $34,000.<\/li>\n<\/ul>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>All the accounts listed are more than 120 days past due, yet the records show the city has not disconnected water service to those properties. Hialeah standard protocol for overdue water accounts is to send notices requesting payment. If balances remain unpaid for 120 days, the city can shut off water service when legally permitted or when authorized by the mayor\u2019s office.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The remaining more than $349,000 in unpaid water bills are tied to various LLC business accounts. Among them is Thumberlina Academy, which owes $105,000. Public records show the account was placed on a 24-month payment plan established in March.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Calvo told the Herald that as the city has contacted the hospitals, officials also sent letters to condominium associations, individual unit owners, and LLCs to make them aware of the situation.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The city issued formal notices in April and set a May 17 deadline for a payment agreement. If no deal is reached, officials say enforcement actions could include liens on properties, legal action, andr, if necessary, service restrictions such as cutting off some or all water, including the hospitals.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>While he was not mayor when the bills accumulated, Calvo said the city may have treated larger customers differently.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cI wasn\u2019t here, but we were treating bigger customers a little differently than we were treating residential customers \u2014 residential customers are put feet to the fire,\u201d Calvo said. \u201cBut these condominiums and hospitals were being treated a lot more gently, and obviously it\u2019s created a huge financial issue in the department.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<h3><b>Lack of transparency<\/b><\/h3>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The disclosure has prompted broader questions among City Council members about how the city\u2019s finances were managed and whether elected officials had a full picture of the growing debt while city budgets were being approved.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Four of the seven current council members who served during the administrations of mayors Esteban Bovo and Jacqueline Garc\u00eda-Roves said they only became aware of the outstanding balances after being contacted by a Herald reporter, raising concerns about how the issue remained outside the council\u2019s regular oversight.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Calvo, himself a former council member during Bovo\u2019s term, said he only learned of the debt after requesting an audit of the department.<\/p>\n<p><!-- --><!--]--><!--[--><!-- --><!--]--><!--[--><\/p>\n<p>Councilwoman Melinda De La Vega, who has served as a city official since 2024, said she was surprised the matter had never been brought before the council and called it a major failure.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cThis raises serious concerns about oversight, transparency and communication,\u201d De La Vega said. \u201cMy focus now is on getting a full accounting of how this occurred and working with all parties to implement responsible solutions that protect our residents and our infrastructure.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/floridamovingchronicle.com\/?p=554\">\u2018World Cup Queen\u2019: Check out Shakira\u2019s new anthem<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Council President Carl Zogby, who is in his ninth year as an elected official, said the problem appeared to have been deprioritized for years and not properly disclosed to the council. He said the handling of the issue pointed to a lack of transparency from Bovo\u2019s leadership.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cIt wasn\u2019t a priority \u2014 maybe apathy on their part \u2014 and there was little to no effort to explainto the council what was happening,\u201d Zogby said. \u201cDespite all [Bovo\u2019s administration] talked about transparency, there was no transparency at all.\u201d<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Councilwoman Monica Perez, who is in her seventh year as an elected official, placed some blame on the city\u2019s Public Works Department, suggesting Bovo may not have been aware of the mounting debt \u2014 or may not have considered it a priority.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cMaybe it was something they were not aware of. Maybe they weren\u2019t informed \u2014 I assume that was the reason we weren\u2019t told,\u201d Perez said. \u201cMaybe it wasn\u2019t a priority for them, and this administration [Calvo\u2019s] took a different route to collect certain funds.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>But records show a different scenario.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Documents reviewed by the Herald show that in January 2025, officials across the city\u2019s legal department, Public Works, finance and accounting offices, as well as the mayor\u2019s office \u2014 including the chief operating officer at the time and representatives of the hospitals\u2019 owners \u2014 were discussing how to address the growing debt, indicating that multiple departments were aware of the uncollected balances.<\/p>\n<p><!--]--><!--[--><\/p>\n<h3>Mounting hospital debt<\/h3>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>One of the records reviewed by the Herald is an email from Karl Holzenberg, director of Public Works Finance and Budget, dated January 2025, during the Bovo administration. The email states that Tenet Healthcare, which has previously owned both hospitals, carried a \u201csmall\u201d outstanding balance of $115,000.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Tenet sold the hospitals in August 2021 to Steward Health Care, when Carlos Hern\u00e1ndez was mayor. Over the following years, the debt grew to about $1.6 million across two hospital ownerships during Bovo\u2019s administration, and continued piling up during Garc\u00eda-Roves\u2019s nine-month interim administration.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Legal experts argue that collection of Tenet\u2019s debt, which dates back at least to 2021, may be barred under Florida\u2019s five-year statute of limitations for written contracts. The city may have lost its opportunity to collect the funds last year.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>By the time the hospitals filed for bankruptcy under Steward Health Care in May 2024, they were already delinquent on water and sewer bills owed to Hialeah. Records show Steward\u2019s water bill payments were sporadic in 2023, with only one payment made in 2024, months before the health care giant filed for bankruptcy.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Tenet and Steward Health Care did not respond to the Herald requests for comment.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Holzenberg also noted that Healthcare Systems of America, which had assumed operations of the hospitals when he sent the email in January 2025, carried a balance of $215,000. Since then, the debt has climbed to more than $2.3 million, spanning prior administrations, without public disclosure until Calvo ordered an audit.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>In an emailed statement to the Herald, Healthcare Systems said it had not paid Hialeah because the city wanted to charge it for Steward\u2019s overdue payments.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cHSA has tried to make water payments. However, the City stated that they will apply payments from HSA to the previous Steward invoices. This is not an acceptable option as HSA is not responsible for Steward\u2019s payments per the Steward bankruptcy court,\u201d HSA said. \u201cAdditionally, HSA has been requesting its own water account from the City for more than a year. However, the City has continued to insist that HSA pay the old water bill from Steward. HSA is again asking the City to please send the HSA water bill under the HSA water account so that HSA can pay its water bill. HSA looks forward to quickly resolving this issue with the City.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>No one has been able to fully explain why it took the city so long to identify that the hospitals were behind on their bills. The Public Works Department, which manages about 30% of the city\u2019s budget, has long been viewed by some former mayors, including Bovo, as a \u201cpiggy bank\u201d used to help balance city finances when needed.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Under Bovo\u2019s administration, the department also underwent a transition after the ublic Works director at the time, Armando Vidal\u2014widely regarded as a de facto city manager and one of the most influential figures in the administration\u2014retired in 2023. Former officials from the Bovo administration told the Herald it took them three years to fully establish oversight of the department, describing it as previously operating \u201cautonomously.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Bovo did not respond to the Herald\u2019s request for comment. The Herald has been unable to contact Vidal, whose last known phone number is disconnected.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Although the uncollected debt represents a small fraction of the city\u2019s roughly $350 million in annual water and sewer billing, it has taken on greater significance in Hialeah, long described by former finance officials as a \u201cpoor city\u201d. Over the past decade, the city also imposed a franchise fee on water bills\u2014starting at 10%, later reduced to 4%, and eliminated last year\u2014in an effort to help support the Public Works Department. Against that backdrop, the growing level of unpaid accounts has become a significant fiscal concern.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cWe need to prevent this from happening again,\u201d Calvo said. \u201cIt\u2019s about establishing a clear process, that\u2019s something the water department should be able to handle in-house \u2014 send a notice, make a call, or contact the account holder.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/floridamovingchronicle.com\/?p=552\">\u2018Looksmaxxing\u2019 streamer shot a dead gator in the Everglades. He got probation<\/a><\/p>\n<p><!-- --><!--]--><!--]--><!-- --><!-- --><!-- --><!-- --><\/article>\n","protected":false},"excerpt":{"rendered":"<p>Hialeah is working to collect more than $4 million in unpaid water and sewer bills tied to hospitals, condominium associations, and other businesses, according to city records<\/p>\n","protected":false},"author":1,"featured_media":557,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hialeah"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Hialeah\u2019s mayor uncovered that the city faces millions in hidden water-bill debts - Florida Moving Chronicle<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/floridamovingchronicle.com\/?p=558\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Hialeah\u2019s mayor uncovered that the city faces millions in hidden water-bill debts - 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