It's your normal democrat run situation.
Amnesty, whether for unpaid bills or illegal alien attackers, is ALWAYS a bad idea.
These overdue accounts are owed by people who have money(either from work or more likely from welfare) that they were supposed to use to pay for their cost of living. They refused to pay for the things they needed. Since they caused the problem by stealing the water, let them die of thirst until they pay what they owe.
That presents an idea: have the utilities have the power to directly garnish their bills from the welfare/SS account. When people cannot avoid having the money taken, then maybe having their kids playing with the hose all summer will be less attractive.