Water Bill Is $1450 More Than Expected Due To "underestimated Water Utilization" Since 2018.

I live in upstate NY.

I received a water bill a few days ago of around $1,600, which was a bit of a surprise, as over the past 8 years or so the water bill for my residence has been between $130-$160 per quarter. I assumed this was some sort of mistake, but when speaking with the Village Clerk’s Office I’m being told that this $1,600 charge is in fact accurate. I was told that in 2018 the battery in my water meter died and that all billing since that time was being estimated up until around a few months ago when I had my water meter replaced. I was also told that the “estimated billing” has been underestimated since 2018 to the tune of 126 units or ~$1600 and is due immediately (1/31) despite having accumulated over the course of 6 years. The clerk also informed me that within the bills I’ve been receiving since 2018 there is a note saying that if a symbol (⁾ is listed that means the meter is estimating, and to contact the water department for a meter replacement. I looked at my previous bills and the clerk was correct, there is a symbol (⁾ and there is a note within the print at the bottom of the bill to contact the water department for meter replacement.

Due to this unexpectedly large amount being owed by 1/31, and the holidays having just passed, I find myself in a position where it is impossible for me to pay the $1,600 in its entirety by the 1/31 due date. I asked the village clerk if there was some kind of payment plan that I could enroll in to avoid paying another several hundred dollars in late fees ($236 will be added to my balance if not paid-in-full by 1/31), and was told there was none. I was then given several options: 1) pay the bill in full by the due date to the avoid the late fee, 2) pay as much as I can by 1/31 to lessen the late fee as it is based on a percentage of my total balance, or 3) absorb the late fee and allow the balance to go onto my taxes in April.

I acknowledge that had I taken a closer look at the water bills I’ve been receiving this could have been prevented or at least mitigated. However, I'm wondering if I have any leg to stand on in terms of disputing this back-pay being due immediately or at least disputing the late fee that I will inevitably be charged due to not having enough money to pay in full by 1/31, despite willingness to pay.

If you've made it this far, thank you for taking the time to read, and I appreciate any advice in advance.