SAN DIEGO -- Bob Syme of Mission Hills is like any homeowner who doesn't like to see his money go down the drain.

"Our water bills and sewer bills are the highest in the nation; it's absolutely ridiculous," said Syme.

Syme's bill and the water bills of thousands of other San Diegans were determined to be too high, according to local government watchdog group the Utilities Consumers' Action Network.

The group said the city of San Diego purposely overcharged homeowners on their sewer bills while giving a discount to commercial customers.

"How long was this going on?" asked 10News' Joe Little.

"For a number of years -- about four or five years," said Michael Shames of UCAN.

In 2004, UCAN got wind of the alleged scam from a whistleblower.

"Someone from within the city of San Diego finally said, 'You know what? We know this isn't right. We know it's illegal,'" said Shames.

UCAN filed a lawsuit in 2005, demanding the money back. In 2006, the city of San Diego settled and offered to credit residents $35 million.

"It was not honest and it wasn't a mistake. It was a calculated decision by the city council to placate the interests of large, industrial customers and have residential customers foot the bill," said Shames.

For the next few months, residents will see a small credit on their water and sewer bill. After all is said and done, each household will be refunded about $125.

As part of the settlement, the city also agreed to mail special inserts in their monthly water bills that ask for donations to pay for UCAN experts, who will regularly check the city's books. The donation is something Syme is willing to pay to make sure his money doesn't go down the drain.

"I think these politicians have to be held accountable," said Syme.

San Diegans will find the inserts in their bills about three times a year for the next five years.

10News tried to get a comment from the city, but none of the requests for interviews were returned.