Water leak adjustment - what would you do

[Erin N.]

Looking for thoughts on the right thing to do in my situation.  I purchased a foreclosed duplex almost a year ago that needed major renovation.  I did everything by the book and had all the  correct property inspections, etc.  

Several months into my tenant's lease, they complained about high water bills.  Turns out their bill was double what the other side of the duplex was.  And the units are identical.  The tenant had the city come out, and they determined that the leak was not a city issue, and it was somewhere between the meter and the house.  I learned that this is really easy to determine. You just have to shut off the valve going into the house and see if the meter still ticks.  Now I know how to avoid this issue moving forward!  Anyway, there is a one time leak adjustment policy with our water department.  The problem is that it doesn't cover the entire amount that they were charged.   

My question is, what is my obligation to my tenant regarding compensation for the water leak?  I tend to err on the side of feeling overly responsible and doing more than I really should have to do to make things right, so I wanted to have others weigh in.  Should I make up the entire amount of the shortfall that the city didn't pay?  Or should I offer to split it with them 50/50?  All thoughts and perspectives are appreciated!

Thank you