Title
RESOLUTION NO. 2221 UTILITY RATE REDUCTION PROGRAM
COUNCIL STRATEGIC INITIATIVE ADDRESSED:
Continue effective financial management
CITY ATTORNEY REVIEW: REQUIRED
SUMMARY STATEMENT:
The Council has established a utility rate reduction program for low-income senior citizens and low-income disabled citizens of the City. Annually, low income senior and low-income disabled citizens on the City’s rate reduction program are asked to re-apply so that staff can ascertain whether or not they still qualify. In years past, a number of program participants have received modest annual increases in income that, in many instances may have caused them to exceed the limit in effect, and therefore could have resulted in some of the participants losing the rate reduction benefit. These increases in income are largely the result of inflationary increases granted by the Social Security Administration.
In most instances, the modest cost-of-living increases granted by Social Security are not sufficient to offset the utility rate increases that these citizens would now experience if they lost their participation in the City’s rate reduction program. Staff is recommending that the 2017 income eligibility limits for the City’s rate reduction program be increased in order to keep eligible those with the greatest need of this rate reduction. The 2017 proposed utility rate relief income limit for a single person household is $21,750, and is up $400 from the present income limit of $21,350. For a household with two persons the proposed income limit is $24,850. Last year’s income limit for a two person household was $24,400. The proposed income limit for a household with five or more persons is $33,550. Presently there are about 400 households receiving reductions totaling approximately $170,000/yr. Preliminary estimates indicate that program costs will increase approximately $5,000 and total $175,000 annually under this proposed resolution.
RECOMMENDED ACTION:
Motion to adopt Resolution No. 2221
STAFF CONTACT:
Kurt Sacha, Assistant City Manager/Finance Director