CITY COMMISSION AGENDA ITEM

Department:	Finance		Commission Meeting Date:  February 20, 2018
Staff Contact:	Bryan Kidney, Finance Director
Recommendations/Options/Action Requested:
Authorize the expansion of the Low-Income Elderly Utility Rate (Lifeline) program in 2019 by lowering the percentage discount from 65% to 35% for Low-Income Elderly customers and adding a $5.00 per month discount for populations that are low-income with a disability, or low income and a U.S. Veteran regardless of age.
Executive Summary:		The City Code allows qualified elderly residents reduced water, sanitary sewer and sanitation charges. A low-income elderly person, whose application is approved, shall pay a monthly charge per dwelling unit of thirty-five percent (35%) of the regular monthly residential water, sanitary sewer and sanitation charge. As of February 2018, there are 86 active accounts that qualify for the elderly reduced rates. This program is managed by the Finance Department. At their July 11, 2017 meeting, the City Commission directed the Finance Department to consider expanding the low-income rate program to other low-income individuals, less than 60 years of age, with zero impact to revenue. The 2017 revenue impact of the current program was $58,576.14. The attached memo proposes to decrease the rate discount for the low-income elderly population to provide revenue to expand the program to additional populations, including low-income with a disability, or low-income and a U.S. Veteran. The discount for the new populations would be a flat $5 per service period discount for those that qualify and would be limited to the first 550 applicants. If authorized, staff will bring back proposed changes to City Code for adoption of the program to take effect with the 2019 rates. Future program enhancements are suggested, after the Finance department implements a new billing system that allows for improved functionality.
Strategic Plan Critical Success Factor		Core Services Economic Growth and Security
Fiscal Impact (Amount/Source):		The fiscal impact to the City is $0 net increase. If the Commission elects to expand the program in a way that would result in an increased revenue impact that would need to be considered as part of the 2019 Budget process.
Attachments:		Lifeline Program Expansion Memo

Reviewed By: (for CMO use only)

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