In October 2016, the City Council approved the hiring of a consulting firm, FG Solutions, to develop a five-year water financial plan to study the Water Enterprise financial condition and make recommendations for maintaining the financial stability to the Water Enterprise Fund. In order for the City to maintain and operate the City’s water system, repay bond indebtedness, and to comply with new and existing regulations imposed by state and federal agencies, FG Solutions has recommended the implementation of automatic annual adjustments to the water rates over a five-year period. A public hearing for the introduction of the ordinance implementing the rate adjustments is being held to consider these adjustments to the water rates.

To partially mitigate the financial impacts of the proposed higher fixed charges, the Water Services Division is proposing a Low Income Senior Discount Program for water customers. This proposed discount program would have the following eligibility criteria:

• Resident must live at the billing address;

• The water bill must be in the resident’s name;

• The resident must be 65 years of age or older;

• The resident must be enrolled in Southern California Edison’s CARE program.

Initially, if approved by City Council, a $10 per billing period discount would be offered. The discount program would be funded using non-rate revenues, such as late fees.  It is also being proposed that the City Manager be authorized to approve the adjustment in the discount, subject to the consent of the Finance Director, based on the availability of funds.

Funding for the proposed Low Income Senior Discount Program is available within the Water Services Budget. There is no impact to the General Fund. 

It is recommended that the City Council:

• Adopt the attached Resolution approving to establish a Low Income Senior Discount Program for water customers.

By:     Katie Victoria

          Sr. Administrative Analyst