TIC 2017-10-24 Item 2D - Update - Customer Assistance Programs for Water, Sewer and Surface Water Utilities

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City of Tukwila Public Works Department - Bob Giberson, Director INFORMATIONAL MEMORANDUM To: Transportation and Infrastructure Committee From: Robin Tischmak, Acting Public Works Director P --r By: Gail Labanara, Public Works Analyst CC: Mayor Ekberg Date: October 20, 2017 Subject: Customer Assistance Programs for Water, Sewer, and Surface Water Utilities Allan Ekberg, Mayor ISSUE Update on the City's water, sewer, and surface water customer assistance programs. BACKGROUND Tukwila Municipal Code 14.04.240 allows seniors (62 and older), as well as permanently disabled owners, purchasers, or renters making less than $32,000 annually, a 50% discount rate on City utility bills. In October 2016, the Utilities Committee reviewed the customer assistance program and requested that the policy discussion continue to determine the cost of any expansion to the current discount program. DISCUSSION There were four possible options proposed in 2016. Public Works met with Human Services and Finance staff to discuss the options and their ramifications; 1) Increase the income limit, currently at $32,000, to $34,000 or $35,000. Response: Cost would be approximately $741.50 for each new signup. This is certainly possible, but we do not believe that this would add or assist a significant new amount of people based on income levels. 2) Increase the discount from 50% to 60%. Response: The current impact is $63,740.28 to the City utilities and if we add an additional 10% discount, the cost would be an additional $12,745.00 subsidy for the City's utilities with the Sewer fund the largest at $41k. 3) Allow for temporary assistance up to a certain dollar amount for a specific period of time. Response: If the surface water fees are delinquent, they are collected by lien, so could be delayed. Human Services does have a one-time assistance for City utility customers (with exceptions for additional assistance). There is currently $3,000 budgeted for assistance (which could be increased if contingency funds are available). Human Services also reported that there are funds currently available and that this total amount does cover the need at this time. 4) Add funds to Human Services, which would assist the entire population of Tukwila, rather than subsidize a certain amount of Tukwila's population by other utility ratepayers. Response: The 50% discount only applies to the City of Tukwila's utilities and does not apply to the entire City that also includes Water District 125, Highline Water District, and Valley View Sewer District. The other separate Utility Districts encompass most of the residential population as the City of Tukwila's water/sewer jurisdiction includes the Commercial Business District (CBD) and small pockets of residential customers. For example, the ratio for City of Tukwila's water/sewer customers has 79% commercial, 12% multi -family, and 9% residential. Attached is a spreadsheet for low-income discounts that are available citywide with all of the different utilities. RECOMMENDATION Information only. Attachments: Utilities Committee minutes from 10/25/16 Citywide UtilityfTax Discount Information W.IPW EngtOTHERIFormslAgendas\TlC Agenda Itemsllnfo Memo Low Income Discounts 2017 102017 2.docx 19