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Home My WebLink AboutTIC 2017-10-24 Item 2D - Update - Customer Assistance Programs for Water, Sewer and Surface Water UtilitiesCity 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 Utilities Committee Minutes October25, 2016 C. Customer Assistance Programs (CAPS) for Water, Sewer, and Surface Water The Environmental Protection Agency completed a 2016 study which found that around 29 percent of utilities across the country offer customer assistance programs. The City of Tukwila does so by providing a 50% discount to seniors (62+) and permanently disabled individuals making less than $32,000 annually. 70 water accounts are currently signed up for this assistance, at an approximate annual cost of $63,740.28, which must be absorbed by other ratepayers to make up the cost of infrastructure needs and King County sewer rates. If the Council wanted to expand the assistance program, it could consider increasing the income limit, increasing the discount, allowing for temporary assistance, or add additional funds to Human Services. The Committee asked staff to analyze the effects of increasing the income limit to $34,000 and $35,000. Committee members and staff also discussed the possibility of using debt to pay for utility capital projects. This policy discussion will be continued in 2017. INFORMATION ONLY. III. MISCELLANEOUS Meeting adjourned at 6:34 p.m. Next meeting: Tuesday, November 29, 2016 spa Minutes by LH, Reviewed by GL Committee Chair Approval 20 UTILITY / TAX DISCOUNT INFORMATION Utility Discount Applies To Eligibility Benefit / Discount Comments Tukwila Water, Sewer, and Surface Water - Senior, 62 or older, or permanently disabled; and - Household income less than $32,000 per year 50% Waste Management Garbage Service - Senior, 62 or older, or permanently disabled; and - Household income less than $32,000 per year 50% Comcast Cable - Senior, 62 or older, or permanently disabled; and - Household income less than $32,000 per year 40% Discount applied only on basic portion of cable bill. No discount on Internet or phone. Highline Water District - Senior, 61 or older, or permanently disabled; and - Household income less than $35,000 per year 35% Discount applied only on base rate. Water District 125 N/A N/A No Discount Program offered. Valley View Sewer District N/A N/A No Discount Program offered. Seattle City Light Electric Seattle Public Utilities (water, sewer) - 18 years or older, and permanently disabled; or - Household gross yearly income limits: Varies depending on household size person: $ 31,210.00 Two persons: $ 40,872.00 Five persons: $ 69,732.00 Eight persons: $ 82,956.00 Call 206-684-5788. 60% SCL 50% SPU Note: Seattle City Light's energy discount gram is different from ukwilaila'progr Tukwila's Utility Tax Relief Program. Any questions/ inquiries regarding the SCL energy discount program can be directed to Seattle City Light. Z:\Utility Discounts \Utility Discounts Excel gl 101416.xksx UTILITY / TAX DISCOUNT INFORMATION Utility Discount Applies To Eligibility Benefit / Discount Comments - Senior, 62 or older, or permanently disabled; and City's Utility Tax Relief Program - Disposable income from all sources must not exceed $32,000 per household Rebate Resolution No. 1547. Rebates of Taxes and - Must be a Puget Sound Energy or Seattle City Light customer Surcharge Fees on Electricity — for Required information (due by June 30, of each year): Seattle City Light or Puget Sound Energy - Must complete application and notarized supplemental affidavit at the Finance Dept., City Hall. - Must provide copy of income tax return for the utility tax relief year applying for. - Provide copy of applicant's Puget Sound Energy or Seattle City Light 12/31/xx end of year billing statement as verification of customer account status. Payment Process: Those applicants determined to be eligible will receive a rebate check from the City based on the actual taxes and surcharges paid for the relief year. For additional information and inquiries regarding Tukwila's Utility Tax Relief Program, contact: Lily Jue, Fiscal Coordinator at 206-433- 7190. In partnership with local agencies, PSE offers two programs to assist Puget Sound Energy low income households: Payment 1) Home Energy Lifeline Program - HELP Assistance Lifeline or 2) Weatherization Assistance Program Weatherization Assistance The local agencies manage the discount program and provide bill payment assistance up to $2,000 per year. The Multi -Service Center (for South King County) in Kent is 253-854- 4406 and serves Tukwila residents. Z:\Utility Discounts \Utility Discounts Excel gl 101416.xdsx UTILITY / TAX DISCOUNT INFORMATION Utility Discount Applies To Eligibility Benefit / Discount Comments There are two types of tax relief for Seniors and disabled on a King County Property Tax limited income; Tax Relief Exemption Program via Property Tax reduction/exemption if: Assessor's Office - Annual income of $40,000 or less - Own and occupy a house, mobile home, condo, or co-op as principle residence as of December 31 of the year prior to the year of application - You are 61 years of age or older - You are retired because of a physical disability or - You are a widow or widower at least 57 years of age, whose spouse had an exemption at the time of death. Property tax deferral if: - Combined disposable income of $45,000 or less - Own and occupy a house, mobile home, condo, or co-op as principle residence as of December 31 of the year prior to the year of application - You are 60 years old when you file or - You are retired because of a disability To apply for a property tax deduction for seniors/disabled, call King County at 206-296-3920. Z:\Utility Discounts \Utility Discounts Excel gl 101416.xlsx