AgdaPkt 2020-06-22 Joint SA PFA - Laserfiche WebLink

Browse Search

6.F. - Page 4 of 7 As of the writing of this staff report, the City of Mountain View is the only comparative city that is offering or planning to offer a COVID-19 related utility bill credit. Their one-time, $50 credit is available by application on a first-come, first -serve basis to only residential customers that have a household income at or below 80 percent of Area Median Income (AMI). In contrast, the staff recommendation is for three percent utility bill credits for all Redwood City water and sewer utility account holders. FISCAL IMPACT The fund balances of the corresponding Water and Sewer Funds will offset this credit. Without accounting for the revenue loss from this recommended credit, the FY 2019/20 year-end balances for the Water and Sewer Funds are projected to be $11.4M and $32.3M, respectively. Assuming a sewer rate increase, a three percent utility credit for all Redwood City water and sewer utility account holders for four months would result in a projected revenue loss of $550,000 to $600,000 in the Water Fund and of $330,000 to $360,000 in the Sewer Fund, for a total estimated loss of $880,000 to $960,000. With the current recession, staff believe that upcoming sewer and water capital improvement project costs may be lower than expected. As a result, even with these one-time reductions, sufficient revenue remains in the Sewer and Water Funds to provide for necessary improvements to the sewer and water infrastructure. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. PUBLIC NOTICE Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. ALTERNATIVES The City Council may elect not to adopt this resolution to appropriate funds for a three percent utility bill credit for all Redwood City water and sewer account holders and direct staff to revise the timeline, the percentage of credit, or to apply it to one utility instead of both the sewer and water utilities. The City Council may alternatively direct staff to formulate an expanded WSRAP instead in which utility customers apply for financial assistance; however, since the City is currently waiving the penalties and interests that fund this program, credits would likely need to be subsidized by the General Fund which is experiencing significant financial stress. Page 4 of 5 AL . City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 153