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6.C. - Page 2 of 6 <br />ANALYSIS <br />There are 97 participants in the water and sewer rate assistance program for calendar year 2020, of which <br />25 participants (approximately one-fourth) applied after April 6- 2020. The program is continuously <br />advertised on the Public Works main web page banner and the Water page banner. It has also been <br />advertised through e -newsletters and social media. <br />As of August 31, 2020, the total amount overdue is $2,544,606 from 4,546 utility accounts in arrears, or <br />18 percent of a total of 24,689 active accounts. Within that 18 percent of accounts, 32% are one month <br />overdue, 22% are two months overdue, 11% are three months overdue, and 34% are 4 or more months <br />overdue. <br />Paid, 82% <br />UTILITY ACCOUNTS: PAID VS. OVERDUE <br />91-120 days, 11% <br />121+ days, 34% <br />paid 61-90 days, 23% <br />NTAG E] <br />31-60 days, 32% <br />As the economic impacts of the Covid-19 crisis continue over time, an extension of the waiver of late <br />payment penalties for utilities through February 2021 would provide some additional relief to Redwood <br />City customers unable to pay their utility bills at this time. <br />FISCAL IMPACT <br />Prior to April 2020, the City received approximately $3,000 per month in late payment penalties and <br />interest for solid waste services. These funds were general revenue to the City and used for general City <br />operations. The City also received approximately $13,000 per month in late payment penalties and <br />interest for water and sewer utilities. These funds were used to pay for the rate assistance program for <br />low-income customers (regardless of immigration status). As of April 2020, the cost of the water and <br />sewer rate assistance program was about $1,160 per month, with a fund balance of approximately <br />$100,000 available for the rate assistance program. The monthly cost of the water and sewer rate <br />assistance program averaged approximately $3,066 over the past five months, with a fund balance of <br />$124,324 as of July 31, 2020. <br />Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />26 <br />