Redwood City has launched a new utility bill relief program to provide $1.5 million in one-time funding to assist Redwood City utility customers struggling to pay pandemic-related debt.
The majority of the funds will be provided to Redwood City utility accounts that are 90 days or more past due beginning June 15, 2022, preventing customers from facing fines or shut-offs due to City utility debt.
The city will automatically apply the credit to all qualifying accounts, both residential and commercial, without the need for a cumbersome application process, the city said in a statement.
He also noted that one-time loans will also be granted to customers who are current with their payments and are enrolled in the City's Water and Sewer Rate Assistance Program (WSRAP).
“When designing our utility relief program during the pandemic, we wanted to fill the gap between several state programs, recognizing that many of our customers may not qualify or be prepared to easily apply,” said City Manager Melissa Stevenson Diaz.
“Under the City’s program, we will simply credit the accounts of those who were unable to keep up with their utility bills due to the pandemic, including many small businesses. We are also assisting customers with documented financial hardship who have continued to pay their utility bills during the pandemic,” he added.
At the same meeting, based on the recommendation of the Utilities Subcommittee and after robust community engagement, the City Council approved a five-year pilot program to transition the collection of sewer service charges to the County tax roll.
“This is another way we are reimagining how we deliver City services, looking to improve cost effectiveness. This transition creates a reliable revenue stream, which benefits taxpayers and increases efficiency in staff workload,” said City Manager Melissa Stevenson Diaz.
Of the 25 agencies in San Mateo County, Redwood City was one of five cities still collecting sewer service charges directly; the Fair Oaks Sewer Maintenance District already has sewer service charges collected through tax registration.
In the outreach to other cities, none reported customer complaints related to the collection of fees for sewerage services in the tax registry.
With a reliable revenue stream, the city can more accurately budget projections when planning for the future of the sewer utility, plus it could help boost the city’s bond rating, resulting in lower interest rates when the need arises to fund capital improvement projects or contractual obligations for wastewater operations.
The implementation of the pilot program will be carried out in stages, starting with one housing unit per plot client.
Based on analysis and feedback during the initial transition, all 28,000 residential and commercial customers will eventually pay their annual sewer service charge when the county issues property tax bills.
The city said sewer rates will not increase or change as a result of this program.
“This transition does not change the level of service or delivery of sewer services provided by Redwood City. Residents can continue to call us for service requests or with questions,” Stevenson Diaz said. “Additionally, customers who need financial assistance can continue to apply for help through the City.”
The WSRAP Utility Assistance Program is currently available to eligible account holders, providing a credit of up to $80 on utility bills.
For the WSRAP program, applicants' gross household income must not exceed the 50 percent of San Mateo County's adjusted median income limits and they must receive a Redwood City utility bill in the applicant's name and currently reside at the address for which rate assistance is being requested.
Under the new Utility Bill Relief Program, automatic credits equivalent to approximately two billing periods – not to exceed $1,000 – will also be applied to all active WSRAP accounts and funds will be reserved for future WSRAP needs.
For more information about the City's Water and Sewer Rate Assistance Program, interested parties can do so by contacting: click here.
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