Redwood City has launched a new utility bill relief program to provide $1.5 million in one-time funding to help Redwood City utility customers struggling to pay off pandemic-related debt.
Most funds will be provided to Redwood City utility accounts that are 90 days or more past due as of June 15, 2022; this will prevent customers from facing fines or cuts due to the City's 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.
Similarly, he pointed out that one-time credits will also be granted to customers who are up to date with their payments and are enrolled in the City's Water and Sewer Rate Assistance Program?WSRAP, for its acronym in English? .
“In designing our pandemic utility relief program, we wanted to fill the gap between various state programs, recognizing that many of our customers may not easily qualify or be prepared to apply,” said the administrator of the city, 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 helping customers with documented financial hardship who have continued to pay their utility bills during the pandemic."
At the same meeting, based on the recommendation of the Public Utilities Subcommittee and after strong community participation, the City Council approved a five-year pilot program to transition from charging sewer services to the list county tax.
“This is another way that we are reimagining how to deliver City services, looking to improve profitability. This transition creates a reliable revenue stream, which benefits taxpayers and increases staff workload efficiencies,” said City Manager Melissa Stevenson Diaz.
Of the 25 agencies in San Mateo County, Redwood City was one of five cities that still collected sewer service charges directly; The Fair Oaks Sewer Maintenance District already has sewer service charges collected through the tax registry.
In the scope to other cities, none reported customer complaints related to the collection of charges 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 company, plus it could help boost the city's bond rating, resulting in lower interest rates when the need arises to finance capital improvement projects or contractual obligations for wastewater operations.
The implementation of the pilot program will be carried out in stages, beginning with one housing unit per parcel customer.
Based on the analysis and feedback during the initial transition, eventually, the 28,000 clients ?residential and commercial? they will pay their annual sewer service charge when the county issues property tax bills.
The city council specified that sewer rates will not increase or change as a result of this program.
“This transition does not change the level of service or the delivery of sewer services provided by Redwood City. Residents can continue to call us with service requests or questions," said Stevenson Diaz. "In addition, customers who need financial assistance can continue to apply for help through the City."
The WSRAP Assistance Program is currently available to eligible account holders, providing a credit of up to $80 on utility bills.
In the WSRAP program, applicants' gross household income must not exceed San Mateo County's 50 percent adjusted median income limits and they must receive a utility bill from Redwood City in the applicant's name and currently reside in the address for which rate assistance is requested.
Under the new Utility Bill Relief Program, automatic credits equal 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 on the City's Water and Sewer Rate Assistance Program, interested parties may do click here.
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