City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 4, 2024
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Adoption of Gonzales Utility Assistance Program
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to implement the newly revised Utility Assistance Program, and amend the FY 2024-2025 Budget with a $40,000 increase to Line Item 300-000-52010 (Water Enterprise Fund) to accommodate the program’s expense.
BACKGROUND
For years the City of Gonzales has had a Senior Water Rebate Program that was paid out at the end of every year to seniors who qualified. In 2023, the City conducted a Water and Sewer Rate Study to determine where the city’s water and sewer rates needed to be, and on September 18, 2023, the City Council heard the findings and the recommended increases proposed by the study. The City then went through a 218 process to notify the community of the proposed changes and increases and on November 20th, the City Council adopted the new rates.
As part of the new rates, it was determined that approximately $40,000 of non-rate revenue could be used to support a Utility Assistance Program. City staff conducted research and looked at similar programs across the State and determined that the best program for the community is a Utility Assistance Program comprised of two components 1) Senior Rebate Program with an allocated $10,000 for those 65 and older who qualify for the program, paid out on a first come, first serve basis; and 2) a Utility Assistance Program with an allocated amount of $30,000 for low-income qualifying households which meet the established criteria, paid out on a first come, first serve basis.
AGENDA
ITEM
10 REVIEW AND ANALYSIS
The Utility Assistance Program was a crucial component of the Water and Sewer Rate Study as it would allow the City to support some of the most vulnerable in the community. The funds to pay for the program are allocated from the non-rate revenues collected from water usage and come out of the Water Enterprise Fund. Applications will be open on October 1st of every year and will close on November 30th and will be credited to qualifying individuals on their December bills. Individuals will be expected to apply for the program on a bi-annual basis. This program will allow us to serve approximately 250 individuals.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: The Utility Assistance Program will allow us to continue supporting some of the most vulnerable residents of our community by rewarding them when they make all their payments on time.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: This program will keep a component of the senior rebates that the community was relying on and will also include a good portion of our low-income community. We will be able to serve about 250 people through this program.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: See above for explanation.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: The cost of this program will come from non-rate water revenues from the Water Enterprise Fund.
ALTERNATIVES
Alternative 1. The City Council could determine that they want a different program with different standards and qualifications.
Alternative 2. The City Council could reject the program and deny the implementation of a Utility Assistance Program all together, this is not recommended as the program was part of the proposed Water Rate Study that the city conducted.
BUDGET IMPACT
The impact to the budget will be $40,000. A Budget Amendment is required to accommodate the project. $40,000 will be added to the Water Enterprise Fund expenditures line (300-000-52010).
CONCLUSION
It is recommended that the City Council authorize the City Manager to implement the newly revised Utility Assistance Program, and amend the FY 2024-2025 Budget with a $40,000 increase to Line Item 300-000-52010 (Water Enterprise Fund) to accommodate the program’s expense.
Attachments:
1. Senior Rebate Program
2. Utility Assistance Program