City of Lathrop
Utility Payment Late Fees and Water
Service Disconnect/ Reconnect Fees
JUNE 12, 2023
ITEM #2.5
Current Monthly Billing Process
Bills Posted
Laptop Reads
Manual Reads
Contact Customers
with High
Bills/Consumption
Assess Penalties
(10% of past due
balance)
Turned off
at meter Disconnections
• Verify meters are
still turned off
• If water is on,
meter is
padlocked and
stop and contact
notice left in
meter box
7 Days Post
Disconnections
• Verify if still
padlocked
• If padlock
broken,
meter is
removed.
Following
Month
Disconnection
Bill is 60 days
past due
What resources are available?
◦ SB 998 Water Shut Off Policy prohibits discontinuation until accounts are at least 60 days delinquent (available in 7 language translations on City’s website)
◦ Low Income Household Water Assistance Program
(LIHWAP): If you need assistance paying your water bill, you may be eligible for State or Federal assistance
programs. One of those programs is the Low Income
Household Water Assistance Program, which is
administered through the San Joaquin County Human
Services Agency. The LIHWAP program gives a one-time
benefit of up to $2,000 for an eligible, income qualified customer’s water and wastewater past due bill.
◦ ***FUNDING ANTICIPATED TO BE AVAILABLE THROUGH
SEPTEMBER 30, 2023***
Where does the money go?
◦ Funds collected through late fees and
disconnect/ reconnect fees are the sole source
of funding for the City's billing assistance
program. Eligibility is established by showing
enrollment in PG&E CARE program.
◦ Proposition 218 does not allow rate revenue to
be used for these types of rate reduction
programs. Late payments and delinquency
charges are separate fees exempt from the
requirements of Proposition 218.
◦ Water and wastewater rate revenue is used to
sustain the City’s utility enterprise funds
What is an Enterprise Fund?
Enterprise funds account for city operations, which are financed and operated in a manner similar to private
enterprise. User charges and impact fees recover costs of providing service to the public.
Enterprise funds are established to account for operations of the self-supporting municipal water and wastewater
service. Services are rendered based on a Proposition 218 approved rate structure.
Due to the stipulations of Proposition 218 (California’s Right to Vote on Taxes) agencies have concluded that water
affordability programs cannot use rate revenue as that
would be a subsidy from one customer class to another and, therefore, deemed illegal.
How do our fees compare?
Lathrop
Muni Code
13.20.050
Tracy
Muni Code
11.12.050
Manteca
Payment & Fees
Website
Stockton
Muni Code
13.04.060
Ripon
Muni Code
13.04.230
Livermore
Master Fee
Schedule
Late charge =
10% of unpaid
balance
Late charge =
10% of
delinquent
amount
Late charge =
2% for
water/sewer &
10% solid waste
Late charge =
10% of the total
delinquent
amount
Late charge =
10% per month
of the total bill
amount
Late charge =
10% if 30 days
past due
$60 to restore
service
($30 suspension
+ $30 service
connection)
$35 to restore
service
$25 to restore
service and $100
deposit if none
on file
Owner only
billing/ no
shutoffs
$27.50 to
restore service
plus delinquent
balance
1 st time
restoration $60,
2 nd time in 12
months $80
Additional $50 if
lock cut/
damaged
Lock fee $19, if
lock cut
additional $17
Lien is placed on
property for all
amounts past
due
Tampering $150
1 st violation,
$300 2nd, $600
3 rd within one
year
Lock Meter
charge $15/ if
cut additional
$50 per lock
Additional $100
to remove meter
if lock cut
$52 fee to
remove meter
$102
Administrative
Hearing Fee for
lien appeal
$250 Reconnect
between
5:00pm &
8:00am
Establishment of Late Fee Structure
Assess if the fees are effectively encouraging timely payments. Periodically review the structure and make adjustments as needed based on feedback, customer behavior, and changing economic conditions. During the pandemic no late penalties or utility shutoffs were performed and the City accumulated over $550,000 in arrearages.
It's important to strike a balance between encouraging on-time payments and maintaining a fair and customer-friendly approach. The penalty fee structure should aim to incentivize prompt payments without overly burdening customers, while still covering the costs associated with late payments.
Current fee structure lacks lock charge/ cut lock charge as well as cost to recover meter removal and replacement. Potential to add fee for customers who require multiple visits to the meter box. Majority of utility providers surveyed use a late charge of 10% .