SAW:WMK:JMD
4/29/2026
T-52082 / 2306093 1
Council Agenda: 05-12-2026
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE AUTHORIZING THE CI TY MANAGER OR THEIR
DESIGNEE TO ESTABLISH AND IMPLEMENT A
FINANCIAL ASSISTANCE PILOT PROGRAM TO
SUPPORT LOW-INCOME AND/OR VULNERABLE
CUSTOMERS OF THE MUNICIPAL WATER SYSTEM
WHEREAS, the San José Municipal Water System (“SJMWS”) is a rate-funded utility, intended to operate at full cost recovery, which provides water to approximately 26,000 customer accounts, serving a population of over 140,000 people in the North San José, Alviso, Evergreen, Edenvale, and Coyote Valley areas; and
WHEREAS, the City of San José (“City”) recognizes that many families and individuals in the community face ongoing economic hardship and understands the stress that unpaid water bills and shut-off notices can cause; and
WHEREAS, in 2022, the City received funding from the California Water and Wastewater Arrearages Payment Program (Arrearages Program) to assist customers with delinquent water bills; over 1,000 customers received approximately $541,000 in Arrearages Program funding and an additional $356,000 waived in late payment charges; and
WHEREAS, in Fiscal Year 2023-2024, the City received additional funding from the State for an Extended Arrearages Program during which an additional $976,000 in Extended Arrearages Program funding was distributed to approximately 1,300 customers with an additional $569,000 waived in late payment charges; and
WHEREAS, from April 1, 2025, through September 30, 2025, the City implemented a utility billing amnesty program that provided financial relief to eligible water and garbage utility customers; approximately 2,100 water customers benefited from the program, SAW:WMK:JMD
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Council Agenda: 05-12-2026
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
which resulted in the waiver of $1.2 million in late payment charges and the collection of over $1 million in delinquent water service charges; and
WHEREAS, a one-year pilot program is being developed that would provide additional financial support to low-income or vulnerable customers whose water service has been disconnected due to nonpayment; and
WHEREAS, actual costs to fund the pilot will be dependent upon program implementation and customer need; City estimates show implementation could decrease revenue by approximately $20,000 in the Water Utility Fund; and
WHEREAS, the one-year pilot program will be managed and tracked to allow for evaluation of program effectiveness and cost to implement, and may include a one-time credit of up to $500 per year to support eligible low-income or vulnerable customer accounts in the collection process; and
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The City Manager or their designee is hereby authorized to establish and implement a financial assistance pilot program to support low-income and/or vulnerable customers of the Municipal Water System.
SAW:WMK:JMD
4/29/2026
T-52082 / 2306093 3
Council Agenda: 05-12-2026
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
Cit
y Clerk