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Memo To: Mayor and City Council Neal Beets, City Manager From: Chris Miller, Finance Directo ~ Date: May 16, 2005 Re: Discussion on Amending the City's Utility Fee Discount Program Date: 05/16/05 Item: 7. City's Utility Fee Discount Program Background City Staff was recently contacted by representatives of the Applewood Pointe Senior Cooperative; an owner-occupied, multi-family housing building, inquiring about whether they would be eligible for the City's Utility Fee Discount Program. Currently, the Program is only offered to single-family homeowners. Representatives from Applewood Pointe have asked the City Council to consider revising the Program to allow eligibility for seniors in multi-family settings. The City's Utility Fee Discount Program has been in existence since April 27, 1970 when the City passed Ordinance #620. This ordinance is believed to have been created as a means of encouraging selected homeowners to abandon their private wells in favor of connecting to the municipal water system. It is presumed that at the time the cost of connecting to the municipal system would have been cost-prohibitive for many homeowners that were on a fixed or limited income. It is also presumed that City Officials determined that most of the homeowners in that economic category were most likely to be retired seniors. Beginning January 1, 2004 the City Council expanded the "Senior Discount" Program to include single-family homeowners that are at or below federal poverty guidelines. To qualify for the discount, single-family homeowners must meet the following eligibility requirements: ^ Owner and head of the household of asingle-family home In addition, homeowners must meet one of the following requirements: ^ At or below the federal poverty threshold guidelines --- OR --- ^ Presently receiving retirement, survivors insurance, or disability insurance under the Social Security Act, 42 USC #301, as amended.