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The total citywide value of the discounts is approximately $290,000 annually. This represents the amount of water and sewer charges that are shifted from households that get the discount to those that don't. To put this in a different context, if the senior discount program was eliminated, the standard fee would be reduced as follows: Standard Amount Discount Amount Difference % Diff. Water Base Fee (per quarter) $ 49.50 $ 32.15 $ 17.35 Sanitary Sewer Base Fee tr. 37.35 23.30 14.05 Total $ 86.85 $ 55.45 $ 31.40 -36% The total citywide value of the discounts is approximately $290,000 annually. This represents the amount of water and sewer charges that are shifted from households that get the discount to those that don't. To put this in a different context, if the senior discount program was eliminated, the standard fee would be reduced as follows: Discussion Issues In evaluating the relevance of any existing public assistance program, it's important to reflect upon why the program was created in the first place and whether those objectives have been met. In this particular case, the Program was created to achieve a specific outcome — to encourage homeowners to connect to the municipal system. Clearly this primary objective was achieved long ago. This raises the question as to what the Program's current objectives are. Intuitively one could surmise that one of the remaining objectives is to provide assistance to those that have limited financial means. However, the Program does not feature any means testing. Recipients merely have to sign an affidavit signifying that they're drawing social security or are at or below federal poverty guidelines. Currently, only a handful of homeowners are receiving the discount because they are below the federal poverty guidelines. This discussion has taken place at the Council level on several occasions in the past decade. Each time, the Council has taken no action. Given the significant financial shift that is occurring, the Council is advised to carefully consider whether the Program's objectives are still relevant. That consideration should be made with the understanding that the number of recipients in the Program is expected to steadily expand over the next 10 years under current eligibility criteria This expansion will make it financially advantageous for older homeowners, while simultaneously making it financially more difficult for younger ones. 12 Standard Amount Revised Amount Difference % Diff. Water Base Fee (per quarter) $ 49.50 $ 45.50 $ 4.00 Sanitary Sewer Base Fee tr. 37.35 34.20 3.15 Total $ 86.85 $ 79.70 $ 7.15 - 8% Discussion Issues In evaluating the relevance of any existing public assistance program, it's important to reflect upon why the program was created in the first place and whether those objectives have been met. In this particular case, the Program was created to achieve a specific outcome — to encourage homeowners to connect to the municipal system. Clearly this primary objective was achieved long ago. This raises the question as to what the Program's current objectives are. Intuitively one could surmise that one of the remaining objectives is to provide assistance to those that have limited financial means. However, the Program does not feature any means testing. Recipients merely have to sign an affidavit signifying that they're drawing social security or are at or below federal poverty guidelines. Currently, only a handful of homeowners are receiving the discount because they are below the federal poverty guidelines. This discussion has taken place at the Council level on several occasions in the past decade. Each time, the Council has taken no action. Given the significant financial shift that is occurring, the Council is advised to carefully consider whether the Program's objectives are still relevant. That consideration should be made with the understanding that the number of recipients in the Program is expected to steadily expand over the next 10 years under current eligibility criteria This expansion will make it financially advantageous for older homeowners, while simultaneously making it financially more difficult for younger ones. 12