Monday, July 18, 2011

Santa Rosa Press Democrat: Healdsburg may eliminate utility discount

Healsdburg may eliminate low-income utility discount


The Healdsburg City Council Monday will consider eliminating the discount that low-income households receive on their water and sewer bills.

Currently, low-income households can qualify for a 20 percent discount. More than 140 customers take advantage of the program.

Only Cotati offers similar low-income discounts in Sonoma County, according to Healdsburg officials.
Last year, the Healdsburg discounts amounted to about $48,000, which the city paid for by tapping low-income housing accounts in its redevelopment agency.

But redevelopment funds are dwindling as a result of the passage of the state budget. Healdsburg finance officials recommend against the money continuing to be used for the low-income discounts.

Since there also are legal restrictions on other utility users subsidizing the program, the finance director
recommends it be discontinued.

While city officials recommend against using general fund money to save the program, they note that there is a Community Benefit Trust Fund with more than $700,000 that the council could tap.

That money was set aside from the sale of the old City Hall site more than a decade ago. But council members have been reluctant to draw on the money the past few years.

The topic on Monday's agenda will be considered sometime after 6 p.m.
City Hall is at 401 Grove St.

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