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Pleasanton begins overhaul of utility-bill discount program; council favors income-based approach
Summary
City staff presented options to update senior and low-income utility bill discounts, citing rising rates and costs. Council directed staff to return with final proposals that would emphasize income-based eligibility, lower the consumption cap and model budget impacts.
Pleasanton city staff presented a draft recommendation Sept. 16 to revise the utility billing discount program, and council gave direction to shape a final proposal for adoption in time for Jan. 1 rate changes.
Public Works Director Soo Chin Yong told the council the program currently provides two discounts: a low-income discount (30%) tied to customers enrolled in PG&E's CARE program and a senior discount (20%) for customers 65 and older. The city's data show about 3,200 senior customer accounts and about 225 enrolled under the CARE-based low-income program. The discount program is funded from the city general fund; staff said the FY 2025'26 budget includes $425,000 for the program.
Staff recommended moving toward an income-based model rather than an age-only senior discount, and to align the usage cap with the water rate study. Currently customers are ineligible for the discount if they exceed 30 hundred cubic feet (CCF) of water per billing cycle; staff proposed lowering the threshold to 24 CCF (the city average), as a conservation incentive.
Councilmembers and staff debated several variables: whether to convert the age-based senior discount into an income-qualified benefit; what area median income (AMI) threshold to use (staff flagged options including 80%, 100% and 120% AMI); whether to cap the program budget at the existing $425,000 or increase general fund support; and whether discounts should apply to the full city bill (including Zone 7 charges) or to city fixed charges only. Staff confirmed the program's cost is paid from the general fund (enterprise funds cannot be used for subsidies) and noted that expanding eligibility would increase fiscal exposure.
Multiple councilmembers backed an income-based program and supported lowering the consumption limit to 24 CCF. The dais also expressed interest in preserving some targeted assistance for long-term residents and asked staff to analyze whether a residency or account-age requirement for a senior supplement would be lawful and practical. Councilmembers asked staff to return in October with modeled costs for alternative AMI thresholds and with scenarios for a one-program (income-based) option and a two-program structure (income-based plus a residency- or age-targeted senior enhancement).
Staff said it would market the eventual program and return to council with estimated enrollment and cost impacts, with an initial six-month implementation review suggested so the council could adjust funding if enrollment exceeded budgeted levels.
