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Council asks staff to model expansion of water/sewer connection-assistance program for annexation areas
Summary
Staff outlined a long-running assistance program that currently covers $2,000 of a $5,000 assessment and up to $900 for connection plumbing for households up to 80% AMI. Council asked staff to present fiscal scenarios to expand eligibility (for example to 120% AMI) and to consider raising the plumbing-assistance share; staff will return with modeled costs and outreach plans with PWC.
Staff briefed council on a 26-year drainage-assistance and water/sewer connection program that offsets part of the property assessment and plumbing connection costs for households when the city extends utilities. Under current policy the city provides up to $2,000 toward a typical $5,000 assessment and up to $900 toward the private plumbing costs; eligibility is limited to owner-occupants up to 80% of area median income (AMI).
Council asked whether the program could be broadened for recently annexed areas (Phase 5) and whether the city could increase the share of connection-cost assistance (for example moving the $900 plumbing allowance to a larger percentage). Staff (speaker 23) said expanding the eligibility threshold to 120% AMI is legally feasible but would require additional budgeted funding out of the general fund; staff noted the program's historical usage varies widely and predicted costs depend on take-up in annexed neighborhoods.
Council directed staff to return in May with scenario modeling (several eligibility and generosity levels) and recommended outreach coordination with PWC so residents understand options before assessments are finalized. Council also discussed whether program eligibility could cover certain rental properties at scale and whether the city should develop monitoring requirements for any rental-assistance variant.
