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Council advances lifeline utility changes: wastewater discount proposed and new-account water deposits raised
Summary
Monterey Park advanced an ordinance to replace the current $12 water-meter lifeline discount with a $22.46 wastewater fixed-rate discount for qualifying single-family customers and approved raising new water deposits from $50 to $100; council approved the measures unanimously and directed staff on implementation and monitoring of fund impacts.
Monterey Park
The City Council voted unanimously to advance an ordinance and related resolutions to expand the city's Lifeline Utility Rate Program and to increase water-deposit levels for new accounts.
Finance Director Martha Garcia outlined the proposed amendments to the Monterey Park Municipal Code that would replace the existing monthly $12.06 water-meter discount for qualifying single-family accounts with a wastewater fixed-rate discount (the staff-recommended figure was $22.46). Garcia said staff expects the wastewater discount to be more sustainable for the program, funded primarily by interest revenue in the utility fund. She also recommended increasing the standard deposit for new single-family accounts from $50 to $100 based on a benchmarking review of nearby cities and the increase in service costs since the deposit was established in 1992.
Council discussion focused on program eligibility (only single-family accounts with separate meters qualify), the source of funding (interest revenue within utility funds), and contingency planning if interest revenue declines. Garcia said interest revenue in the sewer fund was about $200,000 last fiscal year and that staff would return to council with adjustments if interest earnings or program costs changed materially.
Councilmembers expressed support for expanding the lifeline program while ensuring its long-term sustainability. The council approved the staff recommendation in the meeting.
What happens next: the ordinance and accompanying resolutions were introduced and will be returned for final reading/second reading as required; staff will monitor interest revenue and program participation and report back if changes are necessary.
