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Committee considers widening and deepening utility low-income discount after review
Summary
Staff reported the low-income utility discount (eligibility at 125% of the U.S. Census poverty threshold; 25% discount) has 24 approved accounts and costs about $8,000–$10,000 annually; the committee discussed increasing eligibility to 140–150% and raising the discount to about 35%, and asked staff to prepare materials and improve outreach.
The finance committee reviewed Port Orchard’s low-income utility discount program, which currently uses a 125%-of-poverty threshold and provides a 25% discount on base utility rates. Noah Crocker said the program began in 2023 and that 24 accounts have been approved so far, near the program’s early target of 25 accounts. He estimated the city’s foregone revenue to date is roughly $8,000–$10,000 annually.
Crocker described two policy levers for trustees to adjust: the eligibility threshold (currently 125% of the U.S. Census Bureau poverty table) and the discount percentage. Committee members discussed moving the threshold to somewhere between 135% and 150% of the federal poverty benchmark and increasing the discount; several members expressed support for a moderate step (140% eligibility and a larger discount) with outreach to increase enrollment.
Council member John Moresy and others urged stronger outreach and asked staff to track applicants who do not qualify, saying some residents may self-select out of applying. Members asked staff to prepare a package for a council study session (rather than immediate council vote) that would include modeled impacts of raising eligibility and reducing barriers to enrollment.
The finance committee did not adopt a final ordinance at the meeting but authorized staff to prepare materials and return with clearer options, estimated fiscal impacts and recommended outreach approaches.
