Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
CC:	Casey Toomay, Assistant City Manager Diane Stoddard, Assistant City Manager
FROM:	Kevyn Gero, Management Intern
DATE:	3/24/2015
RE:	Low-income Elderly Rates for First Class Cities over Fifty Thousand

Per your request, Staff has gathered the following information on the City’s low income elderly utility rate and similar policies other first class cities.

Summary

Two cities of the nine surveyed have similar discount low-income elderly utility rate. None of the cities surveyed administer discount rate programs for residents that qualify as disabled.

Background of Low-Income Elderly Rate

Since Ordinance 4885 was adopted in 1977, establishing the low-income elderly rate, the Ordinance has been amended several times. It was initially adopted by the City Commission to address the impact of the sanitation rate increase on low-income elderly population. The program was later expanded to water service. Eligibility criteria for the program have been revised over time such as the age requirement and percent of poverty level. The discount rate has also been amended to reflect a percent discount in place of a predetermined charge. The changes to the qualifications generally had only a minor impact on the participation level and utility budget.

City Code (Article 19-318) states the purpose of the policy is to permit qualified low-income elderly persons to have reduced water and sanitary sewer charges. Residents who are 60 year-of-age or older can apply for the program through the Finance Department. The discount rate is calculated as a flat monthly rate charge per dwelling unit of 35% of the regular monthly residential water and sanitary sewer charge. The City currently has 138 active customers signed up for low-income elderly rate program. Applicants are required to presents a driver license, Kansas ID, or birth certificate for verification of age. Either a social security statement or tax return can be presented as verification of income. Income eligibility for 2015 is set at 110% of the federal poverty-level income guidelines or below. To qualify, an individual’s annual income must be less than $12,837.00 or $17,303 if they are a head of a household. In 2014, the total amount the low-income elderly program costs the City for reduced water, sanitary sewer and sanitation charges was $31,846.29. 

Survey of First Class Cities

Staff surveyed nine first class cities in Kansas to determine if the City offered discounted rates for low-income, elderly or disabled residents.

	Provider	Utility	Discounted Rate
City of Lenexa	WaterOne*	Water	No discounted rates.
City of Emporia	Municipal Utilities Department	Water and Sanitation	No discounted rates.
City of Leavenworth	Leavenworth Water Department	Water, Sewer and Refuse	Yes, low-income elderly.
City of Olathe	Municipal Utilities Services Department	Water and Sewer	Yes, low-income elderly.
City of Topeka	Municipal Utilities Department	Water	No discounted rates.
City of Salina	Municipal Utilities Department	Water	No discounted rates.
City of Overland Park	WaterOne*	Water	No discounted rates.
City of Manhattan	Municipal Utilities Department	Water and Sewer	No discounted rates.
City of Kansas City	Kansas City Board of Public Utilities	Electric and Water	No discounted rates.

*WaterOne (Water District No. 1) of Johnson County is an independent public utility.

Cities of Olathe and Leavenworth are the only first class cities that offer discount rates to low-income elderly persons. The “Income-Qualified Senior Discount” in Olathe applies to residents 65 years-of-age or older with a total household income equal to or less than one-half the median income based on Census data. The discount is authorized as a $4.00 monthly credit on City water and sewer service charges for twelve consecutive billing cycles.

To be eligible for the Elderly Rebate Program in the City of Leavenworth individuals must submit an annual application to the City Clerk’s Office and show verification of age and income. Individuals must be 62 years-of-age, a resident of the city and the primary occupant of the residence. The income guidelines are based annually on the federal poverty guidelines issues by the U.S. Department of Housing and Urban Development (HUD). If all the guidelines are met, the City of Leavenworth will pay the sewer and refuse charges on the user’s monthly bill.

All of the Cities which offer the low-income elderly rate program, including Lawrence, require applications to be annually renewed in order for individuals to receive the discount.