Improving Ratepayer Assistance
The Friends of San Lorenzo Valley Water (FSLVW) advocated at the November 16th Board Meeting for a significant increase in the monthly discount (currently set at $15) provided by the District’s Ratepayer Assistance Program (RAP). On November 30th, FSLVW followed up by submitting the following letter to the SLVWD Board of Directors:
To: Board of Directors, San Lorenzo Valley Water District
The Friends of San Lorenzo Valley Water (FSLVW) is writing to urge the San Lorenzo Valley Water District (SLVWD) to increase the benefit amount of the Rate Assistance Program (RAP). FSLVW is an all-volunteer citizen’s group that formed in 2018 with a deep concern for our local community and for continued reliable access to safe and affordable water [1].
California now recognizes access to safe, affordable water as a fundamental human right. Unfortunately, the cost of water delivery in California and across the country is skyrocketing due to a wide range of evolving conditions very familiar to our SLV community: aging infrastructure, climate change and droughts, fire and flood damage, among other factors.
The rising cost of water creates particular hardship on low-income households, and, since its inception in 2018, FSLVW has placed a high priority on mitigating that hardship. We advocated for and supported SLVWD’s adoption of the Ratepayer Assistance Program, which currently provides qualified households a $15 credit each month for their water bills.
The rate study now under consideration proposes to maintain the RAP benefit of $15 a month in the first year, increasing the benefit to $20/month in later years. FSLVW applauds this proposed increased benefit, but believes it is insufficient in light of the large rate increase being considered, so we are urging the board to consider increasing the RAP benefit proposed in the rate study.
We suggest any of three options for increasing the benefit:
Increase the benefit to equal the increase in the base rate applied to all households. The proposed rate study would increase the base rate by $12.70 in the first year, so the RAP benefit could increase to $27.70, and increase each year thereafter by the amount of the base rate increase.
Increase the benefit to 50% of the base rate, as is done in the East Bay Municipal Water District. Using this formula, the new RAP benefit would be $24.02, increasing each year that the base rate increases.
Increase the benefit to $20 a month in year one and increase it by $5 each year thereafter.
We recognize that it is difficult to estimate the cost of expanding the RAP program. SLVWD has approximately 7,800 hookups, mostly for residential households. According to the US Census Bureau, SLV has a poverty rate of approximately 4.6 percent, which would suggest that up to 370 households may have qualifying family income.[2] Yet the RAP program currently has only approximately 85 recipients.[3]
The low enrollment rate is likely due to three factors: First, renters are not able to apply because their water bill is in their landlords’ name.[4] SLVWD instituted this policy in order to avoid using water shutoffs as a consequence of nonpayment of bills, a benefit to renters. Instead, the district places a lien on the landlord’s property. Most low-income households are likely renters given the high price of real estate in SLV. Second, the amount of the benefit may be viewed as too low to warrant going through the application process. Third, potential recipients may not be aware of the program despite the district’s best efforts to publicize it.
The RAP program is currently budgeted at $25,000; because of the low enrollment and low benefit amount, a large percentage of the budgeted amount is not expended. We have three recommendations:
Increase the amount of the benefit using one of the options listed above upon adoption of the new rate structure and evaluate the impact of the increase on the number of enrollees.
Explore possible mechanisms for including renters in the program.
Roll over any RAP-dedicated funds that are not expended from one budget year to the next.
Small increases in the RAP budget may be needed to accommodate future benefit increases, a determination that can be made in light of budgetary circumstances in future years.
FSLVW recognizes that the program only benefits a relatively small group of low-income households, which is only a modest way to assist those in need in our valley. We speculate that most RAP recipients are low-income seniors on fixed income, who most likely are homeowners and therefore able to apply for the program.[5]
We wish that the State would step up and address this growing problem. Unfortunately, the governor vetoed a bill last year that would have provided meaningful assistance for low-income households.[6] In the meantime, we believe that SLVWD can take this modest step to help those households facing daunting financial challenges and who will be most hard hit by the proposed rate increases.
Sincerely,
James F. Mosher on behalf of Friends of San Lorenzo Valley Water
[1] To learn more about FSLVW, please visit our website at: friendsofsanlorenzovalleywater.org
[2] Census Reporter, SLV CCD, Santa Cruz County, CA; 2021. Available at:
https://censusreporter.org/profiles/06000US0608792850-san-lorenzo-valley-ccd-santa-cruz-county-ca/
[3] To enroll, RAP applicants must first establish eligibility for the PG&E CARE program, and include documentation with their applications. Although PG&E is unable to provide data on how many SLV residents are enrolled in CARE, the data for the larger region of north Santa Cruz County (approximately 900 customers) suggests that there are many more SLV residents who meet this criterion.
[4] Allowing landlords to apply for the program on behalf of renters would create difficult administrative and compliance issues, raising the cost of the program. FSLVW is interested in exploring other options for helping low income renters.
[5] According to the Census Bureau, there are approximately 2,200 seniors 60 years and older in SLV, who have a poverty rate of 6 percent, or approximately 130 households which include low income seniors.
[6] SB 222 (2022). https://www.gov.ca.gov/wp-content/uploads/2022/09/SB-222-VETO.pdf?emrc=00d97d