Staff recommends City Council adopt a Resolution authorizing participation in the California Low-Income Household Water Assistance Program (LIHWAP) and authorizing the City Manager or designee to accept and expend Low-Income Household Water Assistance Program funds on behalf of the City of Roseville.  The State of California is funding this temporary LIHWAP Program with Federal COVID-19 relief funds and will require Roseville to execute agreements with the California Community Services and Development Department to receive funds on behalf of income-eligible water and wastewater customers to pay down their past-due bills.

Participation in this program is expected to have a positive effect on the Water and Wastewater Operations Funds within the Environmental Utilities Department by providing income-eligible water and wastewater customers access to up to $1,000 to pay off their past-due balances and avoid disconnection of services or the need for Roseville to turn the accounts over for collection.

With the passage of the California Human Right to Water Bill in 2012, Senator Bill Dodd and the State Water Resources Control Board have been attempting to create a Low-Income Rate Assistance (LIRA) Program for water utility customers.  Funding for this LIRA program has been elusive in the past, with a tax on water being the preferred proposed funding alternative by some State staff.  However, with the State surplus and funding from the Federal Government to assist California and its residents struggling due to the COVID-19 Pandemic, the State Legislature approved, as part of the 2021-22 State Budget, the creation of the LIHWAP program to assist income-eligible customers, who have been disproportionately affected by COVID-19, to become current on their water and wastewater bills.   

The Low-Income Household Water Assistance Program is designed to help water and wastewater utility customers that make up to sixty percent of the state median income reduce any unpaid portions of their water and wastewater bills and avoid the potential of disconnection of service due to non-payment.  The California Community Services and Development Department (CSD) will administer the program like the Low-Income Home Energy Assistance Program (LIHEAP) using Local Service Providers (LSPs) to determine customer eligibility. The CSD must expend the funding for the LIHWAP Program by September 2023. 

Income-eligible customers can apply for up to $1,000 for water and wastewater past due balances once every twelve months while funding is available.  Roseville will apply to receive funds directly from CSD on behalf of our income-eligible customers and provide them a credit on their water and wastewater bills of up to $1,000. 

The City has been actively engaged on the creation of this program since its introduction in the State Budget this year.  This is an opportunity for the City of Roseville to have another avenue to support customers that may be behind on their water and wastewater utility bills. 

The funds received from the state will be used to reduce/eliminate past due balances on customer accounts, thereby reducing the potential of bad debt that Roseville would need to pursue or write-off.

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Authorization to participate in the California Low-Income Household Water Assistance Program meets the above criteria and is not subject to CEQA.  No additional environmental review is required.

Goal 1A. Remain fiscally responsible in a changing world by seeking new and diverse revenue streams.

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Dominick Casey, City Manager