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Page 1 of 7 <br />Item #18 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />September 16, 2025 <br />Public Works - Utilities Division <br /> <br />TITLE: RECEIVE A REPORT AND PROVIDE DIRECTION ON A DRAFT <br />RECOMMENDATION FOR UPDATES TO THE UTILITY BILLING DISCOUNT <br />PROGRAM TO INCLUDE A 30 PERCENT UTILITY BILL DISCOUNT TO <br />QUALIFIED LOW-INCOME AND INCOME-QUALIFIED SENIOR RESIDENTS <br />WITH LESS THAN 24 HUNDRED CUBIC FEET (CCF) USAGE PER WATER BILL <br />WITH A MAXIMUM CAP OF $425,000 IN GENERAL FUND ALLOCATION <br /> <br />SUMMARY <br />As part of the process to update the City's utility rates, staff evaluated the current utility bill <br />discount program and received some feedback from the City Council at public water rate <br />discussions. Since funding for the utility discount program is not paid from user rates, it is <br />necessary to define a discount program that is both reasonable and sustainable within the <br />City's General Fund budget. Staff are now seeking direction on a draft recommendation for <br />updates to the water and sewer discount program to include a 30 percent utility bill discount to <br />qualified low-income and income-qualified senior residents, clarifying eligibility criteria and <br />better aligning the program with other water retailers in the Tri-Valley region. Staff will return <br />with the final recommendation at a regular Council meeting in October. <br /> <br />RECOMMENDATION <br />Receive a report and provide direction on a draft recommendation for updates to the Utility <br />Billing Discount Program to include a 30 percent utility bill discount to qualified low-income and <br />income-qualified senior residents with less than 24 hundred cubic feet (ccf) usage per water <br />bill with a maximum cap of $425,000 in General Fund allocation. <br /> <br />BACKGROUND <br />The City currently offers a 20 percent discount on both water and sewer rates for single-family <br />residents based on the age of customers who qualify as a “senior” (age 65 or older), <br />regardless of need or income level. The City also offers a 30 percent discount for residents <br />who qualify as a low-income family when the registered account holder is currently <br />participating in the PG&E CARE Program. Residents cannot apply for both discounts. The <br />discount applies to Pleasanton and Zone 7 Fixed and Variable charges for Water, and <br />Pleasanton Fixed charges for Sewer. The City limits the discount to only apply when the water <br />customer’s bi-monthly water consumption is less than or equal to 30 hundred cubic feet <br />(CCF). These discount programs are funded through the City’s General Fund and are not <br />funded by water rates. The senior discount program currently has approximately 3,200 <br />enrolled customers. The low-income program currently has approximately 225 enrolled <br />customers. The General Fund expenditures in the utility discount program for fiscal year (FY) <br />2023/24 and FY 2024/25 is summarized below: <br /> <br /> <br />Table 1. Utility Discount Program General Fund Expenditures FY 2023/24 - 2024/25 <br />Page 174 of 264