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Lawrence’s utility discount program for low-income residents helps less than 1 percent of the city’s utility customers, and some city leaders want to change that.

Currently, 86 of the city’s 32,000 utility customers receive a discount on their bill through the Lifeline Program, representing a fractional share of both customers and the millions of dollars in revenue the city collects annually in utility charges.

“When we advertise the fact that we have a Lifeline program, I think most people in the community would assume that it helps more than 86 people,” Commissioner Matthew Herbert said at the commission’s meeting Tuesday. “If you look at that as a ratio of our population, the amount of people that we’re actually offering an altered utility rate to is almost an unnoticeable number.”

The city’s Lifeline program provides a 65 percent utility discount to low-income residents age 60 and older. As currently structured, the program costs the city about $58,600 per year. That amount represents about one-tenth of a percent of the $62.8 million the city will collect this year in utility charges, which comprise water, sewer, stormwater, trash and recycling services.

Herbert proposed that the city reconsider the format of the program, suggesting the city at least look at making cost-neutral changes that would allow the program to serve more people by providing a smaller discount. Other commissioners suggested that the city also consider providing more funding for the program.

The city uses the annually updated federal poverty guidelines to determine who is eligible for the discounted rate. An individual age 60 and older must have an income during the preceding calendar year of less than $13,266, according to a city staff memo to the commission. Those who qualify as head of household must have a family income of less than $17,864.

Herbert originally brought up making changes to the program during last year’s budget process, which included an increase in the city’s utility rates.

The commission approved an increase in utility rates for 2018 that will increase an average resident’s utility bill to about $91 per month, or by about $5.50 per month or $65 annually. The city’s 2018 budget states those rate increases are helping to pay for the new Wakarusa River Wastewater Treatment Plant, changes to the water treatment process and increases in landfill and recycling fees.

As part of the commission’s meeting, city staff presented a proposal that would expand the eligibility but decrease the discount so as to still spend about $58,600 per year. City staff proposed that the discount rate be decreased to also provide discounts to low-income residents who are disabled or a U.S. veteran, regardless of age. The low-income discount for those 60 and older would decrease significantly, down to 35 percent. The dollars from that change would be used to provide low-income veterans and disabled people with a $5 monthly discount.

Commissioners did not indicate they were interested in adopting that proposal and instead suggested that the topic be taken up again during this year’s budget process. Commissioner Leslie Soden suggested that the city consider spending more money on the program.

“We appreciate what the utilities department has done, but perhaps it’s not so much in the spirit of what we’re wanting to accomplish,” Soden said. “Perhaps staff might work outside of the revenue-neutral basis for the upcoming budget.”

City Manager Tom Markus also brought up that the city looks only at annual income and not net assets when determining who is eligible for the discount. He gave the example of a resident who sold a large piece of property one year, was then disqualified from the program, but then was able to qualify again the next year. He said that the city may want to consider changing the requirements, and commissioners agreed that issue should also be reconsidered.

Commissioner Jennifer Ananda also suggested that the city consider providing all Lawrence residents an option to round up on their utility bills to contribute toward a fund to assist low-income residents with their bills. City staff said the current billing system doesn’t allow for a voluntary bill round-up but that changes to the system scheduled for next year would enable that option.

Ultimately, commissioners voted to defer the decision in order to discuss the potential changes and/or expansion of the city’s Lifeline program as part of the city’s annual budget process.