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CITY OF SOUTH BEND I OFFICE OF THE CLERK is a broad and complex issue. We are all here today because we are concerned about the impacts of the rising rates. Those in our community are driven by our Federally mandated Consent Decree as well as the aging infrastructure that we've been funding a lot of rate increases to do capital improvements for. Most of the time, this really impacts those that are disproportionately affected and are already struggling to get by. A few months ago,with the passing of the stormwater fee, we committed to come back to you all with a strategic plan to address this work on the issue. In South Bend alone, we know that poverty among our residents is significant. Our median household income is thirty-five percent(35%)below that of the rest of the nation.Almost thirty percent(30%) of our households earn less than $20,000 annually. In addition, we know based on the United Way's ALICE Study that fifty-four percent (54%) of South Bend households are unable to meet their basic needs. This is a lot of the impetus for this program. She went on, Our Committee was charged to establish the following items (referencing a slide in the presentation). Looking at metrics, we asked, what is affordability in South Bend? Should we be looking at a percent discount? A credit on a bill? Will this actually make a difference to our residents?We also looked at policy architecture,with the goal in the beginning of administratively adding no additional full-time employee in bringing this program to fruition. Is there a third (3rd) party? Maybe they can assist us. And then how do we determine eligibility for a program such as this? Again, without bringing on any additional burden to our Administration. And then outreach, how do we reach those that are in need? We kicked our Committee off in November of last year. We began by reviewing various approaches of assistance. We looked at income-based rates. That was a program we mentioned back during the storm water fee discussion.Philadelphia was looking at income-based rates. That is a complicated program based on every household's individual income and the rate would be reflective of the income. We also looked at a lifeline rate and customer assistance programs. We also discussed approaches to financing in order to remain revenue-neutral. So, would this be a rate-funded approach? Could you maybe use TIF dollars or some other funding mechanism? And then I put this little question at the bottom (referencing a slide in the presentation) that we do have a form of a customer assistance program now, and that is our various methods to avoid disconnection.This happened just a few years ago where the utility created, through the rules and regulations process, the ability to have payment extensions and to do payment arrangements. Also, when we can, we try to encourage usage of a third (3rd) party or local agency. A few of those do exist that can help sometimes with water and sewer bills. She continued, We also followed closely a case that is going before the Indiana Utility Regulatory Commission today by Citizen's Water down in Indianapolis. This is the one (1) and only community that we know of at present in Indiana to be pushing a program forward with the IURC. So, we are following the documents they are submitting. It is a rate-funded, low-income customer assistance program. So, based on their increasing rates, they are able to put forth this program. They are setting it up as bill discounts and they were looking at different discounted rates of ten percent (10%), eighteen percent (18%), or twenty-five percent (25%), depending on the level of need. Then they were basing eligibility on gross household income. They were looking at using the model of the State's energy assistance program. So, looking at if the house was at or below the level established by that program, then they would qualify. They also modeled it after the EAP and the Citizen's Gas. They have a universal services program, I think it's called, in which United Way of Central Indiana assists them as a third (3rd) party and enrolls customers and does the verification process. So, we followed this process and discussed it in our Committee. Councilmember Jo M. Broden arrived at the meeting at 4:27 p.m. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 I f574.235.9173 TTD 574.235.5567 www.southbendin.gov 2