CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the resolution establishing a utility assistance program and authorizing an agreement with Loaves & Fishes Community Services for program administration
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Traditionally, the City had not offered financial assistance to utility customers. However, in 2021, a temporary program was created for customers experiencing financial hardship created by the COVID-19 pandemic. The City-funded program was successfully administered by Loaves & Fishes Community Services and concluded on December 31, 2021.
On February 15, 2022, the City Council directed staff to develop an ongoing, needs-based utility assistance program modeled after the temporary program piloted in 2021.
The attached resolution establishes a Utility Assistance Program and authorizes the City Manager to enter into an agreement with Loaves & Fishes for program administration.
The program will be established with a not-to-exceed amount of $300,000 annually, which will be budgeted appropriately in future years.
DISCUSSION:
Loaves & Fishes is an established and trusted community partner that is uniquely qualified and highly capable of managing a Utility Assistance Program on behalf of the City. Loaves & Fishes has experience in utility assistance through its Emergency Assistance Program and is familiar with City of Naperville utility billing procedures. In addition to managing the temporary Utility Assistance Program in 2021, Loaves & Fishes is a Community Development Block Grant (CDBG) sub-recipient and social services grantee of the City. They have performed well in all of those capacities.
After receiving direction from the City Council to continue a Utility Assistance Program, staff contacted Loaves & Fishes who agreed to continue managing the intake and evaluation of clients. Staff from Loaves & Fishes and the City are working together to develop program guidelines based on financial and demographic data collected throughout 2021. Those guidelines will be formalized through an agreement between the two parties and will be reviewed annually to ensure the program continues to achieve the desired goals while remaining financially viable for the City.
Because much of the work needed to launch the program was completed in 2021, it is anticipated that the new program can be operational within a few weeks.
FISCAL IMPACT:
In 2021, the Temporary Utility Assistance Program was funded through Contribution to Other Entities accounts in the Electric Utility and Water Utility funds. The City provided $104,186 in assistance to customers and incurred $10,406 in administrative costs paid to Loaves & Fishes. The 2022 budget does not include funds for utility assistance; however, staff believes the costs can be managed within the existing Utility fund budgets.
The program will be established with a not-to-exceed amount of $300,000 annually, which will be budgeted appropriately in future years.