HomeMy WebLinkAboutMemo - Mail Packet - 5/11/2021 - Memorandum From Gretchen Stanford And Lance Smith Re: Resuming Utility Disconnects In May
Utilities
electric · stormwater · wastewater · water
222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: May 6, 2021
TO: Mayor and Councilmembers
FROM: Gretchen Stanford, Interim Customer Connections Deputy Director
Lance Smith, Utilities Strategic Finance Director
THROUGH: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
Theresa Connor, Interim Utilities Executive Director
RE: Resuming Utility Disconnects in May
Bottom Line: As discussed on March 16 with City Council, Fort Collins Utilities will resume
disconnects for delinquent accounts in May 2021. Since March 2020, Fort Collins Utilities has
not been disconnecting delinquent accounts per an initial executive order
office which expired in June 2020. However, Fort Collins Utilities continued to pause on
disconnects to offer financial assistance to those that were struggling to pay their utility bill.
In addition, Governor Polis executive order to not charge late or reconnection fees on past-due
accounts expired in April 2021. To offer time for customers and staff to respond, Fort Collins
Utilities will resume charging late and reconnection fees in July 2021. Disconnect notices have
been revised to reflect this information, as well as outlining our continued efforts to present
financial assistance. Disconnect notices will continue to be revised as new financial assistance
becomes available.
Payments for utility services are essential to ensure the financial integrity and ability to
continue delivering reliable and high-quality electric, water, wastewater, and stormwater
services.
Delinquent Account Status, Including Revenue:
The number of delinquent accounts fluctuates each month. The graph below includes the Utilities
uncollected revenue related to number of delinquent accounts. Utilities typically writes off
$300,000-$600,000 annually in uncollected revenue as bad debt due to delinquency. If it
becomes necessary to write off the current outstanding balance of more than $2 million, Utilities
will use reserves rather than considering bringing an increase in monthly rates to City Council.
Outreach and Financial Assistance Provided to Customers with Delinquent Accounts:
Disconnect notices resumed in November 2020 to remind customers with past due bills that a
balance was still owed, providing them with options and financial assistance programs available.
Customers with delinquent accounts continue to receive monthly notices encouraging them to
contact Utilities immediately and informing them of their options, which includes:
Paying your bill
Setting up a payment arrangement
Contacting an agency partner for assistance
Applying for income-qualified utility/rent assistance and/or
Attending a free webinar to learn about payment assistance options
Utilities has nine billing cycles, scheduled throughout the month. Notices are sent by cycle to
customers whose accounts have a past-due balance. Seven to ten days after a notice of
disconnection is sent, the account is eligible to be disconnected (most are disconnected
remotely). Per the cycle schedule, actual disconnects will resume by mid-May 2021.
Utilities has provided financial assistance to customers struggling to pay their Utilities bill to
decrease the likelihood that they will be disconnected. In 2020 and 2021, Utilities distributed
$575,910 in CARES Act funding to 1,423 residential and commercial customers and $439,590 in
Payment Assistance Fund (PAF) support to 1,152 residential customers. Outreach has included
mailings, emails, and phone calls directly to impacted customers to advise them of the available
funding, as well as webinars to help customers navigate options available to them.
In 2021, Utilities partnered with Neighbor to Neighbor (N2N) to provide Utilities assistance to
customers who are unable to pay their utility bill due to impacts from COVID-19, are renters,
and are making 80% or less of Area Median Income. Since the launch of the program in mid-
April, 9 residential customers have received $4,614 in assistance.
Financial Assistance Being Considered:
Currently, Utilities is waiting for crucial decisions to be made regarding state and federal
stimulus packages. The biggest unknown at this time is President
and financial assistance that will be available for utility assistance. Below is a summary of
financial assistance currently being considered for distribution to delinquent accounts.
Utility-Led Financial Assistance
Platte River Power Authority
Gift
Funds distributed by Utilities
$468,941 Funds for electric-only financial assistance
The appropriation was approved by City Council on April 20, 2021, and funds will be available
to customers in mid-May. Details of this program will be similar to the CARES Act application
process in 2020, with the initial focus on commercial customers since financial assistance is less
available for this customer class. They may apply online or through Utilities Customer Service.
The funds will be distributed on a first-come, first-served basis, and customers must demonstrate
economic hardship due to the COVID-19 pandemic. Outreach will include direct mailings,
emails, and calls to eligible customers.
Third Party, Non-profit Led Financial Assistance
Payment Assistance Fund -
Energy Outreach Colorado
(EOC)
Funds distributed by La
Familia, Catholic Charities,
Discover Goodwill, Colorado
State University
$371,650 Funds for utility one-time assistance, $1k
per fuel source, no LEAP verification
requirement at this time, customer needs
to have an electric account, Fort Collins
Utilities provides funds that are matched
1:1 by EOC, funds available 1x/season
$119,397 $86,751
$323,591
$115,999
$547,647
$28,262 $4,614
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2018 2019 2020 2021 YTD
Financial Assistance
PAF CARES N2N
Consolidated Appropriations
Act
Funds distributed by Neighbor
to Neighbor, Utilities is
working with other nonprofits,
more details to come
$10.7M,
Larimer County
Funds for rent and utility assistance were
provided to Larimer County, dollars need
to be spent by the end of 2021,
distribution began mid-April, Utilities is
a partner
CC: Lori Clements, Utilities Customer Care & Technology, Senior Manager
Heather Young, Utilities Interim Community Engagement Manager