Loading...
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