Council adopts higher income threshold for senior utility discount

The Leavenworth City Council has adopted new standards related to a senior utility discount. The city Finance Committee reviewed the utility discount and compared that discount to other communities to determine if changes needed to be made to the reduced rates on the Leavenworth rate and fee schedule, said City Finance Director Chantell Steiner, at the March 13 study session.
The present reduction in Leavenworth rates is 50 percent for low income and 75 percent for additional hardship that is at or below the Federal Poverty Level.
The committee believed the current income thresholds should be higher.
“It is not widely known. It is something we can do for our poorest residents. We have been doing it. We just feel like it’s time to update the policy to a more current version of what the federal poverty level is and all that. The finance committee hashed this out and came up with the plan,” said Mayor Cheri Kelley Farivar.
The committee found other communities were allowing discounts at a higher level, ranging from 205 to 280 percent above the FPL. The committee’s new suggested income limits are at 250 percent of the FPL with an additional rate of 125 percent of the FPL for one or more persons.
The recommendation would increase the current limit for low income from $24,000 to $30,000 and for below poverty from $12,000 to $15,000.
“It’s been 12 years since we’ve raised the level of this. Over a 10-year period, the income has jumped considerably. Many of our seniors in town do live on fixed incomes. We get these from time to time,” Steiner said. “There are not a lot of them. I don’t want you to think we’re going to get this mad rush of people who are going to apply. It’s not going to happen.”
It’s just a handful of our residents, Farivar said.
“It says, you must own the dwelling. What if somebody buys a small home for their parents?  The children own it, but the parents are paying the bill. Can they live in an apartment or something?,” Councilman Elmer Larsen said.
Farivar pointed out this was a policy, not a code, so it is not hard and fast. If that were the case, she said they couldn’t consider the situation.
“I’m living here, but I don’t own the residence. I’m just thinking there are some people in those situations. Not a renter, but that gets complicated because who owns it and who is getting the advantage,” Larsen said.
Steiner said it can be an elderly person living with an adult child.
“If they request it, but are we really giving this to the low income senior or are we giving it to the young adult?,” Steiner said.
If their combined household income is less than $30,000, Councilwoman Mia Bretz said the city should give them the discount. Steiner said the question is whether they should own the home or not.
“If I’m a landlord, and I know the city provides discount to a renter if they are low income, then I’m going to have the rent and you pay your own water and sewer. If you change it to renters, you will have people trying to finagle it,” said City Administrator Joel Walinski.
Most of the people who would qualify for this already live in rental assisted housing, Farivar said. Steiner said the language is the language. It’s not just Leavenworth, but other towns too.
“This is a widow who owns her house outright. She is living on Social Security only. That’s what it takes to qualify,” Farivar said.
Councilwoman Sharon Waters said that would be her if Social Security was all she had.
“That’s something that has never been in question, it is the qualification level. We do have the little old lady living on Social Security and she is $35 a month over our current qualification. That is the heartbreak,” Farivar said.
The city currently has 18 senior approved applicants in the discount program. One application is below poverty level while the remaining 17 are in the low income discount rate.
“I’ve had a couple in the last few years and that is it, right there. They come in and prove everything but they are just a few hundred dollars away,” Steiner said.
Steiner said she will keep track and report back to the council. The council voted unanimously to increase the standards at the regular council meeting that night.
In order to qualify for the discount, you must be 62 or older and for the disabled qualification, you must provide a doctor’s letter stating permanent disability. You can have no other assets or holdings besides your principle place of residence. You must live in the city service area as well as live and own the building. You also much meet or be below the income thresholds within the application for all household incomes. Also, you must verify/reapply every two years to continue in the program.
Ian Dunn can be reached at 548-5286 or editor@leavenworthecho.com.