Council to Review Reduced Utility Rates

Rather than double the water and sewer rates of low-income seniors, Camarillo city officials plan to look for a way to circumvent the consequences of Proposition 218.

The City Council will listen to testimony Monday evening before deciding whether to discontinue the reduced rates that low-income seniors have received since 1977. Given the language of the tax-cutting measure, however, the council has basically been given no choice.

The rates can no longer be subsidized because Proposition 218 prohibits cities from charging higher rates to some customers in order to subsidize the rates of others, City Atty. Robert Flandrick said.

But Councilwoman Charlotte Craven has suggested using excess community development block grant money to replace the $30,000 in subsidies supplied each year through regular rates for other residents and interest earnings.

“We do all sorts of other things for various groups with those social service grants,” Craven said. “And I know there’s undesignated money there.”

Councilman Kevin Kildee has suggested allowing water customers to vote on whether to subsidize the low-income seniors.

And Councilman Bill Liebmann has taken the whole issue one step further.

If the idea is to provide a subsidy for low-income residents, it should be based on income and not age, Liebmann said.

“It could get very sticky because we have low-income citizens who are not seniors and low-income seniors who buy water from other sellers other than the city,” he said. “Whatever we’re going to do, we need to treat all of our citizens in a fair manner.”

But if a subsidy is provided based on income and not age, it would be too costly, Craven said.