Milpitas is significantly expanding a program to help low-income households pay their water bills.
Since 2019, the city’s had a subsidy program that gave participants $22.50 off of their bi-monthly water bill, discounts on city-run recreation programs and reduced permitting fees for certain utility-related replacements.
Now, the city is offering more generous aid for water bills, with three different tiers of assistance depending on need. For residents who make less than half of the area’s median income — currently $195,200 for a family of four — the program would provide 50% off fixed water bills, water meter and sewer connection costs, and up to $50 off water consumption costs.
Those who make less than 80% of the area’s median income could receive 30% off of the fixed costs and $30 off of costs of water consumption. And, residents facing temporary hardship, such as loss of a job, would receive a 20% discount off of fixed costs and $20 off water consumption.
The discounts to recreation programs and permitting fees would also continue under the program, said Director of Recreation and Community Services Renee Lorentzen.
According to staff reports, the new program could save participants hundreds of dollars annually on their water bills.
“This is the first time we’ve really increased the subsidy to the households that really need it,” said Councilmember Evelyn Chua at this week’s meeting, where the City Council unanimously voted to expand the program. “Now, we have a substantial subsidy that I think could make a difference … and attract more households that really do need this.”
The new aid — like the former program — would be funded through late fees collected on water bills, which net over $300,000 a year, according to city staff. The city estimates that the new program will cost around $51,000 in start up costs, then around $200,000 annually for over 200 expected enrollees.
While the City Council originally considered placing a cap on the number of households that could qualify, the councilmembers opted to first gauge public interest in the program before setting limits and only pause enrollment if the program exceeded the expected funding for a year.
Milpitas residents who are interested in signing up for the program can do so through the city’s website.
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