AGENDA CAPTION:
Title
Receive an update on the City’s expanded Utility Payment Assistance Program; and provide direction the City Manager, or her designee.
Body
Meeting date: May 19, 2026
Department: City Manager’s Office and Finance - Utility Billing
Amount & Source of Funding
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Account or Project Number (C = CIP funds): 21006322-54115; 22006335-54115; 21000000-22355
Funds Available: Yes
Account Name: Energy Assistance
Fiscal Note:
Prior Council Action: October 15, 2024 - City Council recommended criteria for use in the utility payment assistance request for proposal (RFP). February 18, 2025 - City Council was provided with the results of the utility payment assistance RFP. April 15, 2025 - City Council approved a contract amendment with Community Action Inc., of Central Texas and new contracts with Business Community Lenders of Texas, Communities in Schools of Central Texas, and Salvation army, and authorized one year renewal period to administer the City’s Utility Payment Assistance.
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Background Information:
This item will provide an update on the expansion of the City’s Utility Payment Assistance Program over the past year. Staff has also met quarterly with the agencies administering the program to discuss progress, opportunities, and challenges since the expansion. This has resulted in a few proposed changes to the Utility Payment Assistance program that will also be presented for Council discussion and direction.
Additional Background
Over the past two years, there have been multiple discussions on utility billing payment assistance. Below is a summary of the meeting dates and topics discussed:
August 20, 2024 - City Council received a budget presentation that included an overview of the utility payment assistance application process and the types of utility assistance available for residents.
September 3, 2024 - City Council received a presentation that included utility payment plans, disconnect process, and improving utility payment assistance.
October 15, 2024 - City Council received a presentation regarding utility billing penalties, reconnect fees, utility payment assistance, and recommended criteria for the utility payment assistance program request for proposal (RFP).
November 18, 2024 - City Council was provided with a follow-up memorandum with responses from the October 15, 2024, meeting.
February 18, 2025 - City Council received a presentation regarding utility billing penalties, the RFP results (open from December to January), reconnect fees, donated utility assistance funds, Municipal Utility Lien (Ordinance No. 2025-06), and resource navigation. The direction from City Council regarding the RFP results was to award all agencies based on agency scoring, responses, and preparation of the proposals. An administrative fee of up to ten percent was provided to each agency from City funds; the donated funds were to be used for direct utility payment assistance.
March 24, 2025 - City Council received a memorandum to the responses from the February 18, 2025, work session on Utility Payment Assistance. Through a collaborative process with the agencies, a universal application was created to clarify and expand eligibility to be incorporated in the agency’s internal application process. This included emergencies and financial hardships throughout the current fiscal year.
April 15, 2025 - City Council approved the contract amendment with Community Action Inc., of Central Texas and entered into new contracts with Business Community Lenders of Texas, Communities in Schools of Central Texas, and Salvation Army, and authorized a one year renewal period to administer the City’s Utility Payment Assistance.
Insert Date - Memorandums of Agreement (MOUs) were signed with Bluebonnet Energy Cooperative, Centerpoint Energy, and Pedernales Energy Cooperative to begin issuing utility payment assistance for shared customers utilizing donation funding available after April 1, 2025.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval of changes to the Utility Payment Assistance Program.