Haven’t paid water bill in pandemic? Here’s how Modesto is providing some relief
Modesto residents and businesses that did not pay their water bills during the pandemic will be getting good news in the mail from the city: Their delinquent bills have been paid and the city has waived the late fees.
The city has received nearly $2.8 million from the State Water Board to cover its customers’ unpaid water bills from March 4, 2020, to June 15, 2021, which roughly corresponds with the duration of the state’s state-at-home order issued to help stop the spread of the new coronavirus.
The Legislature provided the water board with $985 million to create the California Water and Wastewater Arrearage Payment Program to help water and sewer providers with unpaid customer bills. The funding came from last year’s federal American Rescue Plan Act.
The funding lets water and sewer providers credit customers’ accounts for past-due bills from March 4, 2020, to June 15, 2021. Only unpaid bills during that time period will be credited. And providers are required to waive any late fees during that time period.
While the water board says providers have taken a financial hit because many of their customers have not been able to pay their bills, the program does not require customers to show that was because of a pandemic-related economic hardship. However, many people faced pandemic-related layoffs, reduced work hours and similar hardships.
The Water Board is providing funding for delinquent water bills first and then will provide any remaining funding for delinquent sewer bills. Modesto is requesting about $4.2 million for its past-due sewer bills.
The City Council at its March 8 meeting accepted the nearly $2.8 million and authorized city staff to ask for the $4.2 million.
Finance Director DeAnna Christensen told council members that Modesto experienced a drastic increase in past-due water and sewer bills in the pandemic.
The water board allows agencies to keep 3% of the funding to cover their administrative costs in applying for funding and complying with the program’s requirements. That is about $79,000 for Modesto.
So Modesto will use about $2.71 million to credit the past-due accounts of 7,195 residential water customers and 226 commercial customers, according to Christensen’s presentation to the council. For context, Modesto has more than 70,000 water customers.
The commercial accounts do not include manufacturers, animal and food processors and the irrigation of agricultural and park land, as well as golf courses, according to the water board’s program guidelines.
Christensen told council members that staff is working on applying credits to customer accounts by March 28.
She said customers receiving credits will receive a letter from the city, which will include information on how to set up a payment plan for any unpaid balances. Christensen emphasized that the credits cover unpaid water bills only from March 4, 2020, to June 15, 2021.
Christensen said the city will not turn off water for nonpayment until the credits have been applied and customers have been given 30 days to set up payment plans.
And in response to a council question, she said staff is checking that it is not providing credits in which customers received help for their utilities from another pandemic relief program.
Christensen said in an interview that Modesto has received payments for unpaid water and sewer charges from other programs. That includes assistance for renters and homeowners. More information about this help can be found at housing.ca.gov.
