Monterey Park Municipal Code Ch. 14.14 Lifeline Utility Rate Program

This chapter's purpose is to promote equity and affordability for vulnerable populations in Monterey Park by authorizing the city council to establish and periodically review discounted "lifeline" rates for eligible utilities. This chapter is intended to enable access to essential utility services at reduced rates for income-qualified households, including low-income seniors and low-income persons with disabilities, thereby enhancing quality of life and supporting public health and welfare. The lifeline utility rate framework allows the city council the flexibility to address community needs and fiscal constraints annually, ensuring the program remains responsive and financially sustainable.

(Ord. 2275, 4/1/2026)

(a) On an annual basis, the city council may determine by resolution whether to make lifeline rates available to qualified utility customers for any utility provided by or billed through the city, including, without limitation, water and wastewater services. The specific utilities subject to the lifeline rate program will be identified in any annual city council resolution.

(b) Nothing in this chapter creates, or is intended to create, a property right for qualified persons to a lifeline rate as described by this chapter. Rather, establishing a lifeline rate for any utility is a discretionary determination made by the city council each year, and may depend, among other factors, on projected fund revenues as identified in the resolution.

(c) Granting a lifeline rate under this chapter does not alter or limit the responsibility of any property owner for unpaid utility charges, or the city's authority to collect delinquent charges.

(Ord. 2275, 4/1/2026)

(a) Customers meeting the qualifications in this section may pay a discounted rate equal to the monthly residential rates and charges established by city resolution minus a flat dollar amount, percentage reduction, or alternative formula as determined annually by the city council for each designated utility. Customers who do not utilize this discounted rate will pay the regular rate.

(b) In adopting a resolution determining the discount or rate structure, the city council may consider factors including, without limitation:

(1) The anticipated revenue and fiscal impacts on city utility funds.

(2) The number of customers projected to qualify for the discounted rate for each utility.

(3) The residential rates and charges then established for each utility.

(c) The city council may amend any adopted resolution by the same method as initial adoption.

(d) To qualify for the lifeline utility rate, the applicant must be the customer of record, reside primarily at the service address, and meet at least one of the following criteria:

(1) Establish that the combined adjusted gross income of all household members, as used for California Personal Income Tax Law, was less than the figure in effect on the preceding first day of April as the "very low income" limitation for a family of two in the city of Monterey Park under Section 8 of the United States Housing Act of 1937[1], as amended, published by the U.S. Department of Housing and Urban Development. For each fiscal year, the director of finance or designee will determine and utilize the prior calendar year's adjusted gross income limitation based on such HUD guidelines;

[1]

Editor's Note: See 42 U.S.C. Chapter 8.

(2) Be a qualified participant in the California Alternate Rates for Energy program established by Public Utilities Code §§ 739.1 and 739.2, as determined by the most recent California Public Utilities Commission decisions; or

(3) Be a qualified participant in the California Universal Telephone Service program established pursuant to Public Utilities Code § 871 et seq.

(Ord. 2275, 4/1/2026)

(a) Applications for the lifeline utility rate must be filed with the director of finance or designee. The director, or designee, may require additional evidence as deemed necessary to process the claim. Only one applicant per household is permitted per utility. The city may at any time require continued proof of eligibility.

(b) The lifeline utility rate will first appear on the next full billing cycle after approval for an eligible household."

(Ord. 2275, 4/1/2026)