Item 42
Top billing of the night goes to Item 42, the update on the emergency utility assistance. At this point, the city has paid out almost half of the million dollars available for utility assistance. In addition, city staff seems to have stepped up its outreach, from last month when this program was stumbling along ineptly.
Shane Scott says, “Can’t we just forgive all debt?” He said this last time, as well.
The city staff, in their neutral way, is timidly-yet-STRONGLY opposed.
– This isn’t what the consultants recommend.
– This may affect rate hikes.
– This could involve cases where the tenant just plain moved without disconnecting the electricity.
– This could affect San Marcos’s rating with S&P which we need in order to levy bonds.
Scott points out, quite rightly, that the city owns the utility company and can move its money around.
Alyssa Garza and Max Baker are strongly in favor.
Jane Hughson and Mark Gleason are both convinced that people will not bother to apply for assistance until they get the shut-off notice. So they are opposed. Mark even calls it “a tax on everyone else”.
Melissa Derrick wants to know the consequences more thoroughly – how will this affect rates on everyone else? How will this affect S&P ratings?
Alyssa gives the speech of the night, about how detached City Council is from the actual experience of poverty and being buried in bills. That our “simple application” for relief may be simple, but when you’re getting multiple disconnect notices you stop opening envelopes. That no one is secretly sitting on cash, waiting to get a disconnect notice to sigh and finally pay. They aren’t paying because they don’t have the money, full stop.
(Max does say that he originally proposed this but everyone overrode him. He also notes that this is a drop in the bucket compared to the city budget.)
The vote: Shall we just wipe out all utility balances >30 days past due?
In favor: Saul Gonzalez, Shane Scott, Max Baker, Alyssa Garza, and Mark Gleason
Opposed: Melissa Derrick and Jane Hughson
Motion passes, 5-2!
Mark Gleason gets a prize for the weaselliest comment of the night: after being the most impassioned person against this motion, he abruptly says, “Well, since this is obviously going to pass, I guess I’ll vote yes.” Oh, do you like being on the right side of history once the writing is on the wall?
My own hot take:
This is clearly the right move. It’s relatively cheap and helps a lot of people in a way that aligns with our values.
One side point: the city has done a tremendous amount of outreach on the utility assistance program, and it is not reaching people. The number of outreach labor-hours saved by just wiping the slate clean is significant, and should be taken into account in the budgeting of this.