COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 180469
Establishing a supplemental funding source for the Kansas
City Water Services Customer Assistance Program.
WHEREAS, the financial demands on the
Water Services Department’s customers have continued to increase in recent
years largely as a result of certain overflow control obligations of the City
under the Consent Decree entered by the United States District Court for
the Western District of Missouri on September 27, 2010 in the matter styled United
States of America v. The City of Kansas City, Missouri, et al. (Civil
Action No. 4:10-cv-0497-GAF), as amended from time-to-time; and
WHEREAS, the Mayor established a Kansas
City Water Cost of Service Task Force in April 2016 to make recommendations on
how to best address rising costs to the customers; and
WHEREAS, the City Council subsequently adopted
Committee Substitute for Resolution No. 170543, directing the City Manager to
consider implementation of the Task Force’s recommendations, in whole or in
part; and
WHEREAS, one of the Task Force’s
recommendation was that the Water Services Department utilize non-rate revenue
to provide low-income customer assistance; and
WHEREAS, the Water Services Department
funds a customer assistance program through the Mid America Assistance
Coalition for some customers having difficulty paying their water bills (the
“Kansas City Water Services Customer Assistance Program”); and
WHEREAS, the program has historically been
funded with non-rate revenue and has increased in recent years, however there
are still customer needs that are unmet; and
WHEREAS, the City periodically receives distributions of
surplus economic activity taxes (“Surplus EATS”) and a pro rata share of
surplus payments in lieu of taxes (“Surplus PILOTS”) when tax increment
financing plans expire or are otherwise terminated; and
WHEREAS, the City Council previously established the Shared
Success Fund and provided that it be funded from Surplus PILOTS; and
WHEREAS, the Surplus EATs have not been
dedicated to the Shared Success Fund and should be utilized to assist those
whose water services are in danger of being shut off, or have been shut off and
need to be restored; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That any Surplus EATS distributed to the City
from and after the effective date of this ordinance, shall be utilized for the
purposes of providing supplemental funding for the Kansas City Water Services
Customer Assistance Program.
Section 2. That the Water
Services Department is authorized to utilize the supplemental revenues provided
herein to be earmarked specifically to assist those customers in danger of
having their water services shut-off, or if water services have already been
shut-off to assist in having them restored.
Section 3.
That the direction of any one-time revenues to the Kansas City Water Services
Customer Assistance Program shall be deemed an appropriate use for
non-recurring expenditures pursuant to Section 2-1970(g), Code of Ordinances.
____________________________________________________
Approved as to form and
legality:
_____________________________
Brian T. Rabineau
Assistant City Attorney