Mayor Linnsie Clark speaks with Coun. Robert Dumanowski prior to the Nov. 21 city council meeting. Council members approved Monday a program to offer utility bill relief to low-income households, though concerns were raised that many Hatters who rent would be left out.--NEWS FILE PHOTO
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City council has approved a utility relief program for low-income earners in the Hat despite some concerns that the money may not flow directly to those most in need.
The program, drawn up by administrators last month, will provide a total of $300 to Hatters who fall under certain income levels to offset higher than expected utility bills over the course of the next year.
But council discussed the program design and concerns that those most in need may not qualify because they don’t pay utility costs directly.
“I worry about the intended group not being able to access it,” said Coun. Robert Dumanowski, who cited concerns about rental agreements containing utilities and application requirements.
“A way to hit a bigger group is my intended goal … but I’d rather see us try to hit as many people as possible rather than pass nothing at all.”
That came after concerns were raised by Coun. Shila Sharps about mirroring the city’s “Fair Entry Program,” which offers discounted entry to city recreation and cultural facilities to those who qualify as low-income earners as per Statistics Canada definitions.
If approved, a ratepayer would see $50 credits on monthly bills during six traditionally high-use months (January to March and July to September) in 2023.
“I don’t think we’re actually solving the issue,” said Sharps. “Those hardest hit (by high bills) aren’t in a home.”
Coun. Darren Hirsch and Cassi Hider both argued $50 was a generous offering, and a majority of council voted down an amendment to double the payout.
“What does $50 mean to a low-income family, compared to $100 in a time of crisis?” said Coun. Allison Knodel, who suggest the increase. “If we have the opportunity, and knowing where we’re coming from, with our profits in the utilities last year, it’s a no brainer for me.”
Qualifying income levels still need to be adjusted for the coming year by Statistics Canada, but for the 2021 tax year the gross income level was $22,784 for a single person, $28,364 for a two-person household and $42,338 for a family of four.
Administrators estimate that 6,000 residences would qualify under low-income criteria, and assuming 50 per cent apply, the total cost could be $1.8 million.
“Not everyone will end up applying, but half to two-thirds, we’d hope, would,” said Dennis Egert, the head of the corporate services department. “We believe it will have high uptake, because it relates to credits on utility bills.”
Customer service superintendent Denise Schmalz said local landlords are increasingly shifting away from offering “utilities included” rents, but there is still “a good mix.”
She said certified figures from the province state that about 3,000 Medicine Hatters currently receive the Assured Income for the Severely Disabled (AISH).
“The utility is an avenue to give that $50 to low-income (earners), but keep in mind that not all low-income earners have utilities in their name, or they may live in shared housing.”
Last month, the province announced it would extend a program to give a $50 credit on all small residential and commercial power ratepayers in the province through the first four months of 2023.
The province has also instituted a rate cap on natural gas to charge a maximum of $6.50 per gigajoule until the spring, though market rates have stayed below that level.
The gas cap applies to all customers, but the power aspect only captures single-connection customers under a certain usage, causing condo owners and renters to complain they have been left out of the program.
City administrators responded Monday that the process to contact and verify circumstances of thousands of people living in hundreds of rental or condo units would be too difficult. The city also has no legal authority to force landlords or condo associations to pass on rebates to tenants or members.
In early 2022, council approved a $2-million program that allowed power and gas customers to backdate fixed-rate contracts that provided lower rates, as well as subsidize building efficiency and energy-use audits.
In 2021, council approved a blanket $136 credit on customer bills as part of a COVID relief program, totalling $4.5 million, and later added $310,000 specifically for condo associations.
In 2020, $1 million in reserve cash was earmarked for the city utility’s “Community Warmth” program to provide one-time help for customers facing service shutoffs.
