AGENDA TITLE:
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Provide Information and Receive Direction on the Lodi Electric Utility Community Benefits Incentive Discount Available to Non-Profit Entities (EU)
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MEETING DATE:
October 1, 2025
PREPARED BY:
Melissa Price, Assistant Electric Utility Director
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RECOMMENDED ACTION:
Provide information and receive direction on the Lodi Electric Utility Community Benefits Incentive Discount (CBID) available to non-profit entities.
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BACKGROUND INFORMATION:
The CBID program was last presented to the City Council at a Shirtsleeve session in 2019. At that Shirtsleeve meeting, Council discussed eligibility criteria as the original CBID had not been reviewed or amended since its original adoption in 1996.
As adopted and currently in place, the CBID provides a 30 percent discount for non-profit entities as defined by the Internal Revenue Service (IRS) who have received Community Development Block Grant (CDBG) funds within the past 2 years. Lodi Municipal Code also states the CBID may not be used in conjunction with any other incentive discount and it is the customer’s responsibility to notify the City of eligibility.
Following the 2019 Shirtsleeve discussion, City staff were reviewing the CBID program and its funding from discretionary revenue sources, not ratepayer dollars as required by Proposition 26. Proposition 26 prohibits agencies from providing a specific benefit, privilege, government service or product to a customer whereby the cost is subsidized by another. However, the CBID program review was then put on hold due to COVID and the City’s desire to prevent financial harm to non-profit agencies during the pandemic.
Picking up that review process, Lodi Electric Utility (LEU) staff recently analyzed the list of customers currently receiving the CBID and have determined that under the current eligibility requirements, approximately 5 of the total 14 customer accounts receiving the discount do not meet current eligibility criteria as it relates to receipt of CDBG funding according to the City’s Community Development Department. While discount amounts differ by customer, the total annual discount amount is less than $30,000. However, specific details regarding customer name and discount amount cannot be disclosed in a public forum as customer utility billing account information is confidential under Government Code Section 7927.410.
Based on the current CBID program subsidies and its funding sources, changes are recommended to comply with Proposition 26. Therefore, staff requests guidance from Council to either discontinue the discount altogether under the current funding source or change both the funding source and eligibility criteria to allow for the use of other funds, like LEU Public Benefits Funds, to subsidize the discount and comply with state law. Staff will provide a presentation and facilitate a discussion as it relates to City Council direction associated with the future of the CBID.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Not Applicable
FUNDING AVAILABLE:
Not Applicable