senior-discount

West Easton’s Economic Disparity In Sewage Billing Needs To Change

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West Easton’s method of sewage billing needs an overhaul and the reasons are obvious, if we begin with a 2013 Ordinance, and the Resolution that followed, less than a year after that Ordinance was approved.

Ordinance No. 950, signed by our then-Council President/Borough Manager/Treasurer, Kelly Gross, in January of 2013, provided for a sewer rate increase to $66.25 per quarter for residential homeowners, with senior citizens of age 65, paying a reduced rate of $55.75 per quarter, a difference of $10.50.

That amounted to an 18.5 percent discount to senior citizens. Other than age, there is no requirement to prove any financial hardship, as is done with other municipalities that offer discounts on services in order to avoid lawsuits over unfair billing.

Apparently, those numbers derived in early 2013 weren’t enough to pay the yearly sewer bill that West Easton received.

Eleven months later, in December of 2013, Resolution No. 975 was approved that increased the quarterly billing to residential homeowners, yet again.

The sewer bill for residential homeowners then jumped to $82 per quarter, up $15.75 (24% increase), with senior citizen rates increased to $63 per quarter, up $7.25 (13% increase). There is now a difference of $19 between those aged 65, and those under 65, almost doubling the senior discount seen at the start of 2013.

Because of that adjustment, West Easton seniors are paying 30 percent less toward sewage, than those under 65 years old, with no proof of financial hardship needed to qualify for the discount. The result is an increase of the financial burden on those who still have mortgages to pay, are raising a family, and trying to invest for their own future retirement.

As of this date,  there are 84 homeowners (nearly 17%) in West Easton receiving the Senior Citizen discount. The 420 homeowners that don’t qualify for the discount make up for the loss of almost $6,400 in yearly billing revenue, due to the discount given to those over 65 years of age. Many of those who qualify for the discount, based solely on age, are not experiencing financial hardship.

Using 84, as the average amount of senior owned homes since 2013, the amount of extra money paid by non-qualifying homeowners over the last 8 years is more than $51,000, to cover the cost of providing the discount to seniors.

Is a senior citizen discount legal?

Senior Citizen discounts offered by retail businesses have been upheld in court challenges and are legal, but it’s different for a government agency.

For retail businesses, they are an important marketing tool and an enticement to capture new customers. Seniors are notoriously careful shoppers, who take advantage of coupons and discounts. They are keenly aware of inflation, as they’ve seen the cost of living increase exponentially during their lifetimes. Businesses who want to attract seniors must offer discounts, especially if their competitors are offering them. In some industries, like movies and restaurants, it would be financial suicide for one business to drop the discounts.

The retail businesses offering discounts to a class of people (seniors, veterans, etc.) assume the burden of a reduced profit margin, but customers who don’t qualify for a discount are not obligated to pay full price. They have the option of not using their service, or product, or going to a competitor offering a lower price.

In the case of a municipality, which is not a retail business, but a government agency, a senior discount has the usual caveat of a homeowner proving financial hardship to qualify, as forcing a higher rate for a utility on one age group, to make up revenue lost by offering a discount to another age group simply on the basis of age, and not financial burden, is an illegitimate use of its authority to impose different fees on different aged people.

Residents who do not qualify for the discounted rate do not have the ability to refuse paying their higher sewer bill, or to use an alternate service provider.

It could also be argued that offering such a discount is a means of influencing votes in a community with a high percentage of senior citizens.

My position that homeowners should pay for actual usage won’t be received with enthusiasm from seniors, or those who use a large amount of water, which is likely why a proposed change to the billing system has languished in Committee since 2017, with opposition to the idea coming from the higher than average water users.

Councils in many communities often fail to vote on a matter in accordance with state and federal laws, which can lead to the lack of using common sense, making questionable decisions, and inviting lawsuits.

To be clear, this isn’t an anti-senior proposition for a change, as I am 63 and in just two years will be eligible for the same discount now on the books.

I’m more than willing to see those seniors with financial difficulty receive a discount, but it should be done correctly. A small additional fee on sewer bills, of only a dollar, to create an assistance fund for any eligible homeowner  (under a to-be-determined income level) could be approved by Council. That way, our homeowners who truly need financial assistance, will get it, with minimal economic impact on the rest of the homeowners.

By creating an assistance fund, those who aren’t having financial difficulty, or seniors who are receiving pensions, social security, dividends from investments, and other income that makes them financially secure would be helping those in our community, who actually need assistance.

For the homeowners who may see an increase coming because of their high water usage, it’s time to learn how to conserve, or accept the fact that you won’t be pocketing as much from the rooms you are renting out in your home. If you have a pool you fill every year, continuously water your lawn, or find it necessary to wash your car every other day, using water that doesn’t go into the sewer system, then invest in a diversion meter to avoid paying for that water as part of your sewer bill.

Try changing your shower head to one that reduces flow, learn to do large loads of laundry instead of multiple small loads, and don’t let water run continuously as you wash dishes. Put a brick in your toilet tank. Unless you are trying to get rid of documents, you won’t have to flush your toilet 15 times. Once is still enough.

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Every other municipality in Northampton County bills sewer charges based on individual water usage, because it is the correct way to bill residents. They don’t divide the entire municipal bill equally among every residential household, and those that offer a senior discount require proof of low income to qualify for it. It’s long overdue for West Easton to bill residents properly and fairly.

 

Disclaimer: On January 4, 2016, the owner of WestEastonPA.com began serving on the West Easton Council following an election. Postings and all content found on this website are the opinions of Matthew A. Dees and may not necessarily represent the opinion of the governing body for The Borough of West Easton.