New Madrid board of aldermen gives seniors utility discount

NEW MADRID, Mo. -- You can save money in New Madrid just by being the right age.

New Madrid senior citizens can lower their monthly utility bills by signing up for a new program available through the city. An ordinance approved earlier this year cuts the utility bill of a resident age 62 or over by $11.

The Board of Aldermen amended a city ordinance providing for a $4 per month discount on electric charges, $4 per month on sewer service, $2 per month for water and a $1 per month for trash service. Those who signed up for the program saw the cuts on their February bills, which were paid in March.

City Administrator John Gilbert said the rollback proposal was first made by board members last summer in response to concerns from citizens. During two public hearings conducted by city officials seeking approval for bond issues to fund improvements for the electrical system, the impact of the increase in rates on those with fixed incomes was a concern voiced by several people, Gilbert said.

According to Gilbert, in response to the concerns last summer the council sought a reduction, however, city staff requested time to evaluate how much money would be brought in by the rate increase. "At end of December we went back to the council and said we had had enough revenues coming to make bond payments and make equipment replacements and still have sufficient funding to offer a discount to seniors," the city administrator recalled.

City employees then began efforts to put the rollback in place, getting information on the number of residents 65 and older, determining costs and working within a $60,000 maximum cap on the proposed rollback. Further tweaking lowered the eligible age from 65 to 62.

In February, the word went out on the program. In the first two months more than 250 people have signed up.

"The response has been excellent and it is going to be well within budget," said Gilbert.

However, the city staff members are keeping close watch on the funds. Utility rates are being pushed higher by rising fuel costs, Gilbert noted, and because of the volatility, the senior citizens discount is on a year-to-year basis.

However, he said he expects the program to continue as long as sufficient revenues are available.

The city has also worked with others to provide further assistance for those in need.

There is an additional discount available for those on a fixed income which does not exceed the 150 percent poverty level used by DAEOC.

By applying to DAEOC, an additional $5 per month discount will be applied to the monthly municipal electric charges. The discount applies to residential customers only with only one discount per person allowed per household.

Gilbert said some 45 persons qualified through DAEOC for this discount. DAEOC provides the names to the city which then applies the reduction to the bill before it is mailed.

The city and DAEOC combined efforts to create a third discount which is funded through donations by local citizens.

Jason Redden, DAEOC supervisor and New Madrid County coordinator, helped draft the program and said it is similar to assistance funds offered by other utilities. When DAEOC's utility assistance funds are exhausted -- and Redden said with recent government cuts, this comes quickly -- those 62 and over are eligible for a $50 per household deduction on electrical charges.

The deductions, which are funded from donations made by individuals when paying their city utility bills, is disbursed twice a year -- Oct. 1 and April 1. Because the program was just inaugurated, the first deduction will not be offered until next fall, Redden said.

Redden described the need for such assistance as huge in New Madrid County. He noted that in four days of a recent week, DAEOC went through $25,000 in assistance -- a large part of its funds budgeted for the program.

With the funds provided through citizen donation, Redden emphasized that neither the city nor DAEOC would be charging any administrative costs. "Every dollar a person gives will go to those in need," he said.

While he is pleased the Municipal Utility and DAEOC are working together, Redden continued: "This is a people program. It has to be facilitated by the everyday people who pay bills to donate to that fund. The success depends on New Madrid citizens."

According to city officials, the program has already drawn donations from $1 and up from citizens when paying their utility bills.

Overall, the new programs and the rollbacks have had positive reactions. Senior citizens and members of the board of aldermen are pleased with the program, Gilbert said.

"I think the board's thinking was that [the senior citizens] have lived in the community, paid taxes, supported the local programs and now when they are on Social Security or have a fixed income there needs to be some sort of reward for all those years they supported the community," he said.

It is a reward many are taking.

Those New Madrid residents who are 62 and over can sign up for the city's discount program at City Hall.