East Smithfield Water District
Qualified Assistance Fund
In an effort to ease the burden of increasing water rates on low-income households, the East Smithfield Water District has established a program to provide financial assistance to certain qualified ESWD customers. A fund, separate and apart from the East Smithfield Water District operating funds, provides funding with which to support the program. Details of the program are as follows:
1. The Tri-Town Community Action Program is responsible for making all determinations as to eligibility for financial assistance from the fund. Criteria for eligibility will be the same as is used by Tri-Town Community Action in determining eligibility for heating assistance. Eligibility for heating assistance entitles the recipient to the discounted water bill for the current year, e.g. two semi-annual billings or four quarterly billings. Prior balances spanning more than one year are not eligible for the discount.
2. To be eligible, a customer must request the discount and make an initial deposit on the account balance.
3. Eligible recipients are entitled to a 25 percent discount provided that payment arrangements can be made and followed that will ensure that payment of the remaining overdue balance are made in full before the next billing date. That portion of the bill paid through the fund will be made only after the customer pays its portion (75 percent of the original amount).
4. Program funding comes from two sources. Contributions to the fund from area businesses, churches, and individuals are immediately available for assisting eligible recipients unless the donor specifically directs the contribution to be added to the fund balance for the purpose of generating additional income. An annual contribution to the fund of $1,500 will also be made by the East Smithfield Water District ($2,500 during 2007, $500 during 2008, $1,500 during each succeeding year.) The purpose of this contribution is to enable the fund to meet initial minimum fund balance requirements and to build a steadily increasing base on which interest is being earned. All interest received will be available for distribution to eligible customers.
5. The East Smithfield Water District will make no contribution to the fund during any year in which it suffers an operating loss. If a contribution by the District has been made to the fund prior to a determination that the District has suffered an operating loss for the year, no contribution will be made for the year following the year for which the District operated at a loss.
6. If and when funds available for distribution are depleted, no further discounts will be provided until further money becomes available.
7. In the event that the Executive Board votes to discontinue the program, District contributed funds shall be returned to the East Smithfield Water District General Fund, and all community contributed funds along with all interest earned will remain available for distribution to eligible recipients until the fund is completely depleted, at which time the fund will be closed and the program discontinued.
8. In the event that the East Smithfield Water District joins in consolidation with one or more other water districts, the fund will remain operative, provided that such other district or districts make a capital contribution to the fund in an amount equal to the cumulative contributions made by the East Smithfield Water District. Otherwise, community contributed funds will remain available for distribution to eligible recipients residing in the former East Smithfield Water District area, funds contributed by the ESWD will be returned to the East Smithfield Water District general fund prior to consolidation, the ESWD Qualified Assistance Fund closed, and the program discontinued.