Date Adopted: November 13, 2025

PURPOSE OF POLICY

The Murphys Sanitary District (MSD) Customer Assistance Program (CAP-Sewer) provides limited financial assistance to qualifying low-income residential customers to help offset a portion of their sewer service costs. The program operates within the fiscal capacity of the District and is subject to annual funding approval by the MSD Board of Directors.

POLICY FRAMEWORK

·         CAP Credit

·         Program Year

·         Program Funding

·         General Eligibility Requirements

·         Income Eligibility Requirements

·         Applications

·         Participant Eligibility Verification

·         Change of Eligibility Status

·         Disputes

·         Program Modifications

CAP Credit

The CAP-Sewer credit is set at 10% of each sewer bill, applied monthly to the accounts of up to 100 qualifying residential sewer customers per fiscal year. Credits will be applied directly to customer accounts beginning with the first billing cycle following approval. MSD will maintain a waitlist of eligible customers should additional funding become available.

Program Year

The CAP-Sewer program will commence on January 1, 2026, and operate on a fiscal-year basis (July 1 – June 30). Funds will be distributed on a first-come, first-served basis until program funding is depleted or the maximum number of eligible customers has been reached.

Program Funding

The CAP-Sewer program will be funded through non-rate revenues as allowed by law. For the 2026 fiscal year the total annual contribution shall not exceed $9,600. Unused balances as of June 30 will not roll forward to the next fiscal year. The MSD Board of Directors will approve the annual funding level and credit percentage as part of the budget process.

General Eligibility Requirements

Applicants must meet all of the following conditions to qualify for CAP-Sewer:

1.       The applicant must be affected by a rate increase.
2. The applicant may only apply for a CAP-Sewer credit for their primary residence served by MSD.
3. The applicant’s account must be in good standing (not delinquent).
4. The applicant must submit:
   • A completed and signed CAP-Sewer application form;
   • Proof of participation in the PG&E CARE Program or documentation verifying household income at or below 200% of the federal poverty guideline;
   • If the applicant is a tenant, a copy of the current rental agreement showing the property address, owner and tenant names, and signatures of both parties. If no written rental agreement exists, MSD may accept a CAP Tenant Authorization Form signed by the legal property owner.
5. The applicant must have only one active sewer account with MSD in their name.
6. The applicant must be a full-time resident at the address receiving the discount.
 

Income Eligibility Requirements

Income eligibility shall be established at 200% of the Federal Poverty Guidelines published annually by the U.S. Department of Health and Human Services (HHS). Verification of income eligibility is required at the beginning of each program year. Applicants must provide either proof of current enrollment in the PG&E CARE Program, or verification of household income at or below 200% of the federal poverty level, or another agency approved by MSD.

Applications

Applications must be fully completed, signed, and submitted to MSD along with required documentation. Customers may apply at any time; however, acceptance is subject to funding availability. Applications missing required documents will be deemed incomplete and not processed. Approved customers will receive the CAP-Sewer credit beginning with the first billing cycle following approval.

Participant Eligibility Verification

To continue receiving assistance in future program years, existing participants must maintain their MSD account in good standing and reapply annually between April 1 and May 31 with updated verification materials. Participants who reapply within the required period and remain eligible will retain their place in the program. Failure to verify eligibility by May 31 will result in removal from CAP-Sewer, and available openings will be filled on a first-come, first-served basis.

Change of Eligibility Status

Customers must promptly notify MSD if their household income exceeds eligibility limits or they discontinue participation in the qualifying assistance program used for verification. Failure to report status changes may result in permanent removal from CAP-Sewer, revocation of previously granted credits (which will become immediately due and payable), and possible collection action. Customers found to have provided false or misleading information may be permanently removed from the program and required to reimburse all credits received. If a customer on CAP-Sewer receives two delinquency notices within any 12-month period and fails to pay by the due date, they will be removed from the program and will be ineligible to reapply for 12 months following removal.

Disputes

The MSD Administration Manager shall have sole discretion to resolve any disputes or claims arising from the administration of CAP-Sewer. Decisions of the Administration Manager shall be final.

Program Modifications

The CAP-Sewer program is established at the discretion of the MSD Board of Directors and is subject to the availability of authorized funds. Participation in the program does not confer entitlement to continued assistance. If the Board determines there are insufficient funds or that changes to the program are warranted, it may modify, suspend, or terminate CAP-Sewer at any time.

Adoption and Review

This policy shall be reviewed annually by District staff and the Board of Directors. Any proposed amendments shall be submitted to the Board for approval.