What Mayor Yepez's Utility Fee Changes Mean for Lodi Households

Lodi
Written By Don Bradford
What Mayor Yepez's Utility Fee Changes Mean for Lodi Households<

What Mayor Yepez's Utility Fee Changes Mean for Lodi Households

LodiEye — May 2026

Summary

Mayor Ramon Yepez has proposed two reforms to Lodi's utility billing: a credit card "convenience fee" to recoup the roughly $1.2 million the city pays annually in processing fees, and the elimination of late fees for customers facing financial hardship. LodiEye verified the City's actual 46-day electric shut-off timeline against the August 2022 Council agenda report, confirmed the pandemic-era $19.2 million past-due balance, and benchmarked Lodi's electric disconnection policy against California's SB 998 water standard. The Yepez package is roughly revenue-neutral but rebalances who pays. Aligning electric shut-offs with SB 998's 60-day floor and tying hardship relief to Lodi's existing SHARE/FIDP/Medical/CARE assistance programs would give the city a cleaner, more defensible disconnection policy.

Mayor Ramon Yepez has floated two quiet but consequential reforms to Lodi's utility billing — a new credit card "convenience fee" and the elimination of late fees for customers facing financial hardship. The proposals, first surfaced in Steve Mann's About Town column ("Inconvenient Truth"), reopen a conversation the city has largely avoided since COVID: what should Lodi do about the unpaid utility bills still sitting on its balance sheet, and how aggressive should collections be against customers who fall behind?

"Customers who wish to avoid this fee may continue to use alternative payment methods — such as cash, check, or bank transfer, which will remain available at no additional cost."— Mayor Ramon Yepez

Verifying the Timeline: It's Actually Day 46

The About Town column described service termination as occurring "after 44 days of non-payment." Cross-referenced against the City's own August 3, 2022 Council agenda report, the full delinquency sequence runs as follows:

  • Day 1 — Billing date
  • Day 26 — Due date
  • Day 27 — First late fee applied ($10)
  • Day 36 — Second late fee applied ($15) and 10-day shut-off notice issued
  • Day 44 — 48-hour final shut-off notice issued
  • Day 46 — Service suspension

The column's "44 days" marks the moment the final 48-hour notice goes out; actual disconnection follows two days later on Day 46. The $10/$15 fee amounts and the 10-day notice at Day 36 match the column's description precisely.

The $20 Million Backlog — Confirmed in the City's Records

The column's reference to a "$20 million mountain of past-due accounts" is well-supported by primary sources. The August 3, 2022 Council agenda report from Deputy City Manager Andrew Keys documented a total past-due balance of $19,207,317.07 across all four utilities as of July 2022, up from $9,060,556.81 in January 2020 — a 2.11× increase during the pandemic moratorium.

Lodi Utility Past-Due Balances: Pre-COVID vs. July 2022

Source: City of Lodi August 3, 2022 Council Agenda Report H-01 (Deputy City Manager Andrew Keys)

UtilityJuly 2022 Past-DueJan 2020 Pre-COVIDIncrease
Electric$12,121,567.46$4,896,910.952.47×
Water$1,699,082.47$917,596.761.85×
Wastewater$2,046,536.56$1,262,360.071.62×
Refuse$1,939,765.66$988,794.491.96×
All utilities$19,207,317.07$9,060,556.812.11×

Electric bore the heaviest pandemic delinquency load because of what the Deputy City Manager's memo described as "record energy cost adjustments levied as a result of tremendous market forces on the electric utility to purchase power." Notably, 56.6% of the July 2022 balance was only 1–30 days past due, meaning much of the headline total reflected current billing rather than long-aged debt.

Today's $2.4 Million Residue

As reported via city spokesperson Nancy Sarieh, Lodi was carrying $2.4 million in past-due customer accounts as of November 2025. LodiEye has not yet independently verified this snapshot against a published financial statement, but it aligns closely with the 2022 staff analysis: after modeling full state relief against the 1,222 eligible delinquent accounts, the Council agenda report projected a residual of $2,486,456.06 that would remain on the books — essentially the same figure reported three years later. The analytical implication is significant: today's $2.4M book likely represents the hard-core uncollectible residue from the pandemic cohort rather than fresh delinquency.

Late Fee Revenue History

The annual late-fee assessment figures attributed to City spokesperson Nancy Sarieh are not yet independently reflected in a publicly posted line item that LodiEye has been able to locate:

  • FY 2025-26 (YTD): $886,773 assessed
  • FY 2024-25: $1,177,360
  • FY 2023-24: $938,675

Lodi Utility Late Fees Assessed, FY 2023-24 through FY 2025-26 YTD

Source: City of Lodi, via spokesperson Nancy Sarieh (as reported in Steve Mann's About Town)

These figures come directly from the City Public Information Officer and we have no reason to doubt them. They would benefit from confirmation in the forthcoming staff report accompanying Mayor Yepez's formal proposal, ideally showing the split between fees assessed and fees collected, since a meaningful share of assessed late fees historically end up in the write-off pile.

The Credit Card Processing Cost

Mayor Yepez's $1.2 million annual credit card processing figure is reported on the mayor's authority. LodiEye was not able to independently verify this specific number in a public document but has no reason to question it — municipal card-processing fees of this scale are consistent with industry norms for a combined utility serving Lodi's customer base, and the mayor's office is the primary authoritative source for the figure.

"This is a common practice among municipalities and businesses to help offset the processing costs associated with credit card transactions."— Mayor Ramon Yepez

Citywide Financial Context (FY 2023-24 ACFR)

The City's FY 2023-24 Annual Comprehensive Financial Report, published July 17, 2025, provides the broader balance-sheet backdrop for this conversation.

Line ItemFY 2023-24Year-over-Year
Net position$379.5 million+$49.4 million
Unrestricted net position share7.2%—
Capital assets$412.8 million+$6.5 million (+1.6%)
Long-term debt$167.0 million−$7.7 million (−4.4%)
Net pension liability$182.3 million+$62.0 million
OPEB liability$25.6 million−$2.5 million
GASB 96 subscription asset$4.9 millionnew
GASB 96 subscription liability$4.8 millionnew

The auditors from Lance, Soll & Lunghard, LLP issued an unmodified ("clean") opinion on the General Fund and Streets Fund, with modified opinions on certain enterprise funds tied to historical underreporting of unused holiday cash-outs to CalPERS affecting up to 11 former employees. An independent investigation by Kevin Harper, C.P.A. examined the Utility Deposit and Holding Account and City procurement cards and found no fraud, while recommending further accounting review to ensure customer amounts are correct and recommending strengthened procurement-card internal controls.

FY 2025-26 Budget Setting

On June 4, 2025, the City Council adopted a $291 million balanced citywide budget for FY 2025-26, an 8.35% increase over FY 2024-25, with General Fund revenues projected to grow 4.1%. The budget allocates $16.9 million to capital infrastructure — including water main rehabilitation, traffic signals, and wastewater and electric utility system improvements — and explicitly names addressing underfunded pension liabilities as a priority.

The SB 998 Benchmark

California's Water Shutoff Protection Act (SB 998), signed in 2018 and codified at Health & Safety Code §§ 116900 et seq., establishes a statewide floor on when residential water service can be disconnected for non-payment. Its core protections, effective for urban water suppliers since February 1, 2020:

  • 60-day minimum delinquency before shut-off
  • Written/telephonic notice to customer of record at least 7 business days before shut-off
  • Three-part hardship exemption — medical certification, financial inability to pay, willingness to enter a payment schedule
  • Amortization plans of up to 12 months for low-income customers
  • Annual public reporting of residential shut-offs to the State Water Resources Control Board

SB 998 legally binds Lodi's water utility, which serves well over the 200-connection threshold. It does not technically govern Lodi's municipal electric utility — which is why the 46-day electric clock exists. But Lodi bills water and electric together, meaning the longer water clock effectively shadows the combined account.

MilestoneLodi Electric UtilitySB 998 (Water)
Minimum delinquency before shut-off46 days60 days
Shut-off notice lead time10-day notice at Day 367 business days
Medical/financial hardship exemptionNot codifiedRequired three-part test
Amortization optionNot requiredUp to 12 months for low-income
Annual public shut-off reportingNot requiredRequired

Lodi Already Has a Robust Assistance Ecosystem

One angle consistently under-reported in local coverage: Lodi Electric Utility already operates five distinct discount or grant programs, plus a county-administered LIHEAP option. A hardship-based late-fee waiver in Mayor Yepez's proposal could plausibly tie eligibility to existing enrollment in any of these programs rather than creating a new means test.

SHARE Low Income Discount Program (30% off monthly electric)

Fixed Income Discount Program / FIDP (5% off monthly electric)

  • Benefit: 5% discount on monthly electric charges
  • Eligibility: Residents over age 62, fixed income below $45,000/year, at least 80% of income from a fixed source, not qualifying for other discounts
  • Administrator: Central Coast Energy Services
  • Apply online: utilhelp.com/home/index
  • Phone: 1-888-399-2728

Medical Discount Program (25% off monthly electric)

  • Benefit: 25% discount on monthly electric charges
  • Eligibility: Full-time household resident with a physician-certified condition requiring regular use of life-support equipment or special heating/AC needs
  • Application: Downloadable Medical Discount application plus Medical Third-Party Notification form from the Payment Assistance page
  • Contact: lodi.gov/910/Payment-Assistance

CARE Package — Customer Assistance and Relief Energy (one-time grant up to $162)

  • Benefit: One-time grant up to $162 applied to monthly residential electric charges, once every six months; stackable with SHARE and Fixed Income discounts
  • Salvation Army of Lodi: 209-369-5896, 525 West Lockeford Street, Lodi, CA 95240
  • Community Partnership for Families of San Joaquin (CPFSJ): 209-269-8262, 100 East Pine Street, Lodi, CA 95240
  • City email: cityclerk@lodi.gov
  • 211 San Joaquin listing: 211sj.org CARE listing
  • Required documents: Current utility statement, Driver's License or California ID, current rental agreement, documentation of hardship, income verification

LIHEAP — Low Income Home Energy Assistance Program (County-administered)

  • Benefit: One-time HEAP assistance to help balance a utility bill; ECIP crisis assistance for 24–48-hour disconnect notices
  • Administered by: San Joaquin County Human Services Agency
  • Application: Downloadable from the City's Payment Assistance page
  • State overview: csd.ca.gov/pages/liheapprogram.aspx

Residential Energy Efficiency Rebates (adjacent program)

Quick-Reference Contact Card

ProgramKey PhoneLink
Payment Assistance hub—lodi.gov/910/Payment-Assistance
SHARE (30% discount)1-888-399-2728utilhelp.com/home/index
Fixed Income Discount (5%)1-888-399-2728utilhelp.com/home/index
Medical Discount (25%)cityclerk@lodi.govlodi.gov/910/Payment-Assistance
CARE — Salvation Army209-369-5896lodi.salvationarmy.org
CARE — CPFSJ209-269-8262211sj.org CARE listing
LIHEAP (County)San Joaquin HSAcsd.ca.gov/liheap
Energy Efficiency Rebates(855) 516-2105lodi.gov/937

The Balance Sheet Math

On Lodi Electric Utility's books, the remaining past-due balance sits as accounts receivable that require a growing allowance for doubtful accounts, with write-offs hitting equity as they land. The broader picture frames the stakes: $167 million in long-term debt, a net pension liability that grew $62 million in one year to $182.3 million, and modified audit opinions on enterprise funds. Against that backdrop, disciplined collections and clean receivables matter to bond covenants and rate-setting.

The Yepez package is close to revenue-neutral at the headline level — roughly $1.2M in processing costs offset by up to $1M in foregone late-fee assessments — but it rebalances who pays. Card users would shoulder the processing costs they generate, hardship households would stop being penalized for cash-flow timing, and the utility's receivables quality should improve as fewer accounts spiral into uncollectible status.

The Missing Third Reform

The cleanest council package would add one element Mayor Yepez has not yet proposed publicly: aligning the electric shut-off timeline with SB 998's 60-day water standard. Running two different disconnection clocks on a single combined utility bill creates administrative friction and legal exposure. Harmonizing — 60-day delinquency floor, codified hardship exemption tied to SHARE/FIDP/Medical/CARE enrollment, 12-month amortization, and annual public shut-off reporting — would give Lodi a single, defensible disconnection standard matching state water law and regional peer practice.

Questions Worth Asking from the Dais

  • What is the collection rate on assessed late fees, and therefore the true net revenue loss from waiving them for hardship customers?
  • How much of today's $2.4M past-due balance is concentrated among customers who would qualify under an SB 998-style hardship exemption or existing SHARE/FIDP/Medical/CARE criteria?
  • Will the credit card convenience fee be structured as a flat charge or a percentage, and how will it be disclosed at point of payment?
  • Will staff be directed to bring back a companion proposal aligning electric disconnection rules with SB 998 water standards?

LodiEye is the investigative research arm of Lodi411.com, a citizen-run civic data and transparency platform serving Lodi, California and San Joaquin County. LodiEye is not a traditional news outlet. It does not employ professional journalists or reporters, and the people behind it do not hold journalism degrees or have professional newsroom experience. LodiEye is best understood as civic research and analysis — not peer journalism — and is not a substitute for the local and regional news organizations that do this work professionally. For traditional reporting on Lodi, San Joaquin County, and the broader region, readers are encouraged to consult the Lodi News-Sentinel, Stocktonia, The Sacramento Bee, CalMatters, and other established news outlets staffed by credentialed journalists.

This LodiEye analysis was produced using artificial intelligence tools under the direction and review of the founder. Lodi411 uses multiple AI platforms in its research and publication workflow, including Anthropic's Claude (primarily Opus and Sonnet models) and Perplexity AI across a variety of large language models offered by each. These tools were used in the following capacities:

Source Discovery: AI-assisted search and retrieval identified more than a dozen primary and secondary sources, including the City of Lodi's FY 2023-24 Annual Comprehensive Financial Report press release, the August 3, 2022 Council Agenda Report H-01 (Utility Delinquencies), the FY 2025-26 adopted budget announcement, the City's Payment Assistance program page, and state-level SB 998 summaries from California Rural Water Association, Antelope Valley-East Kern Water Agency, and River Network. Perplexity AI was used for initial source discovery and real-time retrieval of city records and state legislative materials; Claude was used for deeper analysis of the identified documents.

Credibility Validation: AI cross-referenced claims across multiple independent sources, prioritizing City of Lodi primary records (ACFR, Council agenda reports, official budget announcements), then state-level statutory materials, then secondary explainers of SB 998. Figures reported through city spokesperson Nancy Sarieh and Mayor Yepez's office were flagged where not yet reflected in a publicly posted financial line item, to make clear what LodiEye could and could not independently verify. Multiple AI models were used to check the delinquency timeline arithmetic against the City's own published day-by-day schedule.

Analysis and Synthesis: Claude Opus and Sonnet assisted in reconstructing the full Day 1–Day 46 delinquency sequence, comparing Lodi's electric shut-off timeline to SB 998's water-utility standard, estimating the balance-sheet impact of the Yepez proposals (convenience fee vs. foregone late-fee revenue), and identifying the "missing third reform" (electric/water timeline harmonization) that the current proposal package does not yet address.

Presentation: Claude assisted in drafting, structuring, and formatting the report for clarity and readability, including the pull-quote callouts, the side-by-side SB 998 comparison table, the quick-reference contact card for assistance programs, and the Kendo UI charts showing pandemic-era past-due balances and late-fee trends.

Final Review: Multiple AI models reviewed the completed draft for factual consistency, source attribution accuracy, logical coherence, and balanced presentation. All editorial judgments, analytical conclusions, and publication decisions were made by the human editor.

Lodi411/LodiEye believes transparency about AI use serves both readers and the broader information ecosystem. Readers who spot errors are encouraged to write editor@lodi411.com so corrections can be made.

References

Don Bradford
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Lodi City Council Agenda — May 6, 2026