1 STAFF REPORT
DAT
E: January 31, 2023
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power BY: Jeannine Edwards, Assistant General Manager, Sustainability, Marketing and Strategy
S
UBJECT: Update on the Burbank Utility Service Subsidy (BUSS) Program RE
COMMENDATION
Note and file.
BACKG
ROUND
On June 21, 2022, City Council approved Burbank Water and Power (BWP) to utilize $1.1M of unused public benefits funds for a new income-qualified residential assistance program for utility service customers titled Burbank Utility Service Subsidy (BUSS). BUSS expands electric financial assistance to households living below 80% of Burbank’s median income1 and provides them with a 12% discount on electric services.
DISCUSSION
BWP customers that are at or below 80% of Burbank’s median income level were able to enroll in the BUSS program starting on July 1, 2022. They received a 12% electric services monthly discount starting in July which was reflected in August bills. After four months, the program has 539 customers enrolled and BWP has distributed approximately $23,000 in discounts. Currently, enrolled customers are expected to utilize $ 130,000 of the approved $1.1M in funds. The average subsidy is $21.65 per month.
BW
P has partnered closely with the Parks & Recreation D epartment to enroll all eligible Program, Activity, and Service Subsidy (PASS) participants in BUSS. This has proven to be a successful partnership and currently accounts for 41% of program enrollment , 216 approved applicants, with the remaining 323 customers applying directly with BWP.
Looking ahead, BWP is working closely to establish partnerships and agreements with 1 These income qualification levels are consistent with Park & Recreation’s Program, Activity and Service Subsidy (PASS) program, see attachment 1 for details.
WATER AND
POWER
Jeannine Edwards
2 local non- profit organizations to provide expanded outreach and increase program enrollment. BWP is in the process of establishing a standard agreement between the utility and local non- profits and is in the final stages of completing the documentation.
Once complete, staff will reach out to several non-profits who have expressed interest in the partnership, including Burbank Temporary A id Center, YMCA and Home Again Los Angeles.
Current enrollment is significantly below the original estimated range of 3,500 – 6,000 individuals. BWP believes the most recent post -COVID financial re covery has reduced the number of households who find themselves in a vulnerable financial situation and is re-forecasting annual enrollment to be between 1,000 – 3,000. However, as council- approved rate increases go into effect , enrollment numbers in the BUSS program could increase due to financial hardships. Staff will monitor and reevaluate forecasted numbers accordingly. BWP does not collect household financial information from customers, but does use other indicators such as arrears, program participation and the latest economic data to set program enrollment targets. The latest research shows that additional in- language outreach to the Armenian and Spanish-speaking communities and partnerships with non-profit organizations will yield more enrollment.
ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
None.
CONCLUSION
With the latest participation data and average BUSS benefit, BWP expects the annual cost of this program to be between $260,000 – $780,000. The approved budget of $1.1M is sufficient for this fiscal year , and BWP does not need to request increased funding to continue the program.
ATTACHMENTS
Attachment 1 – Income Qualified Assistance Program, Burbank Utility Service Subsidy