WATER AND
POWER
BWP FY 2024-2025
Budget
City Council
May 7, 2024
Approved Rate Increases
June 2023, Burbank City Council
2 2023-24
July 1, 2023
2024-25
July 1, 2024
Electric 8.5% 8.0%
Water 9.0% 9.0%
3 Committed to delivering reliable
electricity & water
99.997%
99.999%
• Focus on increasing $ reserves
• Natural disaster resiliency
• Housing development
readiness
• Manage debt capacity to
maintain favorable bond
ratings
• 33% loss in reserves over four
years in the electric fund
4 BWP must remain
resilient
Replace with
Sink Hole Pic
@Jeff Becket
• 45% renewable energy by 2024,
up from 42.5% in 2023
• Direct potable water re-use pilot
• $7M+ in electric and water
sustainability programs, public
education and outreach
5 Delivering a
sustainable future
6 Safeguarding our vulnerable populations
Aged 65+ on a
fixed income
Disabled or on
life support
equipment
Any household
struggling with
affordability
Lifeline rate or
BUSS discount
Project Share
Efficiency programs
On-going bill discounts One-time support
Life-support rate
BUSS discount
Project Share
Efficiency programs
Project Share
Payment Plans
HEAP
Efficiency Programs
Customer Segments
Customer Programs
• As part of the bi-annual budget process, BWP developed the FY 24-25 budget in the Fall of 2022.
• In the Fall of 2023, BWP reevaluated the budget and made changes as needed due to energy market conditions,
regulatory mandates, increased MOU & pension costs, etc. • There was no change in overall budget authority for the following funds:
• Electric Fund
• Water Fund
• Street Lighting Fund
• Communications Fund
24/25 proposed budget is in line
with the approved rates
7 • Southern California Public Power
Authority (SCPPA) owned projects require an
increase in budget authority
• MPP participants include Anaheim, Burbank,
Cerritos, Colton, Glendale, and Pasadena
• Tieton participants include Burbank and
Glendale
• Burbank’s share of the increases have been
offset with other savings to maintain budget
neutrality
SCPPA increases are paid by
participants
8 ($ in 000’s) Adopted
FY 2023 -24
Original
FY 2024 -25
Proposed
FY 2024 -25
Decrease /
(Increase)
Electric Fund $322,096 $330,799 $330,799 $0
Water Fund $54,359 $51,294 $51,294 $0
Communications Fund $5,120 $4,408 $4,408 $0
Street Lighting Fund $3,919 $5,920 $5,920 $0
MPP Operating Fund
(SCPPA)
$27,809 $29,591 $30,565 ($974)
Tieton Operating Fund
(SCPPA)
$1,880 $1,917 $2,008 ($90)
Total Authority $415,184 $423,928 $424,993 ($1,065)
Budget Authority
9 23/24 unexpected events and expenses
10 • Higher than expected costs associated
with SB 100 and SB 1020 compliance
• Warner Station fire
• CARB compliance cap for the reduction
of GHG emissions
• CalPERS (pensions) not meeting their
investment returns
• Higher than expected inflation
Unexpected
Electric Budget Changes
11 Increases
Item $(000s)
Increased contracted energy costs,
including renewables (6,466)
CARB GHG emissions cap & trade (1,000)
New transmission contracts with new
CARB compliance
(875)
PERS changes due to investment
shortfall (676)
Additional utility city attorney (244)
Other (722)
Total increases ($9,983)
Offsets
Item $000s
Reduced fuel-gas purchases 4,010
Reduced market power purchases 4,009
MPP operational efficiency reduced
OT labor 480
Software purchases 453
Updated capital plan 240
MOU driven salary adjustments 214
Other 577
Total offsets $9,983
Water Budget Changes
12 Increases
Item $(000s)
MOU driven salary adjustments (384)
Insurance premiums (85)
Other (79)
Total increases ($548)
Offsets
Item $000s
Reduction in shared service costs 233
Reduction in city cost allocation 181
Updated depreciation forecast 35
Updated capital plan 31
Other 68
Total offsets $548
Changes in Capital Plan
13 $1.5m to rebuild conduits
$1.5m to replace a
transformer
$700k to replace bus ducts
$700k to replace switches
$350k to replace high
voltage circuit breakers
$4.7m strategically
deferred Media
District 12kV capacity
project
14 • Head count increase from 356 to 360
• 3 new FTEs in Customer Service
• 2 part -time to full -time upgrades in
Customer Service
• Additional City services
• 1 new FTE in City Attorney
• 1 new FTE in Purchasing
• Assessed the operational needs of each
division and proposed upgrades as needed
Staffing Plan Update
FY 24-25
Proposed
FY 25-26
Forecast
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 24-25 to
FY 28-29
Total
CIP $45,516,058 $43,221,333 $42,503,304 $48,349,658 $56,152,654 $235,743,007 Capital
Outlay
$4,854,875 $10,506,050 $6,972,085 $7,366,944 $7,963,933 $37,663,887 Total $50,370,933 $53,727,383 $49,475,389 $55,716,602 $64,116,587 $273,406,894 15 Electric Five-Year Capital Plan
16History & forecast of
electric cash reserves
($ in 000s)
• Additional renewable resources and price
increases**
• Transmission buildout
• Downtown distribution substation
• Additional pension liability prepayment
• Olive replacement and decommissioning**
• IPP & MPP decommissioning costs**
• Potential future staffing to support increased
workload
**regulatory driven
17 Future electric costs not
included in the 5-year forecast
~$320M - $525M
A 1% rate increase generates an additional ~$2M in revenues FY 24-25
Proposed
FY 25-26
Forecast
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 24-25 to
FY 28-29 Total
CIP $7,849,794 $5,656,112 $10,277,696 $5,863,630 $6,092,126 $35,739,358 Capital
Outlay
$895,125 $1,177,950 $2,055,033 $1,380,517 $395,777 $5,904,402 Total $8,744,919 $6,834,062 $12,332,729 $7,244,147 $6,487,903 $41,643,760 18 Water Five-Year Capital Plan
19 History & forecast of
water cash reserves
($ in millions)
Future water costs not included
in the 5-year forecast
~$5M - $6M
A 1% rate increase generates an additional ~$375k in revenues • 33% increase in pipeline replacement rate
• Potential future staffing to support increased
workload
• Unpredictability of climate-driven revenue loss
• MWD rate increases to fund regional water
supply projects – 8.5% 2025 and 8.5% 2026
• Future regulations and permit requirements to
treat new and emerging contaminants**
• Additional pension liability prepayment
**regulatory driven
20 21
Average Electric Residential Bill Comparison
520 kWh/month
22 Residential Water Bill Comparison
Medium home: 12,000 gallons/month with a 1” connection
• The ECAC and WCAC cover the cost of purchasing
and procuring electricity and water, respectively
• The GM may establish an ECAC/WCAC each month
• The monthly ECAC/WCAC shall not increase or
decrease by more than 10% from the prior month’s
ECAC/WCAC
• The City Council will be advised of any change in
the ECAC/WCAC rate
23 Energy and Water Cost Adjustment
Charges
Item Amount
Grants awarded $16,800,518
Developer-funded electric
distribution infrastructure
$7,721,694
IPP energy-loss settlement $2,500,000
Higher wholesale trading $1,925,000
Reduced wholesale costs for
internet capacity
$1,150,000
Other $3,742,000
Total $33,839,212 24
BWP cost savings, avoidance,
and offsets
25 Revenue Resources Offsetting Rate
Increases
• Aid-in-construction
• Capacity charge
• Grants
• Investing
• Low Carbon Fuel Standard
Credits
• ONEBurbank
• Plan check fees
• Recycled water sales to LA
• Wholesale trading
BWP Grants Received
26 Joseph Lillio
Interim General Manager
[email protected]
(818) 238-3550 office
Stela Kalomian
Acting Chief Financial Officer
[email protected]
(818) 238-3726 office
CONTACT