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2023-070 PLUS One Program Update Dec. 22,2023 Report No. 2023-070 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT FY 2023-24 P.L.U.S One Utility Assistance Program Update BACKGROUND: Denton Municipal Utilities' Prevent Loss of Utility Service (P.L.U.S. One) program was created in 1983 to provide qualifying customers facing a temporary financial crisis with the funds necessary to pay their utility bills. Since April 2011,the program has been funded by a combination of customer donations and allocations from Denton Municipal Utilities. During the last 25 years, Interfaith Ministries has administered this program on behalf of the City of Denton. In 2018, Customer Service and Community Development collaborated to develop a set of guidelines for the partner agency with criteria necessary to screen and evaluate applications for assistance. Also, under the guidance of the Public Utilities Board and City Council, program guidelines were updated to ensure assistance continued to be available to low- and fixed-income families with postpaid and prepaid utility accounts. Since October 2018, 2,546 families have received assistance through the P.L.U.S. One program totaling greater than $1.2M. The funds provided to these families improved financial stability through the financial crisis while ensuring the continuation of utility services. The program has seen a significant infusion of additional funding throughout and beyond the pandemic as shown below: FY 18-19 FY 19-20 FY 20-21 FY 21-22* FY 22-23 Distributed 1 $135,000 $285,000 $250,000 $175,000 $305,250 *All customers with COVID related emergencies were sent to United Way for ERA funded assistance. For FY 23-24, the budget for the P.L.U.S. One program is $225,000. After payment of administrative costs totaling $53,415, a total of$171,585 in assistance funds remain for the use of qualified clients. In addition to these funds, the City has received approximately $9,200 in customer donations since October 1, 2022, that will also be made available to the program. Dec. 22, 2023 Report No. 2023-070 DISCUSSION: Since FY 18-19, there has been a continued increase in the number of families who financially qualify and receive assistance as reflected below: Qualified Families Assisted 120 100 80 60 - .......... ...... 40 ...... ....... . 20 0 of O O O O O O O l ti ti l ti ti ti ti 3 3 3 R 00, 00 4y �y OL OL OL OL OL OL Oti OL yL yL tiL yL LL LL LL LL �ti BAN BAN BAN �Al -kti ,A- �41 �41 -k ,Ati �A- �A- ��ti ,Ati �,ti �Jti �A- ,A- �A- �A- �A- o-ti d o-� C o-ti o-, o-� C o-ti o-, o-� C o-ti o-, o-� C ati d o-� C ati Due to the increased workload and to ensure the greatest amount of funding reaches customers, Interfaith Ministries made a process update this past October which placed responsibility for document submission and follow up on customers. This change was made due to the strain put on limited caseworker resources having to walk customers through partially submitted applications. Near the end of October 2023,it was evident that the financial needs of qualified customers already exceeded one quarter of the fiscal year's budgeted funding. As a result,Customer Service released remaining funds for program use rather than a quarterly disbursement. Interfaith Ministries continued to update their internal guidelines on assistance qualifications which restricted customers to one month of assistance, one time annually in an effort to help as many customers in need as possible and retain some funding to assist during summer months when assistance is most greatly needed. As of December 5, 2023, $84,083 has been distributed, leaving $87,502 from budgeted funds to assist customers through September 30, 2024. The additional $9,200 in donations will also be released for Interfaith Ministries. At the current rate of distribution, budgeted funding was anticipated to be depleted by Q2 of FY 23-24, if no changes were made. To once again try to extend available funding through the summer, Interfaith Ministries has made the following additional changes to the program qualifications: • Lower income levels from Low(65%-50% AMI) to Very Low (50%-30% AMI) and Extremely Low Income (>30%AMI); • Cap assistance at$250; • Proof of Crisis needed; and • Priority Groups: o Single Parent with children under 5 years old o Disabled o Over 65 years old. December 22, 2023 Report No. 2023-070 These new qualifications should extend the available funding to another 350 customers. Although this will extend the funds, at Interfaith Ministries' current application rate, we anticipate all budgeted dollars will be distributed by March or April of 2024. To further increase the funding available for the program, the City will increase marketing efforts to all Denton utility customers this spring, asking them to contribute to the program if they choose. STAFF CONTACT: Bill Shepherd DME Executive Manager of Business Services William.Shepherd@cityofdenton.com (940)349-7493 REOUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 1 hour PARTICIPATING DEPARTMENTS: Customer Service