Oxnard staff seeks $270,000 from utility late penalties to fund Project Assist in FY 2025–26

Oxnard City Public Works staff presented a proposal on April 8, 2025, asking the Public Works and Transportation Committee to recommend that the City Council adopt a resolution to fund Project Assist — the city's utility ratepayers assistance program — for fiscal year 2025'26 and authorize using $270,000 in late-penalty revenues to provide a $25 maximum monthly credit to eligible residential utility customers.

Project Assist provides monthly credits on solid-waste, water and wastewater bills for qualifying residential customers. Eric Zetz, Public Works staff, told the committee that staff recommends (1) adoption of a resolution authorizing Project Assist for fiscal year 2025'26 and (2) funding the program in 2025'26 with $270,000 that the city has collected in current- and prior-year late penalties from utility customers.

Why it matters: The proposal would continue the program's $25-per-month credit and potentially expand capacity above last year's level to serve more households. Staff noted Project Assist reached a point last year where demand exceeded available funding and a waiting list formed, indicating ongoing need among low-income utility customers.

Key details from staff presentation

- Funding request and credit: Staff requested $270,000 for fiscal year 2025'26, to be drawn from utility late-penalty revenues, and recommended maintaining a $25 monthly credit per eligible residential utility bill. Staff said that, based on historical collections, $270,000 would allow approximately 900 participants to receive a $25 monthly credit for 12 months.

- Program history and enrollment: Staff said Project Assist began in fiscal year 2017'18 (Year 1). For fiscal year 2024'25 (Year 8) the program budget was $241,500 and the program permitted a $25 monthly credit for up to 805 participants. Staff reported that Project Assist enrolled 846 Oxnard residents between July 24, 2024, and Feb. 28, 2025.

- Waiting list and demand: Staff stated this was the first year Project Assist had a waiting list and said there were "50 percents" on a waiting list as of February 2025; the presentation did not clarify whether that phrase meant 50 people, 50 percent of applicants or another figure. (See audit for note on this ambiguity.)

- Eligibility and application process: Project Assist eligibility follows income guidelines that mirror the California Alternate Rates for Energy (CARE) program administered by Southern California Edison and the Southern California Gas Company. Applicants must reapply each program year and are screened on a first-come, first-served basis. Applications may be submitted in English or Spanish online, by email, by mail or in person. Staff said Year 9'the program year under consideration'would continue through June 30, 2026; the presentation did not specify an exact program start date.

- Funding source and legal note: Staff said Project Assist is funded by utility late penalties and stated that such late-penalty revenues "are not governed under Article XIII D of the California Constitution (Proposition 218) because they are not considered an incident of property ownership for purposes of Proposition 218," allowing the city to use those funds for the program.

- Other assistance programs: Staff identified state and county programs as additional resources, including the Low Income Home Energy Assistance Program (LIHEAP) and Community Action Ventura County (CAVC), which administers a Home Energy Assistance Program (HEAP) that prioritizes seniors, disabled households and families with young children.

Actions and next steps

Staff recommended that the committee forward to the City Council: (1) adoption of a resolution to operate Project Assist for fiscal year 2025'26 and (2) authorization to fund the program with $270,000 in late-penalty revenues. The presentation concluded with staff available to answer questions. The transcript of the committee meeting records the staff recommendation but does not record a committee vote or a formal committee decision on the recommendation.

Ending: If the City Council approves the resolution and the use of late-penalty funds, Project Assist would continue to provide a $25 monthly credit to eligible residential utility customers for the funded program year; staff emphasized that the program's capacity depends on penalty collections and that applicants must reapply each year.