SFPUC
FY2021-22 3rd Quarter Budget Report
Laura Busch
Budget Director
May 24, 2022
2 • Positive operating results projected for Power and operating shortfalls projected for Water, Wastewater and CleanPowerSF • Water and Wastewater: revenues down from budget due to:
• Impact of water conservation efforts due to drought, offset by 5% drought surcharge effective April 2022
• Delayed economic recovery from COVID-19 negatively
impacting volumes vs. projection
• CleanPowerSF: projecting the need for a budget amendment in Q4 to cover approximately $7M in additional power purchase costs, partly offset by other operating cost savings
• Power: Revenues projected to exceed budget due to higher energy prices and volumes
• Year-end financial results projected to meet or exceed policy targets
FY 2021-22 Q3 Report Summary
3 • Net operating result: ($26.6M)
• Total sources ($36.2M), offset by $9.6M in cost savings Sources
• ($15.0M) or -4.6% retail revenues
• ($18.1M) or -6.7% wholesale revenues
• ($3.1M) or -5.1% non-operating revenues
Uses
• $5.3M or -4.8% from salaries and benefits
• $2.0M or -5.8 from non-personnel services
• $1.5M or -2.2% from overhead
• $0.8M or -0.3% from debt service reserve
FY 2021-22 Water Budgetary Variances
4 • Net operating result: ($27.3M)
• Total sources ($35.7M), offset by $8.6M in cost savings Sources
• ($34.4M) or -8.9% sewer service charges
• ($1.4M) or -10.6% non-operating revenues
Uses
• $6.8M or -8.2% from salaries and benefits
• $1.1M or -2.5% from overhead
• $0.7M or -2.4% from non-personnel services
FY 2021-22 Wastewater Budgetary
Variances
5 • Net operating result: $18.9M
• Total sources $11.5M, and $7.4M in cost savings
Sources
• ($2.9M) or -15.9% gas & steam sales
• ($0.2M) or -1.5% non-operating revenues
• $12.0M or 8.9% retail sales
• $2.7M or 15.3% wholesale sales
Uses
• $5.2M or -5.7% from power and gas & steam cost savings • $1.1M or -2.2% from salaries and benefits
• $0.5M or -2.0% from overhead
• $0.4M or -3.0% from services of other departments
• $0.2M or -0.3% from non-personnel services
FY 2021-22 Power Budgetary
Variances
6 • Net operating result: ($4.0M)
• Total sources down ($1.2M) and costs increased by
($2.8M)
Sources
• ($0.8M) or -80.8% from interest income
• ($0.4M) or -0.2% from power sales
Uses
• ($7.0M) or 4.3% from power purchase
• $3.5M or -44.0% from salaries and benefits
• $0.6M or -5.1% from non-personnel services
FY 2021-22 CleanPowerSF Budgetary
Variances
7 Key Financial Ratios
Fund Balance Reserve
Water Waste
Water
Hetchy Clean
Power
SF
• 25%-68% of Annual
Operating Uses
65.8% 63.6% 45.4% 24.9%*
Debt Service Coverage
Reserve
• Indenture Basis ≥ 1.35x 1.8 3.7 25.9
• Current Basis ≥ 1.10x 1.1 2.0 12.2
* New for this report: CleanPowerSF’s SFPUC's Fund Balance Reserve Policy requires this to be at least 50% within three years of policy adoption (April of 2022).
8 OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue, 13th Floor
San Francisco, CA 94102
T 415.934.5707
F 415.554.1877
Date: May 24, 2022
To: Commissioner Anson Moran, President
Commissioner Newsha Ajami, Vice President
Commissioner Sophie Maxwell
Commissioner Tim Paulson
Through: Dennis J. Herrera, General Manager
From: Charles Perl, Deputy Chief Financial Officer
Subject: SFPUC
FY 2021-22 Third Quarter Budgetary Report
through March 31, 2022
The FY 2021 -22 third quarter budgetary reports are attached for the three Enterprises and CleanPowerSF, with high- level changes to revenues and expenses summarized in the following table:
Beginning
Available
Fund
Balance
Fund
Balance
Budgeted
to be
(Used)
FY 2021-22 Operations
Projected
Year End
Available
Fund
Balance
Projected
Sources
Projected
Uses
(excluding
Capital &
General
Reserve)
Net
Operating
Results
Surplus /
(Shortfall)
General
Reserve
&
Project
Closeout
Water 254.2 22.0 (36.2) 9.6 (26.6) - 205.6
Wastewater 185.7 18.2 (35.7) 8.6 (27.3) - 140.2
Power 80.6 7.1 11.5 7.4 18.9 - 92.4
CleanPowerSF 73.4 2.9 (1.2) (2.8) (4.0) - 66.6
Summary:
• Positive operating results projected for Power and operating shortfalls projected for Water, Wastewater and CleanPowerSF. • Water and Wastewater: revenues are down from budget due to impact of water conservation efforts and delayed economic recovery. Retail sales are worse than at quarter 2, but Wholesale sales are higher than projected at quarter 2 as the different customer segments respond differently to economic recovery and conservation calls. As a result, Water’s overall revenue shortfall has improved and Wastewater’s has worsened since last quarter.
In both enterprises, revenue shortfalls include COVID-19 emergency customer assistance programs, partially offset by grants from the state COVID-19 utility debt forgiveness program.
Additionally, fund balance is projected to be reduced by $8.6M in the Wastewater enterprise due to legal settlements relating to floodwater claims from the 2014 storms. Such settlements can be paid directly from unappropriated fund balance per Appropriation Ordinance No. 165-20 (section 10.10).
• CleanPowerSF: The budget was revised upwards by $35M
during quarter 2 to include approved rate increases, and the increased cost of power purchases driven by higher energy market costs. CleanPowerSF’s revenue projections also include grants from the state COVID-19 utility debt forgiveness program.
However, at quarter 3, CleanPowerSF’s revenue projection has worsened due to additional rate changes to remain competitive with PG&E.
In addition, expenditure projections have increased as a result of 1) Resource Adequacy (RA) capacity sales revenues ($4.5M) that had previously been assumed to offset the power purchase supply budget, but in practice are not available for use; and 2) time lags in California Independent System Operator (CAISO) invoicing and renewable power purchase agreement (PPA)
invoicing that require additional payment capacity this fiscal year ($4M). These changes are partially offset by reclassification of collateral payments made to CleanPowerSF’s CAISO scheduling coordinator, APX, that had been classified as power purchase expenses earlier in the fiscal year.
CleanPowerSF will seek additional budget authority of
approximately $7M in order to have ability to expend these additional amounts this year.
1 This $7M estimate is currently
reflected in the variance column but will be included in the revised budget column at quarter 4, assuming the budget amendment moves forward.
• Power: Retail revenues have further increased due to higher volumes and rates. Due to PG&E rate changes, the enterprise rate increased approximately 7% in January and an additional 10% in March. Most of the revenue increase is attributed to SFO.
Wholesale revenues are also projected to exceed the budget due to higher power prices, as well as higher water sales to Lawrence Livermore National Labs. The surplus in wholesale revenues has occurred despite 7% lower generation due to drier weather.
Higher revenues are partially offset by increased transmission and distribution costs. This largely driven by collateral calls
1 CleanPowerSF has a Category 8 (Per Section 10.100-372 of the Administrative Code) self- appropriating fund and is not required to go through the full supplemental process for budget amendments.
relating to catchup billings for prior year accruals, and also an increase in distribution costs to PG&E because of new WDT3 rates effective in January.
• Across all enterprises, expenditures are projected to come in below budget due to vacant positions and projected year end savings in non-personnel expenses, and overhead.
• All enterprises are projected to meet financial policy minimums and coverage ratios at year end.
SFPUC’s finance team is closely monitoring water and wastewater sales for FY 2021 -22 to determine impacts of continued economic weakness and conservation on the current year and will provide continue to provide updates to the Commission.
If you have questions, please contact me at [email protected].
CC:
Masood Ordikhani, Acting AGM, External Affairs, SFPUC
Barbara Hale, AGM, Power Enterprise, SFPUC
Alan Johanson, Acting AGM, Infrastructure, SFPUC
Greg Norby, AGM, Wastewater Enterprise, SFPUC
Steve Ritchie, AGM, Water Enterprise, SFPUC
Ashley Groffenberger, Budget Director, Mayor’s Office
Ben Rosenfield, Controller
Attachments:
Appendix A Water Enterprise
Appendix B Wastewater Enterprise
Appendix C Hetch Hetchy Water & Power, including the Power Enterprise Appendix D CleanPowerSF
FY 2020-21
Actuals Original Budget
Revised
Budget
(includes
carryforwards)
Projection
(includes
carryforwards)
Variance
(Projection -
Revised Budget)
Sources
Retail Water Sales 285.9 327.4 327.5 312.5 (15.0) A Wholesale Water Sales 275.2 270.6 270.6 252.6 (18.1) B Interest Income 2.4 4.5 4.5 1.6 (2.9) C Rental Income 12.7 12.9 12.9 12.3 (0.6) D Miscellaneous Income 20.4 20.9 21.5 21.8 0.4 E Departmental Transfer Adjustment (44.2) (45.8) (45.8) (45.8) - Federal Bond Interest Subsidy 21.8 21.6 21.6 21.6 - Appropriated/Budgeted Use of Fund Balance 95.1 22.0 72.8 72.8 - Total Sources 669.3 634.0 685.5 649.3 (36.2) Operating Uses
Personnel 98.7 110.0 110.0 104.8 5.3 F Non-Personnel Services 17.2 24.6 35.5 33.5 2.0 G Materials and Supplies 12.4 16.0 20.3 20.3 - Equipment 3.2 3.1 9.6 9.6 - Light, Heat, and Power 9.8 10.4 10.6 10.6 - Overhead (SFPUC Bureaus) 48.4 59.8 69.0 67.5 1.5 H Services of Other Departments 14.4 14.7 16.4 16.4 - Debt Service 299.3 307.7 307.7 306.9 0.8 I Total Operating Uses 503.3 546.4 579.2 569.6 9.6 Net Operating Results 166.0 79.7 (26.6) Adjustments to Operating Fund Balance FY 2020-21
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Capital Projects 45.2 55.7 237.9 237.9 - Facilities Maintenance/Programmatic 22.9 32.0 50.0 50.0 - Total Adjustments to Operating Fund Balance $ 68.1 $ 87.7 $ 287.9 $ 287.9 $ - Available Fund Balance as of Fiscal Year-End $ 254.2 $ 205.6 Available Fund Balance, % of Operating Uses (J) 25-68% 112.0% 65.8% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 1.99 1.95 1.76 Current Basis (L) ≥ 1.10 1.22 1.20 1.12 FY 2021-22
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2021-22 3rd Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 26570, 26600 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2021-22 3rd Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 26570, 26600 ($ Millions)
Revenue Variances
Other Notes
K. Calculated as ratio between (a) Total Sources plus Beginning Available Fund Balance plus Capacity Charges, less Operating Uses less Facilities Maintenance/Programmatic, excluding all revenues and expenses related to the 525 Golden Gate COPs, and (b) Debt Service. The Indenture requires this ratio to be a minimum of 1.25 times, and SFPUC's Debt Service Coverage Policy requires this ratio to to be a minimum of 1.35 times.
L. Calculated as ratio between (a) Total Sources plus any appropriated fund balance, plus Capacity Charges, less Operating Uses less Facilities Maintenance/Programmatic, excluding all revenues and expenses related to the 525 Golden Gate COPs, and (b) Debt Service. SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of
1.10 times.
A. Retail water sales forecasted to be 52.2 MGD, a 7.1% decrease from budgeted volumes of 56.2 MGD, and a 2.6% decrease from prior year actuals of 53.6 MGD. Includes 5% drought surcharge effective April 2022. Adjustments include COVID-19 emergency discounts, as well as $7.3M in grants from state COVID-19 utility debt forgiveness program.
B. Wholesale water sales forecasted to be 124.5 MGD, a 6.4% decrease from budgeted volumes of 133.0 MGD, and a 7.7% decrease from prior year actuals of 134.9 MGD. Revenues also include $2.1M in unbudgeted payments from customers not meeting minimum purchase requirements.
C. Interest income projected to fall below budget due to lower-than-budgeted interest rates on City's pooled funds portfolio.
E. Miscellaneous income projected to be slightly above budget, primarily due to $1.1M in revenue for Recreation and Park Department's purchase of Francisco Reservoir.
D. Rental income projected to fall slightly below budget due to revenue adjustments made to Crystal Springs Golf Course.
Expenditure Variances
J. Calculated as Ending Available Fund Balance (including additions to General Reserve) as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be within a range of 25-68%.
F. Savings due to vacant positions.
H. Savings reflect lower spending associated with bureau allocation.
I. Savings reflects $810k in excess reserve funds applied to debt service payments.
G. Savings reflect lower spending asscociated with customer rebate and incentive programs.
FY 2020-21
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection -
Revised Budget)
Sources
Sewer Service Charges 326.2 388.1 388.2 353.8 (34.4) A Interest Income 6.0 5.8 5.8 1.7 (4.1) B Miscellaneous Income 5.0 3.6 3.6 6.4 2.7 C Federal Bond Interest Subsidy 3.5 3.5 3.5 3.5 - Appropriated/Budgeted Use of Fund Balance 28.6 9.6 40.9 40.9 - D Total Sources 369.4 410.7 442.0 406.2 (35.7) Operating Uses
Personnel 70.8 82.1 82.1 75.4 6.8 E 8.2% Non-Personnel Services 18.1 26.3 28.9 28.2 0.7 F City Grant Programs 0.1 0.3 0.6 0.6 - Materials and Supplies 8.7 12.0 14.6 14.6 - Equipment 0.9 3.2 6.6 6.6 - Light, Heat, and Power 10.1 12.3 12.8 12.8 - Overhead (SFPUC Bureaus) 29.5 36.4 43.6 42.5 1.1 G Services of Other Departments 27.0 25.4 27.1 27.1 - Debt Service 86.5 95.2 95.2 95.2 - Total Operating Uses 251.7 293.1 311.5 303.0 8.6 Net Operating Results 117.7 103.2 $ (27.3) Adjustments to Operating Fund Balance FY 2020-21
Actuals
Current
Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Capital Projects 34.3 110.3 119.7 119.7 - Facilities Maintenance/Programmatic 6.5 8.6 12.9 12.9 - Legal Settlements - - 8.6 8.6 - H General Reserve - - - - - Total Adjustments to Operating Fund Balance $ 40.9 $ 118.8 $ 141.1 $ 141.1 $ - Available Fund Balance as of Fiscal Year-End $ 185.7 $ 140.2 Available Fund Balance, % of Operating Uses (I) 25-68% 108.1% 63.6% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (J) ≥ 1.35 4.39 4.17 3.63 Current Basis (K) ≥ 1.10 2.13 2.28 2.05 FY 2021-22
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2021-22 3rd Quarter - Budgetary Basis, Funds 20160, 20550, 20170, 20210 ($ Millions)
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2021-22 3rd Quarter - Budgetary Basis, Funds 20160, 20550, 20170, 20210 ($ Millions)
Revenue Variances
Expenditure Variances
Other Notes
I. Calculated as Ending Available Fund Balance (including additions to General Reserve) as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be within a range of 25-68%.
J. Calculated as ratio between (a) Total Sources plus Beginning Available Fund Balance plus Capacity Charges, less Operating Uses less Facilities Maintenance/Programmatic (excluding all revenues and expenses related to the 525 Golden Gate COPs), and (b) Debt Service. The Indenture requires this ratio to be a minimum of 1.25 times, and SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of 1.35 times.
A. Wastewater retail billable volumes forecasted to be 42.6 MGD, a 4.4% decrease from budget of 44.5 MGD and a 1.0% decrease from prior year actuals of 43.0 MGD. Assumes 5% drought surcharge effective April 2022, and adjustments for COVID-19 emergency discounts.
B. Interest income projected to fall below budget due to lower-than-budgeted interest rates on City's pooled funds portfolio.
E. Salary savings reflect vacant positions.
C. Miscellaneous income forecasted to increase from budget, primarily due to increased revenue from various permitting fees and non-utility services to other City departments.
H. $8.6M was appropriated to cover claims relating to the December 2014 rainstorms per Appropriation Ordinance No. 165-20 (section 10.10).
D. Additional fund balance of $8.6M was appropriated to cover claims relating to the December 2014 rainstorms per Appropriation Ordinance No. 165-20 (section 10.10).
F. Savings reflect lower spending on biosolids hauling and digester cleaning.
G.Savings reflect salary savings associated with bureau allocation.
K. Calculated as ratio between (a) Total Sources plus any appropriated fund balance plus Capacity Charges, less Operating Uses less Facilities Maintenance/Programmatic (excluding all revenues and expenses related to the 525 Golden Gate COPs), and (b) Debt Service. SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of 1.10 times.
FY 2020-21
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection -
Revised Budget)
Sources
Electric Sales - Retail 109.1 134.7 134.7 146.7 12.0 A Electric Sales - Wholesale 15.1 17.5 17.5 20.2 2.7 B Water Sales - Transfer from Water Department 44.2 45.8 45.8 45.8 - Natural Gas & Steam - City Work Orders 13.0 12.9 18.6 15.6 (2.9) C Interest Income 1.5 4.8 4.8 1.1 (3.7) D Federal Interest Subsidy - Power Bonds 0.5 0.5 0.5 0.4 - Miscellaneous Income 9.8 5.6 5.9 9.4 3.6 E Appropriated/Budgeted Use of Fund Balance 29.3 7.1 45.4 45.4 - Total Sources 222.5 228.9 273.1 284.6 11.5 Operating Uses
Personnel 46.6 51.4 51.4 50.2 1.1 F Non-Personnel Services 60.3 39.4 52.6 52.5 0.2 Power Purchases, Transmission Distribution & Related Charges 42.8 69.4 72.5 70.2 2.3 G Natural Gas & Steam 13.0 12.9 18.6 15.6 2.9 H Materials and Supplies 3.5 3.5 3.7 3.7 - Equipment 3.9 1.2 4.6 4.6 - Overhead (SFPUC Bureaus) 17.8 21.8 25.4 24.9 0.5 I Services of Other Departments 4.3 9.2 12.2 11.8 0.4 J Debt Service 3.7 3.9 3.9 3.9 - Total Operating Uses 195.9 212.7 244.8 237.4 7.4 Net Operating Results 26.6 47.2 18.9 Adjustments to Operating Fund Balance FY 2020-21
Actuals
Current
Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Facilities Maintenance/Programmatic 12.7 14.5 20.8 20.8 - Capital projects 27.0 1.7 96.6 96.6 - General Reserve - - - - - Total Adjustments to Operating Fund Balance 39.7 16.1 117.4 117.4 - Available Fund Balance as of Fiscal Year-End 80.6 92.4 Available Fund Balance, % of Operating Uses (K) 25-68% 39.3% 45.4% Debt Service Coverage… Year-End Budgetary Basis
Indenture Basis (includes Available Fund Balance) (L) ≥ 1.35 9.89 30.57 25.87 Current Basis (M) ≥ 1.10 6.28 1.91 12.16 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2021-22 3rd Quarter - Budgetary Basis - 24970, 24980, 24990 & 25030 ($ Millions)
FY 2021-22
Revenue Variances
Expenditure Variances
Other Notes
K. Calculated as Ending Available Fund Balance (including additions to General Reserve) as a percent of Power Operating Uses plus Power Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be within a range of 25-68%.
L. Calculated as the ratio between (a) Total Sources plus Beginning Available Fund Balance, less Operating Uses less Facilities Maintenance/Programmatic (excluding all revenues and expenses related to the 525 Golden Gate COPs, Treasure Island and Gas & Steam, and Transbay Cable revenues), and (b) Senior Lien Debt Service in the amount of $2.6M. The Indenture requires this ratio to be a minimum of 1.25 times, and SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of 1.35 times.
M. Calculated as ratio between (a) Operating Sources plus Fund Balance as a Source, less Operating Uses less Facilities Maintenance/Programmatic (excluding all revenues and expenses related to the 525 Golden Gate COPs, Treasure Island, Gas & Steam, and Transbay Cable revenues), and (b) Senior Lien Debt Service in the amount of $2.6M. SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of 1.10 times.
D. Interest income projected to fall below budget due to lower-than-budgeted interest rates on City's pooled funds portfolio.
E. Miscellaneous revenues projected to increase from budget due to water sales to Lawrence Livermore National Labs resuming after being on hold for several years and removed from the budget.
A. Retail sales above budget due to higher than expected increases to Enterprise rates based on average PG&E increases of 7% in January and 10% in March. Includes $1.2M in grants from state COVID-19 utility debt forgiveness program.
G. Increase to purchased power due to reduced generation compounded by higher than anticipated rate increases from PG&E, and $4.8M transmission collateral call from APX due to increase in weekly billing amounts. These costs are offset by $4M power contingency and prior year unspent funds carried forward from FY 2020-21.
F. Savings due to vacant positions.
B. Wholesale sales above budget, mainly due to higher than budgeted power prices. Includes $1.5M unbudgeted capacity sales to CleanPowerSF.
C. Savings due to lower usage in natural gas & steam.
H. Savings due to lower usage in natural gas & steam.
I. Savings reflect lower spending associated with bureau allocation.
J. Savings reflect lower spending from other City departments.
FY 2020-21
Actuals Original Budget
Revised Budget
(includes
carryforwards &
supplemental)
Projection
(includes
carryforwards)
Variance
(Projection -Revised
Budget)
Operating Sources
Electric Sales - Green Product 199.8 213.3 248.4 239.9 (8.6) Electric Sales - SuperGreen Product 10.9 10.9 10.9 14.6 3.7 Wholesale Sales - - - 4.5 4.5 Subtotal - Electric Revenues 210.7 224.1 259.3 258.9 (0.4) A Interest Income 0.6 0.9 0.9 0.2 (0.8) B Appropriated/Budgeted Use of Fund Balance 10.5 2.9 6.4 6.4 - Total Sources 221.8 227.9 266.7 265.5 (1.2) Operating Uses
Personnel
3.7 8.0 8.0 4.5 3.5 C Overhead 2.3 2.7 3.1 3.1 - Non Personnel Services 9.9 12.1 13.3 12.8 0.5 D Materials & Supplies 0.0 0.2 0.2 0.1 0.1 E Power Purchases, Transmission Distribution & Related Charges 189.5 197.9 234.3 241.2 (7.0) F Services of Other Departments 3.7 3.7 3.7 3.7 - Debt Service 1.8 - - - Total Operating Uses 210.9 224.5 262.6 265.4 (2.8) Net Operating Results 10.9 0.1 (4.0) Adjustments to Operating Fund Balance FY 2020-21
Actuals
Current Year
Transfers from
Operating
Total Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Programmatic 0.1 1.0 1.6 1.6 - Capital Projects - 2.4 4.2 4.2 - General Reserve - - - - Total Adjustments to Operating Fund Balance 0.1 3.4 5.8 5.8 - Available Fund Balance as of Fiscal Year-End 73.4 66.6 G Available Fund Balance, % of Operating Uses (H) % 35.1% 24.9% Revenue Variances
Expenditure Variances
Other Notes
H. Calculated as Ending Available Fund Balance as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be atleast 50% within three years of policy adoption (April of 2022).
F. A $7M deficit is anticipated due to the exclusion of $4.5M in wholesale RA capacity revenues that were previously assumed to offset against the power supply budget, and time lags in California Independent System Operator (CAISO) invoicing and renewable power purchase agreement (PPA) invoicing that require additional payment capacity this fiscal year ($4M). These changes are partially offset by the reclassification of collateral payments made to CleanPowerSF’s CAISO scheduling coordinator, APX, that had been classified as power purchase expenses earlier in the fiscal year.
Appendix D
CleanPowerSF
FY 2021-22 3rd Quarter - Budgetary Basis - 24750, 24761, 24765 & 24870 ($ Millions)
FY 2021-22
A.Revenue budget reflects a $35.2M supplemental appropriation to cover higher than anticipated costs to purchase energy due to volatile and expensive power market. On March 2022 projected revenues were reduced resulting from PG&E's final adopted rates.
The lower revenue is offset by $4.5M in wholesale sales. The projection also includes $2.4M in grants from state COVID-19 utility debt forgiveness program.
B. Interest income projected to fall below budget due to lower-than-budgeted interest rates on City's pooled funds portfolio.
C. Salary savings due to vacant positions.
G. Available fund balance at fiscal year end is calculated within this report by taking beginning fund balance, less any fund balance budgeted to be used D. Savings reflect budgeted contractual services performed internally.
E. Savings reflect a reduction in materials and supplies due to the current remote workforce.