SFPUC
FY2021-22 4th Quarter Budget Report
Laura Busch
Budget Director
August 23, 2022
2 • Positive operating results projected for Power and
CleanPowerSF and operating shortfalls projected for Water and Wastewater
• Water and Wastewater: revenues down from budget due to:
• Impact of water conservation efforts due to drought, partially offset by 5% drought surcharge effective April 2022
• Delayed economic recovery from COVID-19 negatively
impacting volumes vs. projection
• CleanPowerSF: budget increased by $42M during year,
projecting year-end result to come in close to revised budget • Power: Revenues projected to exceed budget due to higher energy prices
• Year-end financial results projected to meet or exceed policy targets
FY 2021-22 Q4 Report Summary
3 • Net operating result: ($8.3M)
• Total sources down ($20.4M), offset by $12.1M in cost savings Sources
• ($16.8M) or -5.1% retail revenues
• ($9.8M) or -3.6% wholesale revenues
• $6.1M or 10.2% non-operating revenues
Uses
• $6.8M or -6.2% salaries and benefits
• $3.0M or -8.7% non-personnel services
• $1.5M or -2.2% overhead
• $0.8M or -0.3% debt service
FY 2021-22 Water Budgetary Variances
4 • Net operating result: ($14.7M)
• Total sources ($27.3M), offset by $12.6M in cost savings Sources
• ($26.1M) or -6.7% sewer service charges
• ($1.3M) or -9.9% non-operating revenues
Uses
• $9.5M or -11.6% salaries and benefits
• $1.1M or -2.5% overhead
• $1.0M or -3.5% non-personnel services
• $1.0M or -6.9% materials & supplies
FY 2021-22 Wastewater Budgetary
Variances
5 • Net operating result: $35.9M
• Total sources $18.5M, and $17.3M in cost savings
Sources
• ($1.7M) or -9.1% gas & steam sales
• $14.7M or 83.7% wholesale sales
• $4.7M or 3.4% retail sales
• $0.8M or 7.5% non-operating revenues
Uses
• $15.7M or -16.4% power and gas & steam cost savings
• $0.7M or -1.4% salaries and benefits
• $0.5M or -2.0% overhead
• $0.4M or -3.0% services of other departments
FY 2021-22 Power Budgetary
Variances
6 • Net operating result: $2.7M
• Total sources down ($1.8M) offset by $4.5M in cost savings Sources
• ($1.3M) or -0.5% power sales
• ($0.5M) or -57.9% interest income
Uses
• $3.8M or -47.7% salaries and benefits
• $0.7M or -5.5% non-personnel services, materials & supplies 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
72.2% 70.5% 54.8% 24.8%*
Debt Service Coverage
Reserve
• Indenture Basis ≥ 1.35x 1.8 3.8 32.9
• Current Basis ≥ 1.10x 1.2 2.2 19.2
* CleanPowerSF’s SFPUC's Fund Balance Reserve Policy requires this to be at least 50% within three years of policy adoption (by April 2025). 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: August 23, 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 Fourth Quarter Budgetary Report
through June 30, 2022
The FY 2021- 22 fourth 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)
Mid-year
Adjustments
to Fund
Balance
Water 254.2 22.0 (20.4) 12.1 (8.3) - 223.9
Wastewater 185.7 9.6 (27.3) 12.6 (14.7) (8.6) 152.8
Power 80.6 7.1 18.5 17.3 35.9 - 109.4
CleanPowerSF 73.4 2.9 (1.8) 4.5 2.7 (7.0) 66.2
Summary:
• Positive year-end operating results projected for Power and CleanPowerSF, and operating shortfalls projected for Water and Wastewater.
• Water and Wastewater: Overall year end revenues are down from budget due to impact of water conservation efforts and delayed economic recovery.
Retail sales are similar to quarter 3, but Wholesale sales are higher than projected compared with last quarter as customers respond differently to economic recovery and conservation. In addition, Water’s year end results include $2.0M in additional rental income for one of the quarry tenants, $1.1M in revenue for Recreation and Park Department's purchase of Francisco
Reservoir and a $6.75M restitution settlement from PG&E.
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.
Wastewater’s revenue includes $9.2M in state relief that was recognized in quarter 4.
As a result of these factors, both Water and Wastewater’s overall revenue shortfall has significantly improved since the last quarter.
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 and by a further $7M during quarter 4 to include approved rate increases, and the increased cost of power purchases driven by higher energy market costs.
The overall year-end sales projection came in just under budget, taking into account grants from the state COVID-19 utility debt forgiveness program.
• Power: Year-end projected revenues are significantly higher than budget due to:
o Retail: Due to PG&E rate changes, the enterprise rate increased approximately 7% in January and an additional 10% in March which led to revenue increases, largely
attributed to SFO. In addition, the projection includes grants from the state COVID-19 utility debt forgiveness program.
o Wholesale: A significant one-time revenue increase was recognized in quarter 4 due to much higher than
anticipated CAISO revenue driven by higher power prices.
Savings in power purchase expenditures are all driven by one time items including reclassification of prior year collateral calls, unspent dollars carried forward from the prior year and underspending relating to power provided to other departments. • Across all enterprises, expenditures are projected to come in below budget due to vacant positions, 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.
The quarter 4 report is a projection with final year end results published in the Comprehensive Financial Report . 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 vs
Revised Budget)
Sources
Retail Water Sales 285.9 327.4 327.5 310.7 (16.8) A Wholesale Water Sales 275.2 270.6 270.6 260.9 (9.8) B Interest Income 2.4 4.5 4.5 1.6 (2.8) C Rental Income 12.7 12.9 12.9 14.3 1.4 D Miscellaneous Income 20.4 20.9 21.5 29.1 7.6 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 669.3 634.0 685.5 665.1 (20.4) Operating Uses
Personnel 98.7 110.0 110.0 103.2 6.8 F Non-Personnel Services 17.2 24.6 34.6 31.6 3.0 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 11.4 11.4 - 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 503.3 546.4 579.2 567.1 12.1 Net Operating Results 166.0 98.0 (8.3) 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 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 $ 223.9 Available Fund Balance, % of Operating Uses (J) 25-68% 112.0% 72.2% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 1.99 1.95 1.82 Current Basis (L) ≥ 1.10 1.22 1.20 1.19 FY 2021-22
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2021-22 4th Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 26570, 26600 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2021-22 4th 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 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 were 52.4 MGD, a 6.8% decrease from budgeted volumes of 56.2 MGD, and a 2.2% decrease from prior year actuals of 53.6 MGD. This includes a 5% drought surcharge effective April 2022. Adjusted to account for $707K in COVID-19 emergency discounts, as well as net $5.9M in grants from state COVID-19 utility debt forgiveness program for arrears and discounts.
B. Wholesale water sales were 128.4 MGD, a 3.5% decrease from budgeted volumes of 133.0 MGD, and a 4.9% 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 fell below budget due to lower-than-budgeted interest rates on City's pooled funds portfolio.
E. Miscellaneous income increased from budget due to $1.1M in revenue for Recreation and Park Department's purchase of Francisco Reservoir. Also includes $6.75M restitution settlement from PG&E.
D. Rental income increased from budget primarily due to $2.0M in transfer fees for one of the quarry tenants.
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 associated with customer rebate and incentive programs and the impact of staffing and resource shortages due to Covid-19.
FY 2020-21
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Sewer Service Charges 326.2 388.1 388.2 362.1 (26.1) A Interest Income 6.0 5.8 5.8 1.8 (4.0) 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 369.4 410.7 442.0 414.7 (27.3) Operating Uses
Personnel 70.8 82.1 82.1 72.6 9.5 E Non-Personnel Services 18.1 26.3 28.4 27.4 1.0 F City Grant Programs 0.1 0.3 0.6 0.6 - Materials and Supplies 8.7 12.0 14.6 13.6 1.0 G Equipment 0.9 3.2 6.6 6.6 - Light, Heat, and Power 10.1 12.3 12.7 12.7 - Overhead (SFPUC Bureaus) 29.5 36.4 43.6 42.5 1.1 H Services of Other Departments 27.0 25.4 27.8 27.8 - Debt Service 86.5 95.2 95.2 95.2 - Total Operating Uses 251.7 293.1 311.5 298.9 12.6 Net Operating Results 117.7 115.8 $ (14.7) 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 - I 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 $ 152.8 Available Fund Balance, % of Operating Uses (J) 25-68% 108.1% 70.5% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 4.39 4.17 3.77 Current Basis (L) ≥ 1.10 2.13 2.28 2.19 FY 2021-22
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2021-22 4th Quarter - Budgetary Basis, Funds 20160, 20550, 20170, 20210 ($ Millions)
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2021-22 4th Quarter - Budgetary Basis, Funds 20160, 20550, 20170, 20210 ($ Millions)
Revenue Variances
Expenditure Variances
Other Notes
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%.
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 be a minimum of 1.35 times.
A. Wastewater retail billable volumes were 42.3 MGD, a 5.0% decrease from budget of 44.5 MGD and a 1.7% decrease from prior year actuals of 43.0 MGD. This includes a 5% drought surcharge effective April 2022, and adjusted to account for COVID-19 emergency discounts, as well as $9.2M in grants from state COVID-19 utility debt forgiveness program for arrears and discounts.
B. Interest income fell below budget due to lower-than-budgeted interest rates on City's pooled funds portfolio.
E. Salary savings reflect vacant positions.
C. Miscellaneous income increased from budget, primarily due to increased revenue from various permitting fees and non-utility services to other City departments.
I. $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.
H.Savings reflect salary savings associated with bureau allocation.
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.
G. Savings mainly due to the impact of staff shortages, resulting in a reduction of maintenance and procurement of supplies.
FY 2020-21
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Electric Sales - Retail 109.1 134.7 140.8 145.6 4.7 A Electric Sales - Wholesale 15.1 17.5 17.5 32.2 14.7 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 16.9 (1.7) C Interest Income 1.5 4.8 4.8 1.4 (3.4) D Federal Interest Subsidy - Power Bonds 0.5 0.5 0.5 0.4 - Miscellaneous Income 9.8 5.6 5.9 10.1 4.2 E Appropriated/Budgeted Use of Fund Balance 29.3 7.1 45.4 45.4 - Total Sources 222.5 228.9 279.2 297.8 18.5 Operating Uses
Personnel 46.6 51.4 50.9 50.2 0.7 F Non-Personnel Services 60.3 39.4 52.6 52.6 - Power Purchases, Transmission Distribution & Related Charges 42.8 69.4 77.6 63.5 14.1 G Natural Gas & Steam 13.0 12.9 18.6 16.9 1.7 H Materials and Supplies 3.5 3.5 3.7 3.7 - Equipment 3.9 1.2 5.1 5.1 - 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 195.9 212.7 249.9 232.5 17.3 Net Operating Results 26.6 65.2 35.9 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 80.6 109.4 Available Fund Balance, % of Operating Uses (K) 25-68% 39.3% 54.8% Debt Service Coverage… Year-End Budgetary Basis
Indenture Basis (includes Available Fund Balance) (L) ≥ 1.35 9.89 30.57 32.90 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2021-22 4th Quarter - Budgetary Basis - 24970, 24980, 24990 & 25030 ($ Millions)
FY 2021-22
Current Basis (M) ≥ 1.10 6.28 1.91 19.19
Revenue Variances
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.
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.
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.
Expenditure Variances
F. Savings due to vacant positions.
G. Surplus is mainly due to a reclassification of collateral payments made to Hetchy Power's CAISO scheduling coordinator, APX, that hadbeen classified as power purchase expenses earlier in the fiscal year 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 vs Revised
Budget)
Operating Sources
Electric Sales - Green Product 199.8 213.3 248.4 236.4 (12.0) Electric Sales - SuperGreen Product 10.9 10.9 10.9 17.1 6.2 Wholesale Sales - - - 4.5 4.5 Subtotal - Electric Revenues 210.7 224.1 259.3 258.0 (1.3) A Interest Income 0.6 0.9 0.9 0.4 (0.5) B Appropriated/Budgeted Use of Fund Balance 10.5 2.9 13.4 13.4 - C Total Sources 221.8 227.9 273.7 271.8 (1.8) Operating Uses
Personnel
3.7 8.0 8.0 4.2 3.8 D Overhead 2.3 2.7 3.1 3.1 - Non Personnel Services 9.9 12.1 13.3 12.8 0.5 E Materials & Supplies 0.0 0.2 0.2 0.1 0.2 F Power Purchases, Transmission Distribution & Related Charges 189.5 197.9 241.3 241.3 - G Services of Other Departments 3.7 3.7 3.7 3.7 - Debt Service 1.8 - - - Total Operating Uses 210.9 224.5 269.6 265.1 4.5 Net Operating Results 10.9 6.7 2.7 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 66.2 H Available Fund Balance, % of Operating Uses (I) % 35.1% 24.8% Revenue Variances
C. Budget reflects a $7M appropriation from fund balance to cover higher than anticipated energy costs due to the volatile and expensive power market .
Expenditure Variances
Other Notes
I. 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).
G Costs, inclusive of PPA credits owed to CleanPowerSF, are expected to be close to budget. Budget includes $42.2M in appropriation ($35.2M in December 2021 and $7M in May 2022) to cover higher than anticipated energy costs due to the volatile and expensive power market.
Appendix D
CleanPowerSF
FY 2021-22 4th Quarter - Budgetary Basis - 24750, 24761, 24765 & 24870 ($ 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 rates were set lower than anticipated in order to be competitive with PG&E's final adopted rates.
The lower retail sales revenue is offset by $4.5M in RA 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.
D. Salary savings due to vacant positions.
H. 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 as a source, and adding the projected variances as well as project closeouts. As the CleanPowerSF Trust Fund is a continuing fund, amounts budgeted therein will automatically roll forward to the following year and will not be closed out to fund balance. As such, variances related to revenues, purchase of power, and general reserves will not close out to fund balance at the end of the year without manual intervention. However, as those funds are not considered restricted and CleanPowerSF may choose to close them out to fund balance, we are presenting them here as part of fund balance.
E. Savings reflect budgeted contractual services performed internally.
F. Savings reflect a reduction in materials and supplies due to the current remote workforce.