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.
Financial Services Bureau
525 Golden Gate Avenue, 4th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
Date: March 14, 2023
To: Newsha K. Ajami, President
Sophie Maxwell, Vice President
Tim Paulson, Commissioner
Anthony Rivera, Commissioner
Kate H. Stacy, Commissioner
Through: Dennis J. Herrera, General Manager
From: Nancy L. Hom, Chief Financial Officer & AGM, Business Services
RE: SFPUC Fiscal Year 2021-22 Annual Comprehensive Financial Report and Popular Annual Financial Report
Financial Services is pleased to present the FY 2021-22 Popular Annual Financial Report (PAFR) focusing on SFPUC’s Serving People and the Environment, and the FY 2021-22 Annual Comprehensive Financial Report (ACFR) issued by KPMG, LLP on February 28, 2023.
The reports can be found on our public-facing website:
https://sfpuc.org/about-us/reports/audited-financial-statements-reports https://sfpuc.org/about-us/reports/popular-annual-financial-reports
The ACFR describes our financial activities, condition, and services as an organization, inclusive or Water, Wastewater, and Hetch Hetchy Water & Power & CleanPowerSF audited financial statements. The report includes financial and statistical information, inclusive of ten years of financial and operating indicators and trends, social and economic data and other metrics that are of interest to the general public and financial investors. The SFPUC has received the Government Finance Officers Association (GFOA) Certificate of Achievement in Financial Reporting annually since 2009 for the ACFR.
The PAFR is specifically designed to be readily accessible and easily understandable to the general public and interested parties without a background in public finance. Like the ACFR, the SFPUC has received the GFOA PAFR award annually since 2010.
We are looking forward to another award for both reports for fiscal year 2022.
cc: Ronald P. Flynn, Deputy General Manager
Charles Perl, Deputy Chief Financial Officer
Att: FY 2021-22 Annual Comprehensive Financial Report
FY 2021-22 Popular Annual Financial Reports
Popular Annual Financial Report
For Fiscal Year Ended June 30, 2022
Serving People &
the Environment
Water
We own and operate the Hetch Hetchy Regional Water System which serves 2.7 million customers. We provide water directly to customers in San Francisco and wholesale through 26 Water agencies in Alameda, Santa Clara, and San Mateo counties.
Power
The same force of gravity that propels tap water to your faucet is also harnessed to generate 100% greenhouse gas-free Hetch Hetchy hydroelectric power. That’s right; your tap water powers vital City services like MUNI’s electric buses, public schools, and fire stations with electricity that is better for the environment and your health.
Sewer
San Francisco is the only coastal city in California with a combined sewer system that collects and treats both wastewater and stormwater in the same network of pipes. Water flows through most of the sewers using gravity. Our hilly geography comes in handy reducing the energy and maintenance costs associated with mechanical pumping.
San Francisco Public Utilities Commission
(as of date of publication)
Newsha K. Ajami , President Tim Paulson, Commissioner Kate H. Stacy, Commissioner Sophie Maxwell , Vice President Anthony Rivera , Commissioner Table of Contents
3 | Water
5 | Power
7 | Sewer
9 | Community Benefits
11 | Finance
1 Annual Report for the Fiscal Year Ended June 30, 2022 Dear Customers and Interested Parties,
On behalf of the San Francisco Public Utilities
Commission (SFPUC), I am pleased to present the
Popular Annual Financial Report for Fiscal Year
2021-2022.
The past two years were a period of upheaval
and uncertainty. We saw it as a City, and we
saw it firsthand as an agency. Nonetheless, San
Franciscans prove time and time again that the
challenges we face are opportunities to build a
stronger, more resilient, and equitable community.
Through historic investments in the City’s
revitalization, the environment, and our future,
the SFPUC serves as a robust economic engine
benefiting residents, workers, and businesses in
three critical areas: environmental stewardship,
access and affordability, and support for our
communities.
As we enter the fourth year of a statewide drought,
we continue to be prudent when it comes to
managing our water supplies. Our approach
strikes the right balance. Whether wet or dry, we
always release water downstream to protect the
natural aquatic ecosystems. We are being good
environmental stewards while not gambling with
the water supply for 2.7 million Bay Area residents
and businesses. Part of this means substantial
investments in wildfire mitigation, climate change
resiliency, and drought response.
Our environmental leadership goes hand in
hand with customer affordability. This year we
completed our first ever independent study for
CleanPowerSF and Hetch Hetchy Power rates. The
recommendations from this study pave the way for
new customer savings, including decreased monthly
electricity bills for the vast majority of CleanPowerSF residential and commercial customers. Our
commitment to investing in renewable energy while
maximizing affordability has direct impacts on
both people and the planet. The SFPUC is helping
San Francisco (the City) achieve its bold carbon
reduction goals, including having 385,000 customer
accounts enrolled in CleanPowerSF.
We are also continuing to do the important work
toward racial equity, both internally and with the
communities we work with. This year we opened
our new Southeast Community Center at 1550
Evans Avenue. The new center features a childcare
facility, nonprofit workspace, community meeting
rooms and provides a wide range of workforce
development and educational opportunities for
residents of all ages across the city, but particularly in our southeast neighborhoods.
We’re delivering on jobs, infrastructure, and
community programs while maintaining our reliable
water, wastewater, and power services. We continue
to provide high-quality water to our customers,
and our Hetch Hetchy Power and CleanPowerSF
programs collectively meet more than 70 percent
of the electricity demand in San Francisco through
renewable and greenhouse gas-free energy
services. Our wastewater team maintains 1,900
miles of pipes throughout San Francisco and
manages the City’s around-the-clock wastewater
collection system.
We’re continuing to lead the way as a public
utility that prioritizes people and the environment.
This report showcases that. I’m grateful to the
Commissioners and staff who work tirelessly to
serve our City and build a better future for all.
Dennis J. Herrera, SFPUC General Manager
Message from Our General Manager
Annual Report for the Fiscal Year Ended June 30, 2022 2 Protecting
Our Watersheds
Annual Report for the Fiscal Year Ended June 30, 20223
Planting around
the Riparian
pond at the
Alameda Creek
Watershed
Center.
We protect and sustain the resources entrusted to our
care, from watershed management and habitat restoration to routine water quality monitoring and assessments.
A healthy watershed produces high-quality drinking water and is more resilient in response to wildfire or drought.
Within the Hetch Hetchy Regional Water System, the
SFPUC manages the Peninsula and Alameda Watersheds
and support the National Park Service and the U.S. Forest Service in managing the Upper Tuolumne Watersheds.
These watersheds collect and store drinking water while harboring some of the highest concentrations of rare and unique native plant and animal species. The Peninsula
Watershed alone consists of 23,000 acres of diverse and unique habitats, such as oak woodlands, coniferous
forests, and serpentine grasslands. These ecosystems
must be carefully managed to protect the quality of the water in our reservoirs and an abundance of native plant and animal life.
Fire Prevention
The SFPUC works with CalFire throughout the year to
protect these lands from the threat of wildfire, including preventing fires from starting, and keeping those fires that do start from growing and becoming uncontrolled. Fire
prevention measures include routine mowing, mulching,
and annual prescribed burns that lower the amount of
vegetation that could catch fire. This work is increasingly important as the SFPUC mitigates the effects of a
prolonged drought, which has resulted in a higher load of dead, dry, and fire-prone vegetation in our watersheds.
Sowing the Seeds of Biodiversity
Biodiversity is a key part of a healthy watershed.
Important native plant species on our lands are
threatened by aggressive plant pathogens that spread via contaminated plants, soil, air, and water.
Previously, the SFPUC relied on commercial nurseries for habitat restoration projects, which inadvertently brought invasive plant pathogens to our watersheds. To better
protect the environment, we created the Sunol Native
Plant Nursery about four years ago. The nursery protects our watersheds one seed at a time, generating our own,
pathogen-free native plants to meet our own landscaping and environmental needs. This nursery is rigorously
designed to avoid the introduction of plant pathogens at all stages of the growing process.
To date, the nursery has grown more than 25,000 plants
from 85 different species from seeds collected on our
watershed lands by our own staff. Those plants are
thriving at the Sunol Yard, have recently been planted at the Alameda Creek Watershed Center, and were planted
to restore habitats near the Lower Crystal Springs Dam on the Peninsula.
Improving our Ecosystems
The SFPUC continues to lead the Upper Tuolumne River
Ecosystem Program, a collaborative effort to study
ecosystem conditions and develop data-backed
recommendations for their improvements. As part of this work, the SFPUC developed guidance with Yosemite
National Park for annual snowmelt releases from
O’Shaughnessy Dam. The robust guidance ensures we
meet our operational needs while ensuring benefits to the river ecosystem. These ecological releases during spring runoff have been conducted since 2006. In May, the
SFPUC conducted spring snowmelt releases specifically
designed to support wetland vegetation and invertebrate production in the ecologically significant Poopenaut
Valley. These carefully designed efforts with Yosemite
National Park ensure numerous riparian bird species and up to 17 species of bats continue to thrive.
Annual Report for the Fiscal Year Ended June 30, 2022 4
A Clean Grid
Means a Clean
Environment
Annual Report for the Fiscal Year Ended June 30, 20225
Our work to reduce dirty carbon emissions from fossil
fuels and promote equitable access to clean energy in
San Francisco never stops.
Investing in the
Communities We Serve
San Francisco’s success as a global environmental leader is a result of the SFPUC’s historic and continued
investments in clean energy. To achieve Mayor London N.
Breed’s aggressive new carbon neutral goals will require we go even further to usher in a clean, all-electric future.
To guide the way, the SFPUC completed its first-ever
two-year independent power rates study for its renewable electricity service programs, CleanPowerSF and Hetch
Hetchy Power. The recommendations from the study allow
for new customer savings, including decreased monthly
electricity bills for many residential and commercial
customers, and the continued expansion of clean energy
sources.
The study also promotes stability for customers and
greater independence from Pacific Gas & Electric
Company (PG&E). As part of the suite of recommendations from the study, the SFPUC will set its own rates and no longer follow PG&E’s, which has changed its generation
rates four times since January 2021. We are committed to only updating power rates once per year to promote
predictable rates for customers.
The adopted rates support the City’s climate goals by
offering new electric vehicle rates for Hetch Hetchy Power customers, expanding electricity tiers for residential
customers transitioning to all-electric buildings, and
helping CleanPowerSF customers access 100%
renewable energy by lowering premiums for commercial
customers on our SuperGreen service. This all came while funding investment in Hetchy Water & Power facilities and new renewable power generation and storage.
Similarly, the SFPUC recently launched the SuperGreen
Saver Program to more equitably deliver the benefits of clean energy to the communities most impacted by air
pollution. The program provides a 20% rate discount to
eligible customers residing in disadvantaged communities.
Enrollments began in June and are expected to serve over 1,200 customers in San Francisco.
Expanding Hetch Hetchy
Power Grid Infrastructure
Hetch Hetchy Power continued work to complete a new
high voltage transmission and distribution system along the eastern waterfront for new and existing customers with large power needs. The project, known as the Bay
Corridor Transmission and Distribution System, is
expected to serve customers in early 2023. It is a major milestone for the agency’s clean energy grid.
Additionally, this fiscal year the Power Enterprise energized the new main electric circuit serving Yerba Buena Island, marking a significant milestone in the area’s
redevelopment. The new electric circuit and associated
switchyard will play a critical role in providing affordable, reliable 100% greenhouse gas-free Hetch Hetchy Power
to residents and businesses of Yerba Buena Island
and Treasure Island.
Visitacion Valley
Middle School Solar Array
Local solar energy sources are expanding citywide due to the SFPUC’s partnerships with other City agencies. In the Mission District’s Visitacion Valley Middle School, the SFPUC took advantage of the school’s optimal location on a sunny hill and installed a new solar array system in time for in-person learning. Visitacion Valley Middle School will be the seventh new school solar array installed since 2012, when San Francisco Unified School District (SFUSD)
and the SFPUC first partnered to install affordable solar systems.
Through rooftop solar arrays like the one at Visitacion Valley Middle School, SFUSD will use clean solar instead of clean hydro when solar is available, and continue to benefit from reduced energy costs to help ensure
resources are spent where they matter most – the
classroom.
Through these critical investments and partnerships,
we’re helping to create a healthier community and
cleaner future.
Annual Report for the Fiscal Year Ended June 30, 2022 6 Visitacion Valley Middle
School - Rooftop Solar
Project: Workers
taking baseline of
performance and
ensuring the system is
operating properly.
Reduce,
Reuse, Recycle
Annual Report for the Fiscal Year Ended June 30, 20227
The SFPUC’s high-tech wastewater treatment system
continues to serve thousands of San Franciscans every
day and keep pollutants out of our beautiful bay and
ocean. Knowing that water is too precious a resource to use just once, the agency’s wastewater division has
expanded infrastructure projects and grant programs to
build resiliency, improve our systems, and protect the
environment.
Promoting Environmental
Stewardship Through Grants
The Urban Watershed Stewardship Grant Program
continues to provide grants to community groups and
nonprofits creating sustainable stormwater management
projects in the public realm. Three grants were awarded in the fall 2021 cycle, investing $336,915 dollars towards green infrastructure projects in San Francisco
communities. This grant program continues to encourage
the planning and implementation of sustainable
stormwater projects built by the community for the
community. These projects provide sustainable
stormwater management solutions, increase urban
greening and biodiverse habitat, and showcase creative
environmental education opportunities around the city.
Since 2019, the Green Infrastructure Grant Program has
funded projects on large properties that successfully
reduce stormwater runoff and benefit the public. Project types can include permeable pavement, bioretention,
rainwater harvesting, rain gardens, and vegetated roofs.
To date the program has awarded 11 projects totaling
over $10 million in funding. The program was also
focused on implementing a variety of program updates to further improve participation and equity across a variety of different property types. Those updates were
completed in June 2022 in time for the new application
cycle this fall.
The Westside Recycled
Water Treatment Facility
at Oceanside Plant
On the west side of San Francisco, we are aiming to save up to 2 million gallons of drinking water per day from
non-potable purposes like irrigation. To achieve this, a new recycled water treatment facility is being constructed at our existing Oceanside Water Pollution Control Plant.
Secondary effluent from the Oceanside Plant will undergo an advanced treatment process using membrane
filtration, reverse osmosis, and ultraviolet light disinfection to produce recycled water at a level that will exceed state of California standards. The project will produce and
deliver up to 2 million gallons of recycled water per day.
The system will bring recycled water from the facility to Golden Gate Park, Lincoln Park Golf Course, and other
landscaped areas for irrigation. The system is expected to become fully operational in 2023.
Marina Landscape
Laborer installing plants
on roof garden at
Oceanside Wastewater
Treatment Plant.
Annual Report for the Fiscal Year Ended June 30, 2022 8 Serving
Our Diverse
Communities
Annual Report for the Fiscal Year Ended June 30, 20229
Grand Opening of the new
Southeast Community
Center (SECC) at 1550
Evans Avenue, a hub for the
local community to gather,
learn, play, and grow.
The last two fiscal years have seen many challenges as
well as a renewed commitment from the SFPUC to
address racial equity and long-time systemic barriers for communities of color. The agency has expanded staffing
and consultant resources to advance racial equity work, including several dedicated positions, short-term
consultant support, and a new long-term competitive
solicitation. Other key accomplishments include
implementing new strategies for diversity-based
recruitment for SFPUC jobs; developing a focused plan
to improve our data to track racial disparities by race, ethnicity, and other demographics; sustaining the
SFPUC employee Racial Equity Resource Library as a
resource for learning and action; and creating several
agency-wide working groups dedicated to issues like
equity in contracting and outreach.
The SFPUC will continue to make progress on its racial
equity priorities to demonstrate our commitment to
social change and the communities we serve. This
includes addressing barriers in recruitment and hiring, expanding employee and supervisor training, and
fostering an inclusive organizational culture that
centers on equity and pipelines for employee growth
and opportunity.
Opening of New Southeast
Community Center
In October, Mayor Breed and the SFPUC celebrated the
completion of the new Southeast Community Center at
1550 Evans Avenue. The 45,000-square-foot LEED Gold
Certified facility includes a childcare center, café, free wi-fi, public workspaces, and $1 million in culturally
celebratory art commissioned from local artists. The
campus includes two acres of open space, with an
amphitheater, gardens, outdoor dining areas, and play
spaces for children. Equipped with air quality monitors, the facility will be powered by rooftop solar panels and 100% greenhouse gas-free hydroelectricity sourced
from the SFPUC’s Hetch Hetchy Regional Power
System. As a Hetch Hetchy Power customer, the facility
will see ongoing operating savings.
The new center is designed to replace the Southeast
Community Facility, located at 1800 Oakdale Avenue,
which was constructed in partnership with the Bayview-
Hunters Point community to mitigate the environmental
and social impacts of the SFPUC’s Southeast Treatment
Plant’s expansion in the 1970s and 1980s.
The new community center was developed after an
extensive engagement process with Bayview residents,
who voiced strong support for building the new center at 1550 Evans Avenue. The center includes a large, state-
of-the-art special events space for meetings, events,
classes, family celebrations, and community fairs, along with a multi-purpose room, office, and co-working space for community non-profits.
Annual Report for the Fiscal Year Ended June 30, 2022 10
Single-Family Residential FY 2021-22
Monthly Usage (ccf).................... 5.01
Average Monthly . ...................... $136.55
Cost per Person/Day ................... $2.01
Total Cost per Gallon ................... $0.036
Total Combined Bill as % of San
Francisco Median Household Income .... 1.35%
Keeping Our Water
Rates Affordable
Credit Ratings............ 2022 2021 2020
Water
S t a n d a r d & P o o r ’ s ............AA- AA- AA- Moody’s Investors Service .... Aa2 Aa2 Aa3
Average Borrowing Rate*...... 3.29% 3.29% 3.48%
Power
F i t c h ........................ AA- AA- AA-
S t a n d a r d & P o o r ’ s ............ AA AA AA
Average Borrowing Rate*...... 2.87% 3.59% 3.49%
Sewer
S t a n d a r d & P o o r ’ s ............ AA AA AA
Moody’s Investors Service . . . . Aa2 Aa2 Aa2
Average Borrowing Rate*...... 2.94% 3.42% 3.42%
CleanPowerSF
Moody’s Investors Service . . . . A2 A2 N/A
The SFPUC’s high credit ratings help to reduce
borrowing costs.
*Average Borrowing Rate: Weighted average interest rate on outstanding bonds as of 6/30/22.
This award recognizes our commitment to increase
public awareness by providing an overview of our
financial condition. The financial information for this report is drawn from the audited financial statements
in the SFPUC’s Fiscal Year 2022 Annual
Comprehensive Financial Report (ACFR), using
the full accrual basis of accounting and providing
complete financial information and disclosures in
conformance with generally accepted accounting
principles (GAAP). PAFR is not audited and is
presented on a non-GAAP basis as note disclosures
have been excluded in the report. Our ACFR, which
provides complete financial information and
disclosures in conformance with GAAP, is available
online at sfpuc.org/about-us/reports.
The Comparative Consolidated Net Position provide
information about the nature and amount of resources
and obligations at a specific point in time. SFPUC
continued to reflect a strong and healthy financial
condition over the last several fiscal years. Investments in capital assets constituted 77% of our net position
and represented the amount by which the carrying value
of capital assets exceeds capital-related debt, which
comprises the outstanding balances of any bonds,
Financial
Performance
Since 2010, this report has won the prestigious
“Award for Outstanding Achievement in Popular
Annual Financial Reporting” from the
Government Finance Officers Association.
Calculation is based on the average monthly water usage Annual Report for the Fiscal Year Ended June 30, 202211 Government Finance Officers Association
Award for
Outstanding
Achievement in
Popular Annual
Financial Reporting
Presented to
City and County of San Francisco
Public Utilities Commission
California
For its Annual Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
commercial paper, notes, or other borrowings that
are attributable to the acquisition, construction, or
improvement of those assets. For FY2022, SFPUC
net position increased by 3% or $86 million as
compared to FY2021, mainly due to increase in
unrestricted and restricted for capital projects.
There are five components in the Statement of
Net Position, which is intended to present what
the entity owns (assets), owes (liabilities) and its
residual or net position.
1. A ssets are resources with present service
capacity that the government presently owns
or controls.
2. D eferred outflow of resources is a consumption
of net assets by the government that is
applicable to a future reporting period—for
example, amortization of refunding loss to future
periods.
3. L iabilities are present obligations to sacrifice
resources that the government has little or no
discretion to avoid, such as debts owed, and
represent claims against assets.
4. D eferred inflow of resources is an acquisition of
net assets by the government that is applicable
to a future reporting period—for example,
amortization of net difference in pension
projected verses actual earnings.
5. N et position is the residual of all other elements presented in a Statement of Net Position, i.e., the
residual interest in the items owned or controlled
after deducting debts. Over time, increases or
decreases in net position may serve as a useful
indicator of whether the financial position is
improving or worsening.
The Comparative Revenues and Expenses
reflected continued revenue growth. SFPUC
strives to achieve strong financial performance
and effectively controls its operating costs to not
exceed revenues.
Total revenues and contributions increased
by $105 million as compared to prior year. This
is mainly due to higher charges for services
attributed to an average rate increase of 8% for
Wastewater Enterprise and 16% for CleanPowerSF,
and reductions in allowance for doubtful accounts
due to assistance received from California Utility
Arrearages Relief Payment Program (CAPP) for
eligible customer account arrearages for all three
enterprises.
Total expenses increased by $52 million, as
compared to prior year. This was primarily due
to higher interest expense due to increased
outstanding bond principal balance and the
implementation of Governmental Accounting
Standards Board (GASB) 89, Accounting for
Interest Cost Incurred before the End of a
Construction Period, which eliminated the
capitalization on of interest to capital assets
beginning in fiscal year 2022.
Net transfers increased by $3 million is due to
reduced transfers in from the City related to
emergency projects and increase of transfer out to
Hetchy Water for various Mountain Tunnel projects.
Definitions
• Capital Assets: Include depreciable, amortizable,
non-amortizable and non-depreciable facilities
and buildings, improvement, machinery and
equipment, intangible assets, land and rights-of-
way as well as construction work in progress, net
of depreciation and amortization.
• Current and Other Assets: Assets easily
converted to cash or consumed within one year:
cash, investments, receivables, and prepaid
expenses.
• Long-term Debt Outstanding: Payments due
on debt that are more than 12 months in the
future.
• Current Liabilities: Payments due on obligations
owed by SFPUC within the next 12 months.
• Net Position: Net difference between assets and
deferred outflows of resources, and liabilities and
deferred inflows of resources.
• Change in Net Position: The total of net income
(loss), net of transfers, and cumulative effect of
accounting change.
• Depreciation and Amortization Expense:
Depreciation spreads out the cost of a tangible
asset over its useful life, and amortization is the
deduction of intangible assets over a specified
time period; typically the life of an asset.
Annual Report for the Fiscal Year Ended June 30, 2022 12 A Closer Look at
the Numbers
Definitions continued
• Income (Loss): The difference between total
revenues less total expenses.
• Non-operating Revenues and Expenses:
Revenues and expenses that are incidental
to SFPUC’s main purpose and derived
from activities not directly related to
SFPUC’s operations such as: license fees
and penalties, interest earnings and costs
associated with debt.
• Operating Expenses: Expenses incurred
in the provision of water, sewer, and power
services
• Operating Revenues: Revenues for the
sale of water, sewer, and power services
to customers, services, inspections, and
programs provided by SFPUC.
• Transfers in: Funds recovered from other city
departments to support various programs
and projects.
• Transfers out: Funds provided to other city
departments to support various programs
and projects.
SFPUC 2022
By the Numbers
M i l e s ....... 1,719 miles of water mains,
1,131 miles of collection system pipes
Millions of
gallons (MG) . . .
266,881 MG water reservoir storage,
68,271 MG water production,
66,005 MG water consumption
Millions of gallons
per day (MGD) . . .
181.8 MGD water consumption,
68.8 MGD sewer treatment
San Francisco
P o p u l a t i o n .....
804,534
San Francisco
Personal Income
p e r C a p i t a ..... $170,483
SFPUC
W e b s i t e .....
sfpuc.org
SFPUC Assets (DOLLARS IN MILLIONS)
Fiscal Year FY2022 Restated
FY2021^
2022-21
$ Change
C a s h & I n v e s t m e n t s.......$ 1,225 1,287 (62) Charges for Services Receivables
(net of allowance for doubtful
accounts)
162 137 25
C a p i t a l A s s e t s ............. 10,451 9,864 587 O t h e r s.................... 534 192 342
T o t a l A s s e t s............. $ 12,372 11,480 892 ^Restated due to the implementation of GASB Statement No. 87, Leases.
SFPUC assets increased by $892 million or 8%,
mainly due to $587 million additional construction
and capital improvements, $25 million higher
receivables related to charges for services and $342
million increase in receivables from other government
entities and interest income offset by a decrease of
$62 million in cash and investments mainly due higher
capital spending and power purchases attributed to
volatile and increased pricing in power market.
SFPUC Liabilities
(DOLLARS IN MILLIONS)
Fiscal Year FY2022 Restated
FY2021^
2022-21
$ Change
Certificates of Participation . $ 134 138 (4)
C o m m e r c i a l P a p e r s ....... 625 859 (234)
B o n d s .................. 6,987 6,631 356
N o t e s .................. 350 — 350
State Revolving Fund Loans . 424 216 208
O t h e r s .................. 783 1,134 (351)
T o t a l L i a b i l i t i e s .........$ 9,303 8,978 325 ^Restated due to the implementation of GASB Statement No. 87, Leases.
SFPUC liabilities increased by $325 million or 4%. The
increases included $676 million in outstanding debts
due to bonds and State revolving fund loans
issuances, offset by a decrease of $351 million in
other liabilities mainly related to net pension liabilities.
Annual Report for the Fiscal Year Ended June 30, 202213 Financials at a Glance
Definitions
SFPUC By the Numbers (DOLLARS IN MILLIONS, UNLESS OTHERWISE STATED) Water Wastewater Hetchy Water Hetchy Power CleanPowerSF SFPUC Standard & Poor’s Bond Rating . . . . . AA- AA N/A AA N/A N/A M o o d y ’ s I n v e s t o r s S e rv i c e .......... Aa2 Aa2 N/A N/A A2 N/A F i t c h ............................. N/A N/A N/A AA- N/A N/A Current Ratio ...................... 1.10 times 0.95 times 5.50 times 2.36 times 4.04 times 1.25 times Debt Ratio ........................ 88.7% 69.0% 11.0% 37.7% 31.0% 75.2% D e b t S e r v i c e C o v e r a g e ............. 1.47 3.59 N/A 38.45 N/A N/A Total Assets1....................... $ 6,411.4 4,674.8 310.8 846.2 129.8 12,372.3 D e f e r r e d O u t f l o w s o f R e s o u r c e s .....$ 224.7 38.3 10.0 12.2 1.7 286.9 Total Liabilities1..................... $ 5,684.1 3,227.1 34.3 318.7 40.2 9,303.8 Deferred Inflows of Resources. . . . . . . $ 318.6 123.3 37.2 45.5 7.0 531.6 Net Position ....................... $ 633.4 1,362.7 249.2 494.2 84.3 2,823.8 1 SFPUC total included elimination entries of $0.7 interfund payable and receivables between Wastewater and Hetchy Power.
N u m b e r o f C u s t o m e r A c c o u n t s ......177,072 175,171 5 5,110 381,355 738,713 C a p i t a l B u d g e t ..................... $ 212.7 408.3 122.8 43.2 2.4 789.4 Adopted Annual Operating Budget. . . $ 633.6 404.5 90.1 128.7 226.5 1,483.4 Credit ratings and debt service coverage are only applicable to outstanding debt.
SFPUC Liabilities (DOLLARS IN MILLIONS)
Fiscal Year FY2022 Restated
FY2021^
2022-21
$ Change
Certificates of Participation . $ 134 138 (4)
C o m m e r c i a l P a p e r s ....... 625 859 (234)
B o n d s .................. 6,987 6,631 356
N o t e s .................. 350 — 350
State Revolving Fund Loans . 424 216 208
O t h e r s .................. 783 1,134 (351)
T o t a l L i a b i l i t i e s .........$ 9,303 8,978 325 ^Restated due to the implementation of GASB Statement No. 87, Leases.
Annual Report for the Fiscal Year Ended June 30, 2022 14 • Current Ratio measures the enterprise’s ability
to pay short-term obligations with its current
assets. It is defined as current assets divided
by current liabilities.
• Debt Ratio measures how much of the
enterprise’s assets are financed by debt.
It is defined as total liabilities divided by
total assets.
• Debt Service Coverage measures the
enterprise’s ability to meet both legal and policy-
driven revenue obligations associated with
debt. To ensure that the SFPUC retains financial
flexibility for contingencies, it has adopted and
implemented financial policies that impose
higher standards than the bond indenture
minimum debt service coverage requirements
of 1.00x (current) and 1.25x (indenture).
Five-Year Comparative
Consolidated Net Position
(DOLLARS IN MILLIONS)
2022
$1,922
$1,238$10,450
$8,065
$287 $532
$12,659
Total assets & deferred
outflows of resources
$9,835
Total liabilities & deferred
inflows of resources
$2,824
Total net position
Current & other assets
Capital assets net of accumulated
depreciation and amortization
Deferred outflows of resources
Current liabilities
Long-term liabilities
Deferred inflows of resources
Net position
$1,616
$94
$9,864
$330
$1,387
$7,591
$11, 810 $9,072 $2,738
2021
$1,818
$80
$8,661
$257
$920
$7,278
$10,736 $8,278 $2,458
2019
$26$274
$9,802 $7, 531 $2,271
$1,294
$8,234
$707
$6,798
2018
Annual Report for the Fiscal Year Ended June 30, 202215 $1,616
$82
$9,199
$303
$1,106
$7,228
$11,118 $8,416 $2,702
2020
$1,173
$927
$201
$24
$4
$84
$25
$14
$47
2019
$1,343 $1,156
2018
$990
$807
$173
$59
$4
$84
$30
$14
$12
$1,13 0 $1,043
$1,442
Total Expenses
& Transfers Out
Five-Year Comparative
Revenues and Expenses
(DOLLARS IN MILLIONS)
$1,376
$118 $279
$45 $31
$15 $2
($26)
$1,130
Revenues, Transfers in &
Capital Contributions
Charges for services
Interest and investment (loss) income
Rents & concessions
Transfers in and capital contribution
Others
Expenses & Transfers out
Operating expenses
Non-operating expenses
Transfers out
Interest expenses, amortization of
premium, discount, refunding loss
& issuance costs
2022
$1,528
Total Revenues,
Transfer In &
Capital Contribution
$1,259
$1,150
$205
$21
$4
$100
$42
$15
$0
2021
$1,416 $1,380
Annual Report for the Fiscal Year Ended June 30, 2022 16 $1,303
$1,049
$214
$16
$2
$162
$15
$13
$32
2020
$1,525 $1,281
San Francisco Public Utilities Commission
A Department of the City and County of
San Francisco, California
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.
Our Mission
Photos by: Bill Spears, Friends of the Urban Forest,
Katherine Du Tiel, NextEra Energy Resources,
Reggie Walters, Robin Scheswohl, Sabrina Wong
Date of Publication: Feburary 2023
SFPUC Financial Services
525 Golden Gate Avenue, 4th Floor
San Francisco, CA 94102-3220
sfpuc.org