Services of the San Francisco Public Utilities Commission FY 2024-25 and FY 2025-26
Biennial Budget and 10 Year Capital Plan
Introduction and priorities
September 26, 2023
1 Agenda
1. Budget Overview
2. Priorities
3. Policies
4. Schedule
2 Operating Budget Overview
3 • FY 2023-24 operating
budget is $1.8 Billion
• Almost all rate-funded
• 2,745 FTE
• Growth in operating
budget driven by capital
and power purchase
Water
38%
Wastewater
24%
CleanPowerSF
21%
Hetchy Power
12%
Hetchy Water
5%
Capital Budget Overview
4 • Capital plan is PUC’s
biggest cost driver
• $8.8 Billion FY 2023-
24 to 33 Capital Plan
• Anticipate growth in
this plan for this next
iteration, trade off
with future rate
increases
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY 23-
24 FY 24-
25 FY 25-
26 FY 26-
27 FY 27-
28 FY 28-
29 FY 29-
30 FY 30-
31 FY 31-
32 FY 32-
33 Water Wastewater Hetchy Water Hetchy Power CleanPowerSF Priorities for this budget
5 Affordability
New proposed rate
affordability policy for Water
and Wastewater (forthcoming
for consideration)
Efficient capital planning
Responsible
Management
Financial sustainability
Workforce: Reducing
vacancies, increasing retention
Racial Equity
Transparency
Responsible management of
our system, maintenance
Investing
Where it
Matters
Capital Investment and
economic recovery, jobs
Replacing aging infrastructure
Meeting new customer
demands
Environmental stewardship
Resilience and climate change
Budget Policies
Goal: between now and February develop and adopt a balanced 2- year (Biennial) fixed operating and capital budget, 10-year capital plan and 10-year financial plan that meet the Commission’s budget policies Relevant Policies
• Affordability policy (forthcoming proposal)
• Ratepayer Assurance Policy
• Financial and Debt policies
• Debt Coverage
• Reserves
• Technology Policy
• Asset Management Policy
• Racial Justice Resolution
6 Budget Schedule
7 Date Presentation
TODAY Budget overview, process and priorities
October – December 2023 Staff level budget deliberations January 22, 2024 Special budget hearing 1
January 26, 2024 Special budget hearing 2
January 29, 2024 Special budget hearing 3
February 2, 2024 Special budget hearing 4 (if needed)
February 13, 2024 Commission adopts:
• 2-Year Operating Budget
• 2-Year Capital Budget
• 10-Year Capital Plans
• 10-Year Financial Plans
March - June, 2024 • Mayor and Board phases of the budget Thank you!
8