SFPUC
FY 2023-24 2nd Quarter Budget Report
Laura Busch
Deputy CFO
March 26, 2023
2 • Positive operating results projected for Wastewater, Power, CleanPowerSF and a shortfall for Water.
• Water and Wastewater: revenues are projected to be below budget, mainly due to removal of the drought surcharge, offset by revenues from state grant funding for arrearages and discount programs. • Power: revenues are projected to exceed the budget due to higher wholesale sales and generation. Large savings are also projected for power purchases due to higher generation. Additionally, there are savings from distribution costs due to calculation errors made by PG&E discovered by Power staff, and savings from transmission costs. • CleanPowerSF: revenues are projected to exceed budget due to increased wholesale sales, offset by slightly lower retail sales. In addition, power prices have lowered since quarter one resulting in a slight surplus in the power purchase budget.
• Year-end financial results projected to meet or exceed policy targets.
FY 2023-24 Q2 Report Summary
3 • Net operating result: ($14.9M)
• Total sources down ($18.0M), and $3.1M in cost savings Sources
• ($21.2M) or -6.1% retail revenues
• $2.0M or 3.9% non-operating revenues
• $1.2M or 0.4% wholesale revenues
Uses
• ($9.7M) or 100% legal settlements
• $0.6M or -0.5% salaries and benefits
• $5.9M or -100% general reserve planned to go unspent
• $6.2M or -1.9% debt service (savings from 2023CD refunding bonds)
FY 2023-24 Water Budgetary Variances
4 • Net operating result: $10.0M
• Total sources down ($20.4M), and $30.4M in cost savings Sources
• ($24.4M) or -5.9% sewer service charges
• $4.0M or 45.5% non-operating revenues
Uses
• ($0.6M) or 0.6% debt service
• $3.2M or -3.7% salaries and benefits
• $27.8M or -100% general reserve planned to go unspent FY 2023-24 Wastewater Budgetary
Variances
5 • Net operating result: $63.3M
• Total sources up $10.3M and $53.1M in cost savings
Sources
• ($3.8M) or -15.4% gas & steam sales
• $0.3M or 0.2% retail sales
• $9.8M or 30.9% wholesale sales
• $3.9M or 72.0% non-operating revenues
Uses
• $52.8M or -33.0% power and gas & steam costs
• $0.3M or -0.5% salaries and benefits
FY 2023-24 Power Budgetary
Variances
6 • Net operating result: $46.0M
• Total sources up $9.9M and $36.1M in cost savings
Sources
• $8.2M or 2.2% power sales
• $1.7M or 282.2% interest income
Uses
• $0.9M or -10.8% salaries and benefits
• $2.5M or -0.8% purchase of power
• $32.7M or -100% general reserve planned to go unspent FY 2023-24 CleanPowerSF Budgetary
Variances
7 Key Financial Ratios
Fund Balance Reserve
Water Waste
Water
Hetchy Clean
Power
SF
• 25%-68% of Annual
Operating Uses
53.8% 69.0% 85.7% 37.9%*
Debt Service Coverage
Reserve
• Indenture Basis ≥ 1.35x 1.6 3.5 66.6
• Current Basis ≥ 1.10x 1.1 2.1 28.8
* CleanPowerSF’s SFPUC's Fund Balance Reserve Policy requires it to build its fund balance reserve to a minimum of 41% (150 days) and a target of 49% (180 days) of operating expenditures within three fiscal years (June 30, 2025) of Fiscal Year Ending 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 415.554.3155
F 415.554.3161
TTY 415.554.3488
Date: March 26, 2024
To: Commissioner Tim Paulson, President
Commissioner Anthony Rivera, Vice President
Commissioner Newsha K. Ajami
Commissioner Sophie Maxwell
Commissioner Kate H. Stacy
Through: Dennis J. Herrera, General Manager
From: Nancy L. Hom, Chief Financial Officer and Assistant General Manager, Business Services
Subject: SFPUC FY 2023-24 Second Quarter Budgetary Report through December 2023
The FY 2023-24 second 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 2023-24 Operations
Projected
Year End
Available
Fund
Balance
Projected
Sources
Projected
Uses
(excluding
Capital)
Net
Operating
Results
Surplus /
(Shortfall)
Mid-year
Adjustments
to Fund
Balance
Water 211.4 - (18.0) 12.8 (5.2) (9.7 ) 196.5
Wastewater 155.7 - (20.4) 30.4 10.0 - 165.7
Power 179.3 (35.4) 10.3 53.1 63. 3 - 207.2
CleanPowerSF 90.1 - 9.9 36.1 46.0 - 136.1
Summary:
• Positive year end operating results projected for Wastewater, Power, CleanPowerSF and a shortfall for Water.
• Water: Retail revenues are projected to be below budget. The FY2023-24 budget was adopted assuming the 5% drought
surcharge would remain in effect. It was removed May of 2023.
The surcharge accounted for approximately $14.1 million in revenue. This is offset by $6 million in state grant funding for arrearages and discount programs from the pandemic, a slight surplus from wholesale sales, lower labor costs due to vacant
positions, savings from debt refunding and a general reserve which was budgeted to go unspent.
Additionally, fund balance is projected to be reduced by $9.7M due to legal settlements. Such settlements can be paid from fund balance per Appropriation Ordinance No. 165-20 (section 10.10). • Wastewater: Similar to Water, revenues are projected to be below budget. The FY 2023-24 budget was adopted assuming the 5% drought surcharge would remain in effect. The surcharge accounted for approximately $18.8 million. Additionally, multiple stormwater-only parcels currently have no existing service agreements and remain uncollected. This is offset by $9 million in state grant funding for arrearages and discount programs from the pandemic, lower labor costs due to vacant positions and a general reserve that was budgeted to go unspent.
• Power: Overall projected yearend results are higher than budget. o Wholesale revenues are projected to exceed the budget due to higher sales from resource adequacy combined with higher generation.
o On the expense side, large savings are projected for power purchases due to higher generation, avoiding $15M in
additional power purchases. Also, $12M in savings from distribution costs resulting from PG&E's error in
calculations discovered by Power staff, $4M in savings
from transmission and related CAISO costs, and $3M in
savings from resource adequacy. The remaining savings
are a result of budgeted contingency projected to be
unspent.
o P rojections include the 100-day planned shutdown of
Mountain Tunnel.
• CleanPowerSF: Revenues are projected to exceed budget due to higher wholesale sales, offset by slightly lower retail sales due to final rates being set lower vs. the budget. In addition, power prices have lowered since quarter one resulting in a slight surplus in the power purchase budget, along with general reserve which was budgeted to go unspent.
• All enterprises are projected to meet financial policy minimums and coverage ratios at year end.
If you have questions, please contact me at [email protected].
cc:
Ronald Flynn, Deputy GM, SFPUC
Barbara Hale, AGM, Power Enterprise, SFPUC
Joel Prather, AGM, Wastewater Enterprise, SFPUC
Steve Ritchie, AGM, Water Enterprise, SFPUC
Stephen Robinson, AGM, Infrastructure, SFPUC
Wendy Macy, Chief People Officer, SFPUC
Masood Ordikhani, AGM, External Affairs, SFPUC
Laura Busch, Deputy Chief Financial Officer, SFPUC
Anna Duning, Budget Director, Mayor’s Office
Greg Wagner, Controller
Attachments:
Appendix A Water Enterprise
Appendix B Wastewater Enterprise
Appendix C Hetch Hetchy Water & Power, including the Power Enterprise
Appendix D CleanPowerSF
FY 2022-23
Actuals Original Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Retail Water Sales 310.3 346.7 347.1 325.9 (21.2) A Wholesale Water Sales 253.5 318.2 318.2 319.3 1.2 B Interest Income 6.8 1.1 1.1 3.7 2.6 C Rental Income 13.7 13.6 13.6 13.6 - Miscellaneous Income 26.8 17.0 17.0 14.5 (2.5) D Departmental Transfer Adjustment - (46.3) (46.3) (46.3) - Federal Bond Interest Subsidy 21.3 20.8 20.8 22.8 1.9 E Appropriated/Budgeted Use of Fund Balance - - 79.5 79.5 - Total Sources 632.3 671.2 751.0 733.1 (18.0) Operating Uses
Personnel 105.7 114.9 114.6 114.0 0.6 F Non-Personnel Services 20.9 21.2 34.9 34.9 - Materials and Supplies 20.4 19.1 23.1 23.1 - Equipment 3.2 2.6 8.4 8.4 - Overhead (SFPUC Bureaus) 55.1 66.1 77.2 77.2 - Services of Other Departments 25.6 27.6 29.5 29.5 - Debt Service 306.6 333.7 333.7 327.4 6.2 G General Reserve - 5.9 5.9 - 5.9 H Total Operating Uses 537.4 591.2 627.3 614.6 12.8 Net Operating Results 94.9 118.5 (5.2) Other Impacts to Operating Budget FY 2022-23
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Capital Projects 57.8 45.6 191.2 191.2 - Facilities Maintenance/Programmatic 31.7 34.4 77.8 77.8 - Legal Settlements - - - 9.7 (9.7) I Total Adjustments to Operating Fund Balance $ 89.4 $ 79.9 $ 269.0 $ 278.7 $ (9.7) Available Fund Balance as of Fiscal Year-End $ 211.4 $ 196.5 Available Fund Balance, % of Operating Uses (J) 25-68% 80.5% 53.8% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 1.53 1.79 1.57 Current Basis (L) ≥ 1.10 1.22 1.16 1.11 FY 2023-24
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2023-24 2nd Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 25990, 26570, 26600 & 26603 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2023-24 2nd Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 25990, 26570, 26600 & 26603 ($ Millions)
Revenue Variances
E. Includes federal subsidy on 525 Golden Gate COPs.
I. $9.7M in expected in legal settlements.
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. The FY 2023-24 budget was adopted assuming the 5% drought surcharge would remain in effect. The surcharge accounted for approximately $14.1 million in revenues. Retail sales projected at 52.6 MGD, a 4.7% decrease from budgeted volumes of 55.2 MGD. Includes $6 million in state grant funding for arrearages and discount programs during pandemic.
B. The FY 2023-24 wholesale budget was adopted assuming higher volumetric rate of $5.30. The adopted rate was subsequently set at $5.21, or 1.7% lower, due to higher water sale projections due to the end of drought restrictions. This decrease is of
fset by projected wholesale sales of 124.6 MGD, 2.2% higher than budgeted assumption of 121.9 MGD.
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.
C. Assumed interest rate of 1.5% is higher than budget of 0.5%.
D. Miscellaneous income lower than budget due to lower water service installation charges and reduced fees during collections moratorium.
G. Debt Service variance due to the issuance of 2023CD refunding bonds and delay of interest payment for the Mt Tunnel SRF loan.
Other Notes
H. $5.9M in general reserve due to higher sources than uses.
FY 2022-23
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Sewer Service Charges 360.8 415.4 415.8 391.3 (24.4) A Interest Income 7.6 1.7 1.7 5.3 3.7 B Miscellaneous Income 7.9 3.8 3.8 3.7 (0.1) C Federal Bond Interest Subsidy 3.5 3.4 3.4 3.9 0.5 D Appropriated/Budgeted Use of Fund Balance - 26.4 26.4 - Total Sources 379.8 424.2 451.0 430.6 (20.4) Operating Uses
Personnel 76.1 87.6 87.6 84.4 3.2 E Non-Personnel Services 25.5 28.0 33.2 33.2 - Materials and Supplies 14.1 13.2 14.4 14.4 - Equipment 1.4 2.0 7.7 7.7 - Overhead (SFPUC Bureaus) 32.9 39.0 45.8 45.8 - Services of Other Departments 38.4 38.8 41.1 41.1 - Debt Service 98.6 98.0 98.0 98.6 (0.6) F General Reserve 27.8 27.8 - 27.8 G Total Operating Uses 287.1 334.5 355.6 325.2 30.4 Net Operating Results 92.7 105.4 $ 10.0 Other Impacts to Operating Budget FY 2022-23
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Capital Projects 71.6 81.3 263.2 263.2 - Facilities Maintenance/Programmatic 7.2 8.4 13.6 13.6 - Total Adjustments to Operating Fund Balance $ 78.8 $ 89.7 $ 276.8 $ 276.8 $ - Available Fund Balance as of Fiscal Year-End $ 155.7 $ 165.7 Available Fund Balance, % of Operating Uses (H) 25-68% 79.6% 69.0% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (I) ≥ 1.35 3.09 3.50 3.47 Current Basis (J) ≥ 1.10 2.01 1.89 2.11 Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2023-24 2nd Quarter - Budgetary Basis, Funds 20160, 20170 & 20550 ($ Millions)
FY 2023-24
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2023-24 2nd Quarter - Budgetary Basis, Funds 20160, 20170 & 20550 ($ Millions)
Revenue Variances
Expenditure Variances
Other Notes
H. 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%.
I. 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. The FY 2023-24 budget was adopted assuming the 5% drought surcharge would remain in effect. The surcharge accounted for approximately $18.8 million in revenues. In addition, some stormwater-only parcels have not yet been billed pending confirmation of responsible account holders. Billable volumes projected at 43.4 MGD, a 1.8% decrease from budgeted volumes of 44.2 MGD. Includes $9 million in state grant funding for arrearages and discount programs during the pandemic.
J. 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. $27.8M in general reserve due to higher sources than uses.
B. Assumed interest rate of 1.5% is higher than budget of 0.5%.
E. Salary savings reflect vacant positions.
F. Debt service variance mainly due the issuance of the 2023C refunding of 2018C, offset partially by refunding savings from the issuance of the 2023B refunding bonds.
D. Includes federal subsidy on 525 Golden Gate COPs, which was not budgeted.
C. Miscellaneous income lower than budget due to lower permit fees and reduced fees during collections moratorium.
FY 2022-23
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised
Budget)
Sources
Electric Sales - Retail 159.6 169.1 175.8 176.1 0.3 A Electric Sales - Wholesale 48.8 31.7 31.7 41.5 9.8 B Water Sales - Transfer from Water Department 49.6 46.3 46.3 46.3 - Natural Gas & Steam - City Work Orders 24.6 24.7 24.7 20.9 (3.8) C Interest Income 5.6 1.1 1.1 3.9 2.8 D Federal Interest Subsidy - Power Bonds 0.2 0.4 0.4 0.4 - Miscellaneous Income 4.8 4.0 4.0 5.2 1.2 E Appropriated/Budgeted Use of Fund Balance 40.5 35.4 82.2 82.2 - Total Sources 333.7 312.7 366.1 376.4 10.3 Operating Uses
Personnel 50.6 54.5 54.5 54.2 0.3 F Non-Personnel Services 36.1 43.8 71.4 71.4 - Power Purchases, Transmission Distribution & Related Charges 77.9 127.0 135.1 86.2 49.0 G Natural Gas & Steam 24.6 24.7 24.7 20.9 3.8 H Materials and Supplies 3.8 3.5 3.8 3.8 - Equipment 1.2 2.6 8.5 8.5 - Overhead (SFPUC Bureaus) 21.2 25.0 29.0 29.0 - Services of Other Departments 8.8 8.6 9.1 9.1 - Debt Service 3.5 3.8 3.8 3.8 - General Reserve - - - - - Total Operating Uses 227.8 293.4 339.9 286.9 53.1 Net Operating Results 105.9 89.5 63.3 Other Impacts to Operating Budget FY 2022-23
Actuals
Current Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Legal Settlments - - 1.9 1.9 - Facilities Maintenance/Programmatic 15.2 14.3 19.2 19.2 - Capital projects 13.5 5.0 76.0 76.0 - Total Adjustments to Operating Fund Balance 28.7 19.3 97.1 97.1 - Available Fund Balance as of Fiscal Year-End 179.3 207.2 Available Fund Balance, % of Operating Uses (I) 25-68% 74.9% 85.7% Debt Service Coverage… Year-End Budgetary Basis
Indenture Basis (includes Available Fund Balance) (J) ≥ 1.35 56.46 59.39 66.62 Current Basis (K) ≥ 1.10 18.97 3.34 28.77 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2023-24 2nd Quarter - Budgetary Basis - 24970, 24980, 24990 ($ Millions)
FY 2023-24
Revenue Variances
Expenditure Variances
Other Notes
G. Savings are due to a favorable 2023 water year, avoiding $15M in additional power purchases, $12M in savings from Distribution costs resulting from PG&E's error in calculations discovered by Power staff, $4M in savings from Transmission and related CAISO costs, and $3M in savings for Resource Adequacy. The remaining savings are a result of budgeted contingency projected to be unspent.
B. Wholesale sales are higher than budget mainly due to higher attribute and resource adequacy sales, and slightly higher sales to the power market due to higher generation.
C. Gas and steam sales below budget due to lower usage. Revenue reduction is offset by equivalent cost savings.
F. Salary savings due to vacant positions.
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, Natural Gas and Steam and Treasure Island), and (b) Debt Service. SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of
1.10 times.
J. Calculated as 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, Natural Gas and Steam and Treasure Island), 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.
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%.
H. Gas and steam sales below budget due to lower usage. Revenue reduction is offset by equivalent cost savings.
E. Miscellaneous income projected to exceed budget primarily due to Distributed Antenna System admin fees not budgeted.
D. Interest income forecasted to increase from budget due to higher interest rate than assumed.
A. Retail sales are slightly above budget.
FY 2022-23
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs Revised
Budget)
Operating Sources
Electric Sales - Green Product 299.7 338.4 338.4 330.5 (7.9) Electric Sales - SuperGreen Product 25.6 28.9 28.9 35.0 6.0 Wholesale Sales 3.6 1.6 1.6 11.6 10.1 Subtotal - Electric Revenues 329.0 368.9 368.9 377.1 8.2 A Interest Income 1.7 0.6 0.6 2.4 1.7 B Miscellaneous Income 0.0 - - - - Appropriated/Budgeted Use of Fund Balance 16.8 - 26.4 26.4 - Total Sources 347.4 369.6 396.0 405.9 9.9 Operating Uses
Personnel 5.0 8.1 8.1 7.2 0.9 C Overhead 5.1 6.1 6.7 6.7 - Non Personnel Services 10.7 12.0 12.9 12.9 - Materials & Supplies 0.0 0.2 0.2 0.2 - Power Purchases, Transmission Distribution & Related Charges 264.3 305.3 323.6 321.2 2.5 D Services of Other Departments 3.5 4.2 5.1 5.1 - Debt Service - - - - - General Reserve - 32.7 32.7 - 32.7 E Total Operating Uses 288.7 368.6 389.4 353.3 36.1 Net Operating Results 58.7 52.6 46.0 Other Impacts to Operating Budget FY 2022-23
Actuals
Current Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Programmatic 0.8 0.2 5.8 5.8 - Capital Projects 1.5 0.8 5.3 5.3 - Total Adjustments to Operating Fund Balance 2.3 0.9 11.1 11.1 - Available Fund Balance as of Fiscal Year-End 90.1 136.1 F Available Fund Balance, % of Operating Uses (G) % 31.1% 37.9% Revenue Variances
Expenditure Variances
Other Notes
G. Calculated as Ending Available Fund Balance as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. Per SFPUC's Fund Balance Reserve Policy adopted in April 2022, CleanPowerSF is required to build its fund balance reserve to a minimum of 41% (150 days) and a target of 49% (180 days) of operating expenditures within three fiscal years (June 30, 2025) of Fiscal Year Ending 2022.
D. Power Purchases variance driven by lower wholesale energy costs partially offset by increasing renewable and resource adequacy market costs.
Appendix D
CleanPowerSF
FY 2023-24 2nd Quarter - Budgetary Basis - 24750, 24761, 24762, 24765 & 24870 ($ Millions)
FY 2023-24
A. Retail revenues are driven lower by final rates being slightly lower than budgeted rates, offset by higher wholesale revenues.
B. Interest income forecasted to increase from budget due to higher interest rate than assumed, as well as interest earnings from APX collateral.
C. Salary savings due to vacant positions.
F. 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, v
ariances 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. General Reserve was intentionally budgeted and planned to go unspent to build reserves.