SFPUC
FY 2023-24 4th Quarter Budget Report
Laura Busch
Deputy CFO
September 24, 2024
2 • Positive operating results projected for Wastewater, Power, CleanPowerSF and a small shortfall for Water.
• Water and Wastewater: Revenues are below budget due to removal of the drought surcharge, from lower usage due to a longer wet season and a delay in billing certain customers due to meter issues. This is offset by revenues from state grant funding for arrearages and discount programs. Additionally, both enterprises have projected expenditure savings.
• Power: Revenues exceeded the budget due to higher wholesale sales and generation. There are also large savings in power purchases due to higher generation, savings from distribution costs due to calculation errors made by PG&E, and savings from transmission costs.
• CleanPowerSF: Retail sales are slightly lower than the budget due to final rates being set lower than budget and lower demand since quarter three. This is offset by slightly higher wholesale sales and lower power prices, resulting in a larger surplus in the power purchase budget.
• Year-end financial results projected to meet or exceed policy targets. Finance will be reviewing and updating SFPUC’s key financial policies during FY 2024-
25. FY 2023-24 Q4 Report Summary
3 • Net operating result: ($3.6M)
• Total sources down ($24.4M), and $20.8M in cost savings • Programmatic Savings & Legal Settlements ($8.4M)
• Net impact on fund balance: ($12.0M)
Sources
• ($25.0M) or -7.2% retail revenues
• ($5.2M) or -1.6% wholesale revenues
• $5.9M or 11.1% non-operating revenues
Uses
• $6.2M or -1.9% debt service
• $4.0M or -5.2% bureau overhead
• $2.3M or -2.0% salaries and benefits
• $2.3M or -2.4% non-personnel costs
• $5.9M or -100% general reserve planned to go unspent
FY 2023-24 Water Budgetary Variances
4 • Net operating result: $20.9M
• Total sources down ($21.3M), and $42.2M in cost savings Sources
• ($30.4M) or -7.3% sewer service charges
• $9.1M or 102.6% non-operating revenues
Uses
• $6.9M or -7.9% salaries and benefits
• $2.9M or -3.0% debt service
• $2.5M or -2.6% non-personnel costs
• $2.1M or -4.6% bureau overhead
• $27.8M or -100% general reserve planned to go unspent FY 2023-24 Wastewater Budgetary
Variances
5 • Net operating result: $72.4M
• Total sources up $15.1M and $57.3M in cost savings
• Project closeouts $6.9M
• Net impact on fund balance: +$79.3M
Sources
• ($7.3M) or -29.6% gas & steam sales
• ($4.1M) or -2.3% retail sales
• $9.6M or 175.3% non-operating revenues
• $16.9M or 53.2% wholesale sales
Uses
• $56.3M or -35.2% power and gas & steam costs
• $1.0M or -3.4% bureau overhead
FY 2023-24 Power Budgetary
Variances
6 • Net operating result: $52.8M
• Total sources down ($6.6M) and $59.3M in cost savings Sources
• ($8.3M) or -2.2% power sales
• $1.7M or 277.9% interest income
Uses
• $22.9M or -7.1% purchase of power
• $2.0M or -15.5% non-personnel costs
• $1.7M or -20.8% salaries and benefits
• $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
56.0% 76.2% 93.7% 42.5%*
Debt Service Coverage
Reserve
• Indenture Basis ≥ 1.35x 1.58 3.55 69.87
• Current Basis ≥ 1.10x 1.12 2.14 32.02
* 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: September 24, 2024
To: Commissioner Tim Paulson, President
Commissioner Anthony Rivera, Vice President
Commissioner Newsha K. Ajami
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 Fourth Quarter Budgetary Report through June 2024
The FY 2023-24 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 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 - (24.4) 20.8 ( 3.6) (8.4) 199.4
Wastewater 155.7 - (21.3) 42.2 20.9 - 176.6
Power 179.3 (35.4) 15.1 57.3 72. 4 6.9 223.2
CleanPowerSF 90.1 - (6.6) 59.3 52.8 - 142.9
Summary:
• Positive year end operating results projected for Wastewater, Power, CleanPowerSF and a negative for Water.
• Water & Wastewater sources:
o Overall year end revenues are down due to
L ower volumes due to a longer wet season;
Removal of the drought surcharge. 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 for Water
and $18.8 million for Wastewater; and
Delayed billing for certain customers. There was a
delay in the procurement of meter replacement
parts, resulting in a number of accounts not being
billed dating back to Fall 2023. SFPUC is in the
process of recovering the un-transmitted data from
the affected meters. However, due to the lead time
needed to replace meter parts and calculate the
back bills owed, there is approximately $6.6 million
in delayed revenues for Water and approximately
$6.6 million for Wastewater. These revenues will be
accrued for FY 2023-24, as billing will resume, and
revenues will be collected in FY 2024-25.
o This is offset by state grant funding for arrearages and discount programs from the pandemic: $8.2 million for
Water and $11.6 million for Wastewater.
• Water uses: fund balance was reduced by $9.8M due to legal settlements. Such settlements can be paid from fund balance per Appropriation Ordinance No. 165-20 (section 10.10). This is offset by savings in labor costs due to vacant positions, debt service, programmatic closeouts and savings in the Bureau overhead costs as well as general reserve that was budgeted to go unspent.
• Wastewater uses: savings in labor costs due to vacant positions, debt service, Bureau overhead savings and a general reserve that was budgeted to go unspent.
• Power: Overall year-end results are significantly positive vs budget.
o Wholesale revenues are projected to exceed the budget due to higher sales from resource adequacy combined with higher generation. This is offset by slightly lower retail revenues and lower gas and steam sales.
o On the uses side, large savings are projected for power purchases due to higher generation, avoiding $18M in
additional power purchases. Also, $12M in savings from distribution costs resulting from PG&E's error in
calculations discovered by Power staff, $3M in savings
from transmission and related CAISO costs, and $4M in
savings from resource adequacy. This is partially offset by a one-time opportunistic $4M payment for Cost of
Ownership fee to PG&E to save on future operating costs.
In addition, lower gas and steam purchases due to
reduced demand. The remaining savings are a result of
budgeted contingency projected to be unspent, as well as closeout of Rim Fire related project funding.
• CleanPowerSF: Overall yearend results are positive vs budget.
Retail sales are lower than the budget due to final rates being set lower than budget and lower demand since quarter three. This is offset by slightly higher wholesale sales. On the uses side lower power prices resulted in a large surplus in the power purchase budget, and there is a general reserve which was budgeted to go unspent.
• All enterprises are projected to exceed financial policy minimums and coverage ratios at year end. Finance is currently in the process of reviewing and updating SFPUC’s key financial policies, as these policies were last adopted by the Commission in March 2017. Updated policies are expected to be presented to the Commission for adoption during FY 2024-25.
If you have questions, please contact me at [email protected].
cc:
Ronald P. Flynn, Deputy General Manager, 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
Sophia Kittler, 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 310.3 346.7 347.1 322.1 (25.0) A Wholesale Water Sales 253.5 318.2 318.2 313.0 (5.2) B Interest Income 6.8 1.1 1.1 11.1 10.0 C Rental Income 13.7 13.6 13.6 9.0 (4.6) D Miscellaneous Income 26.8 17.0 17.5 16.0 (1.4) E Departmental Transfer Adjustment - (46.3) (46.3) (46.3) - Federal Bond Interest Subsidy 21.3 20.8 20.8 22.8 1.9 F Appropriated/Budgeted Use of Fund Balance - - 79.5 79.5 - Total Sources 632.3 671.2 751.5 727.2 (24.4) Operating Uses
Personnel 105.7 114.9 114.6 112.3 2.3 G Non-Personnel Services 20.9 21.2 33.0 32.5 0.5 H Materials and Supplies 20.4 19.1 23.1 23.1 - Equipment 3.2 2.6 8.4 8.1 0.3 Overhead (SFPUC Bureaus) 55.1 66.1 77.2 73.2 4.0 I Services of Other Departments 25.6 27.6 31.4 29.9 1.5 J Debt Service 306.6 333.7 333.7 327.4 6.2 K General Reserve - 5.9 5.9 - 5.9 L Total Operating Uses 537.4 591.2 627.3 606.5 20.8 Net Operating Results 94.9 120.7 (3.6) 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 78.3 76.9 1.4 M Legal Settlements - - - 9.8 (9.8) N Total Adjustments to Operating Fund Balance $ 89.4 $ 79.9 $ 269.5 $ 277.9 $ (8.4) Available Fund Balance as of Fiscal Year-End $ 211.4 $ 199.4 Available Fund Balance, % of Operating Uses (O) 25-68% 80.5% 56.0% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (P) ≥ 1.35 1.53 1.79 1.58 Current Basis (Q) ≥ 1.10 1.22 1.16 1.12 FY 2023-24
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2023-24 4th Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 25990, 26570, 26600 & 26603 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2023-24 4th Quarter - Budgetary Basis, Funds 25940, 25950, 25960, 25990, 26570, 26600 & 26603 ($ Millions)
Revenue Variances
M. $1.4M in savings from programmatic projects identified to be closed out.
F. Includes federal subsidy on 525 Golden Gate COPs.
H. Savings reflect lower spending associated with customer rebate and incentive programs.
I. Savings reflect lower spending associated with bureau allocation.
J. Savings reflect lower spending from other City departments.
D. Rental revenues came in just above budget; however, $4.8 million was transferred out to the revenue budget and used to offset the costs of the customer assistance program.
N. $9.8M in expected legal settlements.
P. 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.
Q. 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. Additionally, there was a delay in the procurement of meter replacement parts, resulting in a number of accounts not being billed dating back to Fall 2023. SFPUC is in the process of recovering the untransmitted data from the affected meters. However, due to the lead time needed to replace meter parts, calculate the back bills owed, there is approx. $6.6 million in delayed revenues. These revenues will be accrued for FY 2023-24, as billing will resume and revenues will be collected in FY 2024-25. These two reductions in revenues compared to budget are partially offset by an $8.2 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.
Year end water sales of 123.0 MGD were 0.9% greater than the budgeted assumption of 121.9 MGD. The increased revenues from higher water sales were offset by the resumption of In-Lieu Water Credits totaling $11.6M.
Expenditure Variances
O. 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%.
G. Savings due to vacant positions.
C. Assumed interest rate of 3.4% is higher than budget of 0.5%.
E. Miscellaneous income is just below budget.
K. Debt Service variance due to the issuance of 2023CD refunding bonds and delay of interest payment for the Mt Tunnel SRF loan.
Other Notes
L. $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 360.8 415.4 415.8 385.4 (30.4) A Interest Income 7.6 1.7 1.7 10.6 8.9 B Miscellaneous Income 7.9 3.8 3.8 3.5 (0.4) 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 379.8 424.2 451.0 429.7 (21.3) Operating Uses
Personnel 76.1 87.6 87.6 80.6 6.9 E Non-Personnel Services 25.5 28.0 31.1 30.1 1.0 F Materials and Supplies 14.1 13.2 16.3 15.8 0.5 G Equipment 1.4 2.0 7.7 7.7 - Overhead (SFPUC Bureaus) 32.9 39.0 45.8 43.7 2.1 H Services of Other Departments 38.4 38.8 41.1 40.1 1.0 I Debt Service 98.6 98.0 98.0 95.1 2.9 J General Reserve 27.8 27.8 - 27.8 K Total Operating Uses 287.1 334.5 355.4 313.2 42.2 Net Operating Results 92.7 116.5 $ 20.9 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 $ 176.6 Available Fund Balance, % of Operating Uses (L) 25-68% 79.6% 76.2% Debt Service Coverage (Year-End Budgetary Basis)
Indenture Basis (includes Available Fund Balance) (M) ≥ 1.35 3.09 3.50 3.55 Current Basis (N) ≥ 1.10 2.01 1.89 2.14 Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2023-24 4th Quarter - Budgetary Basis, Funds 20160, 20170 & 20550 ($ Millions)
FY 2023-24
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2023-24 4th Quarter - Budgetary Basis, Funds 20160, 20170 & 20550 ($ Millions)
Revenue Variances
Expenditure Variances
Other Notes
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. Lastly, there was a delay in the procurement of meter replacement parts, resulting in a number of accounts not being billed dating back to Fall 2023. SFPUC is in the process of recovering the untransmitted data from the affected meters. However, due to the lead time needed to replace meter parts, calculate the back bills owed, there is approx. $6.6 million in delayed revenues.
These revenues will be accrued for FY 2023-24, as billing will resume and revenues will be collected in FY 2024-25.
These reductions in revenues are partially offset by $11.6 million in state grant funding for arrearages and discount programs during the pandemic.
N. 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.
K. $27.8M in general reserve due to higher sources than uses.
B. Assumed interest rate of 3.4% is higher than budget of 0.5%.
E. Salary savings reflect vacant positions.
J. Debt service variance mainly due the issuance of the 2023C refunding of 2018C, offset by refunding savings from the issuance of the 2023B refunding bonds and defeasance of the 2021A and 2021B Revenue Notes.
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.
F. Savings reflect lower spending on as-needed maintenance and improvements at wastewater buildings and facilities.
G. Savings reflect lower spending on materials & supplies.
H. Savings reflect lower spending associated with bureau allocation.
I. Savings reflect lower spending from other City departments.
L. 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%.
M. 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.
FY 2022-23
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised
Budget)
Sources
Electric Sales - Retail 159.6 169.1 175.0 170.9 (4.1) A Electric Sales - Wholesale 48.8 31.7 31.7 48.6 16.9 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 17.4 (7.3) C Interest Income 5.6 1.1 1.1 9.5 8.4 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 333.7 312.7 365.3 380.4 15.1 Operating Uses
Personnel 50.6 54.5 54.5 54.5 - Non-Personnel Services 36.1 43.8 70.5 70.5 - Power Purchases, Transmission Distribution & Related Charges 77.9 127.0 135.1 86.1 49.0 F Natural Gas & Steam 24.6 24.7 24.6 17.4 7.3 G Materials and Supplies 3.8 3.5 4.2 4.2 - Equipment 1.2 2.6 8.5 8.5 - Overhead (SFPUC Bureaus) 21.2 25.0 29.0 28.0 1.0 H Services of Other Departments 8.8 8.6 9.5 9.5 - Debt Service 3.5 3.8 3.8 3.8 - General Reserve - - - - - Total Operating Uses 227.8 293.4 339.9 282.6 57.3 Net Operating Results 105.9 97.8 72.4 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 69.1 6.9 I Total Adjustments to Operating Fund Balance 28.7 19.3 97.1 90.2 6.9 Available Fund Balance as of Fiscal Year-End 179.3 223.2 Available Fund Balance, % of Operating Uses (J) 25-68% 74.9% 93.7% Debt Service Coverage… Year-End Budgetary Basis
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 56.46 59.39 69.87 Current Basis (L) ≥ 1.10 18.97 3.34 32.02 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2023-24 4th Quarter - Budgetary Basis - 24970, 24980, 24990 ($ Millions)
FY 2023-24
Revenue Variances
Expenditure Variances
Other Notes
F. Savings are due to a favorable water year, avoiding $18M in additional power purchases, $12M in savings from Distribution costs resulting from PG&E's error in calculations discovered by Power staff, $3M in savings from Transmission and related CAISO costs, and $4M in savings for Resource Adequacy. This is partially offset by a one-time opportunistic $4M payment for Cost of Ownership fee to PG&E. 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.
C. Gas and steam sales below budget due to lower usage. Revenue reduction is offset by equivalent cost savings.
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, 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.
K. 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.
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%.
G. 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.
H. Savings reflect lower spending associated with bureau allocation.
I. Project savings due to closeout of Rim Fire Project.
D. Interest income forecasted to increase from budget due to higher interest rate than assumed.
A. Retail sales are slightly below 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 299.7 338.4 338.4 304.0 (34.5) Electric Sales - SuperGreen Product 25.6 28.9 28.9 51.7 22.8 Wholesale Sales 3.6 1.6 1.6 5.0 3.4 Subtotal - Electric Revenues 329.0 368.9 368.9 360.7 (8.3) A Interest Income 1.7 0.6 0.6 2.3 1.7 B Miscellaneous Income 0.0 - - - - Appropriated/Budgeted Use of Fund Balance 16.8 - 26.4 26.4 - Total Sources 347.4 369.6 396.0 389.4 (6.6) Operating Uses
Personnel 5.0 8.1 8.1 6.4 1.7 C Overhead 5.1 6.1 6.7 6.7 - Non Personnel Services 10.7 12.0 12.9 10.9 2.0 D Materials & Supplies 0.0 0.2 0.2 0.2 - Power Purchases, Transmission Distribution & Related Charg 264.3 305.3 323.6 300.7 22.9 E Services of Other Departments 3.5 4.2 5.1 5.1 - Debt Service - - - - - General Reserve - 32.7 32.7 - 32.7 F Total Operating Uses 288.7 368.6 389.4 330.0 59.3 Net Operating Results 58.7 59.4 52.8 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 90.1 142.9 G Available Fund Balance, % of Operating Uses (H) % 31.1% 42.5% Revenue Variances
Expenditure Variances
Other Notes
H. 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.
E. 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 4th 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.
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 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.
F. General Reserve was intentionally budgeted and planned to go unspent to build reserves.
D. Savings reflect CPUC's postponement of the Integrated Resource Plan compliance filing to 2025, resulting in a surplus for professional services.
The surplus also include savings from CleanPowerSF relocating to 525 Golden Gate.