San Francisco Public Utilities Commission
FY 2025-26 Budget Priorities
Public Hearing per Administrative Code Section 3.3(b)(1) Januar y 14, 2025
Laur a Busch, Deputy Chief Financial Officer
1 Timeline
• SFPUC has a 2-year fixed operating and capital budget • We are at the mid-point of the 2-year cycle, with FY 2025-26 being the second year
• We adopt a 10-year Capital Plan (CIP) and 10-year Financial Plan annually
• Today: required annual meeting on budget priorities prior to adoption • February 11: Commission adoption of:
• Updates to FY 2025-26 Operating and Capital budget (minimal changes) • Updates to 10-year CIP (minimal changes)
• 10-year Financial Plan
• Beginning spring 2025: next 2-Year Budget and CIP development process!
2 2-Year Budget and 10-Year CIP Development
Staff level budget
Development
Operating budget
Development
Capital Planning
Process
Steering Committee
Review by GM
Commission
review and
adoption
4 special hearings late
January 2024
Adoption 2/13/24
Mayor and Board
Phase
Mayor Phase
Labor negotiations
Board/BLA cut process
Mayor and Board
Adoption 7/30/24
Update to
Commission on final
budget: 9/24/24
3 May - December 2023 January-February 2024 March-July 2024 Operating Budget Overview
4 Revenue-
funded Capital
12% Debt Service
23%
Personnel
14%
Power Purchase and
Distribution 26%
Non-Personnel
19%
General Reserve
2%
Programmatic Projects
4%
• Capital is SFPUC’s largest
cost driver at 35% (debt
service 23% + revenue
funded capital 12%)
• Power purchase and
distribution is next at 26%
• Followed by Personnel and
Non-Personnel costs that
support daily operations at
14% and 19% respectively
Capital funding
FY 2024-25
$2 Billion
Operating
Budget
10-Year Capital Improvement Plan Overview
Major Projects in the $11.8 Billion Capital Plan:
System Reliability and Resilience: Water
Millbrae Yard Laboratory and Shop
Improvements, SFWD Headquarters, and
replacement of water mains throughout the
system
Protecting Public Health: Wastewater
Nutrient Reduction, Biosolids Digester Facility,
stormwater/treatment plant improvements, flood
resistance, and replacement of sewer mains
throughout the system
System Sustainability and Expansion: Power
Public Power Expansion, Clean Steam, Moccasin
Penstocks, expanding clean energy sources,
enhancing reliability
Breakdown of the 10-Year CIP by Enterprise
5 Water
25%
Wastewater
51%
Hetchy Water
13%
Hetchy
Power 10% CleanPowerSF <1%
Budget Priorities
6 Affordability
Adopted affordability policy
for Water and Wastewater
Efficient capital planning
Responsible
Management
Addressing Regulatory
Requirements
Financial Sustainability
Workforce: Reducing
vacancies, increasing retention
Accountability: Racial Equity
and Transparency
Responsible management of
our system, maintenance
Investing
Where it
Matters
Contributing to economic
vitality: capital investment and
job creation
Replacing aging infrastructure
Meeting new customer
demands
Environmental stewardship
Resilience and climate change
Next Steps: February 11 meeting
• Adopt changes to FY 2025-26 Operating budget
• Updating revenue and power purchase forecasts
• Minor budget-neutral expenditure changes
• Adopt changes to FY 2025-26 Capital budget
• $5M change to Power’s capital budget to appropriate
unbudgeted Cap-and-Trade revenues
• Adopt updates to 10-year CIP
• Minimal changes since last version of the plan includes cuts to cancelled projects and known project increases
• Adopt 10-year Financial Plan
• Revised forecasts
7