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: February 11, 2025
To: Kate H. Stacy, President
Joshua Ace, Vice President
Avni Jamdar, Commissioner
Steve Leveroni, Commissioner
Through: Dennis J. Herrera, General Manager
From: Vivian Chen, Deputy Chief Financial Officer
RE: SFPUC Fiscal Year 2023-24 Annual Comprehensive Financial Report and Popular Annual Financial Report
Financial Services is pleased to present the FY 2023-24 Annual Comprehensive Financial Report (ACFR) issued by Macias Gini & O’Connell LLP on December 20, 2024 and the FY 2023-24 Popular Annual Financial Report (PAFR) focusing on SFPUC’s “Organizational Excellence”.
The reports can be found on our public-facing website:
https://www.sfpuc.gov/sites/default/files/about-us/policies-reports/ACFR_FY2024_SFPUC.pdf https://sfpuc.org/about-us/reports/popular-annual-financial-reports
The ACFR describes our financial activities, condition, and services as an organization, inclusive of the 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 of interest to the general public and investors. The Government Finance Officers Association (GFOA) has awarded the SFPUC the prestigious Certificate of Achievement in Financial Reporting annually since 2009.
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. This year’s report highlights our agency’s resiliency, reliability, and stewardship in the delivering of utility services to our customers. The SFPUC has received the GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting annually since 2010. The award recognizes our commitment to transparency and increasing public awareness by providing an overview of our financial condition.
We are looking forward to another year of both prestigious awards for fiscal year 2024.
cc: Ronald P. Flynn, Deputy General Manager
Nancy L. Hom, Assistant General Manager, Business Services & Chief Financial Officer Laura Busch, Deputy Chief Financial Officer
Att: FY 2023-24 Annual Comprehensive Financial Report
FY 2023-24 Popular Annual Financial Report
Organizational
Excellence
Popular Annual Financial Report
For Fiscal Year Ended June 30, 2024
San Francisco Public Utilities Commission
An Enterprise Department of the City and County
of San Francisco, California
Annual Report for the Fiscal Year Ended June 30, 2024
1 San Francisco
Public Utilities Commission
(AS OF DATE OF PUBLICATION)
Kate H. Stacy, PRESIDENT Avni Jamdar, COMMISSIONER Joshua Arce, VICE PRESIDENT Steve Leveroni, COMMISSIONER
Water
We are the third largest municipal utility in California, serving 2.7 million residential, commercial, and industrial customers in the Bay Area. Approximately one-third of our delivered water goes to retail customers in San Francisco, while wholesale deliveries to 27 suburban agencies in Alameda, Santa Clara, and San Mateo counties comprise the other two-thirds.
Power
For 100 years, we have been generating greenhouse gas-free hydropower as our city’s full-service, publicly owned electric utility. In 2016, we launched CleanPowerSF, a community choice aggregation program, to introduce even more renewable energy from sources like wind and solar to the electric grid. Collectively, the two systems meet more than 70 percent of the electricity demand in San Francisco.
Sewer
We operate and maintain the City's water pollution control plants, pumping stations and collection system to protect public health and the environment. We maintain 1,900 miles of sewer mains and lateral and 27 pump stations that collect sewage and stormwater, moving the wastewater to the three treatment plants for treatment and discharge to the San Francisco Bay and Pacific Ocean.
Bay Area Reliance on
Hetch Hetchy Regional
Water System
Contents
3 | Water
5 | Power
7 | Sewer
9 | Community Benefits
11 | Finance
17 4
Annual Report for the Fiscal Year Ended June 30, 2024
2 Message from our
General Manager
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 2023-2024.
The SFPUC delivers essential water, power, and sewer
services that support the functioning and well-being of San Francisco and the Bay Area. This report highlights our commitment to our core mission and long-term financial
strength. We are guided by three key priorities: affordability, responsible management, and investing where it matters.
As part of our commitment to affordability, we secured
alternative revenue sources to help manage utility rates, including nearly $14 million in state and federal debt relief and $9 million in low-income assistance for customers
who fell behind on their water and sewer bills during
the pandemic.
In total, the SFPUC has secured and credited customers
with more than $40 million in pandemic-related utility bill relief. This includes a second round of CleanPowerSF and Hetch Hetchy Power bill credits and low-income discounts totaling almost $1.3 million, which the SFPUC assigned to customers in early 2023.
Responsible management of our resources is central to
our budget and operations. By creating and committing
to an environmental justice policy 15 years ago, followed by a comprehensive community benefits policy, we have
built trust and established partnerships in historically underserved communities, while improving the quality of life in SFPUC service areas.
City residents worked more than 34% of the total hours on SFPUC construction projects through the end of fiscal year 2024. They also completed 59% of all apprentice hours on the Sewer System Improvement Program, gaining training, trades skills, family-supporting wages, and healthcare and pension benefits. Future construction projects are expected to create another 50,000 jobs over the next 10 years.
The SFPUC is prioritizing infrastructure projects that will have the greatest impact on our community’s growth and
sustainability, investing where it matters most. One of the most notable projects in our 10-year capital plan is the SFPUC’s $1.5 billion commitment to reduce nutrients and protect water quality in San Francisco Bay.
Launching CleanPowerSF eight years ago has helped
position the SFPUC as a utility of the future. Now we
provide about 75% of San Francisco’s electricity through our CleanPowerSF and Hetch Hetchy Power programs,
and we are working to expand public power so that all San Franciscans can benefit.
Our public power is clean, reliable, and affordable, saving customers $170 million in 2023 compared to what they
would have otherwise paid to PG&E. We are moving forward on our bid to buy the portion of PG&E’s electricity grid that serves San Francisco. The money to acquire the grid would not come from the City’s budget or taxes. It would be paid over time through electric rates.
While infrastructure forms the backbone of our operations, our people drive our success. The SFPUC is investing
in retention, recruitment, and a diverse, equitable, and inclusive workforce. This investment not only expands talent development opportunities, it also enhances our financial strength, bringing different perspectives to improve
problem-solving, spur innovation, and serve our diverse customer base.
The SFPUC remains a leader among public utilities,
prioritizing both people and the environment. I am thankful to our Commissioners and staff for their unwavering
dedication to serving San Francisco and securing a better and sustainable future for everyone.
Dennis J. Herrera,
SFPUC General Manager
Annual Report for the Fiscal Year Ended June 30, 2024
3 A Century-Long
Commitment
Access to clean water is essential for life and public health. San Francisco’s Hetch Hetchy Regional Water System has been a key driver in the Bay Area’s economic growth over the last 100 years, while helping to sustain Northern California’s complex and diverse ecosystems.
Continuous Growth and Improvement
San Francisco’s water system has grown from
simple streams and wells to a sophisticated network
of dams, reservoirs, tunnels, and pipelines that bring
water from the Sierra Nevada to 2.7 million customers
in the Bay Area. This system depends on healthy
watersheds. We’re committed to protecting them
to ensure thriving ecosystems and clean, reliable,
and affordable drinking water.
Steelhead Trout Start Rebound
in Alameda Creek
Steelhead trout were once abundant in Alameda
Creek when the SFPUC’s private predecessor, Spring
Valley Water Company, purchased this land in the
early 1900s. Over a century of development created
barriers to fish migration that greatly reduced those
numbers. After over two decades of working with
public agencies and nonprofits to restore steelhead
trout to Alameda Creek, SFPUC biologists recorded a
significant milestone this year, capturing and releasing 2,588 juvenile steelhead, up from an average of
37 per year over the past eight years. The natural
steelhead run’s restoration will also enhance the
health of the creek and surrounding watershed.
Protecting Monarchs, Preserving Watersheds
The monarch butterfly may soon be listed as
endangered, and the SFPUC is taking steps before
that to protect it. The Department of Fish and Wildlife has created a program allowing utilities to operate
with more flexibility while actively conserving the
monarch butterfly. In anticipation of the butterfly’s
listing, Hetch Hetchy Water is leading efforts to
develop a Monarch Butterfly Conservation Agreement.
This winter, we’ll submit our agreement ahead of the
meeting being held to determine the monarch butterfly’s status. If accepted, Hetch Hetchy Water will create
conservation plots, using methods like timed grazing
and delayed mowing, to protect the butterfly’s habitat.
Bringing Ozonation Benefits
to More Customers
While harmless algae naturally occur in our healthy
reservoir system, they can sometimes cause slight
taste and odor issues, especially in the warmer
months. Ozonation, a chemical-free method that
breaks down organic matter from algae, improves
water quality and is already in use at the Harry Tracy
Water Treatment Plant in San Bruno.
This summer, the SFPUC began construction on
the Sunol Valley Water Treatment Plant’s Ozonation
Project to ensure that the Hetch Hetchy water stored
in our warmer Alameda County reservoirs – Calaveras
and San Antonio – will be fresh-tasting and odor-
free. When completed, the new Sunol Valley Water
Treatment Plant’s ozonation system will reduce
organic contaminants, enhancing water quality and
supporting the overall health of the Alameda Creek
Watershed.
Annual Report for the Fiscal Year Ended June 30, 2024
4 Prioritizing Safety on the Peninsula
The SFPUC is using every tool in the box to reduce
wildfire risk in our watersheds, from grazing cows and
goats to forecasting daily fire potential to grinding
dense brush. Along the 23,000-acre Peninsula
watershed, the SFPUC partners with CAL FIRE on
controlled burns, mimicking natural brush-clearing
fires that occurred before European settlement. These
burns also provide valuable firefighting training and
help protect our drinking water.
The Peninsula watershed is home to the Lower Crystal
Springs Dam in San Mateo County, recognized as
a National Historic Civil Engineering Landmark in
December of 2023. Owned and operated by the
SFPUC, the dam was completed in 1890 and forms
the backbone of a water system that serves more than
one million people in northern San Mateo County and
in San Francisco County.
Maintaining healthy watersheds year after year is
fundamental to sustaining a regional water system
that consistently delivers high-quality, safe, and
reliable drinking water. Through our commitment to
operational excellence, we test our water more than
250,000 times a year for contaminants, including
microbes, copper, lead, and disinfection byproducts.
For the 28th consecutive year, we published our
Annual Water Quality Report for San Francisco,
showcasing our dedication to delivering drinking water
that meets or exceeds all state and federal standards.
Left: Alameda Creek Watershed Center, Right: Songs of the Watershed is a sculptural and sonic installation honoring the Muwekma Ohlone Tribe by artist Walter Kitundu. Ruupaywa (the eagle) is a chief, a protector, and a creator in the Muwekma Ohlone creation story, Photos by: Robin Scheswohl and Tim Ramirez
Annual Report for the Fiscal Year Ended June 30, 2024
5 For over 100 years, Hetch Hetchy Power has generated clean, 100% greenhouse gas-free electricity for San Francisco. Launched in 2016, our community choice aggregation program, CleanPowerSF, provides clean, affordable, and reliable power to over 380,000 residential and commercial customers. Together, they supply more than 75% of the power consumed today in San Francisco.
Fostering Continuous Improvement
for a Sustainable Future
In June, the SFPUC expanded its renewable energy
portfolio, committing to a 15-megawatt battery energy
storage and 20-megawatt solar project in Stanislaus
County. The renewable energy project helps secure
more clean, affordable, and reliable electricity for over 380,000 CleanPowerSF customers in San Francisco.
The new Paulsell Energy Center generates enough
electricity annually to power approximately 17,000
average San Francisco homes. Additionally, the
15-megawatt 4-hour battery energy storage system
holds solar energy that is produced during the day
and uses it at night, when power from the grid is more
costly and reliant on natural gas.
Since launching CleanPowerSF in 2016, the SFPUC has
helped accelerate California’s transition from fossil
fuel power to more renewable energy, helping to green
the electrical grid, create jobs, and grow the market for clean energy.
Collaboration Key to
‘Electrify My Ride’ Success
Achieving a carbon-free City takes big initiatives
as well as smaller efforts, all working together to
make meaningful change. In early 2024, the SFPUC
launched “Electrify My Ride,” offering a $1,000
customer rebate off the purchase of a new electric
bike to low-income power customers, making this
eco-friendly transportation option accessible to more
San Francisco residents. Customers redeemed over
$350,000 in rebates.
Electrify My Ride was the SFPUC’s first effort to
encourage the use of micromobility options, like
e-bikes and electric scooters, which are small,
electric-powered devices that produce zero emissions
during use. Keys to the campaign’s success included
developing partnerships with bike retailers and
using multiple channels, such as social media,
email campaigns, and community events, to reach
customers.
For example, an “E-Bike Test Ride Event” at a local
retailer in the South of Market neighborhood led
several customers to try their first electric bike and
make a purchase the same day.
Electrify My Ride feedback was overwhelmingly
positive. One customer said, “This is an amazing
opportunity to get something I would never have been
able to afford. The benefits in convenience and overall health are priceless. “Thank you!”.
The exciting next phase of Electrify My Ride is coming
in 2025!
Efficient, Safe,
Consistent
Annual Report for the Fiscal Year Ended June 30, 2024
6 ‘Path of Gold’ Streetlights
Get Brilliant Upgrade
Since 1916, San Francisco’s historic and architecturally distinctive “Path of Gold” streetlights have lit Market Street, the City’s main thoroughfare. Now the
streetlights will shine brighter and use energy more
efficiently thanks to critical upgrades from the SFPUC.
Recently, SFPUC workers replaced aging lightbulbs
in all 327 iconic streetlights with more efficient LED
versions, saving 640 megawatt-hours annually. That’s
enough energy for an electric vehicle to drive around
the circumference of the Earth 74 times! The new
durable LEDs benefit all of San Francisco through
reduced energy consumption and lower maintenance
and repair costs, saving ratepayers money. They also
will improve visibility for pedestrians, cyclists, and public transportation along the 3.1-mile corridor, ensuring that our public spaces are well-lit and welcoming.
Over half of all streetlights in San Francisco are powered by Hetch Hetchy Power’s 100% greenhouse gas-free
electricity, which helps reduce air pollution, improve
air quality, and support healthier living conditions for our community. When we prioritize brighter, more efficient, and sustainable lighting, it’s a win-win for the people of San Francisco and the planet.
Small Technology Wins Lead to Big Impacts
for Customers and San Francisco
Small technology wins have resulted in big impacts for
our Power customers and San Francisco.
Each year, Power receives over 20,000 requests
from contractors or other agencies to review their
excavation plans and provide them with underground
utility location information. Previously, this process
included submitting and reviewing requests via email
and paper packets for field workers, creating an
extended approval process.
The SFPUC Power enterprise recently introduced
a new cloud-based approval system, significantly
improving efficiency within the agency and
accelerating approvals for requestors.
In addition, new digital workspaces have increased
productivity and collaboration among staff. The Power
Redevelopment Team used their digital space to
design, install, and seamlessly connect over 600 new
residential units in San Francisco to Hetch Hetchy
Power this past year. By improving the way we work,
we can be more efficient in providing quality customer
service and supplying customers with affordable,
reliable, and clean electricity.
Left: Bike Connection Staff and SFPUC staff at “E-Bike Test Ride” event, Top right: The Paulsell Solar Energy Center, Bottom right: SFPUC crew converting “Path of Gold” light with energy efficient bulb, Photos by: Bike Connection staff, NextEra Energy Resources, Ian Anoneuvo
Annual Report for the Fiscal Year Ended June 30, 2024
7 Innovative
Sewer Solutions,
Expertly Delivered
Innovative Tech and Teamwork
Boost Sewer Management
Recognizing the scale and complexity of our capital
program, our Collection System Division developed a
robust quality assurance and quality control program.
We validated contractor workmanship on new sewers
through closed circuit television inspections and used
advanced data storage for quick, reliable access to
high-resolution inspection records.
We’re also expanding the use of trenchless
technologies to rehabilitate sewer systems, avoiding
extensive digging, disruptions, and exposure to
construction hazards. Staff are partnering with San
Francisco Public Works and the SFPUC’s Bureau of
Construction Management to improve inspections
during critical construction phases, ensuring that the
most essential and high-risk phases of construction
receive the necessary attention, while reducing the
need for future interventions.
Green Infrastructure Partnerships
Drive 1 Billion Gallon Stormwater Plan
Designed to inspire San Francisco property owners to
innovate and invest in green infrastructure, such as
permeable pavements, rain gardens, and green roofs,
the SFPUC’s Green Infrastructure Grant Program
supports stormwater diversion and helps manage
runoff. It also delivers other public benefits. To
receive funding, projects are required to achieve two
additional outcomes, such as environmental justice,
climate resilience, or biodiversity, fostering broader
community improvements.
During fiscal year 2024, the Green Infrastructure
Grant Program awarded $3.6 million in grants to
Mariners Village, Cornerstone Academy-Cambridge,
and Cornerstone Academy-Silver, supporting
key green infrastructure projects across the city.
Additionally, three previously awarded projects for St.
Monica Catholic Church and School, St. Thomas the
Apostle Church and School, Everett Middle School
and Visitacion Valley Elementary School, began
construction. Three others, St. Anne of the Sunset
Church and School, St. Emydius Church and School,
and Crocker Amazon Park completed construction.
The Wastewater Enterprise also increased the
maximum funding available per project and expanded
eligibility to include initiatives on public land,
enhancing the program’s overall impact.
Since its launch, the Green Infrastructure Grant
Program has made steady progress in diverting
stormwater from non-permeable surfaces, awarding
nearly $24 million across 23 projects. These grants
We own and operate about 1,900 miles of sewer mains and laterals right under the street. End to end, it would stretch from here to Colorado and back.
Annual Report for the Fiscal Year Ended June 30, 2024
8 have supported 18 schools and educational facilities, reaching over 6,000 students, as well as three
public parks and various residential and institutional
properties. Collectively, these projects are set to
capture 15 million gallons of stormwater annually,
bringing the City another step closer to its goal of
capturing 1 billion gallons of stormwater annually
using green infrastructure by 2050.
Shaping a Sustainable Future through
Stormwater Management
Passed in 2010, the San Francisco Stormwater
Management Ordinance requires new and re-
development projects that create or replace 5,000
square feet or more of impervious surface to use
green infrastructure practices to reduce stormwater
runoff and improve water quality. The SFPUC
administers the stormwater management program in
compliance with the ordinance and the Clean Water Act.
Nearly 440 development projects have been approved
since the ordinance went into effect 14 years ago.
Last fiscal year, we completed 77 Stormwater Control
Plan reviews, maintaining an average review time of
nine weeks. The green infrastructure developed under
the ordinance manages about 266 million gallons of
rainwater annually across one square mile of urban
space, diverting 90 million gallons away from the
City’s sewer system – enough to fill nearly 15,000
swimming pools.
This legislation remains San Francisco’s most
significant stormwater management initiative, with
a long-term goal of capturing 1 billion gallons of
stormwater annually by 2050. Additionally, customers
may be eligible to apply for a stormwater credit to
lower their monthly sewer bill by complying with the
Stormwater Management Ordinance.
Stormwater Management Ordinance Green Infrastructure projects in San Francisco Hayes Valley and Treasure Island Buckeye Grove, Photos by: SFPUC Urban Watershed Planning Division.
Annual Report for the Fiscal Year Ended June 30, 2024
9 Our focus on continuous improvement, operational efficiencies, and inclusion helps foster a culture of service where everyone – from employees to customers to the public – feels valued and supported.
The Value of Local Participation
When the SFPUC began contracting for the
construction of the Southeast Community Center
at 1550 Evans St., the agency introduced a new
requirement called Local Participation, aimed at
maximizing contractors use of Local Business
Enterprises (LBEs) and local workers while meeting
legal requirements for local business and hiring.
As a result of Local Participation strategies, 31% of
work was subcontracted to LBEs, exceeding the City’s
20% requirement. Of the 37 LBEs awarded contracts,
25 were from the neighborhood, generating $15
million for local businesses.
Local workers completed 39% journey-level hours
and 62% apprentice hours, exceeding the City’s local
worker requirements of 30% total work hours and
50% apprentice hours. Additionally, neighborhood
residents living in the project’s immediate area worked 39% of the apprentice hours. Local businesses and
workers praised their work as a model for community
involvement.
Since then, the SFPUC has incorporated Local
Participation into other large-scale projects including our new Wastewater Treatment Plant on Treasure
Island and the Water Enterprise’s new headquarters at
2000 Marin St., providing more opportunities for local
businesses and workers.
Helping Those in Need
The SFPUC is a leader in ratepayer affordability among
public utilities, with robust customer assistance
programs for all of our essential services. This fiscal year we expanded and improved our Customer
Assistance Program for water and wastewater
customers, offering low-income customers discounts
on their bill.
We increased our discount from 25% to 40% to
support our lowest income customers. Additionally, all
late fees were eliminated, and customers who qualify
for the program are now exempt from shutoffs or liens
due to late payments.
Customer Assistance Program participation has
increased more than 200% over the last two years,
growing from 2,100 customers in January 2022 to
over 7,000 customers by June 2024. The SFPUC
has conducted comprehensive outreach campaigns
to low-income, Black, indigenous, people of color,
immigrant, and environmental justice communities to
facilitate this growth. This expansion has been funded
by non-rate revenues, which are now distinctly ear-
marked to fund the Customer Assistance Program.
Our outreach drew more than 25,000 visitors to the
application webpage this fiscal year alone. The SFPUC
used a mix of modern communication tools, such as
social media and digital streaming ads, along with
traditional methods like mailings, email, face-to-face
outreach at neighborhood events, and TV, radio, and
newspaper advertising.
The SFPUC sent thousands of letters and emails in
different languages to customers who were behind on
their bills to let them know about available financial
help. We informed customers about state relief funds
the SFPUC applied for, received, and added directly to
their accounts. We also gave them information about
payment plans, how to sign up for them, and how to
apply for the California Low Income Household Water
Assistance Program, as well as other support options.
Rewriting the Insurance Narrative
In the wake of California’s escalating insurance crisis, the SFPUC faced steep premium increases affecting
our enterprises and inability to insure new mission-
A Culture of Service
Annual Report for the Fiscal Year Ended June 30, 2024
10 critical power generation assets. The SFPUC proactively restructured our insurance strategy and quickly brought our asset portfolio to the insurance markets to seek
better pricing and expanded coverage.
Working collaboratively, we presented a compelling
case for underwriters, highlighting our proactive
risk mitigation strategies and a strong loss-control
program, which collectively reduced the likelihood
of costly claims from both wildfire and mechanical
issues. The agency negotiated favorable terms
culminating in a substantial cost saving of up to
$1 million in the first year alone.
The SFPUC’s journey from facing repeated premium
increases and limitations of coverage to securing a
deal that promises both stability and savings was done
thanks to a variety of partnerships, at the City and SFPUC department level, and through our brokers. We also
created a blueprint for successful property insurance
renewals and set a strong precedent for agencies to
be good stewards of their assets and take initiative to drive for good financial and operational outcomes.
More Highlights
• The SFPUC’s Policy and Government Affairs team
helped protect the City’s pre-1914 water rights at
the state level, which are essential to our water
operations. Additionally, we helped pass about 45
local laws and responded to over 100 requests
from community members referred to us by the
San Francisco Board of Supervisors.
• Relationship building was a hallmark of the
SFPUC’s Racial Equity, Diversity, and Inclusion
team’s first year, creating and organizing multiple
initiatives including a prestigious speaker series,
a thought-provoking reading club, and Inclusive
Excellence Professional Development workshops
for key SFPUC leadership groups.
• At the 6th Annual San Francisco Collaborative
Partnering Awards, two major SFPUC projects
were recognized with top honors. The Southeast
Community Center earned the prestigious Gold
Award (Buildings – Over $20 Million), while the
Mariposa Dry Weather Pump Station Project
received the Silver Award (Buildings – Under
$20 Million).
• Our Social Impact Partnership program facilitated
over $2.5 million in donations from contracting
firms to nonprofits and public schools located
near SFPUC construction projects. A new reporting
portal has improved contractor compliance thanks
to better data integrity and an improved user
experience.
Local workforce at the Southeast Community Center through SFPUC’s Local Participation program, Photos by: Robin Scheswohl Annual Report for the Fiscal Year Ended June 30, 2024
11 Single-Family Residential FY 2023-24
Average Monthly Usage (ccf) . . ............................................. 4.70 Average Monthly Bill......................................................... $142.86 Cost per Person per Day ................................................... $2.07 Total Cost per Gallon ........................................................ $0.041 Total Combined Bill as % of San Francisco Median Household Income ......... 1.61% Total Combined Bill as % of San Francisco Low Income Household . ............ 3.88% Keeping Our Water Rates Affordable
Calculation is based on the average monthly water usage Average Water/Sewer Bill as % of Typical Household (40th Percentile) Income Average Water/Sewer Bill as % of Low-Income Household (20th Percentile) Income Since 2010, this report has won the prestigious
“Award for Outstanding Achievement in Popular
Annual Financial Reporting” from the Government
Finance Officers Association.
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 2024 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 www.sfpuc.org/about-us/reports.
Financial
Performance
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, 2023
Executive Director/CEO
Annual Report for the Fiscal Year Ended June 30, 2024
12 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 67% 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 bonds, commercial paper, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets. For FY2024, SFPUC net position increased by 4%
or $118 million as compared to FY2023, mainly due to
increase in 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. Assets are resources with present service capacity
that the government presently owns or controls.
2. Deferred 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. Liabilities 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. Deferred 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. Net position is the residual of all elements presented in a Statement of Net Position, i.e., Total assets plus deferred outflows minus total liabilities minus deferred inflows. 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, transfers in and contributions increased by $232 million when compared to prior year. This is
mainly due to capital contributions from developers,
and higher charges for services for our customers.
Total expenses and transfers out increased by $291
million, as compared to prior year. This was primarily
due to higher judgment and claims expenses based on
actuarial estimates.
Definitions
• Capital Assets: Include depreciable, amortizable,
non-amortizable and non-depreciable facilities and
buildings, improvement, machinery and equipment,
intangible assets, land, rights-of-way, right-to-use lease and subscription assets, 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, contributions, 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.
• 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.
Annual Report for the Fiscal Year Ended June 30, 2024
13 A Closer Look at the Numbers
SFPUC 2024 By the Numbers
Miles .......................................... 1,724 miles of water mains | 1,139 miles of collection system pipes Millions of gallons (MG) .......................... 280,867 MG water reservoir storage | 68,558 MG water production | 63,854 MG water consumption
Millions of gallons per day (MGD) .................. 175.2 MGD water consumption | 80.2 MGD sewer treatment San Francisco Population ......................... 804,842 San Francisco Personal Income per Capita .......... $167,542 SFPUC Website .................................. sfpuc.gov SFPUC Assets (DOLLARS IN MILLIONS)
Fiscal Year FY2024 FY2023 FY2022
2024-23
$ Change
2023-22
$ Change
C a s h & I n v e s t m e n t s........................................ $ 1,583 1,448 1,225 135 223 Charges for Services Receivables
(net of allowance for doubtful accounts)......................... 196 159 162 37 (3) C a p i t a l A s s e t s ^ .............................................. 12,262 11,207 10,460 1,055 747 O t h e r s....................................................... 301 200 528 101 (328) T o t a l A s s e t s ............................................... $ 14,342 13,014 12,375 1,328 639 ^Fiscal years 2022 to 2023, total asset reclassification from capital assets and others.
SFPUC Liabilities (DOLLARS IN MILLIONS)
Fiscal Year FY2024 FY2023 FY2022
2024-23
$ Change
2023-22
$ Change
C e r t i fi c a t e s o f P a r t i c i p a t i o n..................................$ 125 129 134 (4) (5) C o m m e r c i a l P a p e r s ........................................ 622 488 625 134 (137) B o n d s .................................................... 7,968 7,639 6,987 329 652 N o t e s .................................................... — 350 350 (350) — S t a t e R e v o l v i n g F u n d L o a n s .................................. 578 482 424 96 58 Water Infrastructure Finance and Innovation Act loans . . . . . . . . . . . 922 122 — 800 122 O t h e r s .................................................... 1,174 951 787 223 164 T o t a l L i a b i l i t i e s ......................................... $ 11,389 10,161 9,307 1,228 854 Fiscal year 2024, SFPUC liabilities increased by $1,228 million or 12%. The increases included $1,005 million in outstanding debts due to bonds, WIFIA loans and State
loans issuances, and $223 million mainly due to judgment and claims expenses based on actuarial estimates.
Fiscal year 2023, SFPUC liabilities increased by $854
million or 9%. The increases included $690 million in
outstanding debts due to bonds, WIFIA loans and State
revolving fund loans issuances, and $164 million mainly due to pensions based on actuarial estimates.
Fiscal year 2024, SFPUC assets increased by $1,328 million or 10%, mainly due to $1,055 million in capital assets
mainly from San Joaquin Pipeline Valve and Safe Entry
Improvement and Mountain Tunnel Improvement projects,
and $135 million in cash and investments mainly due to
higher collections from billings.
Fiscal year 2023, SFPUC assets increased by $639 million or 5%, mainly due to $747 million additional construction and capital improvements, and $223 million in cash and
investments. The increase is offset by decreases of $328 million mainly in receivables from State Water Resources Control Board for various construction projects, and
restricted net pension asset based on actuarial estimates.
Annual Report for the Fiscal Year Ended June 30, 2024
14 Financials at a Glance
Definitions
SFPUC By the Numbers (DOLLARS IN MILLIONS, UNLESS OTHERWISE STATED) Water Wastewater Hetchy Water Hetchy Power CleanPowerSF SFPUC S & P G l o b a l B o n d R a t i n g ............ 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 r v 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 ...................... 1.42 times 1.72 times 6.11 times 1.67 times 5.59 times 1.75 times Debt Ratio ........................ 90.4% 78.5% 14.4% 48.8% 20.6% 79.4% Debt Service Coverage1 ............ 1.81 3.87 N/A 64.97 N/A N/A Average Borrowing Rate2............ 3.43% 3.20% N/A 3.61% N/A N/A 1Debt Service Coverage based on indenture basis
2The SFPUC’s high credit ratings helps to reduce high borrowing costs. Weighted average interest rate on outstanding bonds as of 6/30/24.
Total Assets2....................... $ 6,644.2 6,066.4 319.1 1,088.1 224.7 14,342.1 Deferred Outflows of Resources. . . . .$ 212.6 55.5 15.1 18.4 3.2 304.8 Total Liabilities2..................... $ 6,003.1 4,763.1 46.1 530.8 46.2 11,388.9 Deferred Inflows of Resources. . . . . . .$ 104.1 21.3 4.8 5.9 3.2 139.3 Net Position ....................... $ 749.6 1,337.5 283.3 569.8 178.5 3,118.7 2SFPUC total included elimination entries of $0.4 million interfund payables 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 ...... 178,961 177,098 5 7,043 384,664 747,771 C a p i t a l B u d g e t ..................... $ 389.7 953.1 151.8 32.7 2.2 1,529.5 Adopted Annual Operating Budget. . . $ 675.1 431.7 94.5 209.4 280.3 1,691.0 • 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. The enterprise
revenues pledged for the repayment of debt service
must meet the following financial ratios: minimum debt
service coverage requirements of 1.00x (current) and
1.25x (indenture).
Annual Report for the Fiscal Year Ended June 30, 2024
15 Five-Year Comparative
Consolidated Net Position
(DOLLARS IN MILLIONS)
2024
$2,080
$958$12,262
$10,431
$305 $139
$14,647
Total assets & deferred outflows
of resources
$11,528
Total liabilities & deferred inflows
of resources
$3,119
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
2023 2022
20202021
^Total asset reclassification from current and other assets to right-to-use lease (fiscal years 2021-2023) and subscription assets (fiscal years 2022-2023). $1,605
$94
$9,875
$330
$1,387
$7,591
$11,810 $9,072 $2,738
$1,807 $1,915
$149 $532
$11,207 $10,460
$297 $288
$626 $1,240
$9,535 $8,067
$13,311 $10,310 $3,001 $12,663 $9,839 $2,824
$1,616
$82
$9,199
$303
$1,106
$7,228
$11,118 $8,416 $2,702
Annual Report for the Fiscal Year Ended June 30, 2024
16 $1,866
Total Expenses
& Transfers Out
Five-Year Comparative
Revenues and Expenses
(DOLLARS IN MILLIONS)
$1,665
$103 $313
$131 $2
$10 $3
$74
$1,548
Revenues, Transfers in
and 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
2024
$1,983
Total Revenues,
Transfer In &
Capital Contribution
$1,303
$1,049
$214
$16
$2
$162
$15
$13
$32
2020
$1,525 $1,281
$1,599 $1,376
$1,258 $1,130
$294 $279
$20 $31
$3 $2
$92 $118
$28 $45
$15 $15
$18 ($26)
2023 2022
$1,752 $1,575 $1,528 $1,442
$1,259
$1,150
$205
$21
$4
$100
$42
$15
$0
2021
$1,416 $1,380
Cover photos: Moccasin Powerhouse
Generator Rehabilitation, Millbrae
Lab: samples from shoreline testing,
Southeast Wastewater Treatment
Plant, Hetch Hetchy Reservoir, The
Paulsell Solar Energy Center, Stationary
Engineer at Oceanside Wastewater
Treatment Plant
Back cover photo: Hetchy Hetchy
Reservoir - Yosemite National Park
Date of Publication: December 2024
SFPUC Financial Services
525 Golden Gate Avenue, 4th Floor
San Francisco, CA 94102-3220
sfpuc.gov
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.
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