San Francisco Public UtilitiesCommission
Adoption of:
Amendment to FY 2025-26 Operating Budget
Augment the Water Revenue Bond Authorization associated with FY 2025-26 Capital Budget
Update to 10-Year Capital Improvement Plan, FY 2025-26 to FY 2034-35 10-Year Financial Plan, FY 2025-26 to FY 2034-35
February 11,2025
Laura Busch, Deputy Chief Financial Officer
Anna Duning, Budget Director
Trey Hunter, Capital Budget Manager
Erin Corvinova, Financial Planning Director
1 Commission Budget Actions today
• For adoption today:
• Item 10: Amendment to FY 2025-26 Operating Budget
• Item 11: Augment the Water Revenue Bond
Authorization associated with FY 2025-26 Capital
Budget
• Item 12: Update to 10-Year Capital Improvement Plan,
FY 2025-26 to FY 2034-35
• Item 13: 10-Year Financial Plan, FY 2025-26 to FY
2034-35
2 Budget timeline
Date Item
March-December 2023 Staff level development of the 2-year budget and 10-Y ear CIP January 2024 4 special budget hearings of the Commission to go over budget and CIP in detail
February 13, 2024 Commission adoption of 2 year Operating and Capital Budget and 10- Y ear CIP
July 31, 2024 Budget adopted by Mayor and Board
September 24, 2024 Final budget provided to Commission
January 14, 2025 Commission hearing on FY 2025- 26 budget priorities TODAY Adoption of amended FY 2025 -26 budget and update to 10 Year CIP , along with 10-Year Financial Plan
February 21, 2025 Budget proposed to Mayor’s Office
3 Reminder: Budget Priorities
4 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
Summary of 3 budget items
• Minimal changes to FY 2025-26 Operating
Budget (year 2 of fixed biennial budget)
• No change to FY 2025-26 Capital project
budget
• Minor change to FY 2025-26 Capital funding
sources
• Minimal changes to 10 Year CIP since last
version of plan, includes cuts to cancelled
projects and known project increases
5 Item 10: Amendment to
FY 2025-26 Operating
Budget
6 SFPUC Operating Budget Overview
7 Revenue-
funded Capital
12% Debt Service
24%
Personnel
14%
Power Purchase and
Distribution 25%
Non-Personnel
19%
General Reserve
2%
Programmatic Projects
4%
• Capital is SFPUC’s largest
cost driver at 36% (debt
service 24% + revenue
funded capital 12%)
• Power purchase and
distribution is next at 25%
• Followed by Personnel and
Non-Personnel costs that
support daily operations at
14% and 19% respectively
Capital Funding
FY 2025-26
$2 Billion
Operating
Budget
8 Key Changes to FY 2025-26 budget
$30.2 million overall reduction to FY 2025-26 Operating Budget • Main driver: $23.1 Million reduction in CleanPowerSF due to lower volume forecast, with accompanying reduction in power purchase expenses
• $13.6 Million reduction in revenue-funded capital
• Water’s Regional capital budget plan is increasing revenue funding by $15.0 Million and Local is decreasing by $27.6 Million.
• Hetch Hetchy Water’s plan is decreasing by $1.4 Million • Wastewater and Hetch Hetchy Power have minimal changes • Offset by modest increases:
• $4.3 Million increase to contribution to fund balance in CleanPowerSF in alignment with reserves policy
• $1.7 Million increase in labor costs to support projected hiring for Hetch Hetchy Water, CleanPowerSF and Customer Services (no position changes) • $0.5 Million increase in upcountry facilities maintenance Do we need Board
approval?
• No increase in
bottom line and less
than 5% change so
budget will not be
subject to full review
• ONLY the changes
in revenue funded
capital require board
approval
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
FY2024 FY2025 FY2026
SFPUC Estimated Budget
($millions)
Operating Uses Capital Uses Purchase of Power
Operating Budget Growth
• Budget will grow by 19% or
$339 Million from FY 2024 to
FY 2026
• Capital and power
purchase remain the large
cost drivers, growing by $277
Million, or 82% of the growth
9 13.2%
5.1%
1,788
2,127
2,024
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
AAO Total, budgeted and funded FTE,
excludes off budget positions and attrition
AAO*: Since FY 2019-20, the budget grew by 49%
meanwhile FTE grew by just 6%
10 AAO total Change % change
FY2019-20 1,690
FY2020-21 1,667 -23 -1.4%
FY2021-22 1,708 41 2.5%
FY2022-23 1,718 10 0.6%
FY2023-24 1,724 5 0.3%
FY2024-25 1,750 26 2.2%
FY2025-26 1,783 33 1.9%
92 6.1%
COVID
*AAO: Annual Appropriation Ordinance
Biennial Budget
Item 11: Augment the Water
Revenue Bond Authorization
associated with FY 2025-26
Capital Budget
11 Components of the Capital Budget
• 2-Year Capital Budget (near-term)
• Authorizes actual appropriations/spending for specific projects over the 2-year period
• Current focus: FY 2025-26 (second year of already appropriated 2-year budget) • Debt Authorization (Funding tool - to be referenced later) • Separate from budget appropriation
• Provides authority to issue bonds
• 10-Year Capital Improvement Plan (longer-term)
• Charter mandated annual updates provide a roadmap of proposed infrastructure investments
• Serves as a guide for funding needs and project delivery capacity • How they all work together:
• 10-Year CIP: sets vision
• 2-Year Budget: provides authority to spend
• Debt authorization: ensures the SFPUC can borrow $ for capital needs 12 FY 2025-26 $1.6B Capital Budget
Summary
13 $-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800$ in Millions
FY2025-26 Capital Budget by Enterprise
Wastewater Water Hetch Hetchy Water
Hetch Hetchy Power CleanPowerSF
Wastewater
• BDFP ($188.5M)
• Flood Resilience ($155.2M)
• R&R ($167.1M)
• Ocean Beach Climate Adaptation ($52M)
Water
• Water Transmission ($58.8M)
• Millbrae Campus Imp. ($34.6M)
• Local Water Conveyance ($136.9M)
• New SFWD HQ ($147.6)
HHWP
• Moccasin Powerhouse ($46.5M)
• SJPL Valve & Safe Entry Imp. ($30M)
• SFO Substation ($21.5M)
• Distribution Interface Redev. Projects (18.5M)
***Note: No proposed changes to the
approved FY 2025-26 Capital Budget
Why do we need debt authorization?
What is Debt Authorization?
• Legal authority granted by the Commission and Board of Supervisors to issue debt
• Establishes maximum amount of debt that can be issued in respective enterprises • Required under SF Charter Section 8B.124 for revenue bonds Debt Authorization vs. Appropriations
• Appropriations provide spending authority for respective fiscal year • Debt authorization provides authority to borrow appropriated funds Important Considerations
• Authorization does not obligate SFPUC to issue debt
• Actual debt issuance depends on project needs and market conditions 14 Minor Changes to SFPUC's Debt
Authorization in FY2025-26
15 $ in Millions
FY 2025-26
(Approved
02/2024)
FY 2025-26
(Proposed
02/2025) Change
Wastewater 804.2 804.2 <(0.1)
Water
Regional &
Local
432.7 445.3 12.6
Hetchy Water 89.9 91.4 1.5
Total 522.5 536.6 14.1
Power 177.2 171.7 (5.5)
PUC Total 1,503.9 1,512.5 8.6
• 0.6% net change ($8.6M);
decreases exempt from
approval
• Water increase ($14.1M)
offset by other reductions
• Reflects optimized
debt/revenue mix
• ***Note: FY 2025-26
project budget
appropriation request
unchanged
Item 12: Update to 10-Year
Capital Improvement Plan, FY
2025-26 to FY 2034-35
16 FY 2025-26 to FY 2034-35 10-Year Capital Improvement Plan Overview by Enterprise
Major Projects in the Capital Plan:
System Reliability and Resilience: Water
Millbrae Yard Laboratory and Shop
Improvements, SFWD Headquarters, and
replacement of water mains throughout the
system
Protecting Public Health: Wastewater
Nutrient Reduction, Biosolids Digester Facility,
stormwater/treatment plant improvements, flood
resistance, and replacement of sewer mains
throughout the system
System Sustainability and Expansion: Power
Public Power Expansion, Clean Steam, Moccasin
Penstocks, expanding clean energy sources,
enhancing reliability
Breakdown of the 10-Year CIP by Enterprise
17 Changes since last year's CIP
18 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000$ iin Millions
SFPUC 10-Y ear Capital Improvement Plan
Comparison
Water Wastewater Hetch Hetchy Water and Power CleanPowerSF The FY 2026-35 Capital Plan decreased from
$11.8B to 11.1B (over $700M or -6.5%)
Major Changes by Enterprise
• WWE – $165M increase to the Biogas portion
of the Biosolids project in FY2027. Smaller plan
overall
• Water – SVWTP Ozone increased by $74.3M.
Reduced significantly due to the removal of Los
Vaqueros Reservoir and Daly City Recycled
Water projects.
• HHWP and CPSF – smaller appropriation
requests in the out years
**Note: this spring the full CIP development
process begins which will culminate in the
next 2-year budget and 10-Year CIP
Overview of the FY 2026-35 10-Year CIP
19 0
500
1,000
1,500
2,000
2,500
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 $ in Millions
FY2026-35 10-Y ear Capital Improvement Plan
Water Wastewater Hetch Hetchy Water and Power CleanPowerSF • Notably this is a
balanced capital plan
(sources = uses) and
aligns with the 10 Year
Financial Plan
• 71% of the plan is
anticipated to be bond
funded
• 29% is anticipated to be
revenue funded,
exceeding 15% minimum
required
Major Projects in this 10-Year CIP
Water Enterprise ($2.4B - 21.9% of Plan)
• Sunol Valley Treatment Plant Ozone Project (Total
project budget is ~$326M and with an additional
$74.3M added in this year’s CIP)
• Major Pipeline Rehabilitation & Replacement
Program ($321M)
• New SFWD Headquarters ($266M)
• Advanced Metering Infrastructure Upgrades ($21M)
20 Major Projects in this 10-Year CIP
Wastewater Enterprise ($5.9B - 53.2% of
Plan)
• Biosolids Digester Facilities Project ($374M) - Major increase with biogas funding (+$165M)
• Southeast Plant Nutrient Reduction Project ($1.2B)
• Southeast Bay Outfall Assessment & Rehabilitation
• Critical Flood Resilience: Lower Alemany ($256M) &
Folsom Area ($253M)
• Collection System Renewal ($1.8B)
21 Major Projects in this 10-Year CIP
Hetch Hetchy Water & Power ($2.7B -
24.5% of Plan)
• Moccasin Penstock Rehabilitation ($315M)
• SFO Substation Improvements ($228M)
• Clean Steam Loop Project ($217M)
• Grid Modernization & Reliability
• Dam Safety & Water Conveyance Upgrades
CleanPowerSF ($48.4M - 0.4% of Plan)
• Local Renewable Energy Program Development
22 Services of the San Francis co Public Utilities Commis s ion Item 13: Adoption of 10-
Year Financial Plan
FY 2025-26 to FY 2034-35
23Mountain Tunnel Flow Control Facility
10-Year Financial Plan Background
• Updated annually on a rolling basis, as required by SF Charter
• Plans are complex Excel-based financial models
• Forecast revenues, expenses, and rates
• Confirm compliance with all financial policies
• Inputs from Capital Finance, Budget, Power Risk Management, and Water Resources Planning
• Accompanying written report details assumptions and key takeaways
24 Key Policies That Guide Financial Planning
• Financial policies set guidelines
for rate-setting and budgeting
decisions
• Approved by Commission and
reviewed periodically
• Adopting and following strong
financial policies supports
SFPUC’s bond credit ratings
25 • Sets minimum reserves as a % of operating
expenses
• Provides cushion of reserves for emergencies
Fund Balance Reserve Policy
• Ensures sufficient revenues to pay debt service
• Meets bond indenture requirements
Debt Service Coverage Policy
• Sets target bill as a % of typical and low-income
household income
• If not meeting, requires justification and plant to
address
• Water/wastewater only
Affordability Policy
Major Updates in this Year’s Plan
• Challenges facing utility industry
• Climate change, uncertain economy, regulatory complexity, and aging infrastructure
• Bond rating agencies have expressed concern
• Plan includes changes to demonstrate commitment to
financial sustainability
• Major long-term capital investments to meet challenges • More conservative assumptions: Lower sales volumes, higher debt costs, and higher expense growth
• Result is: Higher rate increases and stronger financial metrics 26 Expense Assumptions
Operating Expenses
• Base of FY 2025-26 proposed
budget
• Assume savings based on
historic percent of budget spent
• Inflationary growth afterward
• 4.4% on fringe benefits
• 3% elsewhere
• Power supply costs modelled
based on customer demands,
market prices
Capital Financing
• Interim financing with
commercial paper
• Revenue bonds refund
commercial paper
• 6% interest rate
• 30-year amortization
• Level debt service
• Federal and state low-cost
loans (WIFIA and SRF)
incorporated only if executed
27 Water & Wastewater Sales Recovery by FY 2026-27
28 • More conservative
forecast this year vs.
last year’s plan
• Pandemic recovery at
“new normal”
• Drought recovery
continues 1-2 years
• Long-term trends from
planning documents,
with adjustment down
• Price elasticity
• Conservation
• Job & population
growth
• Wastewater volumes
are based on retail
water
update
Water Expense Summary
29 • Average annual
growth: 3.4%
• Capital is the driver
• Costs of regional
water system split
between retail and
wholesale
customers
Wastewater Expenses More than Double
30 • Average annual
growth: 8.9%
• Capital is the driver
• Huge increase in
capital costs
translates into
higher debt
service costs
• All costs borne by
San Francisco
retail ratepayers
Projected Water & Wastewater Rate Increases
31 Fiscal Year Water Rate
Increase
Wastewater
Rate Increase
Combined
Bill Increase
FYE 2020* 8.3% 7.0% 7.6%
FYE 2021* 7.8% 8.0% 7.9%
FYE 2022* 7.9% 8.0% 8.0%
FYE 2023* 0.0% 0.0% 0.0%
FYE 2024* 5.0% 9.0% 10.5%
FYE 2025* 5.0% 9.0% 8.0%
FYE 2026* 5.0% 9.0% 9.7%
FYE 2027 7.0% 15.0% 11.5%
FYE 2028 7.0% 15.0% 12.5%
FYE 2029 8.0% 14.0% 11.8%
FYE 2030 8.0% 12.5% 11.7%
FYE 2031 7.0% 10.5% 9.1%
FYE 2032 6.5% 6.5% 6.4%
FYE 2033 6.5% 5.0% 5.5%
FYE 2034 3.5% 5.0% 4.4%
FYE 2035 3.0% 5.0% 4.2%
10-Year Avg. 6.0% 10.5% 9.6%
HistoricProjected
* Approved rates, all others forecast/planning only
• Forecasted to exceed affordability targets
outside of 10-year window
• Early warning of affordability issues 10+ years
out allows time to adjust in capital planning
Projected Water & Wastewater Rate Increases
• Goal of higher rate
increases in this plan:
• Better financial metrics
• More buffer to mitigate
risks
• Maintain bond credit
ratings
• Maintaining high
bond ratings = lower
interest rates = lower
long-term costs
• Increasing rates now
aims to save money in
the long run
32 • Rate survey context: our near-term bill projections are line with peer agencies
• Few peers publish long-term rate forecasts
Hetch Hetchy Growing Customer Base
33 • More conservative
forecast this year
vs. last year’s plan
• Pandemic
recovery at “new
normal”
• Delays in new
projects coming
online
• 5.8% annual growth
reflects new
customers in
redevelopment and
infill areas
Hetch Hetchy Power Expenses
34 • Average annual
growth: 8.7%
• Largest growth:
Purchased power
supply and delivery
• Some expense
growth related to
capital and supply
costs for new
customers
• Partially offset by
additional revenues
CleanPowerSF Expenses Steady
35 • Average
annual
growth: 1.9%
• Driven by
power supply
costs, and
subject to
resulting risks
update
Power Rate Increases
• Hetch Hetchy increases
• Short-term to meet higher supply and delivery
costs, target stronger financial metrics
• Long-term driven by capital
• CleanPowerSF’s trajectory flat
• Subject to change based on power markets
• FYE 2026 rates to Commission April 2025
• Expected to be lower than PG&E
36 Fiscal Year Hetch Hetchy
Power
CleanPowerSF
Generation
FYE 2024* 14.0% 15.0%
FYE 2025* 12.0% 8.5%
FYE 2026 10.0% 3.0%
FYE 2027 9.5% 0.0%
FYE 2028 9.5% 0.0%
FYE 2029 8.0% 0.0%
FYE 3030 5.0% 1.5%
FYE 2031 5.0% 1.5%
FYE 2032 4.5% 0.0%
FYE 2033 4.0% 0.0%
FYE 2034 4.0% 0.0%
FYE 2035 5.0% 0.0%
10-Year Avg. 6.4% 0.6%
• Hetch Hetchy Power rates shown are for retail, non-municipal customers. General Use rates for certain municipal depts. increase by $0.03/kWh annually until they reach equivalent retail rate • CleanPowerSF rate increase is only the generation portion of the bill; a 3% increase in the generation portion represents an approximate 1% increase on the overall bill
* Approved rates, all others forecast/planning only HistoricProjected Proposed Plans Meet & Exceed Financial Policy
Minimums, though Long-Term Affordability Pressure
37 Metric Policy
Requirements Water Wastewater Hetch Hetchy
Power CleanPowerSF
Fund Balance as a % of
Operating Expenses
Minimum 25% and if
>68% note plan 33% - 54% 42 - 49% 35% - 59% n/a
Days Cash on Hand
(CleanPowerSF)
Minimum 150 and
target 180 n/a n/a n/a 186 - 324
Current Debt Service
Coverage Minimum 1.10x 1.21x - 1.34x 1.25x – 1.71x 1.90x - 3.00x n/a Indenture Debt Service
Coverage Minimum 1.35x 1.55x – 1.71x 1.49x – 2.48x 3.57x - 12.89x n/a Revenue-Funded % of
Capital Plan Minimum 15-30% 37.2% 22.8% 33.2% 100%
Typical Household
Affordability
(Water & Sewer)
Max. 3.0% of 40th
percentile household
income or justify
1.7% - 3.1%
under target until FYE 2040 n/a n/a
Low-Income Household
Affordability
(Water & Sewer)
Max. 7.0% of 20th
percentile household
income or justify
4.0% - 7.3%
under target until FYE 2037 n/a n/a
Services of the San Francis co Public Utilities Commis s ion Questions?
38 AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Business Services AGENDA NO. 11 MEETING DATE February 11, 2025
Calendar: Regular Calendar
Manager: Laura Busch
Increase the SFPUC Water Revenue Bond Authorization Associated with the FY 2025-26 Capital Budget
Summary of Proposed
Commission Action:
Public Hearing to consider and possible action to authorize the General Manager to seek Board of Supervisors approval for the issuance of $1,054,138,857 aggregate principal amount of Water Revenue B onds and other forms of indebtedness, including commercial paper and State Revolving Fund (SRF) loans, an increas e of $14,131,507 to the Fiscal Year 2025-26 debt authorization, subject to the terms of Charter Sections
9.107(6) and 9.107(8).
Agenda Title: : Amend FY 2025-26 Capital Budget
Commission Meeting Date: February 11, 2025
Background &
Description:
On February 13, 2024, by Resolution No. 24 -0031, the SFPUC approved the Two-Year Capital Budget for Fiscal Year (FY) 2024-25 and FY 2025-26 and associated debt authorizations for the Water Enterprise, Wastewater Enterprise, and Hetch Hetchy Water and Power, including the Power Enterprise. Pursuant to Resolution No. 24- 0031, t he General Manager submitted to the Board of Supervisors proposed ordinances authorizing, among other things, the issuance of not -to-exceed $1,035,007,350 aggregate principal amount of Water Revenue Bonds and other forms of indebtedness, including commercial paper and State Revolving Fund (SRF) loans, subject to the terms of Charter Section 9.017(6) and 9.107(8). On July 28, 2024 , by Ordinance No. 0131 -24, the Board of Supervisors approved a debt authorization for the Water Enterprise of Not to Exceed $1,040,007,350.
The SFPUC has reviewed its capital needs for FY 20 25-26, and staff has determined a change is necessary , resulting in a need to augment the already approved Water Revenue Bond authorization. This proposed action directs the General Manager to submit to the Mayor and the Board of Supervisors a n updated debt authorization request , subject to the terms of Charter Section
9.017(6) and 9.107(8).
Proposed Water Revenue Bond Debt Authorization Increase - $14.1 Million ($14,131,507)
SFPUC staff requests an increase to the existing Water Revenue B ond authorization to ensure adequate funding for planned capital projects in FY 2025-26. Based on updated financial projections and capital program needs, an additional $14.1 million ($14,131,507) in Water Revenue Bond capacity is required to maintain the Water Enterprise’s critical infrastructure investments.
Staff is proposing this increase due to continued optimization of debt versus revenue funding comparisons to capital projects.
Also of note, the debt funded portions of Wastewater and Power capital budgets in FY 2025-26 have decreased by $5,539,411 . These decreases require no Commission action.
Agenda Title: : Amend FY 2025-26 Capital Budget
Commission Meeting Date: February 11, 2025
Budget & Financing
Costs:
The SFPUC FY 2025-26 Capital Budget and associated financing costs are as follows. There are no proposed changes to the FY 2025-26 Capital Budget.
FY 2025-26
Capital Budget
Amount Financing
Costs
Total
Wastewater 822,912,008 120,624,344 943,536,352
Water 477,182,370 64,895,259 542,077,629
Hetchy Water 180,765,665 30,351,763 211,117,428
Hetchy Power 85,482,971 9,708,911 100,191,882
CleanPowerSF 516,430 0 516,430
Total $1,566,859,444 $225,580,277 $1,792,439,721
Environmental
Review:
This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4) because adoption of the Capital Budget involves creation of a government funding mechanism or other fiscal activities and does not involve any commitment to a specific project which may result in a potentially significant impact on the environment.
The SFPUC will consider approval of projects to be funded through this Capital Budget only after completion of any environmental review required by CEQA and Administrative Code Chapter 31 and any certification required by Proposition E (approved by the voters in 2002 for water and wastewater projects) and Proposition A (approved by the voters in 2018 for power projects).
Attachments: 1. Two-Year Capital Budget FY 2024-25 and FY-2025-26 Amendment Summary
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On February 13, 2024, by Resolution No. 24- 0031, the San Francisco Public Utilities Commission (SFPUC) adopted the Two-Year Capital Budget for Fiscal Year (FY) 2024-25 and FY 2025-26 for the Water Enterprise, Wastewater Enterprise, and Hetch Hetchy Water and Power, including the Power Enterprise; and
WHEREAS, Pursuant to Resolution No. 24- 0031, the General Manager submitted to the Board of Supervisors proposed ordinances authorizing, among other things, the issuance of not -to-exceed $1,035,007,350 aggregate principal amount of Water Revenue Bonds and other forms of indebtedness, including commercial paper and State Revolving Fund (SRF) loans, subject to the terms of Charter Section 9.017(6) and 9.107(8); and
WHEREAS, On July 28, 2024, by Ordinance No. 0131- 24, the Board of Supervisors approved a debt authorization for the Water Enterprise of Not to Exceed $1,040,007,350; and
WHEREAS, The SFPUC has reviewed its capital needs for FY 2025- 26 and has determined that an increase to the existing Water Revenue Bond authorization is necessary to ensure adequate funding for planned capital projects in FY 2025-26; and
WHEREAS, Based on updated financial projections and capital program needs, an additional $14.1 million ( $14,131,507) in Water R evenue Bond capacity is required to maintain the Water Enterprise’s critical infrastructure investments; and
WHEREAS, The SFPUC recommends that the General Manager submit a request to the Mayor and the Board of Supervisors to increase the approved W ater Revenue B ond authorization associated with the Two-Year Capital Budget for FY 2024-25 and FY 2025-26; and
WHEREAS, This action does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4) because adoption of the Capital Budget involves creation of a government funding mechanism or other fiscal activities and does not involve any commitment to any specific project which may result in a potentially significant impact on the environment; and
WHEREAS, The SFPUC will consider approval of projects to be funded through this Capital Budget only after completion of any environmental review required by CEQA and Administrative Code Chapter 31 and any certification required by Proposition E (approved by the voters in 2002 for water and wastewater projects) and Proposition A (approved by the voters in 2018 for power projects); now, therefore, be it
RESOLVED, That this Commissio n hereby adopts the proposed increase to the approved Water Revenue Bond authorization associated with the Two -Year Capital Budget for Fiscal Year 2024 -25 and Fiscal Year 2025- 26, and authorizes the General Manager to request the Mayor to recommend to the Board of Supervisors a n augmentation in the amount of $14,131,507 to the SFPUC’s Water Revenue Bond authorization; and be it
FURTHER RESOLVED, That the General Manager of the SFPUC is authorized to make further technical adjustments to these approved amounts as may be necessary, or upon further direction from the Commission; and be it
FURTHER RESOLVED, The General Manager is hereby authorized and directed to submit to the Board of Supervisors proposed ordinances authorizing the issuance of not to exceed $1,054,138,857 aggregate principal amount of Water Revenue Bonds and other forms of indebtedness, including commercial paper and State Revolving Fund (SRF) loans , subject to the terms of Charter Sections 9.107(6) and 9.107(8). The General Manager shall return to this Commission for a subsequent discretionary approval of any disclosure and transaction related documents prepared in connection with the issuance of such Bonds and other forms of indebtedness.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 11, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission
Attachment A
Two-Year SFPUC Capital
Budget
FY 2024-25 and FY 2025-26
Amendment
Attachment A Hetch Hetchy FY2024-25 and FY2025-26
Bond Authorization Amendment
Funding Source FY 2024-25 FY 2025-26
Authority Description of Appropriation or Fund
15366 Proceeds Sale Power Bonds 115,630,709 1771,195660,126151 15366 Proceeds Sale Water Bonds 99,396,533 9189,364876,909008 15405 Hetch Hetchy Revenue Funds (Power/Water) 20,222,482 4137,070238,461 15404 Cap and Trade Revenue 1,006,901 1,151,119
21284 Low Carbon Fuel Standard 807,938 1,062848,695778 TOTAL - Funding Source 237,064,563 306,309,310
Use of Funds
Authority Description of Appropriation or Fund FY 2024-25 FY 2025-26 15363 Water Infrastructure Projects 56,049,054 57,052,901 15364 Power Infrastructure Projects 25,730,244 61,113,838 15365 Joint Water/Power Projects 70,995,489 62,598,926 TOTAL - Water 152,774,787 180,765,665
80427 Distribution Services Retail 30,100,000 54,739,676 80427 ITS Capital Projects 74,690 71,295
80427 Distribution Services Retail - Treasure Island 638,000 10,362,000 80427 Distribution Services Retail - Grid Connections 8,050,000 8,350,000 15377 Streetlights 3,615,000 3,615,000
15400 Small Renewables 1,000,000 1,000,000
15404 Energy Efficiency - General Fund 1,000,000 1,000,000 15383 Power Asset Acquisition 7,558,000 6,345,000
TOTAL - Power 52,035,690 85,482,971
15366 Financing Cost Power 17,344,606 26,579,273
15366 Financing Cost Water 14,909,480 13,481,401
Total Financing Costs 32,254,086 40,060,674
TOTAL - Use of Funds 237,064,563 306,309,310
Attachment A Wastewater Enterprise
Funding Source
Authority Description of Appropriation or Fund FY 2024-25 FY 2025-26 19471 Proceeds Sale of Bonds 911,508,795 804,162,29157,905 19141 Wastewater Revenue 112,415,407 133,891,2164,055,297 19141 Wastewater Capacity Fee 5,323,150 5,482,845323,150 TOTAL - Funding Source 1,029,247,352 943,536,352
Use of Funds
Authority Description of Appropriation or Fund FY 2024-25 FY 2025-26 SSIP
19142 Program Management 16,000,000 12,996,970
19142 Biosolids/Digester Project 378,512,525 188,532,739 19142 Treatment Plant Improvements - Southeast 83,860,148 113,581,087 19142 Treatment Plant Improvements - Other 54,491,438 57,913,311 19142 Collection System Improvements 15,587,483 44,773,049 19142
Stormwater Management/Green
Infrastructure 7,677,412 17,951,320
19142 Flood Resilience/Hydraulic Improvements 82,267,176 158,669,505 TOTAL - SSIP 638,396,182 594,417,981
Non-SSIP
19141 Renewal & Replacement-Collection System 128,538,826 142,124,003 19141 Renewal & Replacement-Treatment Facilities 24,000,000 25,000,000 19134 Treasure Island 36,624,859 4,272,611
19139 Wastewater Facilities and Infrastructure 64,961,166 57,097,413 TOTAL - Non SSIP 254,124,851 228,494,027
19471 Financing Cost 136,726,319 120,624,344
TOTAL - Use of Funds 1,029,247,352 943,536,352
Attachment A Water Enterprise
Bond Authorization Amendment
Funding Source
Authority Description of Appropriation or Fund FY 2024-25 FY 2025-26 17731 Proceeds Sale of Bonds 413,099,747
44532,277635
,668062
19133 Water Enterprise Revenue 99,977,942
9104,710353,
824430
19063 Water Capacity Fee 4,940,910 5,089,137
TOTAL - Funding Source 518,018,599 542,077,629
Use Of Funds
Authority Description of Appropriation or Fund FY 2024-25 FY 2025-26 80526 Reg Water Facilities and Infra 203,597,839 122,663,166 80527 Watersheds & Right of Way 8,870,044 9,694,978
80528 Reg Alternative Water Supplies 6,240,441 7,449,609 Total Regional Water 218,708,324 139,807,753
Local Water
80529 Loc Water Facilities and Infra 227,398,679 319,859,530 80530 Local Water Recourses (WRD) 9,946,634 17,515,087 TOTAL - Local Water 237,345,313 337,374,617
17731 Financing Costs 61,964,962 64,895,259
TOTAL - Use of Funds 518,018,599 542,077,629