SFPUC
FY 2024-25 2nd Quarter Budget Report
Anna Duning
Budget Director
February 25, 2025
2 Slight shortfall projected for Water & positive operating results other enterprises. Year-end financial results projected to meet or exceed policy targets.
• Water: Improvements since Q1, but retail volumes are still down compared to budget.
• Wastewater: Revenues projected below budget due to lower volumes; certain stormwater-only parcels without service agreements. • Power: Revenues projected lower since Q1 due to lower volumes in retail sales - partially offset by higher wholesale sales. Large savings projected for power purchase costs from both lower demand and higher generation. • CleanPowerSF: Similar to Q1, retail sales are lower than budget due to final rates being set lower than budget, and lower demand.
FY 2024-25 Q2 Report Summary
3 Net operating result: ($2.6M)
• Total sources down ($6.8M), and $4.2M in cost savings • Programmatic Savings & Legal Settlements $3.4M
• Net impact on fund balance: $0.8M
Sources
• ($7.9M) or -2.3% retail revenues
• ($0.1M) or -0.1% non-operating revenues
• $1.2M or 0.3% wholesale revenues
Uses
• $2.2M or -0.7% debt service
• $2.0M or -5.7% bureau overhead
• $0.6M or -100% general reserve
• ($0.6M) or 0.5% salaries and benefits – will require OT supplemental FY 2024-25 Water Budgetary Variances
4 Net operating result: $3.3M
• Total sources down ($3.2M), and $6.4M in cost savings • Legal Settlements ($1.7M)
• Net impact on fund balance: $1.6M
Sources
• ($11.0M) or -2.5% sewer service charges
• $7.8M or 14.0% non-operating revenues
Uses
• $4.7M or -3.8% debt service
• $1.2M or -1.3% salaries and benefits
• $0.6M or -100% general reserve planned to go unspent
FY 2024-25 Wastewater Budgetary
Variances
5 Net operating result: $57.1M
• Total sources down ($14.9M) and $72.0M in cost savings Sources
• ($18.1M) or -8.3% retail sales
• ($5.7M) or -20.1% gas & steam sales
• $8.4M or 50.3% wholesale sales
• $0.5M or 5.8% non-operating revenues
Uses
• $63.1M or -42.0% purchase of power
• $8.2M or -26.6% gas & steam
• $0.6M or -100% general reserve planned to go unspent
FY 2024-25 Power Budgetary
Variances
6 Net operating result: $46.3M
• Total sources down ($30.8M) and $77.1M in cost savings Sources
• ($31.2M) or -6.8% power sales
• $0.4M or 14.1% interest income
Uses
• $36.6M or -8.6% purchase of power
• $40.5M or -100% general reserve planned to go unspent FY 2024-25 CleanPowerSF Budgetary
Variances
7 Key Financial Ratios
Fund Balance Reserve
Water Waste
Water
Hetchy Clean
Power
SF
25%-68% of Annual
Operating Uses
49.9% 59.5% 91.6% 45.8%*
Debt Service Coverage
Reserve
Indenture Basis ≥
1.35x
1.76 3.11 19.32
Current Basis ≥ 1.10x 1.22 1.99 8.86
* CleanPowerSF’s Fund Balance Reserve Policy: build fund balance reserve to min of 41% (150 days) & target of 49% (180 days) of operating expenditures between FY 21-22 and FY 24-25.
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 415.934.5707
F 415.554.1877
Date: February 25, 2025
To: Commissioner Kate Stacy, President
Commissioner Joshua Arce, Vice President
Commissioner Avni Jamdar
Commissioner Steve Leveroni
Through: Dennis J. Herrera, General Manager
From: Nancy L. Hom, Chief Financial Officer and Assistant General Manager, Business Services
Subject: SFPUC FY 2024-25 Second Quarter Budgetary Report through December 2024
The FY 2024-25 second quarter budgetary reports are attached for the three Enterprises and CleanPowerSF, with high-level changes to revenues and expenses summarized in the following table:
Beginning
Available
Fund
Balance
Fund
Balance
Budgeted
to be
(Used)
FY 2024-25 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 204.0 (24.0) (6.8) 4.2 (2.6) 3.4 180.8
Wastewater 177.2 (24.7) (3.2) 6.4 3.3 (1.7) 154.0
Power 217.6 (28.7) (14.9) 72.0 57.1 - 246.0
CleanPowerSF 150.2 - (30.8) 77.1 46.3 - 196.5
Summary:
• Positive year end operating results projected for Power, CleanPowerSF, and Wastewater; with a shortfall for Water. • Water: Retail revenues are projected to improve from quarter one, but remain below budget, primarily due to lower volumes than budgeted. Personnel spending is projected to be over-budget due to overtime – funds will be reallocated to address this through the City’s overtime supplemental process. This shortfall is partially offset by slightly higher wholesale sales and savings in programmatic projects, interdepartmental service costs, and debt service costs.
• Wastewater: Similar to Water, projected revenues have improved since the first quarter, but remain below budget due to lower volumes. Additionally, multiple stormwater-only parcels currently have no service agreements and remain uncollected. This is offset by a one-time payment from UCSF and the Warriors for their share of costs for the Mariposa Pump Station, lower labor costs due to vacant positions, and debt service savings. • Power: Overall, revenues are lower than quarter one. Retail revenues are lower than budget due to lower demand, offset by higher Wholesale revenues from resource adequacy sales. On the uses side, large savings are projected for power purchases mainly due to carryforward budget and contingency projected to be unspent, and higher generation, avoiding additional power purchases.
• CleanPowerSF: Retail sales are projected to be similar to the first quarter, lower than the budget due to final, adopted rates being set lower, and lower demand. This is offset by higher wholesale sales. On the uses side, continued lower power prices and demand have resulted in a surplus for the power purchase budget. In addition, there is a general reserve which was budgeted to go unspent to build reserves.
• All enterprises are projected to exceed financial policy minimums and coverage ratios at year end.
If you have questions, please contact me at [email protected].
cc:
Ronald Flynn, Deputy GM, SFPUC
Barbara Hale, AGM, Power Enterprise, SFPUC
Joel Prather, AGM, Wastewater Enterprise, SFPUC
Steve Ritchie, AGM, Water Enterprise, SFPUC
Stephen Robinson, AGM, Infrastructure, SFPUC
Wendy Macy, Chief People Officer, SFPUC
Masood Ordikhani, AGM, External Affairs, SFPUC
Laura Busch, Deputy Chief Financial Officer, SFPUC
Anna Duning, Budget Director, SFPUC
Benjamin McCloskey, Acting 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 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Retail Water Sales 322.1 344.0 345.0 337.1 (7.9) A Wholesale Water Sales 313.0 359.9 359.9 361.1 1.2 B Interest Income 11.1 3.2 3.2 3.2 - Rental Income 9.0 12.7 12.7 12.7 - Miscellaneous Income 16.0 20.3 20.3 17.7 (2.6) C Departmental Transfer Adjustment (46.3) (49.2) (49.2) (49.2) - Federal Bond Interest Subsidy 22.8 20.4 20.4 22.8 2.4 D Appropriated/Budgeted Use of Fund Balance - 24.0 62.1 62.1 - Total Sources 647.7 735.2 774.3 767.5 (6.8) Operating Uses
Personnel 112.3 121.5 121.5 122.0 (0.6) E Non-Personnel Services 36.7 21.2 26.7 26.7 - Materials and Supplies 21.8 20.3 22.5 22.5 - Equipment 2.5 4.1 9.6 9.6 - Overhead (SFPUC Bureaus) 59.9 65.0 77.9 77.9 - Services of Other Departments 26.4 32.0 35.0 33.0 2.0 F Debt Service 327.4 333.6 333.6 331.4 2.2 G General Reserve 5.9 0.6 0.6 - 0.6 H Total Operating Uses 592.9 598.2 627.5 623.2 4.2 Net Operating Results 54.8 144.3 (2.6) Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Capital Projects 67.1 103.6 242.7 242.7 - Facilities Maintenance/Programmatic 31.9 33.5 75.4 70.7 4.8 I Legal Settlements - - - 1.3 (1.3) J Total Adjustments to Operating Fund Balance $ 99.0 $ 137.1 $ 318.1 $ 314.7 $ 3.4 Available Fund Balance as of Fiscal Year-End $ 204.0 $ 180.8 Available Fund Balance, % of Operating Uses (K) 25-68% 68.6% 49.9% Debt Service Coverage (Year-End Budgetary Basis) (L)
Indenture Basis (includes Available Fund Balance) (M) ≥ 1.35 1.81 1.87 1.76 Current Basis (N) ≥ 1.10 1.10 1.33 1.22 FY 2024-25
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2024-25 2nd Quarter - Budgetary Basis, Funds 25940, 25950, 25990, 25960, 26570, 26600, 26510 & 26603 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2024-25 2nd Quarter - Budgetary Basis, Funds 25940, 25950, 25990, 25960, 26570, 26600, 26510 & 26603 ($ Millions)
Revenue Variances
D. Includes federal subsidy on 525 Golden Gate COPs.
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.
A. Projected retail water sales of 53.4 MGD represent a 2.9% increase from FY 23-24 actuals of 51.9 MGD and a 2.9% decrease from budget of 55 MGD. Forecast also includes $3.4M in revenue (0.5 MGD net total) from delayed bills from prior fiscal year and $3.6M in transfers out to wastewater from lease revenues to pay for low-income customer discount programs.
B. Projected wholesale water sales of 127.4 MGD represent a 3.9% increase from FY 23-24 actuals of 122.6 MGD and a 0.6% decrease from budgeted volumes of 128.2 MGD. Partially offset by $3.9M in minimum purchase charges from FY 23-24.
Expenditure Variances
K. 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%.
C. Miscellaneous income is projected to be below budget, mainly due to a correction to historic overhead revenues in CDD.
G. Delay of interest payment for the Mt Tunnel SRF loan.
Other Notes
H. $0.6M in general reserve.
J. Expected legal settlements.
L. Additional expenses that are included in debt service calculations are not shown in this operating fund report.
I. $4.0M in savings from Landscape Conservation Program and $0.8 in planned savings from community benefits project.
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.
F. Savings reflect lower spending from other City departments.
E. Salaries are projected to exceed budget due to higher than expected overtime costs, which will be addressed by re-allocating funding from other sources in Water's budget through the City's overtime supplemtal process.
FY 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Sewer Service Charges 385.4 435.3 435.8 424.8 (11.0) A Interest Income 11.6 3.9 3.9 3.9 - Miscellaneous Income 3.5 4.2 4.2 11.5 7.2 B Federal Bond Interest Subsidy 3.9 3.2 3.2 3.9 0.6 C Appropriated/Budgeted Use of Fund Balance 26.4 24.7 48.4 48.4 - Total Sources 430.7 471.4 495.6 492.4 (3.2) Operating Uses
Personnel 80.6 89.5 89.5 88.3 1.2 D Non-Personnel Services 25.2 30.1 33.9 33.9 - Materials and Supplies 14.2 15.9 17.7 17.7 - Equipment 4.3 1.7 5.0 5.0 - Overhead (SFPUC Bureaus) 35.8 47.2 54.8 54.8 - Services of Other Departments 35.9 38.9 42.1 42.1 - Debt Service 95.1 122.6 122.6 117.9 4.7 E General Reserve 27.8 0.6 0.6 - 0.6 F Total Operating Uses 291.3 346.5 366.2 359.8 6.4 Net Operating Results 139.4 132.7 $ 3.3 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Capital Projects 82.5 112.4 295.0 295.0 - Facilities Maintenance/Programmatic 8.5 12.5 17.0 17.0 - Legal Settlements - - - 1.7 (1.7) G Total Adjustments to Operating Fund Balance $ 91.1 $ 124.9 $ 312.0 $ 313.7 $ (1.7) Available Fund Balance as of Fiscal Year-End $ 177.2 $ 154.0 Available Fund Balance, % of Operating Uses (H) 25-68% 86.5% 59.5% Debt Service Coverage (Year-End Budgetary Basis) (I)
Indenture Basis (includes Available Fund Balance) (J) ≥ 1.35 3.87 3.26 3.11 Current Basis (K) ≥ 1.10 2.06 2.01 1.99 Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2024-25 2nd Quarter - Budgetary Basis, Funds 20160, 20170, 20180, 20530 & 20550 ($ Millions)
FY 2024-25
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2024-25 2nd Quarter - Budgetary Basis, Funds 20160, 20170, 20180, 20530 & 20550 ($ Millions)
Revenue Variances
Expenditure Variances
Other Notes
H. Calculated as Ending Available Fund Balance (including additions to General Reserve) as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be within a range of 25-68%.
J. 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.
I. Additional expenses that are included in debt service calculations are not shown in this operating fund report.
A. Projected residential sales of 44.3 mgd represent a 0.2% incease from FY 23-24 actuals of 44.2 MGD and a 2.4% decrease from budget of 45.4 MGD. Forecast includes $4.2M in revenue (0.46 MGD net total) from delayed bills from prior fiscal year and $3.6M in revenue transfers from water lease revenues to pay for low-income discount programs.
This is offset by some stormwater-only parcels not yet billed pending confirmation of responsible account holders, accounting for approximately $3M variance between budget and projection.
K. Calculated as ratio between (a) Total Sources plus any appropriated fund balance plus Capacity Charges, less Operating Uses less Facilities Maintenance/Programmatic (excluding all revenues and expenses related to the 525 Golden Gate COPs), and (b) Debt Service. SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of 1.10 times.
F. $0.6M in general reserve.
D. Salary savings reflect vacant positions.
E. Debt service variance mainly due to the issuance of the 2024 Series B refunding of 2018 Series B and 2023 Series B and defeasance of the 2021 Series A Notes and 2021 Series B Notes.
C. Includes federal subsidy on 525 Golden Gate COPs.
B. Miscellaneous income is forecasted to be higher than budget due to one-time revenue payments from UCSF and the Warriors as part of their contribution to the construction of the Mariposa Pump Station.
G. Expected legal settlements.
FY 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised
Budget)
Sources
Electric Sales - Retail 188.3 210.7 217.3 199.2 (18.1) A Electric Sales - Wholesale 42.3 18.9 16.7 25.1 8.4 B Water Sales - Transfer from Water Department 46.3 49.2 49.2 49.2 - Natural Gas & Steam - City Work Orders 16.3 28.5 28.5 22.7 (5.7) C Interest Income 10.3 4.4 4.4 4.8 0.4 D Federal Interest Subsidy - Power Bonds 0.1 0.1 0.1 0.1 - Miscellaneous Income 5.2 5.3 5.3 5.4 0.1 E Appropriated/Budgeted Use of Fund Balance 35.4 28.7 117.0 117.0 - Total Sources 344.3 345.7 438.4 423.5 (14.9) Operating Uses
Personnel 54.5 59.5 59.5 59.5 - Non-Personnel Services 35.0 48.9 81.9 81.9 - Power Purchases, Transmission Distribution & Related Charges 79.1 114.6 150.2 87.1 63.1 F Natural Gas & Steam 16.3 23.7 31.0 22.7 8.2 G Materials and Supplies 3.9 3.8 4.1 4.1 - Equipment 1.8 2.5 9.2 9.2 - Overhead (SFPUC Bureaus) 23.1 28.3 33.2 33.2 - Services of Other Departments 7.5 9.8 10.0 10.0 - Debt Service 3.8 10.5 10.5 10.5 - General Reserve 6.9 0.6 0.6 - 0.6 H Total Operating Uses 231.9 302.2 390.2 318.2 72.0 Net Operating Results 112.4 105.3 57.1 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Facilities Maintenance/Programmatic 13.1 23.3 28.2 28.2 - Capital projects 15.7 20.2 82.4 82.4 - Total Adjustments to Operating Fund Balance 28.7 43.5 110.6 110.6 - Available Fund Balance as of Fiscal Year-End 217.6 246.0 Available Fund Balance, % of Operating Uses (I) 25-68% 90.2% 91.6% Debt Service Coverage (Year-End Budgetary Basis) (J)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 64.97 21.56 19.32 Current Basis (L) ≥ 1.10 14.40 1.97 8.86 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2024-25 2nd Quarter - Budgetary Basis - 24970, 24980, 24990, 25000 & 25354 ($ Millions)
FY 2024-25
Revenue Variances
Expenditure Variances
Other Notes
D. Interest income slightly above budget.
A. Retail sales are projected to be lower based on year to date volumes.
F. Savings are due to lower projected power costs and higher generation saving $12M in power purchases, $5M in savings from Transmission
costs, and $3M in savings for Resource Adequacy. This is offset by $1M increase in distribution costs. The remaining savings are a result of budgeted contingency and carryforward budget projected to be unspent B. Wholesale sales are higher than budget mainly due to higher resource adequacy sales offset by reduced sales from lower prices.
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.
I. Calculated as Ending Available Fund Balance (including additions to General Reserve) as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be within a range of 25-68%.
G. Gas and steam sales below budget due to lower usage. Revenue reduction is offset by equivalent cost savings.
E. Miscellaneous income is slightly above budget.
H. $0.6M in general reserve.
J. Additional expenses that are included in debt service calculations are not shown in this operating fund report.
FY 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs Revised
Budget)
Operating Sources
Electric Sales - Green Product 326.3 411.7 411.7 348.7 (63.0) Electric Sales - SuperGreen Product 29.4 37.1 37.1 60.5 23.5 Wholesale Sales 5.0 11.1 11.1 19.5 8.3 Subtotal - Electric Revenues 360.7 459.9 459.9 428.7 (31.2) A Interest Income 0.3 3.1 3.1 3.6 0.4 B Miscellaneous Income 0.0 - - - - Appropriated/Budgeted Use of Fund Balance - 43.9 43.9 - Total Sources 361.0 463.1 507.0 476.2 (30.8) Operating Uses
Personnel 6.4 8.7 8.7 8.7 - Overhead 5.7 7.5 8.6 8.6 - Non Personnel Services 8.7 10.9 12.7 12.7 - Materials & Supplies 0.0 0.1 0.2 0.2 - Power Purchases, Transmission Distribution & Related Charg 283.9 385.0 424.7 388.1 36.6 C Services of Other Departments 4.0 1.9 2.5 2.5 - Debt Service - - - - - General Reserve 32.7 40.5 40.5 - 40.5 D Total Operating Uses 341.4 454.7 497.8 420.7 77.1 Net Operating Results 19.6 55.5 46.3 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Project
Closeouts
Programmatic 0.5 7.8 8.6 8.6 - Capital Projects 1.5 0.6 4.4 4.4 - Total Adjustments to Operating Fund Balance 2.0 8.4 13.0 13.0 - Available Fund Balance as of Fiscal Year-End 150.2 196.5 E Available Fund Balance, % of Operating Uses (F) % 43.9% 45.8% Revenue Variances
Expenditure Variances
Other Notes
F. 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.
C. Savings are due to lower projected load and wholesale energy costs. This is offset by carryforward budget projected to be unspent.
Appendix D
CleanPowerSF
FY 2024-25 2nd Quarter - Budgetary Basis - 24750, 24751, 24760, 24761, 24765 & 24870 ($ Millions)
FY 2024-25
A. Retail revenues are driven lower primarily by lower load, partially offset by higher wholesale revenues. Budget revenues assumed 7% higher load and higher rates (12% FY25 increase budgeted instead of 8.5% adopted) B. Interest income variance due to interest earnings on APX collateral not included in budget.
E. 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.
D. General Reserve was intentionally budgeted and planned to go unspent to build reserves.