FY 24-25 3rd Quarter Budget Report
Anna Duning, Budget Director
May 27, 2025
FY 2024-25 Third Quarter Summary
Positive operating results projected and financial policy targets exceeded for all enterprises and CleanPowerSF
• Water: Retail revenues have further improved from the first two quarters, still projected below budget due to lower volumes. Offset by modest cost savings. • Wastewater: Revenues still projected to remain below budget due to lower volumes and stormwater-only parcels with no service agreements. Offset by one-time revenues and some cost savings.
• Power: Overall trends similar to second quarter with lower revenues due to less demand. On uses side, power purchasing is down due to less demand and lower energy prices. • CleanPowerSF: Retail sales are projected to be similar to the second quarter, lower than the budget due to final rates being set lower, as well as less demand due to lower-than- forecasted customer enrollment.
FY 2024-25 Water Budget Variances
Net Operating Result: $3.4M
Largely tracking to budget with overall revenues down slightly ($1.9M) and cost savings of $5.2M leading to positive net operating results.
Sources
• ($6.7M) or -1.9% retail water sales
• $1.2M or 0.3% wholesale water sales
• $3.6M or 13.3% other sources, including interest earnings Uses
• $2.4M or 0.7% debt service
• $1.3M or 3.8% workorders
• $1.0M or 3.6% non-personnel services
• $0.6M or 100% general reserve
No longer running a deficit in salaries, but shift of salary funds to overtime will require BOS approval
FY 2024-25 Wastewater Budget
Variances
Net Operating Result: $7.9M
Net surplus of $7.9M despite some revenue shortfalls in sewer service charges. Total net impact on fund balance is $6.2M after legal settlements ($1.7M).
Sources
• ($12.2M) or -2.8% sewer service charges
• $13.3M or 22.3% other sources, including interest earnings Uses
• $4.7M or 3.8% debt service
• $1.5M or 1.7% salaries and benefits
• $0.6M or 100% general reserve
Personnel tracking within budget, but shift of salary funds to overtime willrequire BOS approval
FY 2024-25 Power Budget
Variances
Net Operating Result: $59.9M
High variances due to combination of lower demand, lower power purchase prices, and large carry-forwards.
Sources
• ($19.0M) or -8.8% retail sales
• ($7.2M) or -25.3% gas & steam sales
• $9.7M or 57.9% wholesale sales
• $4.5M or 3.6% other sources, including interest earnings Uses
• $61.6M or 39.4% purchase of power
• $9.7M or 31.3% gas & steam
• $0.6M or 100% general reserve
FY 2024-25 CleanPowerSF
Budget Variances
Net Operating Result: $68.7M
High variances due to combination of lower demand & enrollment than forecasted and final rates set at levels below budget assumptions.
Sources
• ($33.2M) or -7.2% power sales
• $2.2M or 4.6% other sources, including interest earnings Uses
• $58.7M or 13.8% purchase of power
• $0.5M or 19.9% workorders (LAFCo savings)
• $40.5M or 100% general reserve
Key Financial Policy Targets
Fund Balance Reserve
Water Wastewater Hetchy Clean
Power
SF
25%-68% of Annual Operating Uses 50.7% 61.4% 92.6% 53.8%* Debt Service Coverage Reserve
Indenture Basis ≥ 1.35x 1.78 3.14 19.61
Current Basis ≥ 1.10x 1.23 2.01 9.15
*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 – this is the first time they’ve reached this target
Overtime Budget Supplemental
• San Francisco Administrative Code Section 3.17 requires certain City departments, including the SFPUC, obtain Board of Supervisors approval if they spend more on overtime than the amount appropriated in their annual budget.
• The annual "overtime supplemental ordinance" for several City departments (including DEM & the Fire Dept) was heard at the May 21, 2025 Budget and Finance Committee meeting. • The SFPUC will transfer funds budgeted for regular salaries to overtime in the Water and Wastewater enterprises. No enterprise is exceeding its total salary budget – this is a net neutral transfer.
Enterprise Overtime
Budget
Overtime
Projection
Supplemental
Ordinance
OT Spending as % of
Salary Budget
Water $2.3M $2.6M $300,000 3%
Wastewater $3.0M $3.2M $200,000 5%
Questions?
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: May 27, 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 Third Quarter Budgetary Report through March 2025
The FY 2024-25 third 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) (1.9) 5.3 3.4 ( 0.1) 183.2
Wastewater 177.2 (24.7) 1.2 6.7 7 .9 (1.7) 158.7
Power 217.6 (28.7) (12.0) 72. 0 59.9 - 248.8
CleanPowerSF 150.2 - (31.0) 99.7 68.7 - 218.9
Summary:
• Positive year end operating results projected for all enterprises and CleanPowerSF.
• Water: Retail revenues have further improved from the first two quarters but are still projected to be below budget primarily due to lower volumes than budgeted. This is partially offset by slightly higher wholesale sales, interest earnings, and savings from programmatic projects, interdepartmental service costs, and debt service.
• Wastewater: Revenues are still projected remain below budget due to lower volumes. Further, 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, interest earnings, lower personnel costs due to vacant positions, and debt service savings.
• Power: Overall trends are similar to the second quarter. Retail revenues are below budget due 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 that is not projected to be spent. Additionally, power purchase prices have come in lower than budgeted.
• CleanPowerSF: Retail sales are projected to be similar to the second quarter, lower than the budget due to final rates being set lower as well as less demand due to lower-than-forecasted customer enrollment. This is offset by higher wholesale sales. On the uses side, continued lower power prices and demand, as well as an unspent power purchase contingency, 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 and savings expected in a workorder to LAFCo.
• All enterprises are projected to exceed financial policy minimums and coverage ratios at year end. Notably, CleanPowerSF is for the first time meeting its fund balance reserve target (49%).
Additionally, on May 6, the Mayor’s Office introduced a supplemental appropriation ordinance to shift $1,065,000 of permanent salary funds in the Water, Wastewater and Power enterprises to overtime. This is an annual occurrence under San Francisco Administrative Code Section
3.17, which requires certain City departments, including the SFPUC, to obtain Board of Supervisors approval if they expect to spend more on overtime than the amount appropriated in their annual budget . Overtime is largely driven by wet weather events, emergency crews responding to critical maintenance requests and equipment failures, and other high priority field operations.
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
Sophia Kittler, Budget Director, Mayor’s Office
Greg Wagner, Controller
Attachments:
Appendix A Water Enterprise
Appendix B Wastewater Enterprise
Appendix C Hetch Hetchy Water & Power, including the Power Enterprise
Appendix D CleanPowerSF
FY 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Retail Water Sales 322.1 344.0 345.0 338.3 (6.7) A Wholesale Water Sales 313.0 359.9 359.9 361.1 1.2 B Interest Income 11.1 3.2 3.2 8.4 5.2 C Rental Income 9.0 12.7 12.7 12.7 - Miscellaneous Income 16.0 20.3 20.3 16.3 (4.0) D 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 E Appropriated/Budgeted Use of Fund Balance - 24.0 62.1 62.1 - Total Sources 647.7 735.2 774.3 772.4 (1.9) Operating Uses
Personnel 112.3 121.5 121.5 121.5 - Non-Personnel Services 36.7 21.2 27.7 26.7 1.0 F 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 34.0 32.7 1.3 G Debt Service 327.4 333.6 333.6 331.2 2.4 H General Reserve 5.9 0.6 0.6 - 0.6 I Total Operating Uses 592.9 598.2 627.5 622.2 5.3 Net Operating Results 54.8 150.2 3.4 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Variance
Capital Projects 67.1 103.6 242.7 242.7 - Facilities Maintenance/Programmatic 31.9 33.5 75.4 70.7 4.8 J Legal Settlements - - - 4.9 (4.9) K Total Adjustments to Operating Fund Balance $ 99.0 $ 137.1 $ 318.1 $ 318.2 $ (0.1) Available Fund Balance as of Fiscal Year-End $ 204.0 $ 183.2 Available Fund Balance, % of Operating Uses (L) 25-68% 68.6% 50.7% Debt Service Coverage (Year-End Budgetary Basis) (M)
Indenture Basis (includes Available Fund Balance) (N) ≥ 1.35 1.81 1.87 1.78 Current Basis (O) ≥ 1.10 1.10 1.33 1.23 FY 2024-25
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2024-25 3rd Quarter - Budgetary Basis, Funds 25940, 25950, 25990, 25960, 26570, 26600, 26510 & 26603 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2024-25 3rd Quarter - Budgetary Basis, Funds 25940, 25950, 25990, 25960, 26570, 26600, 26510 & 26603 ($ Millions)
Revenue Variances
E. Includes federal subsidy on 525 Golden Gate COPs.
C. Interest income projected to exceed budget due to year-to-date interest rate of 3.65% vs. budget assumption of 2.0%, as well as higher cash balances than assumed.
O. 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 54.0 MGD represent a 4.2% increase from FY 23-24 actuals of 51.9 MGD and a 1.8% decrease from budget of 55 MGD. Forecast also includes $3.6M in revenue (0.5 MGD net total) from delayed bills from prior fiscal year and $3.7M in transfers out to wastewater from lease revenues to pay for low-income customer discount programs.
B. Projected wholesale water sales of 128.1 MGD represent a 4.2% increase from FY 23-24 actuals of 122.9 MGD and a 0.1% decrease from budgeted volumes of 128.2 MGD. Partially offset by $3.9M in minimum purchase charges from FY 23-24.
Expenditure Variances
L. Calculated as Ending Available Fund Balance (including additions to General Reserve) as a percent of Operating Uses plus Facilities Maintenance/Programmatic Uses. SFPUC's Fund Balance Reserve Policy requires this to be within a range of 25-68%.
D. Miscellaneous income is projected to be below budget, mainly due to a correction to historic overhead revenues.
The reduction in overhead revenues is offset by an equal reduction in expenditures. Also, revenue from water service installation charges are projected to be 27% below budget.
H. Primarily due to the delay of interest payment for the Mt Tunnel SRF loan and savings from the 2025 Water Revenue Refunding Other Notes
I. $0.6M in general reserve.
K. Expected legal settlements.
M. Additional expenses that are included in debt service calculations are not shown in this operating fund report.
J. $4.0M in savings from Landscape Conservation Program and $0.8M in planned savings from community benefits project.
N. 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 associated with customer rebate and incentive programs.
G. Savings reflect savings from other City Departments.
FY 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Sewer Service Charges 385.4 435.3 435.8 423.6 (12.2) A Interest Income 11.6 3.9 3.9 10.4 6.4 B Miscellaneous Income 3.5 4.2 4.2 10.5 6.3 C Federal Bond Interest Subsidy 3.9 3.2 3.2 3.9 0.6 D Appropriated/Budgeted Use of Fund Balance 26.4 24.7 48.4 48.4 - Total Sources 430.7 471.4 495.6 496.7 1.2 Operating Uses
Personnel 80.6 89.5 89.5 88.0 1.5 E Non-Personnel Services 25.2 30.1 32.4 32.4 - 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 43.6 43.6 - Debt Service 95.1 122.6 122.6 117.9 4.7 F General Reserve 27.8 0.6 0.6 - 0.6 G Total Operating Uses 291.3 346.5 366.2 359.5 6.7 Net Operating Results 139.4 137.3 $ 7.9 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Variance
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) H 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 $ 158.7 Available Fund Balance, % of Operating Uses (I) 25-68% 86.5% 61.4% Debt Service Coverage (Year-End Budgetary Basis) (J)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 3.87 3.26 3.14 Current Basis (L) ≥ 1.10 2.06 2.01 2.01 Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2024-25 3rd Quarter - Budgetary Basis, Funds 20160, 20170, 20180, 20530 & 20550 ($ Millions)
FY 2024-25
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2024-25 3rd Quarter - Budgetary Basis, Funds 20160, 20170, 20180, 20530 & 20550 ($ Millions)
Revenue Variances
Expenditure Variances
Other Notes
A. Projected sales of 44.2 MGD represent a 1.6% incease from FY 23-24 actuals of 43.5 MGD and a 2.5% decrease from budget of 45.4 MGD. Forecast includes $4.5M in revenue (0.5 MGD net total) from delayed bills from prior fiscal year and $3.7M 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 $2.2M variance between budget and projection.
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), and (b) Debt Service. SFPUC's Debt Service Coverage Policy requires this ratio to be a minimum of 1.10 times.
G. $0.6M in general reserve.
E. Salary savings reflect vacant positions.
F. 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. 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.
H. Expected legal settlements.
D. Includes federal subsidy on 525 Golden Gate COPs.
B. Interest income projected to exceed budget due to year-to-date interest rate of 3.65% vs. budget assumption of 2.0%, as well as higher cash balances than assumed.
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%.
K. 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.
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)
Sources
Electric Sales - Retail 188.3 210.7 217.3 198.3 (19.0) A Electric Sales - Wholesale 42.3 18.9 16.7 26.3 9.7 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 21.3 (7.2) C Interest Income 10.3 4.4 4.4 8.6 4.2 D Federal Interest Subsidy - Power Bonds 0.1 0.1 0.1 0.1 - Miscellaneous Income 5.2 5.3 5.3 5.6 0.4 E Appropriated/Budgeted Use of Fund Balance 35.4 28.7 117.0 117.0 - Total Sources 344.3 345.7 438.4 426.4 (12.0) 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 79.1 114.6 150.0 88.4 61.6 F Natural Gas & Steam 16.3 23.7 31.0 21.3 9.7 G Materials and Supplies 3.9 3.8 4.8 4.8 - 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 9.4 9.4 - Debt Service 3.8 10.5 10.5 10.5 - General Reserve 6.9 0.6 0.6 - 0.6 H Total Operating Uses 231.9 302.2 390.2 318.3 72.0 Net Operating Results 112.4 108.1 59.9 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Variance
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 217.6 248.8 Available Fund Balance, % of Operating Uses (I) 25-68% 90.2% 92.6% Debt Service Coverage (Year-End Budgetary Basis) (J)
Indenture Basis (includes Available Fund Balance) (K) ≥ 1.35 64.97 21.56 19.61 Current Basis (L) ≥ 1.10 14.40 1.97 9.15 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2024-25 3rd Quarter - Budgetary Basis - 24970, 24980, 24990, 25000 & 25354 ($ Millions)
FY 2024-25
Revenue Variances
Expenditure Variances
Other Notes
D. Interest income above budget due to higher interest rates.
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 due to miscellaneous revenues and wholesale water revenue coming in higher than anticipated H. General Reserve was intentionally budgeted and planned to go unspent.
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 326.3 411.7 411.7 347.0 (64.7) Electric Sales - SuperGreen Product 29.4 37.1 37.1 59.6 22.5 Wholesale Sales 5.0 11.1 11.1 20.1 9.0 Subtotal - Electric Revenues 360.7 459.9 459.9 426.7 (33.2) A Interest Income 0.3 3.1 3.1 5.2 2.0 B Miscellaneous Income 0.0 - - 0.1 0.1 Appropriated/Budgeted Use of Fund Balance - 43.9 43.9 - Total Sources 361.0 463.1 507.0 475.9 (31.0) 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 Charges 283.9 385.0 424.7 366.0 58.7 C Services of Other Departments 4.0 1.9 2.5 2.0 0.5 D Debt Service - - - - - General Reserve 32.7 40.5 40.5 - 40.5 E Total Operating Uses 341.4 454.7 497.8 398.1 99.7 Net Operating Results 19.6 77.8 68.7 Other Impacts to Operating Budget FY 2023-24
Actuals
Current Year
Transfers
from
Operating
Total
Available
Funds
Projection
(current & future
years spending)
Variance
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 150.2 218.9 F Available Fund Balance, % of Operating Uses (G) % 43.9% 53.8% Revenue Variances
Expenditure Variances
D. $0.5M in savings expected from funding set aside for LAFCo.
Other Notes
G. 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, lower wholesale energy costs and carryforward budget projected to be unspent. Includes $15M assumed contingency.
Appendix D
CleanPowerSF
FY 2024-25 3rd Quarter - Budgetary Basis - 24750, 24751, 24760, 24761, 24765 & 24870 ($ Millions)
FY 2024-25
A. Retail revenues are driven lower primarily by lower load (lower enrollment from commercial customers than expected) and lower-than-budgeted rates (12% budgeted vs 8.5% adopted), partially offset by higher wholesale revenues.
B. Interest income above budget due to higher interest rates.
F. 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.
E. General Reserve was intentionally budgeted and planned to go unspent to build reserves.