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
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ate: September 2, 2025
To: Commissioner Kate H. Stacy, President
Commissioner Joshua Arce Vice President
Commissioner Avni Jamdar
Commissioner Steve Leveroni
Commissioner Meghan Thurlow
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hrough: Nancy Hom, CFO and AGM Business Services
From: Anna Duning, Budget Director, SFPUC
Subject: Final Changes to FY 2025-26 Budget since
Commission Adoption
This memo is to provide an overview of the final changes to the San Francisco Public Utilities Commission’s FY 2025-26 budget since Commission Adoption on February 11, 2025. The final budget adoption by the Mayor and Board of Supervisors occurred on July 24, 2025.
After Commission approval, the budget went through both the Mayor’s and Board of Supervisors’ phases of budget review and several changes were made, as described below. Overall, the changes were minimal and driven by typical updates to labor and citywide workorder costs.
The Mayor’s Office also removed 25 vacant positions from the SFPUC budget as part of a citywide reduction to authorized positions. There is no budgetary impact to the SFPUC because position deletions were offset with equivalent reductions in salary savings (also referred to as attrition).
FY 2025-26 SFPUC Budget Changes
The total operating budget adopted by the Commission was $2,127,237,927 and the final Board adopted budget is $2,129,355,477 for FY 2025-26. The net change from the Commission adopted operating budget is $2,117,550 for FY 2025-26, or 0.1% higher.
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he drivers for the budget increase are as follows:
Change driver Note FY2025-26
Labor cost changes due to updates to
mandatory fringe benefits 1 1,426,629
Changes to citywide workorders 2 1,312,503
Correction to addback funding 3 (750,000)
Change to the county wide cost
allocation plan (COWCAP) 4 261,856
Mayor reductions to travel budget 5 (246,966)
All other changes 6 113,528
Total 2,117,550
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otes:
1. The biggest driver of the change is an increase to mandatory fringe benefits including health and pension costs to reflect updated cost estimates.
2. Workorder increases made during Mayor Phase, including adding budget for Worker’s Compensation, Central Shops,
Reprographics, and Department of Human Resources costs with offsetting decreases to the Power utility budget.
3. Correction to resolve budgeting error in previous cycle.
4. The Controller’s Office increased the COWCAP (County Wide Cost Allocation Plan) cost by $261,856.
5. The Mayor’s Office reduced all departments’ travel budgets by around 50%.
6. Other miscellaneous changes.
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o changes were made to the adopted FY 2025-26 capital budget nor the 10-year capital plan.