FY 24-25 4th Quarter Budget Report
Anna Duning, Budget Director
September 23, 2025
FY 2024-25 Q4 Summary
Positive operating results projected* and financial policy targets exceeded for all enterprises and CleanPowerSF.
Interest earnings and personnel savings also driving higher results. • Water: Retail revenues further improved from the first three quarters, coming in close to budget. Greater cost savings projected in personnel due to reduced overtime and vacancies. • Wastewater: Revenues remain below budget due to lower volumes and continued account creation for stormwater-only parcels. Offset by one-time revenues and cost savings across operating budget.
• Power: Overall trends held from prior quarters with lower revenues due to less demand and load. On uses side, power purchasing down due to less demand and lower energy prices. • CleanPowerSF: Retail sales similar to prior quarters: lower than the budget due to final rates being set lower, plus less demand due to lower-than-forecasted customer enrollment. A large unspent contingency and reserve also contributing to overall savings. *All figures are preliminary. Final year-end results in forthcoming financial statements.
FY 2024-25 Water Budget Variances
Net Operating Result: $17.9M
Overall savings compared to budget with modest revenue improvements from prior quarters and expected cost savings of $10.3M leading to positive net operating results.
Total net impact on fund balance is $19.9M after legal settlements and saving from programmatic projects.
Sources
• $2.1M or 0.6% retail water sales
• $2.3M or 0.6% wholesale water sales
• $3.2M or 5.7% other sources, including interest earnings Uses
• $3.4M or 2.8% personnel
• $2.4M or 0.7% debt service
• $2.0M or 2.6% bureau overhead
• $1.0M or 3.0% workorders
• $0.9M or 3.4% non-personnel services
• $0.6M or 100% general reserve
FY 2024-25 Wastewater Budget
Variances
Net Operating Result: $24.8M
Net surplus of $24.8M despite modest revenue shortfall in sewer service charges due to one-time revenues and interest earnings. Total net impact on fund balance is $23.1M after legal settlements.
Sources
• ($5.8M) or -1.3% sewer service charges
• $18.5M or 162% other sources, including a one-time payment & interest earnings Uses
• $4.7M or 3.8% debt service
• $2.2M or 2.5% personnel
• $1.7M or 3.3% non-personnel and materials and supplies • $1.5M or 3.4% workorders
• $1.5M or 2.7% bureau overhead
• $0.6M or 100% general reserve
FY 2024-25 Power Budget
Variances
Net Operating Result: $70.8M
Similar trends from prior quarters: high variances due to combination of lower demand, lower power purchase prices, and large carry-forwards.
Sources
• ($22.6M) or –10.3% retail sales
• ($6.8M) or -26.1% gas & steam sales
• $10.1M or 60.5% wholesale sales
• $10.2M or 104% other sources, including interest earnings Uses
• $64.6M or 41.4% purchase of power
• $9.3M or 32.6% gas & steam
• $3.0M or 3.7% non-personnel services
• $1.3M or 3.0% work orders and bureau overhead
• $1.1M or 1.8% personnel
• $0.6M or 100% general reserve
FY 2024-25 CleanPowerSF
Budget Variances
Net Operating Result: $59.6M
High variances due to combination of lower demand & enrollment than forecasted and final rates set at levels below budget assumptions. Slight adjustment down from Q3 due to fund balance calculation correction.
Sources
• ($32.2M) or -7.0% power sales
• $5.2M or 165% other sources, including interest earnings Uses
• $45.1M or 10.6% purchase of power
• $40.5M or 100% general reserve
• $0.5M or 3.9% non-personnel services
• $0.3M or 3.0% personnel
• $0.3M or 12% workorders
Key Financial Policy Targets
Fund Balance Reserve
Water Wastewater Hetchy Clean
Power
SF
25%-68% of Annual Operating Uses 56.3% 69.4% 98.9% 55.2%* Debt Service Coverage Reserve
Indenture Basis ≥ 1.35x 1.83 3.29 20.65
Current Basis ≥ 1.10x 1.28 2.17 10.19
*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 Budget Development
Update
Operating Budget Summary
Revenue-funded
Capital
12%
Debt Service
25%
Personnel
19%
Power Purchase and
Distribution 24%
Non-Personnel
8%
Materials,
Supplies &
Equipment
2%
Workorders
4%
General Reserve
2%
Programmatic
Projects
4%
FY 2025-26
$2.1 Billion
Operating
Budget
• Current year (FY 2025-26)
operating budget is around
$2.1 billion
• SFPUC staff updating the
annual operating budget for
FY 2026-27 and FY 2027-28
and the 10-Year Capital Plan
for FY 2026-27 – FY 2035-36
• Capital is funded by revenue
from the operating budget and
debt proceeds
Capital Funding
Ten-Year Capital Improvement Plan
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
FY 2026-35 (Adopted) 10-Year Capital Improvement Plan
Water Wastewater Hetch Hetchy Water and Power CleanPowerSF • Current adopted plan is
around $11 billion through FY
2034-35
• SFPUC staff updating plan to
cover FY 2026-27 through FY
2035-36
• The first two years will be part
of the budget
Budget Instructions
Adopt a balanced (revenues = expenditures) biennial operating budget and Ten-Year Capital Plan that meets all Commission- adopted financial policies:
Fund balance minimums, debt service coverage, and affordability.
Meeting all our financial policies requires:
1. Limiting operating budget growth to non-discretionary cost increases (negotiated wage rates, cost of Power purchases)
2. Reducing base 10-Year Capital Plan by at least $1 billion in Water and Wastewater
Budget Development Timeline
• July: Budget Instructions Issued
• September: Initial Proposals due to Finance
• October – December: Analysis & Deliberation
• January: Budget Hearings at Commission
January 12, January 23, January 29 & February 5
• February: Submission to Mayor & Controller
• March – April: Updated Rates Proposed for all enterprises & CleanPowerSF • May: Board of Supervisors Hearings
• July: Budget Adopted
Commission Budget Hearings
January: Budget Hearings at Commission
January 12, January 23, January 29 & February 5
• Each bureau and enterprise will present their operating and capital budgets at 4 separate special meetings
• Your job will be to understand the SFPUC's priorities,proposals, and how they fit together in the budget and CIP
• After Commission adoption (February 10 meeting), the budget will be submitted to the Mayor's and Controller's Offices
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.
Date: August 15, 2025
To: Commissioner Kate Stacy, President
Commissioner Joshua Arce, Vice President
Commissioner Avni Jamdar
Commissioner Steve Leveroni
Commissioner Meghan Thurlow
Through: Dennis J. Herrera, General Manager
From: Nancy L. Hom, Chief Financial Officer and Assistant General Manager, Business Services
Subject: SFPU C FY 2024-25 Fourth Quarter Budgetary Report through June 2025
The FY 2024-25 fourth 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) 7.6 10.3 17.9 2.0 199.9
Wastewater 177.2 (24.7) 12.7 12.1 24. 8 (1.7) 175.6
Power 217.6 (28.7) (9.1) 79.8 70.8 - 259.6
CleanPowerSF 150.2 - (27.1) 86.6 59.6 - 209.7
Summary:
• Positive Q4 operating results projected for all enterprises and CleanPowerSF, a steady improvement since Q1. In addition to enterprise-specific drivers, all saw higher-than-expected savings in personnel due to the citywide hiring freeze as well as higher interest earnings.
• Water: Retail revenues have improved slightly since Q3 largely because of additional delayed bills from FY 2023-24 being processed. Interest earnings are also up from prior estimates.
Further, Q4 savings on the expense side came in higher than
pr
evious forecasts with savings in both personnel and non- personnel operating costs.
• Wastewater: Revenues remain slightly below budget due to lower volumes than forecasted and stormwater-only parcels not billed for the full year while account holders were identified. This is offset by a one-time payment from UCSF and the Warriors for their share of costs for the Mariposa Pump Station, higher-than- forecasted interest earnings, and savings in both personnel and non-personnel operating costs.
• Power: Overall trends held from prior quarters. 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 went unspent.
Additionally, power purchase prices have come in lower than budgeted for the year.
• CleanPowerSF: Similar trends held from prior quarterly estimates.
Retail sales are under 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. Further, there is a general reserve which was budgeted to go unspent to build reserves.
The Q4 report has also corrected a calculation error in how the power purchase carry-forward budget counted towards total fund balance, thus resulting in lower total savings than previously projected.
• All enterprises are exceeding financial policy minimums and coverage ratios at year end.
I
f you have questions, please contact me at [email protected]. cc:
Ronald Flynn, Deputy GM, SFPUC
Barbara Hale, AGM, Power Enterprise, SFPUC
Joel Prather, Acting AGM, Wastewater Enterprise, SFPUC
Steve Ritchie, AGM, Water Enterprise, SFPUC
Stephen Robinson, AGM, Infrastructure, SFPUC
Wendy Macy, Chief People Officer, 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 322.1 344.0 345.0 347.1 2.1 A Wholesale Water Sales 313.0 359.9 359.9 362.2 2.3 B Interest Income 11.1 3.2 3.2 12.0 8.8 C Rental Income 9.0 12.7 12.7 7.8 (4.9) D Miscellaneous Income 16.0 20.3 20.3 17.3 (3.0) E 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 F Appropriated/Budgeted Use of Fund Balance - 24.0 62.1 62.1 - Total Sources 647.7 735.2 774.3 781.9 7.6 Operating Uses
Personnel 112.3 121.5 121.5 118.0 3.4 G Non-Personnel Services 36.7 21.2 26.4 25.5 0.9 H Materials and Supplies 21.8 20.3 22.9 22.9 - Equipment 2.5 4.1 9.6 9.6 - Overhead (SFPUC Bureaus) 59.9 65.0 77.6 75.6 2.0 I Services of Other Departments 26.4 32.0 33.7 32.7 1.0 J Debt Service 327.4 333.6 333.6 331.2 2.4 K General Reserve 5.9 0.6 0.6 - 0.6 L Total Operating Uses 592.9 598.2 625.9 615.7 10.3 Net Operating Results 54.8 166.3 17.9 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 67.1 103.6 242.7 242.7 - Facilities Maintenance/Programmatic 31.9 33.5 75.4 70.7 4.8 M Legal Settlements - - - 2.7 (2.7) N Total Adjustments to Operating Fund Balance $ 99.0 $ 137.1 $ 318.1 $ 316.1 $ 2.0 Available Fund Balance as of Fiscal Year-End $ 204.0 $ 199.9 Available Fund Balance, % of Operating Uses (O) 25-68% 68.6% 56.3% Debt Service Coverage (Year-End Budgetary Basis) (P)
Indenture Basis (includes Available Fund Balance) (Q) ≥ 1.35 1.81 1.87 1.83 Current Basis (R) ≥ 1.10 1.10 1.33 1.28 FY 2024-25
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2024-25 4th Quarter - Budgetary Basis, Funds 25940, 25950, 25990, 25960, 26570, 26600, 26510 & 26603 ($ Millions)
Appendix A
WATER ENTERPRISE OPERATING FUNDS
FY 2024-25 4th Quarter - Budgetary Basis, Funds 25940, 25950, 25990, 25960, 26570, 26600, 26510 & 26603 ($ Millions)
Revenue Variances
R. 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. Retail water sales of 53.9 MGD represents a 3.7% increase from FY 23-24 actuals of 51.9 MGD and a 1.9% decrease from budget of 55 MGD. Revenues also include $3.3M in revenue (0.5 MGD net total) from delayed bills from prior fiscal year.
B. Wholesale water sales of 129.3 MGD represents a 5.2% increase from FY 23-24 actuals of 122.6 MGD and a 0.8% increase from budgeted volumes of 128.3 MGD. Revenues include $3.9M in minimum purchase charges from FY 23-24.
Expenditure Variances
O. 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%.
E. Miscellaneous income is below budget, mainly due to water service installation charges under budget.
K. Primarily due to the delay of interest payment for the Mt Tunnel SRF loan and savings from the 2025 Water Revenue Refunding Bonds Series ABC.
Other Notes
L. $0.6M in general reserve.
N. Expected legal settlements.
P. Additional expenses that are included in debt service calculations are not shown in this operating fund report.
M. $4.0M in savings from Landscape Conservation Program and $0.8M in planned savings from community benefits project.
Q. 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.
G. Savings due to vacant positions.
J. Savings reflect savings from other City Departments.
F. Includes federal subsidy on 525 Golden Gate COPs.
C. Interest income higher due to year-to-date interest rate of 3.68% vs. budget assumption of 2.0%, as well as higher cash balances than assumed.
I. Savings reflect lower spending associated with bureau allocation.
H. Savings reflect lower spending associated with customer rebate and incentive programs.
D. Rental income $1.2M below budget. Additional variance due to $3.7M transfer to Wastewater to fund discount programs.
Q3 showed this estimate in retail sales variance.
FY 2023-24
Actuals
Original
Budget
Revised
Budget
(includes
carryforwards)
Projection
(current year
spending)
Variance
(Projection vs
Revised Budget)
Sources
Sewer Service Charges 385.4 435.3 435.8 430.0 (5.8) A Interest Income 11.6 3.9 3.9 14.2 10.3 B Miscellaneous Income 3.5 4.2 4.2 11.9 7.6 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 430.7 471.4 495.6 508.3 12.7 Operating Uses
Personnel 80.6 89.5 89.5 87.3 2.2 E Non-Personnel Services 25.2 30.1 31.5 31.3 0.2 F Materials and Supplies 14.2 15.9 18.0 16.5 1.5 G Equipment 4.3 1.7 5.0 5.0 - Overhead (SFPUC Bureaus) 35.8 47.2 54.6 53.1 1.5 H Services of Other Departments 35.9 38.9 44.2 42.7 1. 5 I Debt Service 95.1 122.6 122.6 117.9 4.7 J General Reserve 27.8 0.6 0.6 - 0.6 K Total Operating Uses 291.3 346.5 366.0 353.9 12.1 Net Operating Results 139.4 154.3 $ 24.8 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) L 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 $ 175.6 Available Fund Balance, % of Operating Uses (M) 25-68% 86.5% 69.4% Debt Service Coverage (Year-End Budgetary Basis) (N)
Indenture Basis (includes Available Fund Balance) (O) ≥ 1.35 3.87 3.26 3.29 Current Basis (P) ≥ 1.10 2.06 2.01 2.17 Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2024-25 4th Quarter - Budgetary Basis, Funds 20160, 20170, 20180, 20530 & 20550 ($ Millions)
FY 2024-25
Appendix B
WASTEWATER ENTERPRISE OPERATING FUNDS
FY 2024-25 4th Quarter - Budgetary Basis, Funds 20160, 20170, 20180, 20530 & 20550 ($ Millions)
Revenue Variances
Expenditure Variances
I. Savings reflect lower spending in other city departments.
Other Notes
A. Year end retail wastewater volumes of 44.6 MGD represent a 4% incease from FY 23-24 actuals of 42.8 MGD and a
2.0% decrease from budget of 45.4 MGD. Variance includes a $1.7M reduction in revenues due to some stormwater- only parcels not billed for the full year while responsible account holders were identified, and a $4.0M increase in revenues due to delayed bills from prior fiscal years.
P. 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.
K. $0.6M in general reserve to go unspent.
E. Salary savings reflect vacant positions.
J. 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. End of year miscellaneous income is 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 and higher than budgeted rental revenues.
L. Expected legal settlements.
D. Includes federal subsidy on 525 Golden Gate COPs.
B. Interest income is higher due to annual interest rate of 3.68% vs. budget assumption of 2.0%, as well as higher cash balances than assumed.
G. Savings reflect lower spending in materials & supplies.
H. Savings reflect lower spending associated with bureau allocation.
F. Saving reflect lower spending in non personnel services.
M. 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%.
O. 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.
N. 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 188.3 210.7 219.4 196.8 (22.6) A Electric Sales - Wholesale 42.3 18.9 16.7 26.8 10.1 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 25.9 19.1 (6.8) C Interest Income 10.3 4.4 4.4 13.0 8.6 D Federal Interest Subsidy - Power Bonds 0.1 0.1 0.1 0.4 0.2 Miscellaneous Income 5.2 5.3 5.3 6.6 1.3 E Appropriated/Budgeted Use of Fund Balance 35.4 28.7 117.0 117.0 - Total Sources 344.3 345.7 437.9 428.8 (9.1) Operating Uses
Personnel 54.5 59.5 59.5 58.4 1.1 F Non-Personnel Services 35.0 48.9 81.9 81.9 3.0 G Power Purchases, Transmission Distribution & Related Charges 79.1 114.6 149.8 85.2 64.6 H Natural Gas & Steam 16.3 23.7 28.4 19.1 9.3 I Materials and Supplies 3.9 3.8 4.9 4.9 - Equipment 1.8 2.5 9.2 9.2 - Overhead (SFPUC Bureaus) 23.1 28.3 33.1 32.3 0.8 J Services of Other Departments 7.5 9.8 9.5 9.0 0.5 K Debt Service 3.8 10.5 10.5 10.5 - General Reserve 6.9 0.6 0.6 - 0.6 L Total Operating Uses 231.9 302.2 387.6 310.7 79.8 Net Operating Results 112.4 118.1 70.8 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 217.6 259.6 Available Fund Balance, % of Operating Uses (M) 25-68% 90.2% 98.9% Debt Service Coverage (Year-End Budgetary Basis) (N)
Indenture Basis (includes Available Fund Balance) (O) ≥ 1.35 64.97 21.56 20.65 Current Basis (P) ≥ 1.10 14.40 1.97 10.19 Appendix C
HETCH HETCHY WATER & POWER OPERATING FUNDS
FY 2024-25 4th Quarter - Budgetary Basis - 24970, 24980, 24990, 25000 & 25354 ($ Millions)
FY 2024-25
Revenue Variances
Expenditure Variances
F. Salary savings reflect vacant positions.
Other Notes
H. Savings are due to lower projected power costs and higher generation. This includes $11M insavings from power purchases, $5M in savings from Transmission costs, $2M in savings for Resource Adequacy and $3M from 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.
M. 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%.
I. 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 L. General Reserve was intentionally budgeted and planned to go unspent.
N. Additional expenses that are included in debt service calculations are not shown in this operating fund report.
J. Savings reflect lower spending associated with bureau allocation.
K. Savings reflect lower spending from other City departments.
G. Savings reflect lower spending associated with professional services.
D. Interest income above budget due to actual 3.68% interest rate vs. budget of 2.0% and higher fund balances.
A. Retail sales are are lower than budget.
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 326.3 411.7 411.7 346.2 (65.5) Electric Sales - SuperGreen Product 29.4 37.1 37.1 58.7 21.7 Wholesale Sales 5.0 11.1 11.1 22.8 11.6 Subtotal - Electric Revenues 360.7 459.9 459.9 427.7 (32.2) A Interest Income 0.3 3.1 3.1 8.1 5.0 B Miscellaneous Income 0.0 - - 0.2 0.2 Appropriated/Budgeted Use of Fund Balance - 43.9 43.9 - Total Sources 361.0 463.1 507.0 479.9 (27.1) Operating Uses
Personnel 6.4 8.7 8.7 8.4 0.3 C Overhead 5.7 7.5 8.5 8.5 - Non Personnel Services 8.7 10.9 12.7 12.2 0.5 D Materials & Supplies 0.0 0.1 0.2 0.2 - Power Purchases & Related Charges 283.9 385.0 424.7 340.0 45.1 E Services of Other Departments 4.0 1.9 2.5 2.2 0.3 F Debt Service - - - - - General Reserve 32.7 40.5 40.5 - 40.5 G Total Operating Uses 341.4 454.7 497.8 371.4 86.6 Net Operating Results 19.6 108.4 59.6 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 150.2 209.7 H Available Fund Balance, % of Operating Uses (I) % 43.9% 55.2% Revenue Variances
Expenditure Variances
Other Notes
C. Personnel costs close to budget.
Appendix D
CleanPowerSF
FY 2024-25 4th 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 and fund balances than budgeted.
H. Available fund balance at fiscal year end is calculated in this report by taking beginning fund balance, less any fund balance budgeted to be used as a source, and adding 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 restricted and CleanPowerSF may choose to close them out to fund balance, we are presenting them here as part of fund balance.
F. Savings reflect lower spending from other City departments.
D. Savings reflect projected savings of professional service budget.
G. General Reserve was intentionally budgeted and planned to go unspent to build reserves.
E. Savings are due to lower projected load, lower wholesale energy costs. Note: a correction to the calculation of the Purchase of Power savings was captured in Q4. Purchase of Power is funded in the CleanPowerSF Trust Fund which is a continuing fund. Amounts from prior fiscal years roll forward automatically and are presented as part of the beginning fund balance. The variance shown above has been updated to represent the change from original budget in order to avoid double-counting carry-forwards in the fund balance calculation. Total savings reflected are lower than Q3 due to carryforward error. Refer to Note H for further details.
Appendix D
CleanPowerSF
FY 2024-25 4th Quarter - Budgetary Basis - 24750, 24751, 24760, 24761, 24765 & 24870 ($ Millions)
I. 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.