2-Year Operating
Budget
Budget Team
25 26
Operating Budget Overview
Capital is SFPUC’s largest cost
at 41%: 29 % debt service + 12%
revenue-funded capital.
Power purchase and distribution
is next at 21%.
Followed by non-personnel and
personnel costs that support
daily operations at 20% and 14%
respectively.
Debt Service
29%
Revenue-
funded
Capital
12%
Purchase of
Power
21%
Personnel
20%
Non-
Personnel
14%
Programmatic
Projects
4%
FY 27-28 $2.3B
Operating Budget Growth
27 Budget will grow by 12% or $256
million over the next two years.
Capital is greatest contributor,
growing by $183 million, or 23%.
New proposals account for roughly
$35.4 million net new costs, a 1.7%
increase from current year budget.
Purchase of Power will decrease by
$22 million, or -4%.
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
FY2026 FY2027 FY2028
SFPUC Proposed Budget
($millions)
Operating Uses Capital Uses Purchase of Power
2,343
2,087
2,169
28 Operating Budget Growth Drivers
(43)
(22)
4 21
35 56
162
(100) (50) - 50 100 150 200
$ million
Budget Growth Drivers
Main Two-Year Budget Changes, $millions
Debt Service
COLAs on citywide salaries and
benefits
New Proposals
Revenue-funded Capital
Operations & Maintenance
Purchase of Power
General Reserve
29 Salary and Benefit Assumptions
• SFPUC uses salary and benefit projections consistent with citywide assumptions.
• Salary growth driven by MOUs with labor unions
• Benefit growth driven by high active and retiree health costs – projected to increase by 9% annually
COLA Increases
(millions)
FY 2026-27
$
FY 2026-27
%
FY 2027-28
$
FY 2026-27
%
Salaries 11.7 4.1% 22.0 7.5%
Fringe Benefits 9.5 8.0% 13.0 10.1%
Total 21.2 5.3% 35.0 8.3%
30 New Proposal Summary
Enterprise/
Bureau
FY 2026-27
Cost ($M)
FY 2027-28
Cost ($M)
Water 2.3 3.2
Wastewater 3.7 10.2
Hetchy Water 2.0 4.0
Hetchy Power 6.7 8.1
CleanPowerSF 6.8 8.6
General Manager 0.6 0.6
Human Resources 0.4 1.1
Business Services 1.2 1.4
External Affairs 1.7 1.7
Total New Operating $25.3 $38.9
Offsets & other Reductions (4.1) (3.5)
Net New SFPUC
Operating $21.2 $35.4
• Requirements to maintain existing
operations, including fee and permit costs
• Costs to operate new facilities in Water &
Wastewater
• One-time investments for long-term
improvements and savings
• Supporting growing customer base in Power
• Effort to shift core operational programs
from addbacks to sustainable, consistent
funding sources
New proposals grow current budget by less
than 2% over next two years.
31 FTE Change Summary Enterprise or
Bureau
Net New
Positions
Temp to
Perm
Substitutions
Water 7 5 47
Wastewater - 5 39
Hetchy Water - 5 11
Hetchy Power 2 6 6
CleanPowerSF 1 - 1
General Manager - - 2
Human Resources - 1 3
Business Svcs - 4 10
External Affairs - 1 2
Infrastructure - - 11
Total 10 27 132
Since FY 21-22, FTE has grown by 7%, while the total
budget has grown by over 50%
37 new FTE proposed in the upcoming budget, a 1.7%
increase
2,450 2,489 2,505 2,556 2,589 2,626 2,633
0 500
1,000
1,500
2,000
2,500
3,000
FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FTE Growth: FY 21-22 to FY 27-28