Water Enterprise
FY 2026-27 and FY 2027-28
Proposed Budget and Capital Improvement Plan
1 2
SFPUC's Water Enterprise
3 SFPUC's Water Enterprise
4 Water Enterprise Org Chart
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5 Priorities for Next Two Budget Years
• Maintain progress on major projects in and going to
construction
• Meet current and new regulatory requirements
• Maximize use of available resources in our capital spending • Continue to meet 2023 Level of Service Goals and Objectives 6 Level of Service Goals & Objectives
• Drinking Water Quality – maintain high water quality (5 objectives) • Regional Seismic Reliability – maintain ability to meet current seismic standards (3 objectives)
• Regional Delivery Reliability – maintain delivery reliability during normal operations and maintenance (9 objectives)
• In-City Seismic Reliability – reduce vulnerability to earthquakes (3 objectives) • In-City Delivery Reliability – reliably deliver water to all in-City retail customers (5 objectives)
• Water Supply – meet customer water needs in non-drought and drought periods (6 objectives)
• Environmental Stewardship - maintain high environmental performance standards (3 objectives)
• Sustainability – enhance sustainability in all system activities (environmental, economic, and social) (6 objectives)
7 Challenges
• Aging Infrastructure
• Achieving Tuolumne River Improvements while managing Water Supply Risks
• Historically restrained increases in staffing while increasing complexity of operating systems and staffing needs
• Increasing regulatory burdens
• Dam Safety
• Cross Connection Control
• WECC/NERC
• Management staffing changes
• Achieving a “Flat” Operating Budget and restrained Capital Budget while meeting LOS Goals and Objectives
8 Water Budget & FTE Overview
$774.4M $735.6M $783.0M
FTE 858 867 870 $774 4M $735 6M $783 0M
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Over the next two years:
• $17.7M in salary and benefit increases over next
two years due to COLAs
• 5 new (temporary to permanent) positions to
support new Recycled Water , Hazard
Assessment, and cross connection programs
• 7 new positions to support management
of water infrastructure and facilities including
the activation of the new Ozone Water
Treatment Facility in Sunol
9 Water New Operating Budget Proposals
Division
($ millions) Program or Initiative FTE
FY 26-27
Cost
FY 27-28
Cost
Water
Administration
Water Data Analyst – Budget neutral, cost
offset with reductions to other operating
cost centers
1 $0.2 $0.2
Water Quality
Cross Connection Hazard Assessment
Temporary to permanent conversions –
Hazard assessment, Cross Connection &
Recycled Water programs
Drinking Water Permit Fees
1 4
$0.5
$0.2
$0.2
$0.5
$0.7
$0.3
Water Supply
& Treatment Sunol Ozone Facility 4 $0.9 $1.0
Natural
Resources
2 positions overseeing watershed
infrastructure and environmental
stewardship – Budget neutral, cost offset
with reduction in programmatic projects
2 $0.3 $0.4
To t al 12 $2.3 $3.1
10 Hetchy Water Budget & FTE Overview
$120.9M $147.4M $159.1M
FTE 254 261 262 $ $$
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Over the next two years:
• $28.7M increase in revenue-funded capital
• $5.6M in salary and benefit increases over
next two years due to COLAs
• 5 new (temporary to permanent)
positions conversions to support on-going
facilities maintenance
• $1.9M payments to other government
agencies, including Don Pedro Recreation
Area, Tuolumne County, USGS and National
Park Service
11 Hetchy Water New Operating Budget Proposals
Division
($ millions) Program or Initiative FTE
FY 26-27
Cost
FY 27-28
Cost
Hetch
Hetchy
Water
Mandatory payments: Government payments
increases for state, federal, and other agencies
including Don Pedro Recreation Area, Tuolumne
County and National Park Service
$1.3 $2.6
WECC/NERC Regulatory Compliance $0.7 $1.4
Temporary to permanent positionconversions 5 - -
To t al 5 $2.0 $4.0