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 415.554.3155
F 415.554.3161
TTY 415.554.3488
Date: February 10, 2026
To: Joshua Ace, President
Steve Leveroni, Vice President
Avni Jamdar, Commissioner
Kate H. Stacy, Commissioner
Megan Thurlow, Commissioner
Through: Dennis J. Herrera, General Manager
From: Vivian Chen, Deputy Chief Financial Officer
RE: SFPUC Fiscal Year 2024-25 Annual Comprehensive Financial Report and Popular Annual Financial Report
Financial Services is pleased to present the FY 2024-25 Annual Comprehensive Financial Report (ACFR) issued by Macias Gini & O’Connell LLP on December 10, 2025 and the FY 2024-25 Popular Annual Financial Report (PAFR) focusing on SFPUC’s “Effective Workforce”.
The reports can be found on our public-facing website:
https://www.sfpuc.gov/sites/default/files/about-us/policies-reports/ACFR-2025.pdf https://www.sfpuc.gov/sites/default/files/about-us/policies-reports/PAFR-2025.pdf
The ACFR describes our financial activities, condition, and services as an organization, inclusive of the Water, Wastewater, and Hetch Hetchy Water & Power & CleanPowerSF audited financial statements. The report includes financial and statistical information, inclusive of ten years of financial and operating indicators and trends, social and economic data, and other metrics of interest to the general public and investors. The Government Finance Officers Association (GFOA) has awarded the SFPUC the prestigious Certificate of Achievement in Financial Reporting annually since 2009.
The PAFR is specifically designed to be readily accessible and easily understandable to the general public and interested parties without a background in public finance. This year’s report highlights our work is only as strong as the people behind it. At the SFPUC, we prioritize investing in an effective, first-rate workforce that keeps essential services reliable every day.
The SFPUC has received the GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting annually since 2010. The award recognizes our commitment to transparency and increasing public awareness by providing an overview of our financial condition.
We are looking forward to another year of both prestigious awards for fiscal year 2024.
cc: Ronald P. Flynn, Deputy General Manager
Nancy L. Hom, Assistant General Manager, Business Services & Chief Financial Officer Laura Busch, Deputy Chief Financial Officer
Att: FY 2024-25 Annual Comprehensive Financial Report
FY 2024-25 Popular Annual Financial Report
Effective
Workforce
Popular Annual Financial Report
For Fiscal Year Ended June 30, 2025
San Francisco Public Utilities Commission
An Enterprise Department of the City and County
of San Francisco, California
Annual Report for the Fiscal Year Ended June 30, 2025
1 San Francisco
Public Utilities Commission
(AS OF DATE OF PUBLICATION)
Joshua Arce, PRESIDENT Stephen E. Leveroni, VICE PRESIDENT Avni Jamdar, COMMISSIONER Kate H. Stacy, COMMISSIONER Meghan Thurlow, COMMISSIONER
Water
We are the third largest municipal utility in California, serving 2.7 million residential, commercial, and industrial customers in the Bay Area. Approximately one-third of our delivered water goes to retail customers in San Francisco, while wholesale deliveries to 27 suburban agencies in Alameda, Santa Clara, and San Mateo counties comprise the other two-thirds.
Power
For 100 years, we have been generating greenhouse gas-free hydropower as our city’s full-service, publicly owned electric utility. In 2016, we launched CleanPowerSF, a community choice aggregation program, to introduce even more renewable energy from sources like wind and solar to the electric grid. Collectively, the two systems meet more than 70 percent of the electricity demand in San Francisco.
Sewer
We operate and maintain the City's water pollution control plants, pumping stations, and collection system to protect public health and the environment. We maintain 1,900 miles of sewer mains and laterals and 27 pump stations that collect sewage and stormwater, moving the wastewater to the three treatment plants for treatment and discharge to the San Francisco Bay and Pacific Ocean.
San Francisco Bay
Pacific Ocean
17 4
Bay Area Reliance on
Hetch Hetchy Regional
Water System
Contents
3 | Water
5 | Power
7 | Sewer
9 | Community Benefits
11 | Finance
Annual Report for the Fiscal Year Ended June 30, 2025
2 Message from our
General Manager
Dear Customers and Interested Parties,
On behalf of the San Francisco Public Utilities Commission (SFPUC), I am pleased to present our Popular Annual
Financial Report for Fiscal Year 2024-2025. This report covers the first year of our two-year operating and capital budget cycle, which was adopted by the SFPUC Commission, the Mayor, and the San Francisco Board of Supervisors.
In addition to the two-year budget, we also develop a 10- year financial plan and a 10-year capital plan to guide our long-term investments. These tools balance today’s priorities with future demands, and ensure our investments remain
sustainable over time.
At the SFPUC, planning and budgeting are guided by three priorities: keeping services affordable, managing resources responsibly, and investing where it matters most.
Affordability
While for-profit utilities were raising electricity rates, the SFPUC kept electricity rates unchanged for 98% of our
customers. Commissioners decided to not change rates for more than 380,000 CleanPowerSF customers for the fiscal year that began July 1, 2025. The SFPUC approved a 10%
rate increase for 6,300 Hetch Hetchy Power customers to reflect the true cost of providing electricity. Even with that adjustment, Hetch Hetchy Power customers continue to pay the lowest electricity rates in San Francisco.
The SFPUC is also an industry leader, creating an
Affordability Policy to guide rate setting. The policy
established metrics to gauge the impact of budget increases on future rates. Our targets are for water and sewer bills to account for less than 3% of a typical customer’s income.
Additionally, San Francisco won a victory for ratepayers at the U.S. Supreme Court. The case, where thousands of
cities and counties stood with San Francisco through friend- of-the-court briefs, was about preventing water pollution before it happens. It requires the Environmental Protection Agency to follow the Clean Water Act by setting clear permit limits for discharges of treated wastewater. It holds utilities responsible for their discharges, instead of penalizing them for factors outside of their control. The legal victory protected ratepayers from potentially massive bill increases.
Responsible Management
Responsible management is about earning trust through
results. This year, the skill of our workforce earned
recognition across the agency.
These honors included the Government Finance Officers
Association’s Awards, the U.S. Conference of Mayors’ Climate Protection Award for CleanPowerSF, the National Association of Clean Water Agencies’ Clean Water Advocate Award for our leadership in San Francisco v. EPA, and the Institute for Sustainable Infrastructure’s Envision Platinum Award for the Treasure Island Water Resource Recovery Facility.
One of our leaders was also honored with the San Francisco Bay Area Planning and Urban Research Association’s Good Government Award.
Investing Where it Matters Most
We’re focused on investments that will make a lasting
difference. This year, with our partners on the Tuolumne River, we completed a 10-acre habitat restoration project as a precursor to the Healthy Rivers and Landscapes Program, improving salmon and trout habitat and demonstrating how stewardship and science-based collaboration deliver results.
We also signed a 40-year agreement with the San Francisco Unified School District to help campuses manage stormwater, reduce flood risk, and expand outdoor opportunities for students citywide.
Our work is only as strong as the people behind it. At the SFPUC, we prioritize investing in an effective, first-rate workforce that keeps essential services reliable every day.
With the continued dedication of our Commissioners and
staff, we are ensuring that our services remain affordable, responsibly managed, and focused on what matters most
for San Francisco’s future.
Thank you.
Dennis J. Herrera,
SFPUC General Manager
Annual Report for the Fiscal Year Ended June 30, 2025
3 Investing in People Who
Keep Water Flowing
Our water supply begins more than 160 miles away in the Sierra Nevada, carried by tunnels, pipelines, and reservoirs built and maintained by generations of skilled workers. Their expertise safeguards one of the nation’s most reliable water systems, delivering clean drinking water every day to 2.7 million Bay Area residents.
Hetch Hetchy and Mountain Tunnel:
Where Our Workforce Legacy Began
An effective workforce has been the foundation of
our water system for more than 100 years. Completed
in 19 25 , the 19- mile Mountain Tunnel still carries
about 85 percent of San Francisco’s water from
Hetch Hetchy Reservoir through the Sierra Nevada.
Seven miles of the tunnel are through granite, and the other 12 miles of the tunnel are lined with concrete.
After decades of u se, the tunnel requ ired repairs to maintain its concrete lining to prevent water escaping through cracks. Over time, escaping water could affect the tunnel’s structure and lead to partial or larger
collapses. That could block the main supply of drinking water that serves four Bay Area counties. To protect
this critical infrastructure, our skilled crews began a multi-year rehabilitation project in 2021.
As with our regular maintenance schedule, the work
can only be d one during the winter months, when
water u se is lower and Bay Area reservoirs can supply all customers while Mountain T unnel is briefly shut
d own. In the winter of 2024-2025 , crews achieved
the longest shutdown in our history – 100 days – to
complete maj or repairs. Even with the tunnel offline,
water service to 2. 7 million cu stomers remained
uninterrupted , thanks to teamwork, careful planning ,
and clear communication across our divisions.
During the shutdowns, crews reinforced the tunnel
walls to prevent leaks and extend the life of the tunnel.
They also installed large valves, giving operators
improved control over the speed and pressure of water moving through the tunnel. Earlier, workers had bu ilt new entryways to ensure crews and modern equ ipment
could quickly access the tunnel for future maintenance.
The work, led by our dedicated Hetch Hetchy Water
and Power operations, maintenance, and asset
management staff, safeguards the pathway that
carries Hetch Hetchy water from the Kirkwood
Powerhouse to Priest Reservoir. By strengthening this
essential connection, we are ensuring the continued
reliability of San Francisco and the Bay Area’s regional water system for generations to come.
Pulgas Water Temple: A Living
Landmark of Stewardship
On May 8, 2025 , the P ulgas Water Temple in Redwood
City, a celebrated monument to San Francisco’s
regional water system , received the American Water
Works Association’s Water Landmark Award – the most
prestigious designation for historic water infrastructure in North America. With this honor, P ulgas joined the
ranks of water heritage sites such as the Hoover Dam
and the Chicago Water Tower.
Annual Report for the Fiscal Year Ended June 30, 2025
4 Left: The American Water Works Association awarded the Pulgas Water Temple the AWWA Water Landmark Award for 2025, Left to right: San Mateo County Supervisor Ray Mueller, SFPUC General Manager Dennis Herrera, AWWA California-Nevada Executive Director Sue Mosburg, and SFPUC Commissioner Kate Stacy, Right: Mountain Tunnel Improvement Project, Photos by: Robin Scheswohl The temple was bu ilt in 1938 to commemorate the
arrival of Hetch Hetchy water to the San Francisco
Bay Area, a m ilestone that provided a reliable supply of clean drinking water and helped shape the region’s growth. While it remains a beloved historic site, P ulgas is also a reminder of the effective workforce that
safeguards our water resources today.
Surrounding the water temple, more than 23,000 acres
of watershed lands have been preserved since the
mid-1800s to protect high-quality drinking water for
San Francisco and the Peninsula. SFPUC employees
manage and protect these lands, which are home to
800 species of plants and trees, 165 species of birds,
and 50 species of mammals and are a protected
area within the UNESCO Golden Gate Biosphere. The
Pulgas Water Temple remains one of our most visible
landmarks, drawing visitors and national recognition.
It celebrates not only the bold vision that built our
water system but also the ongoing dedication of our
workforce to protect natural resources and deliver
clean water reliably into the future.
New Water Division Campus:
Enhancing Response and Resiliency
Construction is underway on a new nine-acre climate-
smart San Francisco Water Division campus that will
give our San Francisco-based workforce the tools and
facilities they need to protect the city’s water future.
The modern, seismically safe campus is designed to
help crews respond quickly to emergencies, maintain
a resilient system, and continue delivering reliable,
affordable water service, even after a disaster.
The new facilities at 2000 Marin Street in the
Bayview neighborhood will replace outdated offices
on Newcomb Avenue, where water division staff have
been located since 1963. Once complete, the facility
will centralize operations and provide a safe home
base so we can more efficiently manage and operate
San Francisco’s 1,250 miles of water distribution
pipelines, 12 in-city reservoirs, and eight water tanks.
Most importantly, the campus will strengthen our
crews’ ability to respond during an emergency and
help keep the water flowing to homes, businesses,
and fire hydrants.
Annual Report for the Fiscal Year Ended June 30, 2025
5 The People Behind
San Francisco’s Power
Our workforce has driven the City’s transition to clean, reliable electricity through CleanPowerSF and Hetch Hetchy Power. The vision and commitment of SFPUC employees have accelerated the growth of San Francisco’s clean energy system, expanding clean energy choices, reducing emissions, and advancing the City’s climate goals.
CleanPowerSF: Team Effort,
National Recognition
In 2025, San Francisco’s CleanPowerSF program
earned recognition on both the local and national stage for delivering clean, affordable electricity and helping the City meet its climate goals.
Michael Hyams, Deputy Assistant General Manager,
received the Good Government Award from SPUR,
the Bay Area’s respected nonprofit civic planning
and research organization. Hyams was honored for
his leadership helping to launch CleanPowerSF in
2016 with just over 7,400 accounts. It now provides
renewable and greenhouse gas-free electricity to
more than 380,000 customer accounts across
San Francisco.
This progress honors not only strong leadership but
also the dedicated team that built CleanPowerSF
from the ground up. What started with a handful of
employees has grown into dozens of skilled staff
who manage power contracts, customer programs,
and financial operations. Together, their work has
helped cut greenhouse gas emissions from electricity
by 98% compared to 1990 levels. In 2023 alone,
CleanPowerSF customers saved more than $50 million
compared to PG&E rates, while also reaching the
milestone of delivering 100% renewable electricity
two years ahead of schedule.
In June 2025, the U.S. Conference of Mayors awarded
San Francisco its top national Climate Protection
Award, recognizing CleanPowerSF as a model of how
local action can reduce emissions, save money, and
expand access to clean energy.
P.O.W.E.R. Day: Strengthening an
Effective Workforce
In 2025, the Power Enterprise launched its first
P.O.W.E.R. Day (Power of Workforce Engagement and
Recognition Day), an initiative designed to strengthen
employee engagement and celebrate staff contributions.
The day-long program brought together more than
160 employees from CleanPowerSF and Hetch Hetchy
Power for workshops, peer-led sessions, and an awards
ceremony. Attendees reported a 95% satisfaction rate
and emphasized the value of recognition and cross-
team collaboration.
P.O.W.E.R. Day reinforced that the success of the Power Enterprise comes from its people. Our employees have
expanded our Hetch Hetchy and CleanPowerSF service
to over 386,000 customer accounts, reached 100%
renewable electricity two years ahead of schedule,
cut emissions by 98%, and helped CleanPowerSF and
Hetch Hetchy Power customers save a combined $170
million in 2023 on electric bills compared to PG&E.
These are remarkable milestones for a public power
utility, and they were made possible by the dedication
and expertise of our staff.
Annual Report for the Fiscal Year Ended June 30, 2025
6 Top: SFPUC Power Enterprise staff gather for P.O.W.E.R. Day, Bottom: SFPUC Power Enterprise staff educate and support customers at informational events, Photos by: Robin Scheswohl and SFPUC Power Enterprise P.O.W.E.R. Day underscores the SFPUC’s commitment
to an effective workforce through investment in
employee morale, recognition, and professional
development. This serves our customers who depend
on our employees for clean, reliable, and affordable
electricity in San Francisco.
Hetch Hetchy Power: Building Trust,
One Conversation at a Time
As a not-for-profit utility provider, the SFPUC has a
special relationship to affordable housing. Many of
these developments in San Francisco are energized
by Hetch Hetchy Power.
For new customers, it may be their first time paying
an electricity bill. Perhaps they had a social worker
managing their bills previously or were formerly
unhoused – there are many reasons why customers
may not be familiar with reading and paying an
electricity bill.
Because of these challenges, the SFPUC’s Power
Enterprise makes a concerted effort to educate and
support customers on their electricity bills. The SFPUC coordinates in-person, informational “town halls” for
new affordable housing properties, where we discuss
Hetch Hetchy Power, discount programs, energy-saving
tips, and answer residents’ questions.
For customers falling behind on their bills, the SFPUC
provides additional support. During spring of 2025, the SFPUC Power team held informal chats with coffee,
tea, and donuts at four affordable housing properties
in the Mission District, the Tenderloin, Treasure Island, and Sunnydale. Positioned in the apartment lobby, team
members provided personalized support to customers,
reviewing their bills, and talking through their questions.
In total, the SFPUC had one-on-one conversations with
64 customers, enrolled 12 customers in the Customer
Assistance Program, and signed up 20 customers for
payment plans.
This new outreach underscores the importance
of meeting customers where they are. The SFPUC
Power team had many meaningful and productive
conversations with customers as they came and went
from the building where they live. It also demonstrated the strengths of an effective workforce—staff who bring strong communication skills, cultural awareness, and
leadership to connect with a diverse customer base. As
the City paves the way for more affordable housing, the SFPUC is ready to power those buildings and empower
our customers in these properties.
Annual Report for the Fiscal Year Ended June 30, 2025
7 Investing in the Systems
and Workforce That
Serve San Francisco
SFPUC engineers, operators, and maintenance crews ensure toilets can keep flushing and sewage treatment systems running, protecting public health and the environment. They’re also strengthening an essential service that will serve San Francisco for years to come.
Clear Standards, Strong Protections
Protecting public health and water quality depends
on clear, enforceable rules. That was the issue at
the center of City and County of San Francisco v.
Environmental Protection Agency, a case heard before
the U.S. Supreme Court and decided in March 2025.
The case addressed how EPA issues wastewater
discharge permits under the Clean Water Act.
EPA had taken a sweeping approach that could have
held San Francisco and cities and counties across
the country responsible not only for their own treated
discharges, but also for discharges and pollutants
outside their control that reach the same body of water – like a river, bay, or ocean – coming from someone
else. San Francisco argued that the Clean Water Act
requires a clearer interpretation: permits with specific, enforceable standards for discharges. Without those
clear standards, San Francisco faced the prospect
of billions of dollars in infrastructure upgrades with
negligible environmental benefits, leading to steep bill increases and putting thousands of households at risk
of poverty.
The court agreed with San Francisco, instructing EPA
to follow the Clean Water Act and issue clear water
discharge permits that prevent pollution before it occurs.
The decision was possible thanks to the close
partnership with the San Francisco City Attorney’s
Office and the support of thousands of cities and
counties across the country who stood with us through
associations that filed supporting briefs. San Francisco’s leadership was recognized by the National Association
of Clean Water Agencies, which bestowed its 2025
Clean Water Advocate Award on the SFPUC.
The successful outcome in this case highlights the
strength of our skilled and dedicated staff. Working
with partners across the city, county, and country, we
ensure that San Francisco’s sewer system continues
to protect public health, support the growth of our
communities, and serve residents reliably every day.
Turning Workforce Skills into Climate
Solutions
The SFPUC entered a 40-year partnership with the
San Francisco Unified School District to bring more
green infrastructure projects to campuses across the
city. This agreement creates a faster, more reliable
process for approving and building projects that
benefit both students and the environment. Schools
gain greener, safer facilities, while the SFPUC improves stormwater management using rain gardens, permeable
pavement, and vegetated areas that allow rain to soak
into the ground and reduce the risk of flooding.
Annual Report for the Fiscal Year Ended June 30, 2025
8 Left: Example of open-cut construction, Right: Everett Middle School playground renovation with green infrastructure elements, Photos by: Sabrina Wong and Robin Scheswohl
Construction began on a new play and learning space
at San Francisco’s Everett Middle School. The new
playground features four rain gardens, a rainwater
harvesting system, a permeable turf field, and a new
track. Everett’s transformation will capture up to 1
million gallons of rainwater each year, easing pressure on San Francisco’s sewer system during heavy storms.
Through the SFPUC’s Green Infrastructure Grant
Program, the SFPUC has awarded $26.5 million to
26 projects, including 10 in partnership with SFUSD.
Together, these projects will capture more than 16
million gallons of stormwater each year – enough to
fill 24 Olympic-sized swimming pools – keeping the
City on track to reach its goal of diverting 1 billion
gallons of stormwater annually by 2050.
This work is led by the SFPUC’s dedicated green
infrastructure team who fund and review projects,
collaborate with schools and community partners, and
support residents in adopting sustainable practices. Their expertise is helping deliver greener campuses, stronger stormwater management, and new opportunities for
students to learn about climate resilience.
Building Skills, Building Careers
For more than three decades, the Wastewater
Enterprise has built a strong internship program that
gives college students hands-on experience in real-
world engineering. Each year up to six student interns
join the Engineering Division and contribute directly
to operations. Their work ranges from sampling
wastewater and testing odors to mapping the sewer
system for future maintenance.
These opportunities are more than temporary jobs.
Many of the SFPUC’s engineers and managers started
as agency interns. The program has become a proven
pathway for building an effective workforce, developing the technical skills, leadership qualities, and problem- solving experience needed to operate San Francisco’s
combined sewer system, which treats both wastewater
and stormwater.
In 2025, the Engineering Division strengthened this
pipeline by partnering with the East Bay Municipal
Utility District and the University of California Berkeley’s water and wastewater systems program. SFPUC staff
joined a classroom panel to share their experiences
and promote public agency careers. This outreach
brought in highly qualified candidates and inspired
students to see wastewater as a field where they can
make a difference.
The SFPUC hired three UC Berkeley interns in 2025.
The program continues to provide a reliable source of
future talent, supporting the Wastewater Enterprise’s
efforts to ensure that it has the people it needs to
protect public health and the environment.
Annual Report for the Fiscal Year Ended June 30, 2025
9 Investing in People
and Purpose
Across the agency, the SFPUC invests in people and partnerships that strengthen essential services. From restoring rivers and building award-winning facilities to supporting customers and educating future problem-solvers, our workforce turns public investment into public benefit.
Restoring Salmon Habitat on the
Tuolumne River
In June of 2024, the SFPUC partnered with the
Modesto and Turlock Irrigation Districts to restore
salmon and trout habitat on the Tuolumne River
upstream of Old La Grange Bridge in Stanislaus
County. Over four months, crews improved the river
channel, added new floodplain, and returned clean
gravel, removed during the Gold Rush, to the river,
creating shallow, fast flowing areas where salmon lay
their eggs.
The $7.8 million project, which included a $2.3 million investment from the SFPUC, was completed under
budget. The project is a precursor to what the river
partners are proposing as part of the Healthy Rivers
and Landscapes Program, reflecting long-standing
stewardship and science-based management of the
Tuolumne River.
In summer of 2025, 1,200 adult spring-run Chinook
salmon returned to the lower Tuolumne River, where
they found cold, clean water and restored riverbed
conditions ideal for preparing to spawn in the fall.
This achievement highlights the power of collaboration
as a core workforce skill – bringing together the
SFPUC, the Modesto and Turlock Irrigation Districts,
federal and state agencies, local indigenous tribes,
and specialized consultants. Together, the partnership
turned years of river science into practical restoration that supports fish and communities alike.
Staff Commitment Keeps Water and Sewer
Bills Affordable
The SFPUC partnered with community organizations
to bring multilingual bill assistance directly to hard-to- reach customers. At three in-person application drives, more than 200 people, including many seniors and
members of immigrant communities, received support
enrolling in the SFPUC’s Customer Assistance Program.
This program provides discounts of up to 40% on water
and sewer bills for households with very low incomes.
At each event, residents received one-on-one help
and materials in their preferred language. SFPUC
staff collected more than 100 completed applications
on-site and provided others with the information they
needed to apply from home.
Events in San Francisco’s Bayview, Mission, and
Chinatown neighborhoods were organized with
community partners like the Bayview-Hunters Point
YMCA, San Francisco Latino Task Force, and APA
Family Support Services. Staff from the SFPUC’s
Communications, Community Benefits, and Customer
Service teams ran the events, using their community
knowledge and language skills to connect with residents.
Annual Report for the Fiscal Year Ended June 30, 2025
10 Left: SFPUC enployees participating in the Expanded Employee Mentorship Program, Right: Treasure Island Water Resource Recovery Facility, Photos by: Racial Equity, Diversity, and Inclusion Team and Robin Scheswohl Four more events are scheduled for fiscal year 2025-
26, extending support to include electric bill discount programs. By being present in neighborhoods across
San Francisco, the SFPUC is helping ensure more
people can get the support they need to keep essential
services affordable.
1. Excellence in Government Finance: The SFPUC’s
Business Services Team earned the prestigious
Government Finance Officers Associations 2024
Award for Excellence in Government Finance for its
Capital Planning Improvement Initiative, a five-year
effort to strengthen financial sustainability and rate
affordability.
2. Tracking Wildfire Risk: The SFPUC became the
first publicly owned utility in California to use a
Fire Potential Index, an AI-driven fire weather
forecasting tool. Our Hetch Hetchy team combines
this technology with vegetation management and
power line inspections to reduce fire wildfire risk
and protect both power lines and communities.
3. Expanded Employee Mentorship Program: Now in
its third year, the program matched 178 employees
across every bureau and enterprise. Mentors
and mentees built skills, shared knowledge, and
created lasting professional connections, with 84%
of participants reporting a positive impact on their
growth and development.
4. Award-Winning Infrastructure: As San Francisco’s
Treasure Island continues its transition from
a former U.S. Naval Base into a neighborhood
for 20,000 residents, the SFPUC’s new Water
Resource Recovery Facility will keep the community
thriving. In April of 2025, the facility earned the
Envision Platinum Award, the highest recognition
from the Institute for Sustainable Infrastructure,
placing it among only a handful of wastewater
treatment plants in the nation to achieve this honor.
5. Empowering Future Problem Solvers: Through
our Project Learning Grants, the SFPUC supports
community-based organizations like the Chinese
Youth Council where students learned where our
water comes from and how a changing climate
affects their neighborhoods. Through these
grants, the SFPUC is not only sparking civic pride
and resilience but also building the foundation
for an effective workforce ready to protect San
Francisco’s essential services into the future.
Annual Report for the Fiscal Year Ended June 30, 2025
11 Keeping Our Water Rates Affordable
Single-Family Residential FY 2024-25
Average Monthly Usage (ccf) . . ............................................. 4.80 Average Monthly Bill......................................................... $160.75 Cost per Person per Day ................................................... $2.39 Total Cost per Gallon ........................................................ $0.045 Total Combined Bill as % of San Francisco Median Household Income ......... 1.76% Total Combined Bill as % of San Francisco Low Income Household . ............ 4.20% Calculation is based on the average monthly water usage Average Water/Sewer Bill as % of Typical Household (40th Percentile) Income Average Water/Sewer Bill as % of Low-Income Household (20th Percentile) Income Since 2010, this report has won the prestigious
“Award for Outstanding Achievement in Popular
Annual Financial Reporting” from the Government
Finance Officers Association.
This award recognizes our commitment to increase
public awareness by providing an overview of our
financial condition. The financial information for this report is drawn from the audited financial statements
in the SFPUC’s Fiscal Year 2024 Annual
Comprehensive Financial Report (ACFR), using the
full accrual basis of accounting and providing
complete financial information and disclosures in
conformance with generally accepted accounting
principles (GAAP). PAFR is not audited and is
presented on a non-GAAP basis as note disclosures
have been excluded in the report. Our ACFR, which
provides complete financial information and
disclosures in conformance with GAAP, is available
online at www.sfpuc.gov/about-us/reports.
Government Finance Officers Association
Award for
Outstanding
Achievement in
Popular Annual
Financial Reporting
Presented to
City and County of San Francisco
Public Utilities Commission
California
For its Annual Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
Financial
Performance
Annual Report for the Fiscal Year Ended June 30, 2025
12 The Comparative Consolidated Net Position provide
information about the nature and amount of resources
and obligations at a specific point in time. SFPUC
continued to reflect a strong and healthy financial
condition over the last several fiscal years. Investments in capital assets constituted 63% of our net position
and represented the amount by which the carrying value
of capital assets exceeds capital-related debt, which
comprises the outstanding balances of bonds, commercial paper, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets. For FY2025, SFPUC net position increased by 7%
or $211 million as compared to FY2024, mainly due to
increase in unrestricted net position.
There are five components in the Statement of Net Position, which is intended to present what the entity owns
(assets), owes (liabilities) and its residual or net position.
1. Assets are resources with present service capacity
that the government presently owns or controls.
2. Deferred outflow of resources is a consumption of net assets by the government that is applicable to a future reporting period—for example, amortization of refunding loss to future periods.
3. Liabilities are present obligations to sacrifice resources that the government has little or no discretion to avoid, such as debts owed, and represent claims against assets.
4. Deferred inflow of resources is an acquisition of net assets by the government that is applicable to a future reporting period—for example, amortization of net
difference in pension projected verses actual earnings.
5. Net position is the residual of all elements presented in a Statement of Net Position, i.e., Total assets plus deferred outflows minus total liabilities minus deferred inflows. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position is improving or worsening.
The Comparative Revenues and Expenses reflected
continued revenue growth. SFPUC strives to achieve
strong financial performance and effectively controls its operating costs to not exceed revenues.
Total revenues, transfers in and contributions increased by $78 million when compared to prior year. This is mainly due to higher charges for services for our customers.
Total expenses and transfers out decreased by $18
million, as compared to prior year. This was primarily
due to lower judgment and claims expenses based on
analyses performed by the City Attorney’s Office and
Controller’s Office.
Definitions
• Capital Assets: Include depreciable, amortizable,
non-amortizable and non-depreciable facilities and
buildings, improvement, machinery and equipment,
intangible assets, land, rights-of-way, right-to-use lease and subscription assets, as well as construction work
in progress, net of depreciation and amortization.
• Current and Other Assets: Assets easily converted to
cash or consumed within one year: cash, investments,
receivables, and prepaid expenses.
• Long-term Debt Outstanding: Payments due on debt
that are more than 12 months in the future.
• Current Liabilities: Payments due on obligations owed by SFPUC within the next 12 months.
• Net Position: Net difference between assets and
deferred outflows of resources, and liabilities and
deferred inflows of resources.
• Change in Net Position: The total of net income (loss), net of transfers, contributions, and cumulative effect
of accounting change.
• Depreciation and Amortization Expense: Depreciation
spreads out the cost of a tangible asset over its useful life, and amortization is the deduction of intangible
assets over a specified time period; typically the life of an asset.
• Income (Loss): The difference between total revenues
less total expenses.
• Non-operating Revenues and Expenses: Revenues
and expenses that are incidental to SFPUC’s main
purpose and derived from activities not directly
related to SFPUC’s operations such as license fees
and penalties, interest earnings and costs associated
with debt.
• Operating Expenses: Expenses incurred in the
provision of water, sewer, and power services.
• Operating Revenues: Revenues for the sale of water,
sewer, and power services to customers, services,
inspections, and programs provided by SFPUC.
• Transfers in: Funds recovered from other city
departments to support various programs and projects.
• Transfers out: Funds provided to other city departments to support various programs and projects.
Annual Report for the Fiscal Year Ended June 30, 2025
13 A Closer Look at the Numbers
SFPUC 2025 By the Numbers
Miles .......................................... 1,725 miles of water mains, 1,139 miles of collection system pipes Millions of gallons (MG) .......................... 275,823 MG water reservoir storage, 70,363 MG water production, 66,444 MG water consumption
Millions of gallons per day (MGD) .................. 183 MGD water consumption, 73.5 MGD sewer treatment San Francisco Population ......................... 835,987 San Francisco Personal Income per Capita .......... $176,317 SFPUC Website .................................. sfpuc.gov SFPUC Assets (DOLLARS IN MILLIONS)
Fiscal Year FY2025 FY2024 FY2023 2025-24
$ Change
2024-23
$ Change
C a s h & I n v e s t m e n t s........................................ $2,262 $1,583 $1,448 $679 $135 Charges for Services Receivables
(net of allowance for doubtful accounts)......................... $188 $196 $159 $(8) $37 C a p i t a l A s s e t s ^ .............................................. $13,336 $12,262 $11,207 $1,074 $1,055 O t h e r s....................................................... $199 $301 $200 $(102) $101 T o t a l A s s e t s ............................................... $15,985 $14,342 $13,014 $1,643 $1,328 Fiscal year 2025, SFPUC assets increased by $1,643 million or 11%, mainly due to $1,074 million additional construction and capital improvements, and $679 million in cash and
investments.
Fiscal year 2024, SFPUC assets increased by $1,328 million or 10%, mainly due to $1,055 million additional construction and capital improvements, and $135 million in cash and
investments.
SFPUC Liabilities (DOLLARS IN MILLIONS)
Fiscal Year FY2025 Restated
FY2024# FY2023 2025-24
$ Change
2024-23
$ Change
C e r t i fi c a t e s o f P a r t i c i p a t i o n..................................$120 $125 $129 $(5) $(4) C o m m e r c i a l P a p e r s ........................................ $189 $622 $488 $(433) $134 B o n d s .................................................... $9,251 $7,968 $7,639 $1,283 $329 N o t e s .................................................... — — $350 — $(350) S t a t e R e v o l v i n g F u n d L o a n s .................................. $667 $578 $482 $89 $96 Water Infrastructure Finance and Innovation Act loans . . . . . . . . . . . $1,395 $922 $122 $473 $800 O t h e r s .................................................... $1,225 $1,212 $951 $13 $261 T o t a l L i a b i l i t i e s ......................................... $12,847 $11,427 $10,161 $1,420 $1,266 #Fiscal year 2024, restated due to implementation of GASB Statement No. 101, Compensated Absences.
Fiscal year 2025, SFPUC liabilities increased by $1,420 million or 12%. The increases included $1,407 million in outstanding debts due to bonds, WIFIA loans and State
loans issuances, and $13 million mainly due to increase in pension and wholesale balancing account..
Fiscal year 2024, SFPUC liabilities increased by $1,266 million or 12%. The increases included $1,005 million in outstanding debts due to bonds, WIFIA loans and State
loans issuances, and $261 million mainly due to judgement and calims expenses based on actuarial estimates.
Annual Report for the Fiscal Year Ended June 30, 2025
14 The SFPUC’s high credit ratings helps to reduce high borrowing costs. 1Weighted average interest rate on outstanding bonds as of 6/30/25. 2SFPUC total included elimination entries of $38.1 million interfund payables and receivables between Water/Hetchy Power and Wastewater/ Hetchy Power.
Financials at a Glance
Definitions
• Current Ratio: measures the enterprise’s ability to
pay short-term obligations with its current assets. It is defined as current assets divided by current liabilities. • Debt Ratio: measures how much of the enterprise’s
assets are financed by debt. It is defined as total
liabilities divided by total assets.
• Debt Service Coverage: measures the enterprise’s
ability to meet both legal and policy-driven revenue
obligations associated with debt. The enterprise
revenues pledged for the repayment of debt service
must meet the following financial ratios: minimum debt
service coverage requirements of 1.00x (current) and
1.25x (indenture).
Please refer to SFPUC’s debt management and disclosure reports for more details. www.sfpuc.gov/about-us/reports/ debt-management-and-disclosure-reports.
SFPUC By the Numbers
(DOLLARS IN MILLIONS,
UNLESS OTHERWISE STATED)
Water Wastewater Hetchy Water Hetchy Power CleanPowerSF SFPUC S & P G l o b a l B o n d R a t i n g ............ AA- AA N/A AA N/A N/A M o o d y ’ s I n v e s t o r s S e r v i c e .......... Aa2 Aa2 N/A N/A A2 N/A F i t c h ............................. N/A N/A N/A AA- N/A N/A Current Ratio ...................... 1.67 times 2.21 times 12.3 times 1.24 times 7.34 times 2.06 times Debt Ratio ........................ 90.0% 81.9% 13.2% 53.7% 16.2% 80.4% D e b t S e r v i c e C o v e r a g e ............ 2.17 3.64 N/A 23.78 N/A N/A Average Borrowing Rate1............ 3.55% 3.62% N/A 3.61% N/A N/A Total Assets2....................... $6,858.0 $7,298.4 $378.3 $1,196.2 $292.4 $15,985.2 Deferred Outflows of Resources. . . . . $208.8 $56.1 $15.4 $18.8 $3.9 $303.0 Total Liabilities2..................... $6,170.9 $5,974.8 $50.0 $642.5 $47.3 $12,847.4 Deferred Inflows of Resources. . . . . . .$113.2 $24.8 $3.7 $4.5 $2.4 $148.6 Net Position ....................... $782.7 $1,354.9 $340.0 $568.0 $246.6 $3,292.2 N u m b e r o f C u s t o m e r A c c o u n t s ...... 179,591 181,682 5 8,461 388,317 758,056 C a p i t a l B u d g e t ..................... $456.0 $892.5 $152.8 $52.0 $0.6 $1,553.9 Adopted Annual Operating Budget. . . $738.5 $474.8 $108.4 $237.2 $464.1 $2,023.0 Annual Report for the Fiscal Year Ended June 30, 2025
15 Five-Year Comparative
Consolidated Net Position
(DOLLARS IN MILLIONS)
2025
$2,649
$889$13,336
$11,958
$303 $303
$16,288
Total assets & deferred outflows
of resources
$12,996
Total liabilities & deferred inflows
of resources
$3,292
Total net position
Current & other assets
Capital assets, net of accumulated
depreciation and amortization^
Deferred outflows of resources
Current liabilities
Long-term liabilities
Deferred inflows of resources
Net position
2024# 2023
2022 2021
^Total asset reclassification from current and other assets to right-to-use lease (fiscal years 2021-2023) and subscription assets (fiscal years 2022-2023). #Fiscal year 2024, restated due to implementation of GASB Statement No. 101, Compensated Absences. $1,605
$94
$9,875
$330
$1,387
$7,591
$11,810 $9,072 $2,738
$2,080 $1,807
$1,915
$139 $149
$532
$12,262 $11,207
$10,460
$305 $297
$288
$978 $626
$1,240
$10,449 $9,535
$8,067
$14,647 $11,566 $3,081 $13,311 $10,310 $3,001
$12,663 $9,839 $2,824
Annual Report for the Fiscal Year Ended June 30, 2025
16 $1,851
Total Expenses
& Transfers Out
Five-Year Comparative
Revenues and Expenses
(DOLLARS IN MILLIONS)
$1,794
$46 $372
$110 $52
$9 $3
$103
$1,424
Revenues, Transfers in
and Capital Contributions
Charges for services*
Interest and investment (loss) income
Rents & concessions
Transfers in and capital contribution
Others
Expenses & Transfers out
Operating expenses
Non-operating expenses
Transfers out
Interest expenses^
2025
$2,062
Total Revenues,
Transfer In &
Capital Contribution
$1,685 $1,614
$1,376
$1,551 $1,258
$1,130
$313 $294
$279
$2 $20
$31
$3 $3
$2
$83 $77
$118
$132 $28
$45
$10 $15
$15
$74 $18
($26)
2024# 2023
2022
$1,984 $1,869 $1,752 $1,575
$1,528 $1,442
$1,259
$1,150
$205
$21
$4
$100
$42
$15
$0
2021
$1,416 $1,380
*Fiscal year 2024 and 2023, certain other revenues for City Departments reclassed to charges for services. ^Interest expenses, net of amortization of premium, discount, refunding gain/loss and issuance costs. #Fiscal year 2024, restated due to implementation of GASB Statement No. 101, Compensated Absences.
Annual Report for the Fiscal Year Ended June 30, 2025
17 Annual Report for the Fiscal Year Ended June 30, 2025 18 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.
Cover photos:
Peninsula Watershed - Lower Crystal Springs
Dam: Water Enterprise’s surveying team
Clean Power SF - Gonzaga Ridge
Sewer System Improvement Program - Westside
Pump Station Reliability Improvements Project
Back cover photo:
Tuolumne Meadow - Yosemite National Park
Photos by: Robin Scheswohl and Sabrina Wong
Date of Publication: December 2025
SFPUC Financial Services
525 Golden Gate Avenue, 4th Floor
San Francisco, CA 94102-3220
sfpuc.gov
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