Financial Services
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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: September 8, 2026
To: Commissioner Joshua Arce, President
Commissioner Steve Leveroni, Vice President
Commissioner Avni Jamdar
Commissioner Kate Stacy
Commissioner Meghan Thurlow
Through: Nancy L. Hom, CFO and AGM Business Services
From: Trey Hunter, Acting Budget Director
Subject: Changes to FY 2026-27 & FY 2027-28 Budget since Commission Adoption
This memo is to provide an overview of the final changes to the San Francisco Public Utilities Commission (SFPUC) FY 2026-27 and FY 2027-28 Budget since Commission Adoption on February 10, 2026. The final budget adoption by the Mayor and Board of Supervisors occurred on July 30, 2026.
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.
FY 2026-27 and FY 2027-28 SFPUC Budget Changes
Commission Approved Adopted Budget Variance
FY 2026-27 FY 2027-28 FY 2026-27 FY 2027-28 FY 2026-27 FY 2027-28 $2,166.7 $2,344.1 $2,180.9 $2,354.9 $14.2 $10.9
(Noted in $ millions)
The total budget adopted by the Commission was $2,166.7M for FY 2026-27 and $2,344.1M for FY 2027-28. The final Board adopted budget is $2,180.9M for FY 2026-27 and $2,354.9M for FY 2027-28. The net change from the Commission adopted budget is $14.2M for FY 2026-27 and $10.9M for FY 2027-28, or less than one percent in each year.
The drivers for the budget increase are as follows:
Change driver ($ millions) Note FY 2026-27 FY 2027-28
General Reserve contribution for
Water Enterprise 1 $ 10.0 $ 11.6
Board and Mayor Cuts 2 (6.7) (9.6)
Changes to citywide workorders and
COWCAP 3 6.1 12.9
Capital Assumptions 4 2.5 2.6
Final assumptions for Labor Cost and
rightsizing of salary savings 5 1.0 (9.6)
Chemical Costs Assumptions 6 0.5 0.5
Purchase of Power Assumptions 7 (0.4) 1.8
Rebalancing Programmatic Projects 8 0.4 0.4
Other Minor changes 9 0.8 0.3
Total $ 14.2 $ 10.9
Notes
1. The biggest of the changes is an increase to the general reserve contribution in the Water Enterprise. Sufficient Fund Balance was available in Water’s Programmatic Project fund to support budgeted projects. This resulted in a reduced transfer needed from Water’s operating fund.
2. Board and Mayors’ cuts, including 32 positions and $3.2M of non- personnel costs, which included 12 vehicles.
3. Workorder adjustments made during Mayor Phase include increases to power costs from Hetch Hetchy Power, services from Department of Environment, City Attorney’s Office, and an increase to COWCAP (County Wide Cost Allocation Plan) of $1.1M per year.
4. Changes related to updated revenue funded capital assumptions
5. Final updates to labor costs by the Controller’s Office. This includes updated cost assumptions for health and pension costs, and an examination of all salary savings (or attrition), which has been right sized to match future projected use.
6. An increase for projected chemical costs for the treatment of water.
7. Change related to Purchase of Power assumptions in Hetch Hetchy Power.
8. Balancing adjustment associated with updated programmatic project assumptions to match sources and uses.
9. Other minor changes
If you have questions, please contact me at [email protected].
cc:
Ronald Flynn, Deputy General Manager
Mike Hyams, Acting AGM, Power Enterprise
Joel Prather, AGM, Wastewater Enterprise
Steve Ritchie, AGM, Water Enterprise
Stephen Robinson, AGM, Infrastructure
Jennifer Hopkins, AGM, Professional Services Bureau
Wendy Macy, Chief People Officer
Laura Busch, Deputy Chief Financial Officer