HomeMy WebLinkAboutCity and County of San Francisco Public Utilities Commission - Public Financial ReportRespond Recover and Reimagine
Popular Annual
Financial Report
for the Fiscal
Year Ended
June 30, 2021
Message from Our General Manager
Dear Customers and Stakeholders,
Despite the far-reaching impacts of the
coronavirus pandemic in the past fiscal year,
the SFPUC continued to provide our customers
with high-quality, reliable water, power, and
wastewater services 24 hours a day, seven days
a week. We activated a business continuity plan
at the outset of the pandemic to help the agency
respond to the impacts of the pandemic, take
steps to recover, and reimagine how we continue
to deliver reliable water, power and wastewater
services in a post-pandemic future.
Many of our staff were deployed as Disaster
Service Workers to support COVID response
efforts. During fiscal year 2020-21, the SFPUC
provided 194 deployments to the City of San
Francisco’s COVID Command Center. One
hundred and thirty employees served within
the City’s Covid Command Center, a critically
important coordination point for agency resources
to support emergencies.
SFPUC assets were also reassigned to support
the city’s overall response. Every Enterprise within
our agency played a role in responding and
recovering from the pandemic, and in reimagining
how we will serve our customers in the future.
The Water Enterprise deployed temporary
emergency manifolds for some of San Francisco’s
most vulnerable populations. To fulfill longer-term
needs, the SFPUC worked with many agencies
to identify and assess sites before installing
permanent drink tap stations in San Francisco,
and this work is ongoing. When there was a global
supply chain shortage during the early days of
the pandemic, the Water Quality team produced
hand sanitizer. It also produced a disinfectant
that reduced both paper towel use and the time
needed to disinfect the facility.
The Power Enterprise made great strides in
reimagining the customer experience. Hetch
Hetchy Power launched a new billing system
and an updated online portal for customers.
The first ‘solar plus battery’ storage project was
completed, promoting resiliency in the power grid
and serving as a model for future installations.
CleanPowerSF continued to make progress on its
plan to provide affordable 100% renewable energy
to all customers by 2025 – five years ahead of
schedule. Importantly, the SFPUC continued its
efforts to expand public power service in San
Francisco, which will help deliver safe, reliable,
clean power to new and existing customers.
Through Hetch Hetchy Power, the SFPUC helped
the City respond and recover from the financial
challenges of the COVID-19 pandemic by saving
its municipal customers a projected $37 million
in 2020 compared to the alternative offered by
Pacific Gas & Electric. The SFPUC also provided
Dennis J. Herrera, SFPUC General Manager
San Francisco Public Utilities Commission
(as of date of publication)
Anson Moran, President Sophie Maxwell, Commissioner
Newsha Ajami, Vice President Tim Paulson, Commissioner
Annual Report for the Fiscal Year Ended June 30, 202101
a 30 percent discount to qualifying Hetch Hetchy
Power residential customers through the SFPUC’s
Emergency Community Assistance Program.
The Wastewater Enterprise continued to sample
for SARS-CoV-2 fragments in wastewater,
collaborating with the University of California,
Berkeley and Stanford University. This work will
contribute to the expanding field of wastewater
epidemiology that will inform the use of these
methods at the state and federal level.
In addition to providing customer assistance and
bill relief programs, the SFPUC supported San
Francisco’s COVID-19 response by activating the
Southeast Community Facility at 1800 Oakdale
as a vaccination and testing site. More than 7,000
community members have received COVID
vaccinations, testing, and social support services
at the facility.
By prioritizing the ongoing maintenance and
upgrades of our water, wastewater, and power
infrastructure including the multi-billion-dollar,
citywide Sewer System Improvement Program,
the SFPUC supported financial resilience and
economic recovery. We offered job training and
contracting opportunities to the local community,
kept people working, and made steady progress
on improving our system. We continue to prioritize
hiring local workers and apprentices to further
support the communities we serve during these
challenging times.
The SFPUC also continues to support the
community in other ways. We broke ground on
a 40,000-square-foot, state-of-the-art community
center at 1550 Evans Avenue, which is being
designed to be a hub for the local community
to gather, learn, play, and grow.
Remote working was implemented Citywide
in March 2020. To ensure operations could
continue without disruption or interruption, the
SFPUC analyzed resource needs, the distribution
of remote work equipment, and other support
our employees needed. As we work to recover
from the pandemic, and return employees to the
workplace, the SFPUC is reimagining the future
of work.
We may not know what the future of work will
look like, but we are examining various options,
including those that could look very different than
pre-pandemic. Regardless of how this will look,
the health and safety of our employees will remain
a top priority so we can continue to provide our
customers with reliable, high-quality water, power,
and wastewater services 24/7.
On behalf of the SFPUC, I am pleased to present
the Popular Annual Financial Report for Fiscal
Year 2020–21.
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 the
water we provide is delivered
to retail customers in San
Francisco. The remaining
two-thirds serves 26 wholesale
agencies in Alameda, Santa
Clara, and San Mateo Counties.
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 lateral and 27 pump stations
that collect sewage and storm
water, moving the wastewater
to the three treatment plants
for treatment and discharge
to the San Francisco Bay and
Pacific Ocean.
Annual Report for the Fiscal Year Ended June 30, 2021 02
Ensuring Access to
Water During the
Pandemic
Installation of lead-free, outdoor water bottle
refilling stations (“tap stations”) at 1850
Mission Street between 14th and 15th Street.
03 Annual Report for the Fiscal Year Ended June 30, 2021
04
Temporary Emergency
Manifolds
The public health crisis precipitated by the
pandemic highlighted the critical importance of
ensuring access to water to support the safety
and well-being of our most vulnerable populations.
As facilities providing traditional support services
closed, unsheltered residents in the Tenderloin
district of San Francisco needed reliable access
to clean drinking water.
Our agency immediately deployed emergency
water manifolds and staff to provide access to
drinking water in the Tenderloin neighborhood
and then extended the program to the Mission
and Bayview neighborhoods. In partnership with
the San Francisco Department of Public Works
(SFDPW), the SFPUC co-located water manifolds
with the SFDPW’s Pit Stop Program locations
offering public toilets. The SFPUC also continuted
to monitor and sanitize the manifolds.
Many San Francisco agencies and community
partners identified additional locations that were
later approved by the Emergency Operations
Center to address the needs arising from
the COVID-19 pandemic. These agencies included
the Human Services Agency, the Department of
Homelessness and Supportive Housing, SFDPW,
and the City Distribution Division. Concurrently, the
SFPUC and SFDPW worked with community
organizations to distribute approximately 4,400
reusable water bladders to unsheltered individuals.
Permanent Drink Tap Stations
Because water manifolds only provided a
temporary solution to a longer-term need, the
SFPUC identified and assessed sites
for drink tap stations. By late November 2020,
12 permanent drink tap stations were installed
to increase water access throughout the City.
As the installations were completed, the
emergency manifolds were demobilized.
Ongoing Work
The SFPUC continues to coordinate with the city’s
Emergency Operations Center to provide
equipment and staff to ensure water access.
Locations include pit stops in the Mission and
Bernal Heights neighborhoods, as well as in
the Tenderloin, Candlestick Point Park, and the
Bayview neighborhoods. Through a partnership
with the San Francisco Coalition on Homelessness,
additional drink tap stations are being installed in
the Tenderloin.
Funding options are being developed to support a
two-year pilot tap station program, and the SFPUC
aims to install three new drink tap stations a year.
Ensuring Water Quality
and More
Leading up to and through the pandemic, the
Water Quality Division continued to monitor the
safety of regional water supply to ensure that all
regulatory requirements were met. By managing
the mix of telecommuting and onsite staff, and
implementing onsite safety measures such as
health screenings, disinfections, and distribution
of personal protective equipment, the Water Quality
team was able to meet its annual goals without
experiencing a single case of COVID-19.
Hand Sanitizer and Disinfectant Production
The Water Quality team took three innovative
actions as it transitioned through the respond,
recover, and reimagine phases of the SFPUC’s
business continuity efforts. During the early months
of the pandemic, when there was a global supply
chain shortage, the team produced hand sanitizer
in the Millbrae Drinking Water Laboratory.
Laboratory chemists created the sanitizer using
raw chemicals procured and maintained in their
facilities. Shortly after, the same method was used
to produce a food-grade ethyl alcohol-based
surface disinfectant that was effective against
COVID-19 and evaporated naturally. This approach
reduced personnel labor hours required to disinfect
the facility by half, while also reducing the use of
paper towels. New personal protective equipment
and supplies were widely distributed throughout
the SFPUC.
Annual Report for the Fiscal Year Ended June 30, 2021
Delivering a Clean
Energy Future for Our
Customers Today
05 Annual Report for the Fiscal Year Ended June 30, 2021
Hetch Hetchy Power and CleanPowerSF continue
to reimagine the customer experience and clean
energy future of San Francisco.
Hetch Hetchy Power launched a new, modern
billing system providing customers more timely
and consistent billing and an updated online
portal to facilitate customer payments while saving
paper. The first ‘solar plus battery storage’ project
was completed at the San Francisco Police
Academy in Diamond Heights, promoting
resiliency in the power grid and serving as a
model for future installations. Hetch Hetchy Power
also completed critical milestones on the Bay
Corridor Transmission and Distribution project that
will deliver a high voltage transmission and
distribution system along San Francisco’s eastern
waterfront and provide clean energy to existing
and future customers through the agency’s own
infrastructure.
CleanPowerSF continued to make progress on its
plan to provide affordable 100% renewable energy
to all customers by 2025 – five years ahead of
schedule. The program has entered into power
purchase agreements with new wind and solar
projects in California that will provide enough
electricity by committing to several new wind
and solar projects in California to provide enough
electricity to power the equivalent of over 430,000
average San Francisco homes. CleanPowerSF
also began developing two new programs to
provide qualifying low-income customers 100%
renewable energy at discounted rates to help
ensure all San Franciscans have access to
affordable, clean energy.
In January 2021, the SFPUC reduced
CleanPowerSF rates to absorb a significant
change to the fees PG&E charges customers
of community choice aggregation programs,
like CleanPowerSF. The 16% reduction in
CleanPowerSF’s rates softened the impact of this
increase in PG&E’s fees, which happened in the
middle of the City’s winter COVID-19 surge. The
SFPUC utilized CleanPowerSF’s rate stabilization
reserve to balance its costs for the fiscal year and
it initiated a series of rate actions to gradually
bring CleanPowerSF’s rates back to the cost of
service and replenish the program’s financial
reserves. The SFPUC is conducting a cost of
service study for CleanPowerSF and Hetch
Hetchy Power and plans to set new rates in
fiscal year 2022-23.
Finally, the SFPUC continued its efforts to expand
public power service in San Francisco, which
would help deliver safe, reliable, clean power
to new and existing customers. The agency
submitted a petition to the California Public Utilities
Commission asking that a value be placed on
PG&E’s infrastructure in San Francisco. This a
critical step in moving the municipal acquisition
conversation forward and reimagining the future
of electricity service in San Francisco.
06
Redevelopment Field Tour (Power Enterprise) of the Bay Corridor Transmission & Distribution (BCTD) project with SFPUC staff.
Annual Report for the Fiscal Year Ended June 30, 2021
Protecting Public
Health Through
Wastewater Monitoring
07 Annual Report for the Fiscal Year Ended June 30, 2021
Monitoring for SARS-CoV-2
Starting in March of 2020, as the agency and
the country worked to respond to the COVID-19
pandemic, the SFPUC began collaborating with
research institutions in the San Francisco Bay
Area working to identify fragments of SARS-CoV-2
genetic material in wastewater. The SFPUC has
been providing researchers with wastewater
samples for analysis of COVID-19 gene fragments.
Although SARS-CoV-2 is inactive and not
transmissible in wastewater, it is possible to
track case load trends in a sewer service area
by quantifying the amount of SARS-CoV-2 gene
fragments (RNA remnants) present in wastewater.
By the fall of 2020, the SFPUC and their research
partners had set up a robust monitoring program
which, at its peak, was providing 25 samples a
week from multiple locations in the sewer system
including a large nursing facility. The monitoring
continues to present day and provides data
to local, state and federal health officials on
infection trends.
The SFPUC’s Wastewater Enterprise Field
Monitoring Services group was able to leverage
expertise of its personnel and resource equipment
normally used for ensuring permit compliance, to
that of a new critical role focused on wastewater-
based epidemiology. The core function of the
SFPUC’s Wastewater Enterprise is to protect
the health of the community and environment
through the proper management of wastewater.
The adaptability of the Field Monitoring Services
group allowed the Wastewater Enterprise to help
researchers rethink how wastewater can inform
public health and ultimately protect the health
of the communities the agency serves.
08
The SFPUC’s Field Monitoring Services group setting
up equipment to sample wastewater.
Annual Report for the Fiscal Year Ended June 30, 2021
Serving our
Communities and
Supporting Financial
Recovery
09 Annual Report for the Fiscal Year Ended June 30, 2021
Construction of the new Southeast Community Center (SECC)
at 1550 Evans Avenue, a hub for the local community to gather,
learn, play, and grow.
Supporting COVID-19
Response With Vaccination
and Testing
The Southeast Community Facility (SECF) is
an asset owned by the City, and operated and
maintained by SFPUC’s Wastewater Enterprise
for the benefit of the Bayview Hunters Point
community. These facilities were constructed
for the purpose of mitigating the adverse
environmental and social impacts of constructing
the Southeast Water Pollution Control Plant
expansion projects during the 1970’s and 1980’s.
The 7-member SECF Commission provides advice
and recommendation on center operations and
other relevant to the community. Over the past
40 years, thousands of community residents have
looked to the SECF for resources to support their
personal educational, health and wellness,
childcare, and career objectives.
During the pandemic, the SECF was activated
to support business continuity and a Citywide
COVID response. To date, more than 7,000
community members have received COVID
vaccinations, testing, and social support services
at the facility.
SFPUC broke ground on the construction of the
new Southeast Community Center (SECC) at
1550 Evans Avenue. This $110 million investment
will provide the Bayview-Hunters Point community
with a new 40,000-square-foot, state-of-the-art
community center that features beautiful event
venues, affordable child care, office and
programming space for non-profits, an onsite
café and two acres of green space for community
members to enjoy.
The SECC will be a hub for the local community
to gather, learn, play, and grow, and serves as a
connection between the community and SFPUC.
The center will enrich its community by promoting
the health and wellbeing, and cultural, political,
educational, and financial empowerment of
Bayview-Hunters Point residents.
Emergency Customer
Assistance and Bill
Relief Programs
From the onset of the pandemic, the SFPUC
embarked on a series of bill relief programs
to support its customers. We recognize the
financially devastating impact the COVID-19
pandemic has on the most vulnerable populations,
and rolled out emergency assistance programs for
water, power and wastewater customers.
In May 2020, the SFPUC launched its Emergency
Residential Customer Assistance Program for
residential customers who were financially
impacted as a result of COVID-19. Those with
a pre-pandemic maximum household income
under 200% of the San Francisco Area Median
Income were eligible. The initiative offered utility
discounts of 35% for sewer bills, 30% for Hetch
Hetchy Power and CleanPowerSF bills and 15%
for water bills to eligible customers. The program
originally scheduled to end in Fall 2021, has
been subsequently extended through the end
of March 2022.
In July 2020, the SFPUC launched its Emergency
Nonprofit and Small Business Assistance Program
offering 20 percent discounts on sewer and water
bills for small businesses and non-profits with
10Annual Report for the Fiscal Year Ended June 30, 2021
fewer than, 50 employees) that lost income as a
result of the pandemic and shelter-in-place orders.
The program has also been extended through
March 2022.
The Emergency Residential and Small Business
Assistance Programs have provided discounts
totaling $4.6 million to customers through the end
of fiscal year 2020-21. Although the SFPUC has
extended these emergency assistance programs
as a short-term solution to the financial difficulties
associated with the COVID-19 crisis, the agency is
working to ensure its customers can benefit from
new emergency assistance programs funded by
state and federal dollars. The SFPUC is currently
advocating at the federal level for long-term
funding solutions to address affordability issues
facing our customers.
CleanPowerSF provided a one-time bill credit to
eligible customers in October 2020. The relief
program offered credits of $50 for single-family
homes, $3,000 for multi-family residential
buildings and $750 for nonprofit or small
commercial accounts—the equivalent to a month’s
worth of savings on the average customer’s
electricity bill. This initiative, part of a campaign to
increase enrollment in low-income rate programs
for electricity service, provided over $2.8 million in
discounts to over 50,000 CleanPowerSF customers.
Helping the City Respond
and Recover from
Financial Challenges
For over 100 years, we have generated
greenhouse gas-free Hetch Hetchy Power to
energize vital municipal services like City Hall, the
San Francisco International Airport, public schools
and libraries, as well as redeveloped areas like
The Shipyard, affordable housing, and specific
private developments. Additionally, the SFPUC
owns and maintains approximately 25,000 or
60% of streetlights in the City.
Hetch Hetchy Power helped the City respond and
recover from the financial challenges of the
COVID-19 pandemic by saving its municipal
customers a projected $37 million in Calendar
Year 2020 compared to the alternative offered
by Pacific Gas & Electric (PG&E). In addition to
providing much-needed bill relief to municipal
customers, the public utility provided a 30%
discount to qualifying Hetch Hetchy Power
residential customers through the SFPUC’s
Emergency Community Assistance Program.
Concurrently with the pandemic response, Hetch
Hetchy Power continued to reimagine our publicly
owned utility through a series of successful
11 Annual Report for the Fiscal Year Ended June 30, 2021
12
projects. One such project was the completion of
our first solar plus storage installation at the San
Francisco Police Department Academy in Diamond
Heights. This new installation includes a storage
component to build resiliency in our power grid.
The project is located atop a carport and has
157kW of generating capacity, which is the site’s
typical daily energy use in the summertime, and
99kW/464kWh of battery storage capacity.
Hetch Hetchy Power’s new billing system also went
live in fiscal year 2021. Customers will notice more
timely and consistent billing, a new paper-saving
bill design, and an updated web portal. Those with
multiple meters at the same location will be able
to view consolidated accounts. The new billing
system also has greater functionality for supporting
our rate tariffs and programs and will support new
features to be rolled out in the future.
Finally, Hetch Hetchy Power partnered with the San
Francisco Recreation and Parks Department to
purchase and install over 400 light-emitting diodes
(LEDs) for historic fixtures in Golden Gate Park.
The warmer white light will better illuminate paths
for visitors who enjoy the City’s parks. On average,
the LEDs consume 50% less energy than standard
lightbulbs, resulting in an annual savings of
172,000 kilowatt-hours of energy for the Recreation
and Parks Department.
Capital Projects: Supporting
Financial Resilience and
Economic Recovery
We prioritize the ongoing maintenance and
upgrades of our water, wastewater, and power
infrastructure so we can continue to provide high
quality services to our customers despite the
challenges posed by the ongoing pandemic.
The SFPUC reached major milestones in all
of the three programs for major water asset
improvement projects.
• Our Water System Improvement Program is
99% complete. The Alameda Creek Recapture
Project began construction this fiscal year,
and crews began start up testing of four new
Regional Groundwater Storage and Recovery
Project Wells.
• As part of the Water Enterprise Capital
Improvement Program, construction
of the Alameda Creek Watershed Center
continued to make progress. Within San
Francisco, crews replaced 8.5 miles of
aging water transmission pipeline.
• Major construction began on the Hetch Hetchy
Capital Improvement Program’s Mountain Tunnel
Improvements Project this year.
Annual Report for the Fiscal Year Ended June 30, 2021
Single-Family Residential FY 2020-21
Monthly Usage (ccf)....................5.40
Average Monthly . ......................$138.49
Cost per Person/Day ...................$1.96
Total Cost per Gallon ...................$0.034
Total Combined Bill as % of San
Francisco Median Household Income ....1.48%
Keeping Our Water
Rates Affordable
Credit Ratings ............ 2021 2020 2019
Water
Standard & Poor’s............AA-AA-AA-
Moody’s Investors Service.....Aa2 Aa2 Aa3
Average Borrowing Rate*......3.29%3.48%3.63%
Power
Fitch .........................AA-AA-AA-
Standard & Poor’s ............AA AA AA
Average Borrowing Rate*......3.59%3.49%3.44%
Sewer
Standard & Poor’s ............AA AA AA
Moody’s Investors Service ....Aa2 Aa2 Aa3
Average Borrowing Rate*......3.42%3.42%3.37%
CleanPowerSF
Moody’s Investors Service ....A2 N/A N/A
The SFPUC’s high credit ratings help to reduce
borrowing costs.
*Average Borrowing Rate: Weighted average interest rate on outstanding bonds as
of 6/30/21.
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
San Francisco Public Utilities Commission
California
for the Fiscal Year Ended June 30, 2020
Executive Director/CEO
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 2021
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). The 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
sfpuc.org/about-us/reports.
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 83% of our
net position and represented the amount by which
the carrying value of capital assets exceeds capital-
related debt, which comprises the outstanding
Financial
Performance
Since 2010, this report has won the prestigious
“Award for Outstanding Achievement in Popular
Annual Financial Reporting” from the Government
Finance Officers Association.
Calculation is based on the average monthly water usage
13 Annual Report for the Fiscal Year Ended June 30, 2021
balances of any bonds, commercial paper, notes,
or other borrowings that are attributable to the
acquisition, construction, or improvement of those
assets. For FY2021, SFPUC net position increased
by 1% or $34M as compared to FY2020, mainly
due to increase in net investment in capital assets
and restricted for debt services.
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 other elements
presented in a Statement of Net Position, i.e., the
residual interest in the items owned or controlled
after deducting debts. 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.
The decrease in total revenues, transfers in and
capital contributions by $111M is mainly due to
$61M prior year one time gain from property transfer,
$44M lower billings due to COVID-19 emergency
proclamation issued by the City’s Mayor suspending
collection of past due accounts, and $33M from
lower interest income. The total decrease is offset
by $23M transfer in mainly for the Emergency
Firefighting Water System project and $4M capital
contribution from Department of Public Works for
the water pipeline assets.
Total expenses and transfers out increased
by $99M, as compared to prior year. This was
primarily due to increase of $101M in operating
expenses related to $51M in general administrative
and other for higher capital project expenses
and judgement and claims based on actuarial
estimates, $15M in personnel services due to
cost of living adjustments, pension and other
post-employment benefits obligations based on
actuarial reports, $12M in services provided by
other departments, $11M in depreciation expense,
$10M in purchase and power distribution, and $2M
in construction cost. The total increase is offset by
$2M in interest expenses, net of premium, discount,
refunding loss, and issuance costs, non-operating
expenses and transfers out.
Definitions
• Capital Assets: Include depreciable, amortizable,
non-amortizable and non-depreciable facilities
and buildings, improvement, machinery and
equipment, intangible assets, land and rights-of-
way 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: Total assets and deferred outflows
of resources, less total liabilities and deferred
inflows of resources.
• Change in Net Position: The total of net income
(loss), net of transfers, and cumulative effect of
accounting change.
• Income (Loss): The difference between total
revenues less total expenses.
14Annual Report for the Fiscal Year Ended June 30, 2021
A Closer Look at
the Numbers
Definitions continued
• 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.
• 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.
SFPUC 2021
By the Numbers
Miles ..................1,719 miles of water
mains, 1,125 miles of
collection system pipes
Millions of gallons (MG) ..73,767 MG water
production, 68,812 MG
water consumption
Millions of gallons per day
(MGD) .................
189.5 MGD water
consumption, 63.8 MGD
sewer treatment
San Francisco Population .851,916
San Francisco Personal
Income per Capita .....$173,097
SFPUC Website .........sfpuc.org
SFPUC Assets (DOLLARS IN MILLIONS)
Fiscal Year 2020 2020 Change
Cash & Investments.......$1,287 1,355 (68)
Charges for Services Receivables(net of allowance for doubtful
accounts)137 132 5
Capital Assets.............9,864 9,199 665
Others....................131 129 2
Total Assets.............$11,419 10,815 604
SFPUC assets increased by $604M or 5.6%,
mainly due to $665M additional construction
and capital improvements, and $7M higher
receivables related to charges for services,
receivables from other government entities
and interest income offset by a decrease of
$68M in restricted cash and investments mainly
related to higher capital spending.
SFPUC Liabilities (DOLLARS IN MILLIONS)
Fiscal Year 2021 2020 Change
Certificates of Participation.$138 142 (4)
Commercial Papers.......859 634 225
Bonds ..................6,631 6,366 265
State Revolving Fund Loans .216 161 55
Others ..................1,123 1,031 92
Total Liabilities.........$8,967 8,334 633
SFPUC liabilities increased by $633M or 7.6%.
The increases included $541M in outstanding
debts due to issuance, and $92M in other
liabilities including amounts due to various
city and government entities, net pension
liability and other post-employment benefits,
and restricted payables.
15 Annual Report for the Fiscal Year Ended June 30, 2021
Financials at a Glance
• 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. To ensure that the SFPUC retains financial
flexibility for contingencies, it has adopted and
implemented financial policies that impose
higher standards than the bond indenture
minimum debt service coverage requirements
of 1.00x (current) and 1.25x (indenture).
Definitions
SFPUC By the Numbers (DOLLARS IN MILLIONS, UNLESS OTHERWISE STATED)
Water Wastewater Hetchy Water Hetchy Power CleanPowerSF SFPUC
Standard & Poor’s Bond Rating .....AA-AA N/A AA N/A N/A
Moody’s Investors Service..........Aa2 Aa2 N/A N/A N/A N/A
Fitch.............................N/A N/A N/A AA-N/A N/A
Current Ratio ......................1.78 times 0.42 times 5.74 times 1.41 times 6.98 times 1.05 times
Debt Ratio ........................93.4%68.0%21.6%37.7%26.8%78.5%
Debt Service Coverage .............1.88 3.73 N/A 13.31 N/A N/A
Total Assets.......................$6,320.1 3,961.6 275.6 741.3 121.3 11,419.9
Deferred Outflows of Resources.....$257.6 45.4 11.5 14.1 1.2 329.8
Total Liabilities.....................$5,901.9 2,695.1 59.4 279.2 32.5 8,967.4
Deferred Inflows of Resources.......$26.2 9.4 3.1 3.8 3.0 45.5
Net Position .......................$649.5 1,302.6 224.7 472.5 87.1 2,736.3
Number of Customer Accounts......176,246 174,356 5 5,385 384,332 740,324
Capital Budget.....................$132.1 170.9 43.5 50.8 1.9 399.2
Adopted Annual Operating Budget...$612.5 385.8 87.9 121.2 226.5 1,433.9
Credit ratings and debt service coverage are only applicable to outstanding debt.
16Annual Report for the Fiscal Year Ended June 30, 2021
Five-Year Comparative Consolidated Net Position
(DOLLARS IN MILLIONS)
2021
$1,555
$1,383$9,864 $7,584
$329 $45
$11,748
Total assets and deferred
outflows of resources
$9,012
Total liabilities and deferred
inflows of resources
$2,736
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
$1,616
$82
$9,199
$303
$1,106
$7,228
$11,118 $8,416 $2,702
2020
$1,818
$80
$8,661
$257
$920
$7,278
$10,736 $8,278 $2,458
2019
$26$274
$9,802 $7,531 $2,271
$1,294
$8,234
$707
$6,798
2018
$19$309
$9,279 $7,053 $2,226
$1,220
$7,750
$556
$6,478
2017
17 Annual Report for the Fiscal Year Ended June 30, 2021
$1,173
$927
$221
$24
$4
$84
$25
$14
$47
2019
$1,343 $1,156
2018
$990 $807
$173
$59
$4
$84
$30
$14
$12
$1,130 $1,043
$1,380
Total Expenses
& Transfers Out
Five-Year Comparative Revenues and Expenses
(DOLLARS IN MILLIONS)
$1,259
$100 $205
$42 $21
$14 $4
$-1 $1,150
Revenues, Transfers in &
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, amortization of
premium, discount, refunding loss
& issuance costs
2021
$1,414
Total Revenues,
Transfer In and
Capital Contribution
2017
$895 $860
$165
$91
$4
$81
$60
$10
$9
$1,055 $1,120
$1,303
$1,049
$214
$16
$2
$162
$15
$13
$32
2020
$1,525 $1,281
18Annual Report for the Fiscal Year Ended June 30, 2021
San Francisco Public Utilities Commission
A Department of the City and County of
San Francisco, California
Photos by: Katherine Du Tiel, Megan Tran, Robin Scheswohl, Sabrina Wong
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SFPUC Communications Division
Date of Publication: February 2022
Financial Services
525 Golden Gate Avenue, 4th Floor
San Francisco, CA 94102-3220
sfpuc.org
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.
Our Mission