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SFPUC adopts two‑year budgets, sets 10‑year plans for water and wastewater and requires Hetch Hetchy quarterly updates
Summary
Commission approved operating and capital budgets for FY2014–15 and FY2015–16, adopted 10‑year financial plans for Water and Wastewater, and accepted 10‑year projections for Hetch Hetchy with a requirement for quarterly updates to establish a balanced plan.
The San Francisco Public Utilities Commission voted Feb. 11 to adopt its proposed operating budgets for fiscal years 2014–15 and 2015–16 and to approve the capital budgets and 10‑year capital plan after discussion about fiscal priorities and program risks.
Commissioners debated a longer‑term financial picture for the system, focusing on Hetch Hetchy (HETCHI). Commissioner Moran called the Hetch Hetchy projections ‘‘a description of a disaster’’ and said he could not adopt them as a balanced 10‑year plan without firmer commitments. In response, the commission moved a compromise: it adopted the 10‑year financial plans for the Water and Wastewater enterprises and accepted the Hetch Hetchy financial projections as a projection rather than a finalized plan, with the commission finding that the Hetch Hetchy projections do not conform to the commission fund balance reserve and directing staff to return quarterly with work to establish a balanced 10‑year plan.
The commission also approved the 10‑year capital plan with a delegation to the general manager to update the capital plan consistent with any Board of Supervisors approvals of general obligation bonds for earthquake safety.
Commissioners requested additional follow‑up including: a May report on staffing productivity and substitutions that would capture the equivalent of five positions and approximately $1,000,000 in savings; more detailed analysis of how capital prioritization affects the commission’s 2.65 yield objective; and a continued focus on potential revenue options (including new customers or Community Choice Aggregation discussions in the power context) to mitigate projected shortfalls.
The commission calendared public hearings on retail and wholesale water and sewer rates for May (dates set on the agenda) and moved to closed session on attorney‑client matters before voting not to disclose the closed‑session discussions.
