SFPUC reports stronger water and wastewater revenues, approves $500 million commercial paper authorization

The San Francisco Public Utilities Commission heard a quarterly pre‑audit financial update from Assistant General Manager and CFO Todd Wheatstrom showing stronger than budgeted water and wastewater revenue and healthy reserves across enterprises.

Wheatstrom told the commission retail water sales were up about 5% and wholesale sales nearly 7% relative to budget, and that wastewater revenues and biofuel sales were also stronger than expected. "Reserves at the end of the year exceed $300,000,000 in the Water Department, exceed $80,000,000 in the Wastewater Department and $52,000,000 at Hetch Hetchy," Wheatstrom said.

On a separate agenda item staff proposed renewing the water enterprise commercial paper program. Todd Richstrom (presenting as the Assistant General Manager/CFO for the commercial paper item) said the negotiated renewal would lower program cost by roughly 29% compared with the prior arrangement. The commission voted to authorize the general manager to enter into agreements with commercial paper dealers for a combined commercial paper capacity of $500,000,000 for the water enterprise; the motion was moved, seconded and passed by voice vote.

Commissioners asked for detail on debt service ratios; Wheatstrom reported ratios of about 3.9 times for the Water Department and 3.4 times for the Wastewater Department, with a much higher ratio reported on the power side driven by limited outstanding bonds. Staff said they plan to return with audited financial statements once the audit is complete.