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SFPUC adopts 10‑year financial and capital plans after bond sale yields $150M in projected savings
Summary
Following a staff budget presentation and public comment, the commission adopted its 10‑year financial plan, 10‑year capital plan and operating mid‑cycle adjustments and approved an amendment to incorporate $150 million in projected ratepayer savings from a successful sewer bond sale.
The San Francisco Public Utilities Commission voted to adopt updated 10‑year financial and capital plans and to approve mid‑cycle operating adjustments after a budget hearing that included public comment and a supplemental amendment tied to a successful sewer bond sale.
Todd Reitstrom, the commission’s Assistant General Manager and Chief Financial Officer, reviewed the mid‑cycle changes to the two‑year budget and the 10‑year capital plan. Reitstrom said the budget had previously been approved by the commission, the Board of Supervisors and the Mayor and that this cycle included limited adjustments to reserve and capital timing assumptions.
Earlier in the meeting staff announced the results of a sewer bond sale. An Assistant General Manager reported that eight bidders participated and the lead manager, Goldman Sachs, purchased approximately $330,000,000 in bonds. The low cost of borrowing produced an estimated $150,000,000 in savings to ratepayers over 30 years — roughly $5,000,000 a year — based on a winning average 30‑year interest of about 3.578%.
President Torres introduced an amendment to the 10‑year financial plan authorizing the General Manager to incorporate the $150,000,000 in ratepayer savings and to make technical adjustments to reflect the recent water bond results; commissioners moved and carried the amendment and then voted to adopt the related items on the agenda (the 10‑year financial plan, the 10‑year capital plan and operating mid‑cycle adjustments). Motions were approved by voice vote; the record indicates the motions carried.
Commissioners and public commenters also discussed capital priorities reflected in the capital plan — including a $232,000,000 increase in planned Sewer System Improvement Program investments over the next ten years and additional upcountry investments for Hetch Hetchy — and asked staff to continue refining project schedules, condition assessments and community benefit plans.
The commission directed staff to work with the Controller’s Office and the Mayor’s Office to finalize the technical adjustments to the fiscal plan and to return with any further materials required for the Board of Supervisors as appropriate.
