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SFPUC finance team reports $56.2M in projected savings from 2025 water refunding
Summary
SFPUC staff said a $523 million water refunding transaction delivered $56.2 million in projected future ratepayer savings and an all‑in interest cost of 3.28%; a significant portion of the sale was issued as green bonds.
The San Francisco Public Utilities Commission’s finance team reported results of a 2025 water refunding transaction that staff say will produce significant ratepayer savings.
Nikolai Sklaroff, presenting the results, said the transaction totaled about $523 million with an approximate 7.5‑year average life and produced $56.2 million in future ratepayer savings on debt service. The all‑in interest cost for the sale was 3.28%, Sklaroff said, and an independent pricing consultant (PFM Financial Advisors) reviewed the transaction and judged it reasonable for market conditions.
Sklaroff described a two‑day order period with retail orders on day one and institutional orders on day two, noting the sale completed before tariff announcements that increased market volatility. The bonds were about 1.9 times oversubscribed. Staff also said a meaningful portion of the transaction was issued as green bonds to align financing with climate stewardship objectives.
Why it matters: the refinancing reduces future debt service and was presented as delivering direct, measurable savings to ratepayers. That outcome interacts with long‑range planning and rate projections discussed elsewhere on the agenda.
Next steps: staff concluded the presentation and answered commissioners’ questions on underwriting and transaction mechanics; no further public action was required beyond the report to the commission.
