Fixed 2-year operating budget was adopted last year with minimal mid-cycle changes. A 1-year capital budget was adopted to allow for an intensive focus on rightsizing the capital plan for ratepayer affordability and deliverability.

The proposed legislation authorizes the issuance of $358,985,453 in Water Revenue Bonds for Water Enterprise capital projects and appropriates $322,278,006 for the same for FY 2023-24.

The issuance of $359 million in Water Revenue Bonds will fund projects, including $77.1 million for Hetch Hetchy Water and Power. It assumes a 5 percent rate increase for retail customers in FY 2023-24.

The changes were made to fund projects approved in the SFPUC Capital Plan, with the appropriations intended to align with voter-approved Proposition E from 2002 that allows for bond issuance, and to reflect a rightsized capital plan for enhanced affordability and deliverability.

The legislation would need to be approved by the Budget and Appropriations Committee, with the details presented during the committee meeting on June 14, 2023.

Not explicitly stated, but the SFPUC operates under the oversight of the Board of Supervisors and must adhere to the voter-approved provisions for bond issuance.