Budget committee forwards major SFPUC bond authorizations, amid public calls for audit

The Budget and Appropriation Committee voted May 22 to forward Items 10–12 — a package of capital appropriation and revenue bond ordinances for the San Francisco Public Utilities Commission (SFPUC) — to the full Board with a positive recommendation and to amend and continue Item 13 to accommodate an additional $5 million for a Pine Lake main-break emergency.

The BLA summarized the SFPUC's 10‑year capital plan and bond needs. The proposed appropriation ordinance would authorize approximately $1.79 billion in capital spending for FY24–25 and similar amounts for FY25–26; the BLA also described revenue bond authorizations for wastewater, power and water enterprises, noting major projects such as a roughly $567 million biosolids digester and large water and wastewater capital programs. The BLA reported that approval of the requested bond authorizations would increase total bond authority under voter-approved Propositions E (2002) and A (2018) and that average annual debt service on proposed new bonds could be on the order of $221.5 million over 30 years.

Public commenters urged immediate oversight and independent audits of the PUC. Peter Dreckmire (Tuolumne River Trust) and others warned of large debt levels, rising rates and alleged contracting problems; Dreckmire told the committee, "What does the SFU have to hide? A lot." Eileen Bogan (SPEAK) urged contingent approval of the PUC budget on a full BLA audit, citing concerns about cost overruns and environmental compliance.

PUC Director Herrera and staff said the commission supports BLA recommendations, highlighted investments in water-main replacement (BLA noted $517 million in local main-replacement funding in the 10‑year plan) and described a $1.5 billion proposal to address nutrient-reduction work related to algae blooms. Chair Chan led an amendment to increase the water revenue bond authorization for Pine Lake emergency repairs by $5 million; the committee approved the amendment and continued Item 13 to the next meeting to allow for substantive changes.

Items 10–12 were forwarded to the full Board with a positive recommendation (roll call recorded five ayes). Item 13 was amended and continued for a later hearing so the dollar increase and any related edits can be finalized.

The BLA recommended the Board consider a hearing or a report from PUC and chapter-6 departments on cost-escalation and procurement reforms by June 2026 to help manage capital project cost escalation.