SFPUC says budget updates add $19.5M to operations, accelerates $230M in capital to support recovery

Acting SFPUC General Manager Michael Carlin told the Board of Supervisors’ Budget & Appropriations Committee on May 5 that the utility has retooled its two‑year fiscal plan to reflect COVID‑19 impacts and to advance priorities around transparency and racial equity. “This is an unusual year for us,” Carlin said as he outlined mid‑cycle changes.

Carlin said the SFPUC proposed an operating increase of $19,500,000 to ensure staffing and critical services and asked the committee to note a roughly $230,000,000 rise in capital spending driven by the decision to move some projects earlier in the capital plan. He said much of the capital acceleration is work at the Southeast Water Pollution Control Plant and that shifting work forward will preserve jobs and capture low‑cost financing opportunities.

The presentation emphasized audits and internal controls. Carlin reported clean financial‑statement opinions from KPMG for recent audits and described a multi‑year audit plan with the controller’s office. As part of the budget amendment he proposed adding an audit‑director position to create a more independent internal audit function to review policies, procurement and contracting.

Carlin also laid out the SFPUC’s racial‑equity work, including a departmental Racial Equity Action Plan and a commission resolution condemning systemic racism; he requested resources to fund equity leads, training and analytical tools across enterprises.

Supervisors praised the SFPUC’s local‑hire commitments, contracting opportunities for local businesses and renewable‑energy efforts. Committee members asked for more detail about which capital projects would be accelerated; Carlin said the Southeast Water Pollution Control Plant accounts for the majority of the $230 million shift but that other projects are included.

One public commenter representing the San Francisco Marin Food Bank asked the supervisors to prioritize food‑security funding in the coming budget. After questions the committee voted 5–0 to file the hearing.

The committee did not take final budget votes on SFPUC appropriations at the meeting; the presentation was a mid‑cycle update and the agency will incorporate feedback as it proceeds with the mayor’s and controller’s budget processes.