Comprehensive Annual Financial Report Fiscal Years Ended June 30, 2019 and 2018
Total Page:16
File Type:pdf, Size:1020Kb
Sustaining the resources entrusted to our care. Comprehensive Annual Financial Report Fiscal Years Ended June 30, 2019 and 2018 The San Francisco Public Utilities Commission An Enterprise Department of the City and County of San Francisco, California Comprehensive Annual Financial Report For the Fiscal Years Ended June 30, 2019 and 2018 Prepared by SFPUC Financial Services Eric Sandler Assistant General Manager, Business Services & Chief Financial Officer This page has been intentionally left blank. The San Francisco Public Utilities Commission TABLE OF CONTENTS Introductory Section (Unaudited) Page General Manager’s Transmittal Letter....................................................................................................... 1-14 The Reporting Entity................................................................................................................................ 2-4 Long-Term Strategic Goals, Major Accomplishments and Initiatives, and Financial Planning.......... 4-11 Business Continuity and Emergency Planning...................................................................................... 11-12 San Francisco’s Budget Process............................................................................................................ 12 Financial Transparency, Reporting and Auditing Process.................................................................... 12-13 Financial Authority and Policies............................................................................................................. 13 Accounting Systems, Policies, and Internal Controls........................................................................... 13-14 Achievement Awards from Government Finance Officers Association............................................... 14 Conclusion............................................................................................................................................... 14 Mission Statement and Commission Members......................................................................................... 15 Structure and Organizational Chart............................................................................................................ 16 SFPUC Strategic Plan................................................ ......... ........................................................................ 17 Enterprise Risk Management Framework.................................................................................................. 17-19 Operating and Capital Budgets................................................................................................................... 19 Ten-Year Financial Plan............................................................................................................................... 20 Ten-Year Capital Plan.................................................................................................................................. 20 (Continued) Financial Section Page Independent Auditors’ Report................................................................................................................. 21-23 Management’s Discussion and Analysis (Unaudited)............................................................................ 24-72 Basic Financial Statements..................................................................................................................... 73-163 Statements of Net Position – Proprietary Funds............................................................................... 73-74 Statements of Revenues, Expenses, and Changes in Net Position – Proprietary Funds............... 75 Statements of Cash Flows – Proprietary Funds................................................................................ 76-77 Notes to Basic Financial Statements......................................................................................... 78-163 Required Supplementary Information (Unaudited)……………………………............................................... 164-167 Schedules of the Proportionate Share of the Net Pension Liability…………………………………………. 164 Schedules of Employer Contributions - Pension Plan…………………………………………………………….. 165-166 Schedules of Changes in Other Postemployment Benefits Liability and Related Ratios Other Postemployment Healthcare Benefits Plan……………………………………………………….....……. 167 Supplementary Information (Proprietary Funds)…………………............................................................... 168-170 Schedule of Changes in Net Position – Dollar and Percentage Change vs. Prior Year.................. 168-169 Schedule of Changes in Revenues, Expenses, and Net Position – Dollar and Percentage Change vs. Prior Year........................................................................................................................ 170 Statistical Section (Unaudited) Financial Trends....................................................................................................................................... 171-199 Comparative Highlights of Revenues and Expenses......................................................................... 171-176 Changes in Net Position...................................................................................................................... 177-188 Summary of Net Position by Component........................................................................................... 189-194 Investments in Capital Assets............................................................................................................. 195-199 (Continued) Page Revenue Capacity..................................................................................................................................... 200-206 Water, Wastewater, Hetchy Power, and CleanPowerSF Rates History............................................ 200-203 Net Revenue and Debt Service Coverage.......................................................................................... 204-206 Debt Capacity............................................................................................................................................ 207-224 Debt Ratings........................................................................................................................................ 207 Summary of Debt Outstanding........................................................................................................... 208-210 History of Outstanding Debt by Type.................................................................................................. 211 Principal and Interest Payments for Debt Issues.............................................................................. 212-224 Demographic and Economic Information............................................................................................... 225-242 City and County of San Francisco Economic and General Information........................................... 225-230 Summary of Accounts by Type of Customer...................................................................................... 231-232 Water Accounts and Billings............................................................................................................... 233 Historical Water Sales......................................................................................................................... 234-236 Bay Area Water Supply and Conservation Agency Members............................................................ 237 Water and Wastewater Accounts, and Billings by Type of Customer............................................... 238-239 Historical Hetchy Water Sales............................................................................................................ 240 Historical Hetchy Power Electric Sales............................................................................................... 241 Historical CleanPowerSF Electric Sales.............................................................................................. 242 Operating Information.............................................................................................................................. 243-248 Budgeted Full-Time Equivalent (FTEs) Employees by Division......................................................... 243 Operating and Capacity Indicators..................................................................................................... 244-245 Major Water Wholesale, Retail, and Sewer Customer Accounts by Revenue................................. 246 Major Electric Retail and Wholesale Customer Accounts by Revenue............................................ 247 Performance Measures....................................................................................................................... 248 Photo by: Robin Scheswohl Inspection of the Fire Boat Manifold piping underneath the pier, San Francisco. Introductory Section (Unaudited) Certificate of Achievement General Manager’s Transmittal Letter The Reporting Entity Long-Term Strategic Goals, Major Accomplishments and Initiatives, and Financial Planning Business Continuity and Emergency Planning San Francisco’s Budget Process Financial Transparency, Reporting and Auditing Process Financial Authority and Policies Accounting Systems, Policies, and Internal Controls Achievement Awards from Government Finance Officers Association Mission Statement and Commission Members Structure and Organizational Chart 2020 SFPUC Strategic Plan Enterprise