SFPUC - Annual Reports Commitment - Page 12

San Francisco Water Power Sewer Headquarters Annual Report for the Fiscal Year Ending June 30, 2012 Fiscal Responsibility As we manage the vast breadth of the resources entrusted to our care, we strive to keep our rates affordable. The SFPUC’s goal is to keep your combined water and sewer bill to less than 2.5% of the average household income for a single-family residence. For the fiscal year ending in 2013, the average monthly bill was $31.30 for water and $44.40 for wastewater. We believe in transparency, accountability and public oversight of our rate-setting process. We ensure transparency by hosting open public meetings and providing timely, detailed information about projected rate changes, operational and capital costs. Ratesetting oversight is performed by multiple stakeholders, including the Rate Fairness Board, independent rate consultants and financial auditors. We are also subject to review by the IRS, customers, the Citizens Advisory Committee, the Revenue Bond Oversight Committee, the San Francisco Public Utilities Commission, the Board of Supervisors and the Mayor’s Office. Our rate-funded budget must comply with all applicable State and Federal laws, with consideration of resource stewardship and affordability. Our new headquarters at 525 Golden Gate Avenue is the physical manifestation of our commitment to fiscal responsibility and environmental stewardship. The building uses 32% less energy and consumes 60% less water than similarly sized office buildings. It is also one of the seismically safest in San Francisco. Ownership of 525 Golden Gate will save ratepayers approximately $3.7 billion over the anticipated 100year building lifespan. After the mortgage is paid off in 26 years, owning 525 Golden Gate becomes substantially cheaper than renting and will continue to generate savings for ratepayers thereafter. Credit Ratings Water Aa3 Power Not Rated Sewer Aa3 AANot Rated AA- Average Borrowing Rate Water 4.35% Power N/A Sewer 3.81% 11 12