Years. On the Water Department on slide 9 youll see the changes are largely capital on the wasteWater Department slide 10 the changes are capital and general reserves and those will be used to curb on the impact over the years. The house senate water and power which is the part of the discussion on april 30th shows you here that with large increases of electrical power costs and also the impact of the drought i should mention the cost of the drought meant there was another shortfall of 13 million because of lower Power Generation and sales that again on top of the rover of the rim fire has created a significant burden on house senate. The house senate balanced options were discussed on april 30th but again for the viewing audience that was a combination of very difficult choices and that included higher rules of evidence revenues from the general funds our need to issue bonds and one of the last times what the cherry damn improvements and the capital cuts deferrals and we hear the supe
Slide 6 youll see that 53 million is related to Capital Investment and in each case water, power and sewer its one hundredyearold facility that we have the stewardship responsibility that includes the general reserve to curb on the facilities like the rim fire were actually recovering from the Third Largest wide fire no california and doing the lower cherry aqueduct and thank you for looking at those recovery projects. The budget is going up because of capital regulatory electrical costs in particular the subsection agreement and pg e has proposed to do very significant rate increases for transition distribution as well as the street lights of all San Francisco. Personnel covets and other costs are largely increasing the majority of our budget is in capital related. The next couple of charts summarize the important things like 90 percent plus gets paid for by Service Charges and Property Rentals as well. The use society is capital costs about half of our budget is through debt service
Years. Or one other item is the general Obligation Bonds as recently as the 1970s some of the equipment needs and facilities meets for example, the street lights used to be funded by the geobonds theres a lot of needs for the geoprogram and the needs to out strip the property taxed affordable so it means higher property tax thats a trade off. The capital deferrals every time we look at this were trying to balance and minimize the risks so weve made one hundred and 55 million cuts on top of that thats the best if we have more cuts in capital deferrals i have to responsibly tell you and the Mayors Office it comes with risks and thats the operational failures. Otherwise program cuts would happen we have Energy Efficient spending we think it is important theres the good solar sf funding and the multiple build out spending those programs are important for us as the Public Programs and those are a difficult choice and lastly the operating costs the house Senate Budget thats related to power
The things weve talked about and were not prepared to back down from making sure the possibility of a real Clean Program in San Francisco is a real possibility. Thank you okay. So let me significant this why dont we go through our presentation i think youve heard strong comments and well have our budget analyst talk and well entertainment the discussions. Thank you. I appreciate the supervisors frankness harassing as was requested we provided to our office as well as the Controllers Office all the scenarios over the 10 year process weve considered and the choices went from difficult to hard and not an easy solution so we want as well as staff weve worked claifb with the Mayors Office and well work with you bus those are policy choices their between hard and todd i really appreciate our showing me the different scenarios what i asked for was written down options theres not been a strong effort to make that communication i made that request of controller and thats not been done saw ill c
That communication i made that request of controller and thats not been done saw ill cover the written down portion on slide 19. The presentation that is broken down or broke down into 4 parts the core priorities on slide 3 and on the video monitor for our viewing audience much of our budget is staying the same and it was known by mr. Rose for the budget analyst for round one. The operating budget is growing over the next 2 years approximately 140 million and it recommended to capital on slide 6 youll see that 53 million is related to Capital Investment and in each case water, power and sewer its one hundredyearold facility that we have the stewardship responsibility that includes the general reserve to curb on the facilities like the rim fire were actually recovering from the Third Largest wide fire no california and doing the lower cherry aqueduct and thank you for looking at those recovery projects. The budget is going up because of capital regulatory electrical costs in particular