The San Francisco Public Utilities Commission (PUC) held a significant meeting on July 4, 2025, focusing on the adoption of revised debt management policies and the authorization of a substantial bond issuance. The meeting, led by Debt Manager Richard Morales, aimed to enhance the PUC's financial stewardship and compliance with evolving market standards.

The primary agenda item was the proposed revisions to the PUC's debt management policies, which had not been updated since 2017. Morales emphasized the importance of these policies in guiding the PUC's debt issuance and administration, ensuring compliance with legal requirements, and maintaining high credit ratings. The revisions include the establishment of a new disclosure practices working group to monitor financial obligations more effectively, particularly in light of new requirements from the Securities and Exchange Commission (SEC). These requirements mandate timely disclosure of certain events that could affect bondholders, such as financial difficulties or defaults.

In addition to the disclosure updates, the meeting addressed the inclusion of new provisions related to variable rate debt obligations and the formal recognition of Water Infrastructure Finance and Innovation Act (WIFIA) loans as a financing option. Morales highlighted the PUC's proactive approach to financial management, noting that the agency has been voluntarily disclosing financial obligations to maintain transparency and confidence among stakeholders.

The second major topic discussed was the authorization for the issuance of up to $850 million in taxable water revenue bonds. This bond sale aims to refund outstanding water bonds, providing significant savings for water ratepayers. Morales explained that the current market conditions allow for these taxable bonds to achieve present value savings of approximately $88 million, which is over 14% of the refunded bonds—a metric considered highly favorable in the industry.

The commission unanimously approved the proposed revisions to the debt policies and the bond issuance, marking a critical step in the PUC's ongoing efforts to manage its financial obligations responsibly and effectively. The meeting concluded with a commitment to continue monitoring market conditions and ensuring compliance with all relevant regulations, reinforcing the PUC's dedication to fiscal responsibility and transparency.