it is safe for the ocean/stream that it is discharged to, but not safe to drink.
this is because there will be a legal limit of E.Coli bacteria that the treatment plant must not exceed on a monthly average. in our case for example, we cannot exceed 200 coliform forming units per 100 ml of water. this is our limit, what we actually discharge is usually under 10 coliform units per 100ml of water.
we are always far far below our legal limit.
in order for it to be safe for drinking water, the average E. Coli count per 100ml has to be zero.
you could disinfect/filter etc treated sewage up to drinking water standards, and some water starved places in the world are already considering doing this, but its a tough sell to the public.
for obvious reasons
its also more expensive per cubic meter treated.