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Committee approves forwarding ordinance to issue up to $65 million in COPs for street resurfacing and curb ramps
Summary
The Budget and Finance Committee on Sept. 3 voted to forward an ordinance authorizing up to $65 million in certificates of participation to help fund street resurfacing and curb ramp improvements across fiscal 2026–27.
The Budget and Finance Committee on Sept. 3 voted to forward to the full Board of Supervisors an ordinance authorizing issuance of tax-exempt or taxable certificates of participation (COPs) in an aggregate principal amount not to exceed $65,000,000 to finance and refinance capital projects, principally street resurfacing and curb ramp improvements.
Grant Carson of the Office of Public Finance said the COPs would finance $50,000,000 of project costs for street resurfacing and curb ramps in fiscal 2026 and 2027, split as $23,000,000 for street resurfacing and $2,000,000 for curb ramps in each of the two years. The ordinance’s not-to-exceed par amount accounts for project funds plus debt-service reserves, capitalized interest, issuance costs and a market-uncertainty reserve. Carson presented a financing example with a 20-year final term and a true interest cost of roughly 6.84%, producing an estimated total debt service of about $111,000,000 and average annual debt service near $5.5 million.
Paul Barratas of Public Works described program needs: the city manages more than 13,000 blocks and aims to maintain a citywide pavement condition index (PCI) of 75; Public Works estimates it requires $88 million annually to maintain current conditions but currently identifies about $70 million per year. Barratas said curb ramp funding falls well short of goals needed to achieve ADA compliance by 2035; fully funding the curb ramp program at the recommended level would deliver about 400 ramps per year versus about 175 at current funding levels.
Bruce Robertson, CFO for Public Works, told supervisors that while COPs shift near-term pressure away from the general fund, they are costlier over time due to issuance and financing costs, but without the financing the city risks accelerated pavement deterioration and costlier repairs later. The committee voted 3-0 to forward the ordinance to the full board with a positive recommendation. No public speakers addressed the item.
