Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transportation Bonds topic
No spam. Unsubscribe anytime.
Supervisors approve smaller MTA bond package after amendment to cut borrowing
Summary
The Board of Supervisors voted unanimously Feb. 9 to approve amendments that reduce the Municipal Transportation Agency(MTA) bond issue to a par value of $129 million and to appropriate $118 million, after a week of additional review and meetings with the controller and the MTA.
The San Francisco Board of Supervisors on Feb. 9 approved amendments to ordinances and a related resolution that scale back a proposed MTA revenue bond issuance, a move supervisors said would reduce future debt service and preserve operating resources.
Supervisor Aaron Peskin moved the change, saying the instrument should be adjusted "to a par value of $129,000,000, of which $118,000,000 would be appropriated," and asked colleagues to adopt that amendment to items 7 and 8. The board passed the amendments unanimously and then passed the ordinance on first reading and adopted the resolution as amended.
Why it matters: Supervisors framed the change as an effort to limit borrowing during uncertain times and leave more funds available for transit operations. "This is a move that will allow the SFMTA to spend more money on operations in the years ahead and less money on debt service," Peskin said during floor remarks on the item.
Supervisor Aaron Peskin said the smaller package followed new information and discussions with MTA and Controller Ben Rosenfield. "We're living in an environment of incredible uncertainty," Peskin said; he added that while federal support was possible, the smaller bond issue is the prudent path now.
Supervisor Rafael Mandelman, who chaired the SFCTA and spoke in support, described the outcome as "a good outcome for the city and the MTA," thanking Peskin, the controller and the agency for their work. Supervisor Ahsha Safaalso welcomed the narrower issuance and said the incoming federal administration increased the prospects for additional federal support.
What the measures do: Item 7 was an ordinance to appropriate revenue bond proceeds for SFMTA street and transit projects in FY2020-21 and to place the funds in the controller's reserve pending receipt of proceeds. Item 8 was a companion resolution authorizing the sale and execution of revenue bonds by the MTA up to a stated maximum and approving related financing documents. The board amended the documents and approved them on the floor.
The vote: The amendment motion and the final roll call on the amended items were unanimous (11-0). The clerk recorded all 11 supervisors voting yes.
Next steps: The ordinance passed first reading and will return for additional readings as required. The resolution authorizing the financing documents was adopted at the Feb. 9 meeting.
Sources: Remarks and roll call recorded on the Feb. 9 Board of Supervisors meeting transcript.
