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Supervisors amend $4.8 billion airport bond appropriation to place $2.1B on controller's reserve, pass first reading
Summary
The Board amended an ordinance to appropriate approximately $4.8 billion in bond proceeds for Airport capital projects, specifying that $2.1 billion be placed on the controller’s reserve pending receipt of proceeds and the remainder on the Board of Supervisors’ reserve; the item passed on first reading unanimously.
An ordinance to appropriate approximately $4.8 billion in proceeds from the sale of revenue bonds or commercial paper for capital improvements at San Francisco International Airport was amended and passed on first reading by the Board of Supervisors on Tuesday.
Supervisor Aaron Peskin moved an amendment clarifying how the appropriation would be allocated between reserve accounts. After meetings with airport staff, Peskin said the airport expects to sell about $2.1 billion of debt in the coming fiscal year and asked that the board substitute language to put $2.1 billion on the controller’s reserve “pending receipt of proceeds of indebtedness,” while placing the remaining approximately $2.732 billion on the Board of Supervisors’ reserve to be returned to the board in a couple of years.
Airport staff supported the amendment. Kathy Weidner from San Francisco International Airport told the board that the “pending receipt of proceeds of indebtedness” language was added previously to accommodate timing when proceeds were placed on controller’s reserve, and that it was unnecessary for the portion placed on the board’s reserve. Peskin said the airport would be amenable to either keeping the language or striking it with city attorney and controller concurrence.
The controller’s office confirmed the requested language was appropriate. Peskin made the motion, Supervisor Kim seconded, and the board took the amendment without objection. The ordinance as amended passed on first reading unanimously.
Why this matters: The appropriation and reserve placements govern when and how sale proceeds will be made available for airport capital projects. The amendment clarifies the board’s treatment of near‑term proceeds versus funds placed on the board reserve for later appropriation.
Details recorded in the meeting: The figures discussed were an approximate $4,800,000,000 total appropriation; $2,100,000,000 to be placed on the controller’s reserve pending receipt of proceeds of indebtedness; and $2,732,445,418 (rounded in discussion) to be placed on the Board of Supervisors’ reserve.
Action and next steps: The ordinance passed unanimously on first reading as amended; the measure will return for the board’s subsequent reading where final passage can be taken.
Ending: With the amendment, the board and airport staff aligned on a mechanism to manage the timing of bond proceeds and to preserve board-level oversight for large, later appropriations.
