Mayor urges voter support for November bonds, leaves door open to infrastructure financing district for Eastern Neighborhoods

The mayor told the Board of Supervisors on Feb. 11 that the city should place two revenue measures on the November ballot — a $500 million general obligation bond and an increase to the vehicle-license fee — to pay for streets, transit fleet upgrades and other infrastructure needed to support growth in the Eastern Neighborhoods.

Supervisor Cohen of District 10 had asked whether the mayor would support creating an infrastructure financing district, or IFD, for the Eastern Neighborhoods if a separate November initiative to fund MTA projects failed. Cohen said development there is moving rapidly while parks, pedestrian safety improvements and other infrastructure have lagged.

The mayor replied that “slowing down the pace of development may not be the right course,” but added that “we have to make sure we keep our promise to build the transit, build the streets, and build the public amenities that have to accompany residential density.” He urged supervisors to work with him to win voter approval in November for the two revenue measures, saying the vehicle-license fee increase would “generate almost $1,000,000,000 over the next 15 years” and that the bond would help fund street repaving, bicycle and pedestrian improvements and transit upgrades.

On IFDs, the mayor said they are “an important resource” but noted legal and structural constraints. He said he is “actively supporting Governor Brown’s proposal to strengthen the IFDs” so cities would have “greater flexibility,” and that, even with changes, IFDs “don’t create more money for our city” — they earmark existing general-fund revenue for specific capital projects. He concluded, “I am open to the conversation that you’re proposing about an infrastructure financing district for certain parts of the area, but it has to be done in the context of citywide needs and what improvements exactly are proposed.”

Why it matters: Eastern neighborhoods are a concentrated growth area for San Francisco and many supervisors and community members have raised concerns about whether infrastructure is keeping pace with development. The mayor’s plan prioritizes placing two revenue-generating measures before voters in November and leaves IFDs as a possible, but constrained, tool pending state changes.

Details and next steps: The mayor did not name specific Eastern Neighborhood projects for funding; he said that cannot be done in a bond measure but predicted the area would benefit. He asked supervisors to “work together to investigate what priorities need to be funded and in which specific parts of the Eastern neighborhoods,” after which the city can focus on how and when to fund those investments. He did not commit to supporting an IFD as a standalone measure absent further analysis and potential state statutory changes.

Sources and evidence: The exchange occurred during the scheduled mayoral question time on Feb. 11, introduced by Supervisor Cohen and answered by the mayor. Excerpts of the mayor’s remarks and Supervisor Cohen’s question were recorded on the meeting transcript.