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Committee backs forwarding authorization for $160 million San Francisco Unified School District bond sale
Summary
The committee recommended the Board of Supervisors approve the SFUSD’s request to issue up to $160 million in general obligation bonds and an associated refunding; staff said the bonds are repaid by property taxes, will cost about $226 million over 20 years and include projects such as kitchen upgrades.
The Budget and Finance Committee on March 19 voted to forward a resolution authorizing the issuance and sale of up to $160 million in general obligation bonds for the San Francisco Unified School District and related paying-agent agreements and documents.
Dave Olson, municipal advisor to the San Francisco Unified School District, said the district has held bond elections since 2004 and issues bonds in series to fund capital projects. Olson told the committee the district expects ongoing capital spending of roughly $100 million per year and that voters have previously approved more than $2 billion in authorizations. He said the typical tax cost has been about $40 per $100,000 of assessed value per year under the district’s repayment structure.
The Budget and Legislative Analyst’s report presented to the committee noted the resolution authorizes the sale of $160 million in new-money bonds and a refunding transaction to refinance $160 million of outstanding debt. The analyst said the new issuance will be repaid by special property taxes and will not affect the city’s general fund; the $160 million in new money will cost about $226 million over 20 years under the resolution’s 20-year term limit. The refunding is expected to save about $10.3 million over the next 10 years.
Olson and staff emphasized that the county currently has not delegated blanket authority for districts to issue bonds independently and that San Francisco’s negative qualifications affect financing costs. Supervisor Connie Chan said she supported the issuance and requested continued oversight from the district’s bond oversight committee and periodic reporting on project progress. Chan noted about $22 million in the program for kitchen and nutrition-service investments referenced in the district’s materials.
Public comment included one speaker who criticized elections generally; the remarks did not address the bond resolution’s financing details. The committee voted to forward the resolution to the full board with a positive recommendation; Vice Chair Matt Dorsey, Supervisor Joel Engadio and Chair Connie Chan voted aye (3–0).
