SFPUC authorizes up to $1.1 billion refunding and up to $295 million taxable water bonds; approves credit facility for debt‑service reserves

Commissioners authorized major financing actions that staff said will lower long‑term costs and provide taxable funding for specific projects.

Eric Sandler, assistant general manager and CFO, described the day’s major financing items: authorization to issue up to $1.1 billion of Series AB refunding water revenue bonds (tax‑exempt senior lien, with estimated present‑value savings of roughly $121 million depending on market pricing at sale), and authorization for up to $295 million of Series C taxable new‑money water revenue bonds to retire taxable commercial paper and fund certain water capital needs. He also described staff’s recommendation to replace $87.47 million of cash debt‑service reserves with bank credit agreements to free cash for capital investment; an RFP for letters of credit yielded a recommended counterparty, MUFG Union Bank, at an annual fee of roughly 45 basis points for the initial six‑year term.

Sandler presented the sources and uses, the disclosure documents (preliminary official statements), and a proposed schedule for rating meetings, investor outreach, pricing and closing. The Board of Supervisors must approve taxable new‑money issuance; staff indicated they would seek that approval in October with expected pricing and closings later in the fall. Commissioners moved and approved the authorization items and the credit facility.

Commissioners and public commenters (including BOSCA and LAFCO representatives) noted the benefits of lower borrowing costs and urged continued fiscal discipline as large capital programs proceed.