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Committee forwards $150M commercial paper reauthorization and new credit facility
Summary
The committee recommended forwarding a resolution to reauthorize $150 million of the city's commercial paper program and to replace two expiring credit facilities with a single $150M facility, citing competitive procurement and projected fee savings.
The Budget & Finance Committee advanced a resolution to reauthorize parts of the city's commercial paper program and to replace two expiring credit agreements with a single credit facility.
A financial analyst from the controller's office (identified in the transcript as Fisha Trivendi) said the city operates a $250 million commercial paper program and proposed replacing two $75 million agreements with a single $150 million revolving credit agreement with Wells Fargo after a competitive RFP. The department estimated one‑time establishment costs of roughly $554,000 and ongoing annual costs of about $921,000 for the three‑year duration, while noting fee‑rate savings from reduced basis points under the new agreement.
BLA recommended approval after reviewing projects that draw on the program and the fiscal impacts. Chair Chan moved to forward the resolution to the full board with a positive recommendation and the committee voted unanimously to do so.
The committee discussion included a request from Chair Chan to follow up separately with departments on capital planning and resilient systems related to projects funded through the program.
