Committee forwards $425M health-and-recovery, transportation and earthquake bond sales to full Board

The Budget & Finance Committee on May 12 voted to forward to the full Board a multi-part bond package that includes a $425 million first sale request for the 2020 Health & Recovery general-obligation (G.O.) bond, a $122.8 million final issuance under the 2014 Transportation and Road Improvement G.O. bond, and a $90 million sale under the 2020 Earthquake Safety and Emergency Response (ESER) bond.

Vishal Trivedi from the Controller's office summarized the three financings and their fiscal implications, projecting combined debt service of just over $631 million over the life of the series, with a municipal-advisor interest-rate assumption of roughly 3.75% that would generate about $350 million in interest costs over a 20- to 25-year term. Trivedi estimated the annual property-tax impact to be roughly $77.06 for a $600,000 home after the $7,000 exemption, and said the issuance would remain within the city's 3% G.O. debt capacity and the Board's policy to maintain the 2006 property-tax-rate level for GEO bonds.

Project-level presentations followed. Joel Goldberg of SFMTA asked the committee to complete the final issuance for the 2014 transportation bond ($122.8M) and highlighted four corridor projects including Market Street and Muni Forward priorities. Toks Ejike (Rec & Park) described a requested $176.5 million allocation within the health-and-recovery sale for parks, including $101 million for named neighborhood parks, $54 million for recovery parks and $14.3 million for citywide programs and planning.

Emily Cohen (Homelessness and Supportive Housing) said about $147 million of the health-and-recovery proceeds would be used to acquire and stabilize permanent supportive housing and shelter capacity, estimating the funds could support about 250 permanent supportive housing beds and 75 permanent shelter beds, and naming 888 Post Street as a priority acquisition (a 75-bed transitional-aged-youth navigation center).

DPH presented its intended $60 million share for Mental Health SF projects: roughly $43.5 million for acquisition, development or renovation of board-and-care, psychiatric skilled-nursing, locked subacute and step-down beds, and $11.4 million to expand psychiatric emergency services at San Francisco General. Public Works described a $41.5 million right-of-way repair component (about 300 blocks of resurfacing, ~121 curb ramps, and ~20 street structures/2 plazas). The ESER presentation covered potable emergency firefighting water system work, pump stations, fire-boat manifolds, and neighborhood fire station projects; PUC and Public Works staff described routing, phasing and near-term projects that would consume planned bond proceeds.

Supervisor questioning focused on schedules and delivery (notably Portsmouth Square), the bed yields tied to DPH allocations and whether the City should prioritize purchasing existing facilities or building new ones. Andreico Penick (Real Estate) said staff would bring a purchase-option before the committee next week to assemble roughly 7.5 acres in the Bayview near 1236 Carroll Avenue for the consolidated fire training facility; Treasure Island's facility would remain operational during build-out.

After a Budget Analyst summary and one public comment (which pertained to a different item), the committee voted to forward items 4 through 8 together to the full Board with a positive recommendation (three ayes recorded). The Board will consider the appropriations and authorizations necessary for sale and expenditure of bond proceeds at a subsequent meeting.