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Audit committee forwards plan to distribute preliminary official statement for San Francisco GO refunding bonds
Summary
The Government Audit and Oversight Committee voted to forward to the full board a resolution authorizing distribution of a preliminary official statement for City and County of San Francisco general obligation refunding bonds; staff said updated data would allow about $17,000,000 in aggregate savings and noted remaining issuance capacity, while a public commenter urged an audit of San Francisco General Hospital before a planned hospital bond vote.
The Government Audit and Oversight Committee on the morning of the meeting moved to send to the full Board a resolution authorizing distribution of a preliminary official statement for the City and County of San Franciscogeneral obligation refunding bonds.
The item was introduced by Mr. Sain, who said the city previously authorized refunding issuances in February 2004 for "about 800,000,000," and that subsequent issuances have followed. "This would allow us to achieve 17,000,000 in savings in aggregate," he said, adding staff updated the financial data in the preliminary official statement because prior figures were "stale" and that there is "about 300 remaining in that capacity, which needs to be issued by June 2009." The budget analyst reviewed the proposal and recommended approval, and Miss Campbell confirmed it is consistent with the 02/2004 resolution.
During public comment, Douglas Yap, who identified himself with San Francisco General Hospital but said he spoke as an individual, urged the committee to order an audit of San Francisco General Hospital before voters decide on an upcoming hospital general obligation bond. Citing an Examiner editorial, Yap said the city should "consider doing some sort of an audit at General Hospital in order to try to find any problems there before the voters get to vote on the obligation bonds." Yap also warned the hospital bond could exceed "$1,000,000,000," and referenced past problems at Laguna Honda Hospital as a cautionary example.
Chair Supervisor Aaron Peskin said there were no other public commenters and, with Supervisor Maxwellhaving no objection, the committee agreed to send the item to the full board with a recommendation "without objection." No formal committee vote was recorded in the transcript; staff said they would continue to monitor market conditions and finalize documents for the board.
The full Board will receive the resolution and the updated official statement language for further consideration. The committee record indicates staff expect to use updated market data to pursue refunding opportunities intended to reduce debt service costs for taxpayers.
