Committee recommends $85M first series of $412M earthquake‑safety bond authorization

The Budget & Finance Committee on Oct. 19 voted to forward three related measures authorizing the issuance and initial sale of general obligation bonds for earthquake safety and emergency response.

Nadia Sasse of the Comptroller’s Office explained that voters authorized up to $412.3 million and the committee was being asked to permit issuance and sale of the first series not to exceed $85 million, and to appropriate proceeds for FY 2010–11. Staff outlined that approximately $78.8 million of the $85 million is a project fund, with roughly $8.4 million designated for the Public Utilities Commission and the remainder for the Department of Public Works.

Sasse said assumptions include a 6% interest rate amortized over up to 25 years (with flexibility to amortize over 20 years if market conditions permit) and the intent to use Build America Bonds where appropriate to capture a federal subsidy. City auditor and Finance Office staff reviewed estimated debt service for the initial series and provided an example tax impact: on a $500,000 single‑family residence the additional annual property tax would be about $11.83 under the assumptions presented.

Project managers described prioritized projects: 19 fire station projects (focus scope, seismic improvements and comprehensive renovation), a Public Safety Building (six stories, ~300,000 sq ft) and auxiliary water supply system (cisterns and pipe network modernization). Staff said early focus scope work would start in late 2011 with larger projects phased in during 2012.

The committee forwarded the items with recommendation to the full board.