Controllers Office seeks $150 million commercial paper authority, committee questions safeguards

The Office of Public Finance told the Budget & Finance Committee March 4 that it seeks authority to issue up to $150,000,000 in tax‑exempt and taxable commercial paper to provide short‑term financing for capital projects.

Nadia Sasse (Controller's Office) explained the program would be implemented via lease/leaseback structures and secured with a letter of credit; dealer and reimbursement agreements would be negotiated with oversight from the Controller and City Attorney. Candidate uses cited included Moscone Convention Center improvement COPs, Golden Gate COPs and interim street resurfacing needs.

Budget Analyst Harvey Rose reminded the committee any capital project using commercial paper must be approved by the Board before funds are used and recommended an amendment requiring an annual report documenting realized savings from commercial paper versus long‑term debt. Supervisors asked about potential spikes in commercial paper resets, selection of dealers (Sasse said an RFP/shortlist process is underway), and whether certain dealer or offering documents should come back to the Board; the Controller’s staff said annual reporting and competitive procurement pools are planned.

The committee accepted amendments that broadened the program to include vehicles and equipment and deleted a requirement for Board approval of dealer agreements — a delegation Crews said is consistent with other financing delegations — while preserving the recommendation that the Controller report annually to the committee on savings.