Committee approves form of preliminary statement for up to $800 million in San Francisco GO refunding bonds

The Budget and Finance Committee moved to forward a resolution approving the form and authorizing distribution of a preliminary official statement for the possible issuance of City and County of San Francisco general obligation refunding bonds, not to exceed $800,000,000.

Nadia Sasseh of the Office of Public Finance summarized prior Board action and the updated disclosure materials staff included in the preliminary official statement. She said a prior 2004 resolution authorized issuance of bonds up to $800,000,000 and directed staff to determine issuance timing; staff previously issued a first series and achieved savings. Sasseh said the office, in consultation with the city attorney, controller and city administrator, updated procedures for drafting bond disclosure documents and is now requesting committee approval of the prelim statement with updated audited financials and recently released GASB 45 liability information.

Sasseh told the committee market movement since July made current refinancing attractive: "If we're to go to the market today, we would achieve a savings, NPV savings of about 4% because the market has moved in our favor." The committee's budget analyst (Mr. Rose) presented an estimated net present value savings of $5,340,000 and recommended approval of the proposed refunding resolution.

There was no public comment on the item. The committee agreed to forward the resolution to the full Board as a committee report with recommendation, without objection.

The Board of Supervisors will consider the resolution and any final bond documents at a future public meeting; issuance would depend on subsequent approvals and market conditions.