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Committee recommends reauthorizing $250 million commercial paper program and new bank facilities
Summary
Supervisors recommended approval of two resolutions to reauthorize the city's general fund commercial paper program (up to $250 million) and to approve new credit facilities; staff said the program is used for short‑term bridge financing and selected banks via RFP.
The Budget and Finance Committee on Feb. 11 recommended that the full Board reauthorize the city's general fund commercial paper program and approve two new supporting bank facilities.
Grant Carson of the Office of Public Finance said the resolutions would reauthorize the city's commercial paper capacity—aggregate principal not to exceed $250 million—and approve new bank facilities selected via a competitive RFP. TD Securities was selected for Series 1 and 2 supporting facilities and BMO for Series 3 and 4. The agreements would each have a three‑year term and replace expiring facilities.
The Budget and Legislative Analyst noted the city would incur about $750,000 in initial costs and roughly $1.6 million in annual costs to maintain the facilities and listed projects currently using commercial paper in the committee packet. Committee members had no substantive objections and voted to forward the resolutions with a positive recommendation.
