Good morning.

The meeting will come to order.

Welcome to the May 20th, 2026 meeting of the budget and finance committee.

I am Supervisor Connie Chan, Chair of the Committee.

I'm joined by Vice Chair, Supervisor Matt Dorsey, and Member Supervisor Danny Souter and our clerk, it's Brent Haliba.

I would like to thank James Kawana from SFGov TV for broadcasting this meeting.

Mr.

Clark, do you have any announcement?

Thank you, Madam Chair.

Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings.

Should you have any documents to be included as part of the file, they should be submitted to myself, the clerk.

Public comment will be taken on each item on this agenda.

When your item of interest comes up and public comment is called, please line up to speak on the west side of the chamber to your right, my left along those curtains.

And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the trade by the television to your left by the doors.

If you wish for your name to be accurately recorded for the minutes, alternatively, you may submit public comment in writing in either of the following ways.

Email them to myself, the budget and finance committee clerk at Br ENT.jsf G O V.org.

If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

You may also send your written comments via U.S.

Postal Service to our office in City Hall at one Dr.

Carlton B.

Goodlit.

Place room 244, San Francisco, California 94102.

And finally, due to our observance of Memorial Day, items acted upon today are expected to appear on the Board of Supervisors agenda of June 2nd, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

And before we call to items on today's agenda, just want to remind everybody that for those items that have budget and legislative analyst reports.

And with the understanding now we are starting the process with both budget and finance committee and also we have budget and appropriation committee this afternoon.

We will limit public comments to one minute today.

Yes, item numbers one and two are legislation as it relates to the series 2026 A Healthy Safe and Vibrant SFGO bonds.

Item one is an ordinance appropriating 195 million of general obligation bond proceeds to the departments of public health, public works, recreation, and park, and the municipal transportation agency for acquisition and improvement of real property for various health care, nursing, and mental health facilities, certain transportation, pedestrian, street safety related capital improvements, streetscape enhancements, and other public space improvements and related costs in fiscal year 2025 to 2026, and placing these funds on controller's reserve pending receipt of bond proceeds.

Item number two is a resolution authorizing the issuance and sale of not to exceed 195 million aggregate principal amount of one or more series of the bonds on a tax exempt or taxable basis prescribing the form and terms of such bonds and any sub-series designation providing for the appointment of depositories and other agents, providing for the establishment of accounts and or subaccounts related, authorizing the sale by competitive or negotiated sale or private placement, approving the forms of the official notice of sale and notice of intention to sell bonds and directing the publication of the notice of intentions to sell bonds, the purchase contract, the preliminary official statement and execution of one or more official statements relating to the sale and continuing disclosure certificate, authorizing and appropriate and approving modifications to such documents, ratifying certain actions previously taken as defined, and granting general authority to city officials to take necessary actions in connection with the authorization issuance sale and delivery of such bonds as defined.

Madam Chair.

Thank you, Mr.

Clark.

And today we start off with the controller's office of public finance.

Good morning, members of the committee.

Thank you very much for hearing this uh item, these two items this morning.

Um, before you, we have uh resolution uh approving the issuance and sale of the second series of general obligation bonds under the uh healthy, safe and vibrant San Francisco authorization from 2024, uh as well as an appropriation ordinance uh to appropriate the proceeds for the projects and the uh cost of issuance and oversight.

Uh so uh I'll speak briefly about the transaction and then I will uh pass this along to Department of Public Works, Department of Public Health, and uh Recreation and Parks Department to speak in a little more detail about the projects.

All right, uh to bring you up to speed on where things stand uh was a total authorization of $390 million devoted to public health, homelessness, street safety, and public spaces projects.

Uh last year, uh the board approved the first issuance of bonds under this program, and uh we issued uh 83.

uh six million to fund 82.6 million dollars worth of projects under public health, street safety, and public spaces, uh 62.1 for public health, 19.6 for street safety, and uh a little under a million dollars for public spaces.

Uh that was for the planning of the Harvey Milk Plaza project.

Uh and then today we're coming to uh before you to approve uh another 96.8 million dollars worth of projects to be funded for public health, 23.5 million dollars for street safety projects, and the full balance of the public spaces projects uh $69.4 million, uh which will leave uh approximately $117 million for the projects to be funded in a future issuance.

Uh these are the projects that we're uh going to be funding in this issuance, uh as you can see for the public health category.

It's uh Chinatown Public Health Center and City Clinic, as well as uh seismic upgrades at uh Zuckerberg San Francisco General Hospital Building Three, and then uh a suite of critical repairs projects at both Zuckerberg San Francisco General and Laguna Honda Hospital.

Uh the street safety projects are going to be the 11th Street Safety Improvement Project, 5th Street Streetscape Project, and Mission Street Repaving Project, and then the public space projects are uh the Powell Street Project and about 22 million dollars, a little less than that.

Harvey Milk Plaza, the full balance of the remainder, uh Holiday Plaza, about $9 million, and um Embarcadero Plaza and McLaren Park, which are recpark projects.

We expect a 20-year term of the bonds according to our municipal advisors' uh good faith estimate.

We have uh estimated true interest cost of about 4.86%, which translates to an average annual debt service on the 192 point uh point one million uh estimated par amount of about 15 million dollars per year.

And uh I can confirm that this proposed estimate is within the 3% charter limit on geo debt.

Uh would raise our total debt ratio from about 0.75% to 0.8%, which is well within the 3% uh limit.

And it's also consistent with the capital plan's fiscal 2006 tax rate constraint policy.

Uh we'll be able to maintain that tax rate constraint uh with this issuance as well.

Uh I already described the projects that we funded, and again, you're gonna get more detail on those uh from the upcoming speakers.

Our tentative financing schedule uh we uh obviously introduced uh earlier in April and May the supplemental and the sale resolution.

We were uh we went through capital planning committee hearing on May 11th, uh and they recommended the approval of these um of the of the sale.

We're here obviously today, and we're hoping if we can uh get approval by the board uh then we can complete the the issuance in July of 2026.

And with that, I will hand it over to Isabel Ochoa from the Department of Public Health.