SEC. 9.107. REVENUE BONDS.
§ 9.107
The Board of Supervisors may issue revenue bonds, which generally require voter approval, but eight categories of bonds are exempt from that voter-approval requirement, including bonds for state/federal compliance, housing finance, Port and Airport purposes, private industrial financing, water and power facility replacement, assessment-backed bonds, and renewable energy projects.
San Francisco can borrow money by issuing revenue bonds (bonds paid back from specific revenues, not the general budget). Normally, voters must approve these bonds. However, the Board of Supervisors can skip voter approval for eight types of bonds: those needed to follow state or federal orders, bonds approved before 1977, housing finance bonds, Port and Airport bonds, bonds to help private companies and nonprofits build industrial or commercial projects, bonds to replace water or power facilities, bonds backed by assessments on property owners, and bonds for renewable energy projects. All other revenue bonds follow the rules set by state law or San Francisco ordinances.
- Complex:The section lists eight separate exemptions to voter approval, each with different conditions and cross-references, making it difficult to quickly understand which bonds require voter consent and which do not.
- Controversial:Revenue bonds allow the city to incur debt without voter approval in several cases, which touches on questions about democratic oversight of city borrowing and spending.
AI-generated · claude-haiku-4-5 · informational only, not legal advice.
Official text
The Board of Supervisors is hereby authorized to provide for the issuance of revenue bonds. Revenue bonds shall be issued only with the assent of a majority of the voters upon any proposition for the issuance of revenue bonds, except that no voter approval shall be required with respect to revenue bonds:
1. Approved by three-fourths of all the Board of Supervisors if the bonds are to finance buildings, fixtures or equipment which are deemed necessary by the Board of Supervisors to comply with an order of a duly constituted state or federal authority having jurisdiction over the subject matter;
2. Approved by the Board of Supervisors prior to January 1, 1977;
3. Approved by the Board of Supervisors if the bonds are to establish a fund for the purpose of financing or refinancing for acquisition, construction or rehabilitation of housing in the City and County;
4. Authorized and issued by the Port Commission for any Port-related purpose and secured solely by Port revenues, or authorized and issued for any Airport-related purpose and secured solely by Airport revenues;
5. Issued for the proposes of assisting private parties and not-for-profit entities in the financing and refinancing of the acquisition, construction, reconstruction or equipping of any improvement for industrial, manufacturing, research and development, commercial and energy uses or other facilities and activities incidental thereto, provided the bonds are not secured or payable from any monies of the City and County or its commissions.
6. Issued for the purpose of the reconstruction or replacement of existing water facilities or electric power facilities or combinations of water and electric power facilities under the jurisdiction of the Public Utilities Commission, when authorized by resolution adopted by a three-fourths affirmative vote of all members of the Board of Supervisors.
7. Approved and authorized by the Board of Supervisors and secured solely by an assessment imposed by the City.
8. Issued to finance or refinance the acquisition, construction, installation, equipping, improvement or rehabilitation of equipment or facilities for renewable energy and energy conservation.
Except as expressly provided in this Charter, all revenue bonds may be issued and sold in accordance with state law or any procedure provided for by ordinance.
(Amended November 2001)