SEC. 9.108. LEASE FINANCING.
§ 9.108
The City and County may only enter into lease financing agreements—leases or subleases to finance real property or equipment acquisition—if voters approve a proposition authorizing them, with limited exceptions for leases approved by the Board before April 1977, refundings that save money, and nonprofit equipment financing below specified thresholds.
San Francisco can enter into lease agreements to pay for buildings and equipment, but only if voters approve it. However, there are a few exceptions: leases that the Board of Supervisors already approved before 1977 don't need voter approval, deals to refinance existing leases that save money don't need it, and leases for equipment through nonprofit organizations (up to $20 million, growing by 5% each year) don't need voter approval as long as the Controller confirms the borrowing cost is lower than other financing options.
- Complex:The section contains multiple conditional exemptions with specific dates, dollar amounts, and cross-references to other ordinances that make it difficult for a non-specialist to understand the full scope of when voter approval is required.
AI-generated · claude-haiku-4-5 · informational only, not legal advice.
Official text
The City and County may enter into lease financing agreements only with the assent of the majority of the voters voting upon any proposition for the authorization of the lease financing. As used in this section, lease financing shall mean any lease or sublease made between the City and County and any public agency or authority, a non-profit corporation or a retirement system for the purpose of financing the acquisition, construction or improvement by the City and County of real property or equipment.
The requirements of this section do not apply to:
1. Any lease financing which was approved in fact or in principle by a resolution or ordinance adopted by the Board of Supervisors prior to April 1, 1977; provided, that if the resolution or ordinance approved the lease financing only in principle, the resolution or ordinance must describe in general terms the public improvements or equipment to be financed; or
2. The amendment or the refunding of a lease financing which is expected to result in net savings in rental payments to the City and County on a present value basis, calculated as provided by ordinance; or
3. Lease financing involving a nonprofit corporation established for the purpose of this subsection for the acquisition of equipment, the obligations or evidence of indebtedness with respect to which shall not exceed in the aggregate at any point in time a principal amount of $20 million, such amount to be increased by five percent each fiscal year commencing with fiscal year 1990-1991; provided, however, that prior to each sale of such obligations or evidence of indebtedness, the Controller certifies that in his or her opinion the net interest cost to the City will be lower than other financings involving a lease or leases.