Resolution: SFPL Revenue Bonds:

The Board of Supervisors Library Citizens Advisory Committee passed the following resolution on December 16, 2008.

Whereas, San Francisco Public Library (SFPL) plans to sell $34 million in revenue bonds in January, 2009, to fund the Branch Library Improvement Program (BLIP); and

Whereas, SFPL plans another sale of about $14 million in Summer/Fall, 2009, for the same purpose; and

Whereas, SFPL has authority to pay up to 12% interest on the bonds, which have a 25-year term; and

Whereas, the Controller has indicated a desire to float low-interest-rate commercial paper instead of the bonds, as necessary, for an indeterminate time beginning in January, 2009;

Therefore be it resolved that:

The Board of Supervisors Library Citizens Advisory Committee is concerned about the library's plan to sell revenue bonds for branch renovation during the current fiscal climate. Less than judicious vetting of bond sale scheduling and interest rates could have a long-term negative effect by:

1. Paying excessively high interest rates for bonds and reducing the dollars available for library services.
   
   
2. Tying up funding for library services
   
   
3. Forcing bond payment by the city's general fund, thus reducing funds for other city services.

The Board of Supervisors Library Citizens Advisory Committee therefore urges the library and the controller to carefully monitor the bond market and consider postponing the bond sale/s.