§ 43.8

It is hereby declared to be the policy of the City to permit the refunding of outstanding general obligation bonds, revenue bonds and lease obligations of the City whenever such refunding shall result in net debt service savings to the City pursuant to the procedure set forth in this Article as well as by any other method permitted by law or other ordinance of the Board. This Article is enacted pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Sections 9.106, 9.108 and 9.109 of the Charter.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

This Article shall be known as the Refunding Bond Savings Test Act.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

For purposes of this Article, the following terms shall have the meanings given below:

(a) The term "Board" shall mean the Board of Supervisors of the City.

(b) The term "Charter" shall mean the Charter of this City.

(c) The term "City" shall mean the City and County of San Francisco.

(d) The term "lease obligations" shall include the City's obligation under any lease entered into with any nonprofit corporation, authority or other entity which issues, or causes to be issued, lease revenue bonds or certificates of participation secured by, or evidencing interests in, the City's obligation under such lease.

(e) The term "refunded bond" shall mean any outstanding general obligation bond, revenue bond or lease obligation to be refunded by the City.

(f) The term "refunding bond" shall mean any bond issued or lease obligation entered into for the purpose of refunding in whole or in part, any general obligation bond or any lease obligation.

(g) The term "yield" shall mean the yield on the refunding bonds as calculated pursuant to the provisions of the Internal Revenue Code of 1986, as amended from time to time.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

(a) Acting under the provisions of the Charter or under any other provision of general State law, the Board may provide for the issuance of refunding bonds for the purpose of refunding any outstanding general obligation bonds, revenue bonds or lease obligations of the City. No voter approval shall be required for any such refunding bonds which provide net debt service savings to the City on a present value basis calculated as provided in such provisions of general State law or by other ordinance of the Board or as hereinafter provided in Section 43.8.4(b). Subject to the foregoing limitation, the principal amount of the refunding bonds (in aggregate or with respect to any maturity) may be more than, less than or the same as the principal amount of the bonds or lease obligations to be refunded.

(b) Net debt service savings shall be calculated by comparing the present value of the aggregate debt service on the refunding bonds to that of the refunded bonds as of the date of the refunding bonds using an assumed rate of interest equal to the yield on the refunding bonds. To the extent required, any funds contributed to the refunding by the City shall be deducted from the savings calculation. Notwithstanding any provision of general State law to the contrary, this Section 43.8.4(b) shall provide an alternative means of calculating debt service savings to any procedure contained in general State law. The City is authorized to rely on any other State law procedure related to calculating debt service savings.

(c) The Board may authorize the issuance and provide the final terms, amounts, maturities, interest rates and other provisions of the refunding bonds (including a reference to the procedure under which debt service savings is to be calculated) by means of an indenture, resolution, ordinance, order, agreement or other instrument in writing. If the Board establishes the minimum savings to be generated by the issuance of such refunding

bonds, the Board may delegate to appropriate officials or officers of the City or of the Board the authority to determine the final terms, amounts, maturities, interest rates and other provisions of said refunding bonds.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The powers conferred by the provisions of this Article are in addition to and supplemental to the powers conferred by the Charter or any other ordinance or by law.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)