Certificates of Participation: The City’s Hidden Long-Term Debt

[Tony Kelly]

George Wooding of the Westside Observer writes:

San Francisco's cash-strapped politicians are relying heavily on an expensive form of debt called Certificates of Participation (COPs) to pay San Francisco's bills, perhaps hoping they can continue hiding this practice from voters.

The public doesn't know what COPs are, which seems to suit City politicians just fine. San Francisco construction projects that are either unaffordable, unpopular, or need to keep a low profile can be funded by COPs —without any public input or oversight whatsoever. Over a billion dollars in long-term City debt and interest have been issued with just the approval of the City's finance committee and our Board of Supervisors. Unlike issuing general obligation bonds or levying parcel taxes, COPs don't need public, two-thirds majority approval by voters mandated by the 1979 passage of Proposition 13. They don't even need public involvement. 

[It’s a long article; read all of it here.]