Committee moves to forward Reinvestment Working Group public‑bank plans to full Board

The Government Audit and Oversight Committee voted to request that the Clerk prepare a resolution accepting the Reinvestment Working Group’s final governance plan, business plan and viability study for a San Francisco Municipal Finance Corporation (MFC) and the proposed San Francisco Public Bank.

Chair Kristen Evans and the RWG presenters told the committee the plan is designed as a two‑phase process: an MFC, a non‑depository municipal finance corporation that would issue loans and prove a track record, followed by a chartered, FDIC‑insured public bank if regulators approve. “We are not adopting an ordinance that will create a public bank,” the Chair said, describing the day’s action as acceptance of the RWG’s plan and a step toward later legislative action.

Consultant Gary Findlay summarized the financial model in the plans, saying initial capital would start at roughly $20 million, grow to about $59.5 million at the start of a public bank, and that assets could reach roughly $319 million with loans of about $247 million by year eight. Presenters said the MFC phase is intended to demonstrate a positive operating track record to federal regulators and to position the city to compete for federal grant programs tied to green finance.

Panelists and community speakers emphasized the plan’s stated mission to lend for affordable housing, local small businesses and green infrastructure while partnering with credit unions and community development financial institutions. RWG members and outside consultants said the plan aligns with California Assembly Bill 857 (2019), which they cited as the statutory pathway enabling municipalities to form public banks.

Advocates who testified during public comment described the plan as a way to ‘‘keep tax money in the city’’ and to reduce fees paid to Wall Street. The committee’s motion to prepare a resolution accepting the RWG plans for referral to the full Board passed unanimously.

What happens next: the committee’s action asks the Clerk to prepare a resolution for introduction to the full Board of Supervisors; the presentations’ authors and the RWG said additional legislative action and regulatory engagement will be required to move from the MFC to a chartered public bank.