City Council’s “Blank Check"

26 Words That Suggest Anything Goes With Measure L Mega Bond Funds

Measure L, if passed, will give City Council the authority to borrow $650 million.Supporters claim that the funds will be used for subsidized housing ($200M), street and sidewalk improvements ($300M) and other unspecified infrastructure ($150M). But there is no guarantee that any of that will actually take place.  Buried within the 2700+ word measure is a 26 word sentence that suggests anything goes. 

These dollar amounts are estimates and are not a commitment or guarantee that any specific amounts will be spent on particular projects or categories of projects.

This statement suggests to us that City Council has ultimate discretion on the disbursement of funds. Further, the measure sates:

City Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements. 

This statement suggests to us the City Council recognizes the $300 million suggested for improvements is insufficient to address the more than $1.2 billion in liabilities.

It appears City Council has given itself a blank check with a no guarantees clause. We have asked the Berkeley City Attorney whether this interpretation is correct. We look forward to her response and sharing it with you.

Subject: Ballot Measure L Language

Date: August 31, 2022 at 8:36:51 AM PDT

To: attorney@cityofberkeley.info

Dear City Attorney:

The authorization for submission of a November 8, 2022 ballot measure (Measure L) includes the statement:

All dollar amounts included are estimates at the time of adoption of this Resolution and are not a commitment or guarantee that any specific amounts will be spent on particular projects or categories of projects.

The language above indicates that City Council has ultimate discretion on the disbursement of funds, and subsequent language describing the “approximate” or “estimated” totals or funding amounts is non-binding with regard to future expenditures should this measure pass. 

Is the interpretation above consistent with your understanding of the cited statement?

An update to this post may be found here. 

Full Language from Measure L:

 

Section 4. Estimated Cost of Improvements. 

The estimated cost of the Affordable Housing Improvements to be funded by the Bonds is $200 million. The estimated cost for the Infrastructure Improvements is $450 million, of which $300 million may be allocated to Infrastructure Improvements related to street, sidewalk and traffic safety and $150 million may be allocated to other Infrastructure Improvements, including those related to public safety and climate resiliency. These dollar amounts are estimates and are not a commitment or guarantee that any specific amounts will be spent on particular projects or categories of projects.