Municipal Banking Feasibility Task Force

• Executive Summary
• Final Report
• Appendix A: Board of Supervisors Resolution
• Appendix B: Detailed Description of Lines of Business
• Appendix C: Current City-Funded Programs in Affordable Housing, Small Business Lending & Infrastructure
• Appendix D: Technical Appendix and Municipal Bank Models (xls)
• Appendix E: Letters from Task Force members 
• Municipal Bank Webinar - April 12, 2019 (YouTube)

The Task Force was selected through a competitive application process and includes experts from inside and outside government, representing a variety of experiences and opinions. The Task Force consists of advocates working to improve access to banking services and capital for low-income, communities of color; finance professionals with years of experience in traditional consumer banks, credit unions and community development financial institutions (CDFIs); and government officials with expertise in banking, investment, affordable housing, and public finance. Together, this group has the knowledge and background to plan and evaluate opportunities for the City to use its banking and investment functions to support the local economy.

John Avalos, Coordinator, National Union of Healthcare Workers – Former Supervisor John Avalos served two terms as District 11 Supervisor, where he chaired the Budget and Finance Committee and the SF County Transportation Commission. As a Supervisor, he sought to make government efficient and expand funding for affordable housing and vital programs like childcare. Prior to serving as a Supervisor, he worked as a legislative aide, community organizer and union organizer.

Ada Chan, Regional Planner, Association of Bay Area Governments (ABAG) – Ada currently works with ABAG as a regional planner with an emphasis on land use, place making and housing policy. In this role, she provides technical assistance to help jurisdictions plan for growth and equity. She has worked for two decades in community and economic development, including job training and placement, asset building, affordable housing development, and small business finance.

James Clark, Former Deputy Assistant Secretary for Federal Finance, U.S. Department of the Treasury – James most recently served at the US Department of the Treasury as the Deputy Assistant Secretary for Federal Finance. In this capacity, he was responsible for cash management and the longer-term debt issuance strategy of the US government. Before his appointment, he worked at the Federal Reserve Bank of New York (FRBNY) where he served in different capacities, including the Head of Mortgage Analytics.

Marc Franson, Partner, Chapman and Cutler LLP, Banking and Financial Services Department – Marc represents financial institutions, finance companies, retailers, other creditors and brokers on an array of financial matters, including state and federal regulatory applications, deposit products, bank mergers and payment processing. Prior to joining Chapman and Cutler LLP, Marc was Vice President and General Counsel at Household International.

Paulina Gonzalez, Executive Director, California Reinvestment Coalition (CRC) – Paulina has worked for over 20 years leading economic justice organizing campaigns to expand worker rights, immigrant rights and the rights of low income and underrepresented communities of color. Before joining CRC, Paulina served as the Executive Director for Strategic Actions for a Just Economy and spent 13 years at UNITE HERE, a union that represents hotel and food service workers.

Kate Hartley, Executive Director, Mayor’s Office of Housing and Community Development – Kate has 25 years of housing experience, including for-profit and nonprofit development, financial consulting, and public service. She currently leads San Francisco’s Mayor’s Office of Housing and Community Development, which expects to spend almost $1 billion in the next 5 years to provide housing for homeless citizens, seniors, working families, and special needs populations. 

Sushil Jacobs, Senior Attorney for Economic Justice, Lawyers’ Committee for Civil Rights of the San Francisco Bay Area (LCCR) – Sushil is responsible for developing LCCR’s strategy to promote laws and policies to combat displacement and advance racial justice in the local economy. Prior to joining LCCR, Sushil co-founded the Tuttle Law Group, which represents cooperative and democratic enterprises. Sushil serves on the Board of Directors of the Berkeley Cooperative Center Federal Credit Union.

Jim Lazarus, Senior Vice President of Public Policy, San Francisco Chamber of Commerce – Jim brings a wealth of experience in the public policy arena and a thorough understanding of the City to his role with the Chamber of Commerce. Prior to working with the Chamber, Jim served as a Deputy City Attorney, Executive Deputy Mayor to Mayor Dianne Feinstein, and State Director of Senator Dianne Feinstein’s office. He also held senior positions with Mayor Frank Jordan’s office, including Chief of Staff.

Lauren Leimbach, Executive Director, Community Financial Resources (CFR) – Lauren has over 20 years’ experience in the financial services industry, working for Bank of America, the Federal Reserve and Providian Financial. At CFR, she works with community organizations, social service agencies and unions to improve access of low-to-moderate income households to consumer-friendly financial products.

Ben Mangan, Executive Director, Center for Social Sector Leadership at Berkeley Haas – Ben has more than 20 of years of experience in social impact leadership and management. Before joining Haas, he was the President, CEO and Co-Founder of EARN, a nonprofit social venture which uses the power of micro-savings and technology to help low-income workers in 16 states across the nation spark new cycles of prosperity.

Kỳ-Nam Miller, Economic Equity Director, The Greenlining Institute –  Kỳ-Nam works with The Greenlining Institute to lead the organization’s efforts to build wealth in communities of color, through housing policy, financial empowerment, bank accountability and investment. Previously, he served as a Senior Associate at PolicyLink and as an aide to Congresswoman Barbara Lee.

Tim Schaefer, Deputy Treasurer for Public Finance, California Treasurer's Office – Tim has more than 40 years of experience in the municipal securities industry. Prior to joining the Treasurer’s Office, Tim was then-State Controller John Chiang’s Senior Finance Advisor. Before entering State service, Tim was the principal owner of Magis Advisors, a public finance consulting firm, and managed the Public Finance Division of Bank of America in San Francisco.

Nadia Sesay, Executive Director, Office of Community Investment and Infrastructure (OCII) – Nadia served as interim Executive Director of OCII starting in January 2017 and was appointed Executive Director in October 2017. In this role, she is responsible for economic development of the new Transbay, Mission Bay and Hunters Point Shipyard neighborhoods, which collectively provide over 20,000 new housing units, including approximately 7,000 affordable housing units. Previously, she spent 19 years at the Office of Public Finance, appointed to Director in 2005 by Mayor Newsom.

Tajel Shah, Chief Assistant Treasurer, Office of Treasurer & Tax Collector (TTX) – Tajel serves as the Deputy to Treasurer José Cisneros and manages investments, banking, cashiering, budget, solutions management, IT and human resources for TTX. Prior to joining TTX, Tajel managed policy and planning for the Department of Children, Youth and their Families for several years and led global expansion for Organic Inc.

Kat Taylor, CEO, Beneficial State Bank – Kat Taylor works in service of restoring social justice and environmental well-being. Kat is active in a variety of social enterprises, public benefit and philanthropic ventures on the West Coast. Currently, she serves as Co-Founder and Co-CEO of Beneficial State Bank, whose mission is to bring beneficial banking to low-income communities in an economically and environmentally sustainable manner.

Steve Zuckerman, President, Self-Help Federal Credit Union – Steve led the formation of the Self-Help Federal Credit Union which now has assets over $1 billion and serves more than 76,000 mostly low-income members through 29 branches. Previously, Steve was a managing director with McCown De Leeuw & Co. (MDC), a private investment firm based in Menlo Park, CA.

The dates and times for the Task Force meetings are as follows:

Wednesday, February 21 from 3-5pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) | Materials (pdf)

Tuesday, March 20 from 3:30-5:30pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) | Prep Materials (pdf) | Presentation Materials (pdf)

Thursday, April 19 from 3-5pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) | Materials (pdf)

Thursday, May 31 from 3-5pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) | Materials (pdf)

Thursday, June 28 from 3-5pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) | Materials (pdf) 

Thursday, August 2 from 3-5pm in City Hall Room 305 (canceled) 

Thursday, September 13 from 3-5pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) | SF Public Bank Coalition Letter (pdf) | Materials (pdf)

Thursday, November 1 from 3-5pm in City Hall Room 305
Agenda (pdf) | Minutes (pdf) |  Materials (pdf)

Thursday, January 31 2019 from 3-5pm in City Hall Room 305
Agenda | Minutes (pdf) | Materials (Municipal Bank Feasibility Report (Draft)(pdf)

San Francisco Resources

• Public Banking Literature Review (March 2019)
• SF Board of Supervisors Municipal Bank Task Force Resolution 152-17(April 2017)
• Public Bank Checklist (March 2018)
• SF Budget and Legislative Analyst Community Supportive Banking Options 2011 report (September 2011)
• SF Budget and Legislative Analyst Community Supportive Banking Options 2017 report (November 2017)

Other Jurisdictions’ Reports

• California - State-backed Financial Institution (Public Bank) for the state of California Servicing the Cannabis Industry Feasibility Study 2018(December 2018)

• Los Angeles – Public Bank Framework and Existing Housing and Economic Development Funding Program (August 2018)
• Los Angeles – Legislative and Regulatory Reforms Related to Municipal Banking (December 2017)
• Massachusetts – The Bank of North Dakota: A Model for Massachusetts and Other States? (May 2011)
• Massachusetts – Report of the Commission to Study the Feasibility of Establishing a Bank Owned by the Commonwealth (August 2011)
• New Jersey – Exploring a Public Bank for New Jersey: Economic Impact and Implementation Issues (April 2018)
• Oakland – Multi Jurisdictional Public Bank Feasibility Study (June 2018)
• Oregon – Oregon State Bank Analysis Revised (December 2010)
• Santa Fe – Santa Fe Public Bank Task Force Final Report to the Santa Fe City Council (April 2018)
• Santa Fe – Public Banking Feasibility Study Final Report for the City of Santa Fe (January 2016)
• Seattle - Public Bank Feasibility Study (October 2018)
• Vermont – Exploring a Public Bank for Vermont (December 2013)
• Washington – Washington State Bank Analysis (December 2010)
• Washington - Study of the Studies (October 2018)
• Washington - Evaluation of the Benefits and Risks of a State-Chartered, Public Cooperative Bank - Status Report (December 2018) (pdf)

Background Information

• Davis Polk & Wardwell – Bank Regulatory Considerations Related to Establishing a Public Bank in the State of California (November 2017)

• Demos – Banking on America: How Main Street Partnership Banks Can Improve Local Economies (April 2011)
• Karl Beitel – Municipal Banking: Overview (April 2016)
• Karl Beitel – The Municipal Bank: Compliance, Capitalization, Liquidity and Risk (June 2016)
• State Treasurer John Chiang’s Cannabis Banking Work Group – Banking Access Strategies for Cannabis-Related Businesses (November 2017)