Muni gets a $200M loan it must repay even if two taxes fail

San Francisco
Board of Supervisors Meeting
June 16, 2026

TL;DR

• The board cleared Muni to borrow up to $200 million to keep service running next year, repaid through 2038.
• Supervisors cleared a first vote to ban the sale and delivery of uncertified lithium-ion batteries citywide; a final vote is still to come.
• The board approved a new Downtown Hospitality Zone in a stretch of downtown near Union Square and the 5th-and-Market area.
• Supervisors cleared a first vote on an interim two-year budget to keep the city funded while the full budget is finalized.

What happened

1. Muni cleared to borrow up to $200 million to keep service running
   1. The board authorized Muni to borrow up to $200 million from the Metropolitan Transportation Commission for day-to-day operations. The 12-year loan runs through June 3, 2038, and a state law required the city to sign it by July 1. The money covers the first year of Muni's two-year budget while the agency waits on two proposed taxes.
   2. What this means for you: This keeps Muni buses and trains funded through the coming year. If voters reject a planned regional sales tax and a parcel tax, Muni still owes the loan. It would then have to cut service. Annual payments run about $30 million, secured by state transit funds the city already receives.
2. SF moves to ban uncertified lithium-ion batteries
   1. The board cleared a first vote to ban the sale and delivery of uncertified lithium-ion batteries citywide. The ban also covers replacement batteries that fail set standards. This Fire Code change returns for a final vote before it becomes law.
   2. What this means for you: If it passes a second vote, you could no longer buy uncertified lithium-ion batteries from stores or have them delivered to a San Francisco address. The Fire Department would enforce the rule, and the City Attorney could seek penalties for violations.
3. SF creates a new Downtown Hospitality Zone
   1. The board approved a new Downtown Hospitality Zone in a stretch of downtown near Union Square and the 5th-and-Market area. The boundary runs along parts of 5th, Market, Mason, Taylor, Kearny, and several connecting streets.
   2. What this means for you: The vote sets the zone's borders and makes the designation law. The meeting materials do not spell out what the zone changes for the businesses or residents inside it.
4. Supervisors clear a first vote on a stopgap two-year budget
   1. The board cleared a first vote on an interim budget and salary plan for the fiscal years ending in June 2027 and June 2028. The plan covers all estimated city income and spending as of May 30, 2026. Supervisors also adopted an interim budget for the city's redevelopment successor agency.
   2. What this means for you: An interim budget keeps the city funded and running while supervisors finish the full budget. It is a placeholder, not the final spending plan. The interim ordinances return for a final vote.

What residents brought up

• Health service cuts. The board held a required hearing on proposed Department of Public Health cuts in the mayor's budget, then took no vote. Dozens of clinicians and residents asked it to keep three clinics open. They named the Southeast Mission geriatric clinic, called the city's last senior mental-health clinic, plus youth clinics run with Huckleberry and Larkin Street. Speakers said the clinics were labeled low-volume on wrong numbers and were instead understaffed for years. Public Health Director Daniel Tsai said the clinics would consolidate with no layoffs, tied to federal Medicaid and state Medi-Cal cuts.
• HIV and harm reduction. Speakers from the San Francisco AIDS Foundation and other HIV advocates warned the cuts would roll back prevention and harm-reduction services. They said the reductions set back the city's getting-to-zero goal. One long-term HIV survivor said the city set aside $150,000 for survivors over 50. He figured that at about $13 per person and asked where the rest of the money went.
• Erroneous insurance notices. A retired city employee told the board he and others received notices that their longtime doctors were dropped from their Blue Shield Medicare coverage. He said Blue Shield later called the notices an error sent across California. He asked the board to have the insurer testify.

Also happened

• Approved a final map clearing up to 441 homes and 15 commercial units at Candlestick Point.
• Made the Balboa Reservoir zoning change law, allowing a connector between two buildings and new homes at the site.
• Approved several health items, including $3,252,257 more for the Homeless Children's Network, a $3,750,000 grant for patient housing placements, and a $1,500,000 mammography van for SF General bought with a $1,660,000 Salesforce donation.
• Approved four labor and pay measures covering city fire and police executives, unrepresented employees, and machinists.
• Approved a $24,516.19 grant for banners in the Transgender District, and passed resolutions marking Juneteenth and Dragon Boat Festival Day on June 19.
• Honored several community figures, including a retiring Public Utilities Commission power chief and two historic swim and rowing clubs marking 50 years of women's membership, and closed in memory of two community members.

For any updates or corrections, please email steven@polisdesk.com