City Comment on Draft Resolution in Support of the Public Bank East Bay Whereas, in 2019, the Public Banking Act passed the CA State legislature, and lays out the path for local governmental agencies to start public banks; and
Whereas, the State Department of Financial Protection and Innovation, the agency that licenses new banks, has issued its regulations for licensing public banks; and Whereas, the Friends of the Public Bank East Bay have completed a Viability Study, and the Richmond City Council approved it on April 5, 2022; and Whereas, Hayward may choose to become a member of Public Bank East Bay through contributions to the Bank’s capital fund or movement of other City deposits to the Public Bank in due time; and Whereas, the Friends of the Public Bank East Bay has not yet gotten firm commitments from the Alameda County Board of Supervisors.
Now Therefore Be It Resolved, that the City of Hayward supports further exploration of the creation of the Public Bank East Bay (https://publicbankeastbay.org/vision); and further
Be It Further Resolved, that the City of Hayward send the attached letter of support for the Public Bank East Bay to the Alameda County Board of Supervisors.
September 00, 2022
Alameda County Board of Supervisors
1221 Oak Street, #536
Oakland, CA 94612
Dear County Supervisors,
The Hayward City Council supports the creation of the Public Bank East Bay and urges you to formally endorse it as well.
The Friends of the Public Bank, a 501(c)(3), in March completed the state-mandated Viability Study which lays out the high-level plan for the Bank, specifically that the Bank will partner with community-based lenders like community banks, credit unions, and Community Development Financial Institutions (CDFIs) to deliver affordable financing and emergency funding to small and worker-owned businesses in neighborhoods hit hardest by COVID-19 and environmental injustices. The Public Bank East Bay will invest in economic initiatives and projects that build wealth rather than extract it, such as permanently affordable housing, community-controlled renewable energy infrastructure, and refinancing municipal debt.
The Friends acknowledge that the governance plan for the Public Bank will have to be approved by the regulatory authorities, and therefore may change, but they are committed to ensuring that members of the most economically marginalized communities are represented on the Bank’s Board and directly involved in shaping lending policies and governance. The Hayward City Council supports the mission of the Public Bank East Bay to democratize finance and use public money for public good, and urges the Board to also support the creation of the Bank.
Sincerely,
Barbara Halliday, Mayor on behalf of the Hayward City Council
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