From: Mason Fong
To: City Council (San Mateo)
Cc: Clerk
Subject: Public Comment for 4/15/24 Council Agenda Items 7, 12 & 13 Date: Monday, April 15, 2024 6:46:52 PM
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Greetings Councilmembers,
Just wanted to share a few thoughts on the Council agenda tonight:
Item #7: Investment Policy
1. The State government code restricts investments in crypto currencies. However, the State code does not restrict Cities from investing in convertible debt notes. From my non-expert perspective of the State Code, the City may be able to theoretically contact a company that is crypto-adjacent and make a deal to purchase a convertible debt note.
Example: The City of San Mateo contacts the company Microstrategy (MSTR) and requests to purchase a convertible debt note that would amortize much better than the City's current investments (which only bring in around 3% revenue/year), capitalizing on crypto market trends. Without explaining the complexities of Bitcoin and why it is a good asset to time through this funding strategy, just simply look at MSTR's performance over the past year (which admittedly is cyclical and volatile). A special convertible debt note might be able to be agreed upon that produces a more positive result/return than the City's current investment vehicles. - I would recommend the Council inquire with City staff if a City could purchase a convertible debt note from a private company. If so, then this might be of merit in studying, especially to address the recurring structural deficit related to the VLF/ERAF issue.
Item #12: Capital Improvement Plan
1. Council should look at utilizing the City's Wastewater Treatment Facility as a revenue source, making a deal with any other water provider to sell your excess water to them.
This is something I explored while working in the City of San Jose between the City of San Jose and the Santa Clara Valley Water District and while as a Councilmember in the City of Sunnyvale.
- I would recommend Council ask questions of City staff to see what plans the City has to make water deals to generate revenue for the General Fund through the Wasterwater Treatment Facility. If no plans at this time, this should be prioritized for further study.
2. The Central Park Master Plan needs to incorporate the establishment of a permanent dog park and a permanent basketball court. The current pilot dog park also needs more resourcing in the form of a water station at the very least. We have baseball, softball, tennis, pickleball but no basketball, this should be changed. I currently travel to Foster City to play basketball with friends and have done so since growing up here. - I would recommend Council motion to 1) add a water station to the current pilot dog park & 2) direct City staff to return to Council at the next opportunity with a plan to incorporate a permanent dog park at Central Park and a permanent Basketball Court.
Item #13: Budget
1. The City should look at Pension Obligation Bonds (POBs) as a mechanism to ease UAL stresses on the budget and make smart investments that can pay off over time. The City should consult with the City of San Jose's recent POB studies and hire consultants to look at this as a solution to addressing the City's recurring structural deficits resulting from the VLF/ERAF issue. If the State does not change the VLF/ERAF issue, the City must get creative to ensure high quality public services don't get cut over time and that city employees are protected in their pension outlooks. Here is the study session from
the City of San Jose in 2021.
- I recommend the Council ask about POBs and direct City staff to return to Council at the next available time with a pro/con assessment of utilizing POBs either now or in the future to meet unfunded liabilities.
Here is a slide from that study session of the potential positive impacts of POBs:
Thank you for your consideration and for your public service. --
Sincerely,
- Mason Fong