A bill for an ordinance establishing a "Social Impact Bond" fund in the General Government Special Revenue Fund and the means for authorizing expenditures from such fund. (FINANCE & SERVICES) Approves the creation of a new fund in the General Government Special Revenue Fund for Social Impact Bonds to provide a multi-year reserve to make performance-based payments to contractors providing housing and case management for chronically homeless individuals. This is a companion ordinance to the Long Bill. The Committee approved filing this bill by consent on 12-4-14.
I will wait for technology to catch up. I'm sure it will be moved in second. We can go ahead to comments, Councilwoman Fox. Mr. President, presuming since it isn't coming up, this is the social impact on. 1017, I believe that is. Go ahead. Yes. Okay. Thank you. I just want to be sure I am speaking to the adult. This is an ordinance that establishes a fund for us to put money in order to pay social impact bonds, which are tacked like technically not bonds. So it gets a little complicated here. I made some comments last week and I just want to add to those comments saying, in addition to my concerns about debt financing of social programs, I question the process of establishing a fund from which to repay debt. When the city council hasn't even approved using this mechanism, first let's have the substantive discussion, and this accounting measure can and should come later. Thank you, Councilman. Thoughts? Any other questions or comments on 1017 from council members? Councilwoman, can. Each. Thank you, Mr. President. We did ask for some staff response to those concerns at last week's meeting, and no one was available. But I believe we do have a representative who can speak to it this week. So is it Brendan Hanlon if I may ask Brendan Hanlon to please share why it is we're establishing the fund structure now even though we are not doing any transactions yet. Great. So good morning. Good morning. Good evening. Brendan Hanlon from the Budgetary Management Office. I did have a chance to watch the proceedings last week. I am sorry that I wasn't here to answer questions at that point in time, but let me just go over some of the mechanics. In the 2015 budget we had at, we have allocated a transfer for social impact bonds out of the general fund into the special revenue fund. And the idea is, much like Councilwoman Fox described as this would be a fund by which the social impact bonds would be repaid from. So the mechanics is we will be contracting with nonprofits. There will be funders involved in this program to the extent to to the to the extent that outcomes are delivered by those nonprofits, there will be a repayment of the costs that they have incurred based on the outcomes that were delivered. So what we're doing here is setting aside funds. So that way, once those outcomes are achieved, either in totality or partially, we can repay from this fund. It's a way, it's an accounting mechanism to isolate these funds and properly track them as we go through this process. So given that explanation, I will be supporting this bill tonight and urge my colleagues to do the same. I really do think that it's a creative way to try to bring additional resources to some of the social challenges we have, particularly facing our homeless community. Any time we can increase resources for services or increase housing units, we know that we make a difference not just for those individuals, but also for the quality of life of our neighborhoods. Where this impact is really being felt. And so I think that we will, you know, have more vetting about the particular transactions, but as a budget mechanism, simply to create a place for the funds to be placed. While we have that conversation in a budget that we already approved, I think it's important to move this forward tonight. Thank you. Thank you. Councilwoman Kenney. Councilwoman Ortega. Just a quick question. And notwithstanding the comments that were just made by my colleague, Councilwoman Kenny Brennan, can you tell me when we will see the priorities that have been identified that these non-profits will be weighed against? So Sky might need to help me with the particular date of the committee meeting January 6th. We will be coming to Finance or Safety Committee, Safety Committee and presenting on the mechanics of this in a more detailed fashion than I certainly just went over. I believe we will also be identifying the the outcomes that would be addressed by a social impact bond at that point in time. Thank you. Thank you, Councilwoman Ortega. Any other comments or questions on 1017 seen on Madam Secretary? Roll call. But no can eat ice monteiro. Hi, Nevitt. Hi, Ortega. Hi, Rob Shepherd. Sussman Brooks Brown. Now. Mr. President. I. Madam Secretary, please close the voting. And now the results. 982992 nays 1017 has been placed on file consideration and does pass. Madam Secretary, can you tee at the last one what should be 950? Called out by Councilwoman Fox. What would you like for us to do with this? Please put it on the floor for a vote. Certainly can. Councilwoman Candace, can you please have 950 placed on final consideration and do pass?