exactly the intent of this bond, the maximum amount of this bond, the bonded indebtedness, and the impact it will have on other muni services. in april 2012, april 8 -- six. the california transportation commission sent a letter to the sf mta and other transit agencies saying "this program has not been supported because the project appears unrelated to the high-speed rail project or a comprehensive statewide rail plan. it later says that clearly the current program of projects remains unacceptable to the administration and will not be funded. this was very clear. the governor vetoed the initial $27 million previously. this letter indicates that there will be no approval of prop. 108 funds for the entire year. contrary to the language of the resolution, this is not assurance funding. it is funding that is being requested. we need very clear language that this is an attempt to be funded through revenue bonds with debt. as you know, the subway proposed does not go to the trans bay terminal. in fact, it believes the current loop to the terminal and market street corridor. the subway reports t

, security for the bonds, tax status and interest on the bonds and other information that's of interest to investors. federal securities law requires that the preliminary official statement contain all of the information that an investor would want to have or need to have to make an informed investment decision and not contain any material misstatements or omissions. so that involved -- that involves a process of working with the staff. it's a process of investigation to make sure that the agency's story, and particularly the agency's story as it's told to investors and the financial community is complete and accurate. i'm very pleased to report that your staff has worked very diligently and very hard to provide the information and to work with us and the rest of the financing team and putting together the preliminary official statement. the preliminary official statement is now substantially complete. as the agency story is always an ongoing story and there are always new things to keep up with. there are some items that will be needed to be updated, but it's substantially complete and

i would not support the bond unless there was oversight built into the bond as well. various community bodies by the capital planning committee, the general obligation bond oversight committee, or public recreation and open space advisory committee, to help ensure that there is fiscal accountability for the measures. our parks and the richmond district are what makes our community is so unique. this is an important investment we're making in our neighborhood. in addition to meeting the huge capital needs. there is an $8.2 million improvement to the swimming pool. i know the pools have been in need of renovation for a number of years. iconology that mountain like part, -- i also acknowledge that mountain lake park, there is a $2 million improvement for that park. my colleague talked about mclaren park, which is shared by -- i know the majority of the richmond district, there is a good chunk in district 5, the $9 million will greatly improve access for the richmond district. i know there is some back and forth in the community meetings over mclaren park versus golden ga

the refunding of bonds that were previously issued about 10 years ago. wheat -- the only refund bonds are issued when there is a savings for ratepayers and are required under policy to make sure there is at least a 3% savings for those. the estimated borrowing costs are between 4.5% to 5 percent signed, but i would not be surprised if we did better than that. authorizations are the same they have been in the past. the majority of the proceeds going for project construction. we have either completed or have under construction right now over $3.3 billion worth of the 4.6 billion, so we are only borrowing money when we need it to refund water commercial paper and to pay for water capital project investment. the funding with debt service cost at $600 million, and 17 million for settlement reimbursement for a total of $653 million. some forms of agreement are numerous, as is always the case when we come before you, but they are in standard form, and are what you look at each time for the due diligence of the bonds. other related items we would like to brief y

>> the remainder is water- related bonds. in addition to that, we were able to apply to the state and have been successful in getting loans funding which is low-cost funding, cheaper than revenue bonds. we have some cash from the system which allows us to fund a portion as well. the lowest cost is what we are always trying to prioritize. supervisor chu: back to waste water -- the appropriation is a large number. it's about half a billion dollars. can you break down how much of that is eight digest verses other work? >> it will be approximately $168 million. that's for the planning of the digesters project. that could be upwards of $2 billion. it matters of a lot that we do it well because our sister agency across the eight -- east bay mud, has done an incredible job and we plan to do it well as far as creating capacity to be able to provide renewable electricity as well. but there may be the potential to do even more. supervisor chu: what is the remaining? >> an increase toward 15 miles -- that is $114 million over the next t

years. ♪ [gunfire] >> i admire your luck, mr. -- >> bond, james bond. >> bill: all right.bond film released in 1962? first film, cards up please. dr. no. maccallum bursts out. so she may be, doocy,. >> let's not get ahead of ourselves here. we will find out. >> bonded for your protection. >> there was casino royal starring woody allen. we don't count that. that's true. question number two, sean connery wowed audiences with his portrayal of bond in the aforementioned dr. no. >> james bond, 007, licensed to kill whom he pleases, where he pleases, when he pleases. >> bill: excellent. now connery was not the first choice for the role. which actor turned down the part of 007? the answer is d, cary grant. >> i didn't know that. >> bill: now you do. >> that's what i love about this. cary grant. >> you want to be james bond. >> i do. that's just donned on you? >> yeah. >> if i do get james bond. license to kill doocy of 00 planet. here is question number three. british author ian fleming the author of the james bond novels wrote the first one in 1953. what popular children's book

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one is the detail in the capital budget and in the companion documents for bond opposition.the bond authorization to are going to be his smaller numbers because we try to pay cash for what we can pay cash for because it's usually the least expensive for ratepayers. the authorizations include financing costs and total $163 million for water, $523 million for waste water, and $12.3 million for power. i will walk you thru the details that is the water enterprise. at the top of this page, you can see our request includes $87 million for fiscal years 12--- for fiscal year 12-13. in addition to the heightened oversight requirements, they required us to do a 10-year plan both financially+ capital. we take everything we have for capital need and translate that to our average rate payer. as policy makers, we are one of the only utilities in the country that will tell us what you need. we will also tell you what it means for the average san francisco ratepayer for a water bill and sewer bill and that's unique in this country and something we lead the trend on. in the case of the water

bond investors can trade a round a bit. a mutual fund is more like a stock than a bond. it doesn't have a maturity and you're not guaranteed principal on that. they will go down and it's harder for the portfolio manager to get returns. >> tom: lindsey, we will leave it. there you can read the art thestreet.com. lindsey bell, thank you so much. >> thank you. >> a diane eastabrook in joel , illinois. coming up tomorrow are corporate profits leading to labor unrests. >> susie: an up beat aroundyou'n buffett over the weekend. the stock climbed almost one and a half percent. one serious topic hung over the crowd of 35,000 shareholders. >> this is what warren buffett loves to do at his annual meeting. playing games. especially when it means -- bill gates at newspaper tossing. sampling new treats. mingling with his fans and leading a cheer. for most of us in the media keeping up with buffet at what he calls "the woodstock for capitalists" is exhausting. this year we learned the high energy oxygen aryaarian is huma. he revealed news that he h prostate cancer and his diagnose sis

i will say that the bond sail is -- bond sale is still a little bit away and we have to stay on top of

i will say that the bond sail is -- bond sale is still a little bit away and we have to stay on top of developments. and again, we very much encourage you to participate in this process not only to read the document and bring to staff attention a particular matter, any concerns, but also to give some thought from your perspective as to whether the presentation that's being made to investors, that it captures what ought to be said needs to be said. >> do you think the document as it stands before us is still a work in progress? >> it is substantially final. and yeah. it is substantially final. the om caveat i would have -- the only caveat i would have is as things change. >> members of the board? questions, comments? >> we have had a review by the controller's office as well and to make sure that everything we say is consistent and accurate as well. another set of eyes that have reviewed this. >> this is kind of new territory for us and it's a very big deal and first chance we ever had to do this and make sure -- >> just a couple of other observations. the controller's office and the ci

as far as bond yields, core bond yields are higher.narrowed slightly yields down below the 6% mark. last week we hit 1.39. currently 1.36. euro-dollar slightly higher. dollar-yen bounced off the lows. aussie dollar a little firmer off the six month lows that we hit last week. that's on those chinese comments. euro sterling still above the.8075. gold slightly firmer. brent up at 108. >> let's give a quick look at the agenda in the united states. atlanta fed president dennis lockhart is speaking in tokyo in just a few minutes about monetary policy. 59:00, jury selection begin in the insider trading trial of raj gupta. and earnings from campbell soup, lowes, tech data and urban outfitters. >> and if you've just woken up state side, chelsea won the champions lead on saturday. >> so there is a chelsea here and not just in new york. >> yeah that would be the original one. >> i am a chelsea fan, so i was very happy with that. we'll have to get to you a game. >> and i need to do cricket. >> growth firmly ahefter g-8 backed measures to take the

you can have your bond. this amazing demand for treasuries in spite of these rates is causing a gigantic freak out among stock market professionals who always keep one eye on the bond market for guidance about the economy. right now, they have both eyes on it. that's how stupefying this move is. why are the pros panicking? because this dramatic rally in treasuries tells them two things and both r & d bearish for stocks. the first is a presumption that the demand for money must be much lower than we thought. remember how old-fashioned banks really earn a living. they pay you low interest rates in your deposits and loan that money out and pocket the difference. given these current low rates, you'd expect people to be clambering for loans, but the pros assume that can't be the case. since the demand would drive rates up, not down like they're going now. think about it. if you believe we're having a housing-led recovery in this country, you'd expect mortgage rates eventually to go higher, not lower. but the oppo

2017 bond.he 2015 bond bid to cover was 2.9 and last auction it was 2.4. so the bid to cover ratios increased for both of those auctions. just waiting for the average yield to come out. that is the crucial one we'll bring you that as soon as we have it. but they have sold 979 million you're rows of the july 2015 bond and 764 million euros of the january 2017 bond. and the bid to cover ratio of each of those has ticked up since last time around. just waiting to get the outcome on the yield. but just looking at what's happening with the euro, we're looking at a level of 1.3142, just dipping slightly against the dollar right now, but we're still trading in this narrow band where we've been for some time on euro-dollar looking too across to what's going on on the spanish bond markets and where we're trading right now on those yields, we have the ten year at 5.83%. so below that 6% level which has been causing a headache just recently. so the total sale of just over 2.5 billion euros. still waiting f

at recent public meetings about the bond, people have said they will not support the bond if any money in it goes to nap. i urge you to talk to the mayor, rec and park and supervisors and tell them to include language specifically excluding nap from access to any bond money. with that language added, opposition will largely evaporate. without that language i'm concerned enough people will vote against the bond that it won't pass and otherwise worthy projects including those for the port will remain unfunded. why risk it? please include language in the bond that insures no money from it can be used for nap. thank you. >> we have one other public comment. >> i have very little to add to what sal question had. i'm a member of the public that's here to voice concern about the bond including funding for nap. if you look at the 2004 survey that the park and rec did, the trails are one of the most important facilities for people. and that's w45 -- what the natural area will many pact. it's concerning to be going to the parks and seeing trees and natural habitat cut down as well as escalating

you mention a bond crisis. somewhat of the tone i would hear you would find a bond crisis to be constructive for washington even as it could be destructive for our retirement plans and for new york. why haven't we seen it now? are they correct? interest rates are low. there isn't a crisis? i want to get you going this morning. >> interest rates are low before they go up. at the top of any speculative boom and i'm not saying the bond market is a speculative boom you find just before the top bids outrank offers of that particular product very significantly. and all you have to do is remember 1979. i remember it vividly. the treasury, the ten year note had gotten up to 10% yield and the general consensus at that point was the united states is not an inflation prone economy. this is as far as it can get. the next three months it went up 400 basis points. you cannot anticipate changes. in other words, basically to say that making a historical statement namely the interest rates have been low that therefore they will

worser say we will buy any amount of euro bonds and we will buy as many euro bonds as necessary solvent sovereign euro bonds i mean as many as necessary to camp interest rates four percent or less than that would kill speculation and it would kill contagion very quickly ok george i mean george ok i see a lot of nodding heads will it be done can it be done is there the political will to do it survey. can be done because the. long term refiling sensing operations of the europeans i'm sure won't have seen mario draghi one point two trillion euros so far this year there's no reason why that sort of money couldn't be directed buying solvent directly instead of going into the deposits of private banks so of course it can be done ok do you think that's going to happen do you think i mean what i guess the whole program here is is the germans going to be shaken up enough i've seen the house being burned down but it just can't live in one big powerful room i mean there aren't you don't have the protection i mean if the eurozone goes meltdown germany goes with it also obviously. it's certainly not

you are considering revenue bonds. there is debt service. i believe we can end up with a perfect central subway but a broken muni. i would like you to think of it in those terms. can we afford to operate the central subway without hurting the rest of the system. >> thank you. next speaker, please. >> good afternoon. >> good afternoon. i am the senior field representative from local union number 34. yesterday we sent our first members to work on a central subway. then i get the shock of my life that maybe this job is in danger. got a good job last month when pier 32 was cancelled. we would really like to see this project go through for the jobs and the city needs its transit. it is definitely important. i would urge a yes vote on this. >> karen flood. steve taber. >> good afternoon. >> good afternoon. my name is karen flood. i am the interim director and i am here to speak in the measure of the contingency fund. we have been in support of the subway since 1996 the merchant association and since 2009 our motto has been no pain, no gain. we hav

bonds. >> euro bonds make sense when you have a fiscal union. otherwise they don't make sense. >> china's factory stalled for the second con secretary could you it difference month. shanghai stocks slump. >> and india's controversial gas hike lifts stocks on state owned oil companies, but the rupee continues to hit fresh lows. >>> welcome do today's program. plenty of data. com poise it pmi 45.9, declining from 46.7. the services number weaker, 46.5. photographs at 46.about 9, a seventh month low. and the manufacturing pmi 45 again weaker than the forecast 46. this comes after disappointing pmis for both germany and france, as well. and remember the german number manufacturing 45 versus 47, new orders index, the 11th month in a row that we have contracted. we also have the ifo number. >> and the news isn't much better. you can see the reaction in the euro. down at fresh lows against the dollar. business climate index 106.9 compared to a forecast of 109.5. so again, three full points lower. a key index watched to confidence. it is also i believe

today the interest rate on the ten-year treasury bond fell to a minuscule 1.61%. that's an all time low. if bonds continue to pay so like, stocks and their potential for appreciation not to mention dividends, might look more attractive. so, what's an individual investor to do? >> potentially the best answer is do nothing. there's a lot of risk in putting money into the stock market, and there's certainly a lot of risk of continually putting money into the bond market. >> reporter: with no end in sight to europe's financial mess, expect the stock market to remain fragile this summer. suzanne pratt, "n.b.r.," new york. >> tom: still ahead, oil prices keep heading lower. it's good news at the pump, but for how long? "nightly business report" is brought to you by: captioning sponsored by wpbt >> tom: european regulators tried to calm fears around spain today by offering to give the spanish government more time to reduce its budget deficit, and use a rescue fund to loan money directly to banks. but the moves did not ease global concerns surrounding europe's financial s