The City Council approved the issuance of California Municipal Finance Authority bonds in an aggregate principal amount not to exceed $60,000,000 to finance and refinance the acquisition, renovation, equipping, and construction of mental health facilities for Gateways Hospital and Mental Health Center. The financing will support acquisition of the 96-bed Percy Village facility at 3455 Percy Street, the 60-bed adult facility at 1355 South Hill Street, and construction of a new behavioral health facility at 1891 Effie Street. Under the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing held on April 15, 2025, the City satisfied Internal Revenue Code Section 147(f) requirements, and no City funds will be pledged; the bonds are conduit obligations payable solely by the Borrower. The resolution constitutes the City’s approval under Section 4 of the Joint Powers Agreement with CMFA and allows the refinancing of existing California Health Facilities Financing Authority Insured Revenue Bonds from 2011. Proceeds will refinance the 43,900-square-foot Percy Village building and the 15,024-square-foot South Hill Street building and equip the facilities to serve individuals with mental illness.