The City Council’s Finance Committee is scheduled to vote on an ordinance establishing a separate corporation to issue debt on behalf of the city at lower interest rates, as well as authorization for the first round of borrowing: $3 billion in bonds backed by sales tax revenue.

The ordinance creates an entity insulated from the city to borrow on its behalf. The obligation and the associated fees of paying off the borrowing are not secured by the City’s full faith and credit, as has been the case with past debt issuances.