HomeMy WebLinkAbout14 2011 Side Fund Refunding
WORKSHOP ITEM 2011 Side Fund Refunding2011 Side Fund Refunding August 3, 2016#14
2011 Side Fund Refunding contributions in the pension pool The District was required to ‘catch up’ to the existing participants’ •Side Fund District was moved into an enhanced benefit
pool known as the As a participating agency with fewer than 100 employees the •Retirement System (CalPERS) pooled pension planIn 2004 the District joined the California Public Employees’
•BACKGROUND / HISTORY 2011 Side Fund Refunding
2011 Side Fund Refunding District achieved over $1M total savings •Bonds mature in 2022 •The 5% rate is fixed through June 30, 2021•(POBs) at a taxable rate of 5%In 2011 the District
reduced cost by issuing pension obligation bonds •CalPERS Side Fund The District was initially paying an interest cost of 7.75% on the •BACKGROUND / HISTORY 2011 Side Fund Refunding
NEW INFORMATION activity at no cost to the Districtbinding non a Issuance of an RFP to lenders to explore interest rates and savings is •the District’s full service investment banking
firm and broker / dealer Staff has explored initial refunding opportunities with Brandis Tallman, •Current estimate of 2.7% NPV savings (goal to achieve 3%) •savings may provide sufficient
NPV savings to be worthwhileThe District would be required to pay a 3% call premium, but overall •Current indicative taxable interest rates are near 2.5% •than 5% Current interest rates
for POBs with a final maturity in 2022 are lower •2011 Side Fund Refunding 2011 Side Fund Refunding
FISCAL IMPACT Savings are not yet included in the Financial Master Plan•total The District may be able to save $28,000 annually or over $154,000 in •2011 Side Fund Refunding 2011 Side
Fund Refunding
RECOMMENDATION qualified lenders Side Fund pension obligation bonds by issuing a non binding RFP to Direct staff to continue evaluating the potential to refund the 2011 •2011 Side Fund
Refunding 2011 Side Fund Refunding