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ACTION ITEM #102011 Pension Side Fund Refunding2011 Pension Side Fund Refunding
2011 Pension 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 Pension Side Fund Refunding
2011 Pension Side Fund Refunding potential savingsissue a request for proposals to qualified lenders to evaluate During a workshop held August 3, 2016 the Board directed staff to •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 Pension Side Fund Refunding
NEW INFORMATION proposal was not as favorable as other lenders The existing lender, Umpqua Bank, did respond however the overall •rate and terms in compliance with the RFPBB&T provided
the most favorable overall proposal with a 2.47% interest •No change to final maturity (FY22)•Interest rates varied from 2.47% to 4.75% •and conditions, and overall cost savings 6 responses
received and reviewed for compliance with the RFP, terms •11 lenders were provided the RFP •Fund Refunding Pension Side 2011 Fund Refunding Pension Side 2011
FISCAL IMPACT Savings are not yet included in the Financial Master Plan•total The District will be able to save $27,000 annually or over $154,000 in •Pension Side 2011 Pension Side 2011
RECOMMENDATION Series 2011onds, Bbligation Ofor the refunding of the District’s Taxable Pension Direct staff to prepare final financing documents for Board approval •Fund Refunding Pension
side the 2011 Authorize the General Manager to select the most favorable lender for •Fund Refunding Pension Side 2011 Fund Refunding Pension Side 2011