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Agenda Item

N.4. 21-2050 DISCUSSION AND POSSIBLE ACTION REGARDING REFINANCING OPTIONS AVAILABLE TO THE CITY TO REDUCE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) UNFUNDED ACCRUED LIABILITY (UAL) PENSION COSTS DISCUSSION AND POSSIBLE ACTION ON THE PRESENTATION PROVIDED BY KOSMONT TRANSACTIONS SERVICES, INC. (KTS) ON CALPERS UAL REFINANCING DISCUSSION AND POSSIBLE ACTION REGARDING THE PROCESS TO OBTAIN ALL PROFESSIONAL SERVICES NEEDED TO ASSIST THE CITY WITH EXECUTION OF CALPERS UAL REFINANCING, IF PURSUED DISCUSSION AND POSSIBLE ACTION RELATED TO THE CONTRACT WITH KTS FOR MUNICIPAL ADVISORY ACTIVITIES ASSOCIATED WITH ANALYZING AND SECURING CALPERS UAL REFINANCING

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    Eugene Solomon almost 4 years ago

    Thank you for considering this solution to our UAL.
    When reviewed by the Budget & Finance Commission I found this information helpful.
    We can potentially save $50-90 million and recognize some of these savings immediately
    Some of the savings can be placed in a separate Section 115 fund to help with infrastructure such as Civic Center improvements or the parking lot in Riviera Village that has been discussed And/or waterfront improvements
    We can fund bonds for less than 100% of the UAL
    Using this solution creates predictable level payments making long term budgeting easier.
    CALPERS is performing their Quadrennial reset of numbers that will likely lead to our obligations increasing.
    According to the vendor -presenter investors prefer the Lease revenue Bond option.
    Bonds are callable after 10 years
    Thank you for the time and courtesy