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Finance and Management Services Agency www.santa-ana.org/cm Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report September 21, 2021 TOPIC: Pension Debt Refinancing Update AGENDA TITLE: Pension Debt Refinancing Update RECOMMENDED ACTION Receive and file. DISCUSSION Background On August 17, 2021, the City Council took the final action necessary to authorize issuance of bonds to refinance the City’s pension debt. The purpose of this report is to provide the final bond numbers and detail the next steps in the overall strategy to achieve long-term pension debt savings. On August 25, 2021, the City sold bonds to refinance a portion of its debt to the California Public Employee Retirement System (CalPERS) for both the miscellaneous and safety employee pension plans. The financing team’s analysis to maximize savings and minimize risk determined the appropriate amount of bonds to sell. Final Bond Numbers Bonds Sold (par amount)$425,830,000 All-In True Interest Cost2.816% Net Present Value Savings$138,021,023 Costs of Issuance (paid from bond proceeds)$1,198,983 First Semi-Annual Bond Payment DateFebruary 1, 2022 First Bond Payment Amount$4,372,062 Final Bond MaturityAugust 1, 2044 Portion of Existing Debt Refinanced75% The transaction closed on September 8, 2021 and CalPERS received the bond proceeds, net of the costs of issuance. In compliance with the City Council adopted Unfunded Employee Pension Liability Cost Reduction Policy, the City applied the bond proceeds to the layers of pension debt with the longest amortization periods to maximize savings.