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Finance and Management Services Agency <br />www.santa-ana.org/cm <br />Item # 9 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />September 21, 2021 <br />TOPIC: Pension Debt Refinancing Update <br />AGENDA TITLE: <br />Pension Debt Refinancing Update <br />RECOMMENDED ACTION <br />Receive and file. <br />DISCUSSION <br />Background <br />On August 17, 2021, the City Council took the final action necessary to authorize issuance <br />of bonds to refinance the City’s pension debt. The purpose of this report is to provide the <br />final bond numbers and detail the next steps in the overall strategy to achieve long-term <br />pension debt savings. <br />On August 25, 2021, the City sold bonds to refinance a portion of its debt to the California <br />Public Employee Retirement System (CalPERS) for both the miscellaneous and safety <br />employee pension plans. The financing team’s analysis to maximize savings and <br />minimize risk determined the appropriate amount of bonds to sell. <br />Final Bond Numbers <br />Bonds Sold (par amount)$425,830,000 <br />All-In True Interest Cost 2.816% <br />Net Present Value Savings $138,021,023 <br />Costs of Issuance (paid from bond proceeds)$1,198,983 <br />First Semi-Annual Bond Payment Date February 1, 2022 <br />First Bond Payment Amount $4,372,062 <br />Final Bond Maturity August 1, 2044 <br />Portion of Existing Debt Refinanced 75% <br />The transaction closed on September 8, 2021 and CalPERS received the bond proceeds, <br />net of the costs of issuance. In compliance with the City Council adopted Unfunded <br />Employee Pension Liability Cost Reduction Policy, the City applied the bond proceeds to <br />the layers of pension debt with the longest amortization periods to maximize savings.