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Resolution authorizing the issuance and refinancing of the City’s Pension obligations with <br />CalPERS <br />August 17, 2021 <br />Page 7 <br />1 <br />9 <br />9 <br />3 <br />FISCAL IMPACT <br />The FY21-22 budget includes an appropriation of $54.3 million (approximately $47.0 <br />million in the General Fund and $7.3 million in other restricted funds) to make payments <br />on its unfunded liability. Staff expects to close the bonds in September 2021 and make <br />the first interest payment in February 2022. Due to the timing of the bond sale and the <br />first bond payment, and the staff recommendation to hold up to $40 million in the City’s <br />Section 115 Trust account until after the CalPERS Board makes its November decisions, <br />staff expects to use bond proceeds for the remainder of the current year required <br />payment. <br />Staff proposes the following revised spending plan for FY21-22 to remain within the <br />current appropriation. <br />City Appropriation:Bond Proceeds: <br />July and August Monthly <br />Payments to CalPERS <br />for the FY21-22 <br />unfunded liability <br />obligation <br />$9.4 million Costs of Issuance (up to <br />amount) <br />$1.3 million <br />First Bond Payment in <br />February 2022 (up to <br />amount) <br />$4.9 million Remainder of the FY21- <br />22 unfunded liability <br />obligation (up to amount) <br />$46.8 million <br />Hold in Section 115 <br />Trust Account, for <br />subsequent payment to <br />CalPERS after <br />November Board <br />decisions <br />$40 million Payment on the <br />estimated $570 million <br />unfunded liability (up to <br />amount) <br />$464.9 million <br />Total FY21-22 <br />Appropriation <br />$54.3 million Bond Proceeds (up to <br />amount) <br />$513 million <br />With the Midyear report, staff expects to propose a housekeeping adjustment to shift the <br />current year spending authorization between different accounts to accommodate the first <br />bond payment, with no increase to the overall FY21-22 appropriation. <br />EXHIBIT(S) <br />1. Resolution Approving the Preliminary Official Statement and the Continuing <br />Disclosure Certificate <br />2. Preliminary Official Statement & Continuing Disclosure Certificate (Appendix E) <br />Submitted By: Kathryn Downs, Executive Director Finance and Management Services <br />Approved By: Kristine Ridge, City Manager