The Weist Law Firm (Weist Law) served as sole bond counsel for the City of Ukiah’s issuance of $49,875,000 Taxable Lease Revenue Bonds (CalPERS Prepayment Project), issued to refinance the City’s outstanding unfunded accrued liability (UAL) associated with their CalPERS “classic” pension plans.
WeistLaw, as Bond Counsel, worked closely with the City of Ukiah to spearhead a complex legal and financing strategy culminating in the City’s pension plan funded status rising from approximately 70% funded to over 93% funded. Projected savings over the first 15 years is projected to be greater than $24 million, providing much needed budget resiliency due to the uncertainties surrounding Covid-19 impacts.
Due to accumulation of amortizing UAL bases over the years, the City was facing steeply increasing UAL cost curves, with the UAL Payments approximately doubling from FY 2020 to FY 2032-33. The following graph depicts the before and after effect of the UAL pay down.
In addition to the projected savings, the transaction resulted provided the City with budget predictability and resiliency, reshaped escalating payments to near-level debt service payments over the 29-year term of the Bonds.
The Bonds received an S&P rating of A+ and were issued without a reserve fund, which created further fiscal efficiencies.
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