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Case Study: San Benito County Water District - UAL Refinancing

Updated: Sep 11, 2023

In April 2021, The Weist Law Firm (Weist Law) served as sole bond counsel for the San Benito County Water District’s issuance of $3,016,000 Series 2021 Taxable Revenue Obligations (CalPERS UAL Prepayment Project), issued to refinance the District’s outstanding unfunded accrued liability (UAL) associated with their CalPERS “classic” pension plans.


Weist Law, as Bond Counsel, along with California Municipal Advisors LLC (CalMuni Advisors), as Municipal Advisor, started working with the San Benito County Water District back in January 2021 to provide in-depth analysis of the District’s pension plans and the various mitigation strategies for each of the plans. The comprehensive study sessions evolved into discussion of refinancing (the “Refinancing”) of outstanding UAL as one of the mitigation strategies to reverse the trend of escalating year-over-year payments being made to CalPERS.

Due to accumulation of amortizing UAL bases over the years, the District was facing steeply increasing UAL cost curves, with the UAL Payments increasing dramatically from FY 2020 to FY 2032-33. The following graph depicts the before and after effect of the Refinancing.


The transaction resulted in total cash flow savings to the District of approximately $1,595,000 and as importantly, reshaped escalating payments to level debt service payments over the 15-

year term of the 2021 Obligations and due to a unique Net Revenue pledge structure, the District was able to achieve a 15-year taxable interest rate of 2.94% which equates to a 2.05%

tax-exempt rate with total costs of issuance under $70,000.

For a downloadable version of this Case Study, click here. If you are interested in learning more about this, or any other transaction completed by Weist Law, contact us at


The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact a designated Weist Law representative. This material may be considered advertising under certain rules of professional conduct.

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