The City of West Covina has issued $204.1 million in taxable lease revenue pension bonds. Standard & Poors assigned an “A+” rating on the bonds. This initiative was implemented after careful review to address the City’s outstanding unfunded CalPERS pension system liability. The team included City Attorney Jones & Mayer, Municipal Advisor Wolf & Co, Underwriter Hilltop Securities and Bond Counsel Norton Rose Fulbright.
California municipalities must plan for post-pandemic fiscal realities. This plan received widespread support from the City Council, and now with the investor community,” said City Manager Dave Carmany. “It demonstrates investor confidence in this plan’s impact on the City of West Covina’s bottom line. The net present value savings is more than $44 million dollars.”
Economic downturn could worsen the vulnerability of California’s already challenged pension system. Statewide, California’s unfunded pension liabilities total approximately $93.1 billion between CalPERS and CalSTRS. Municipal budgets will have to fill the financial gap caused by any market declines. #ICMA #citymanagement #usc #uscprice #publicadministration #pensions #Jones&Mayer #nortonrosefulbright #wolfco
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