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8A <br /> Page 8 <br /> Pension obiigation bonds(POBs)will reduce annual pension costs because fhey are the <br /> equivalent of refinancing the pension debt the city has to the CaIPERS system at a lower in#erest <br /> rate. POBs for Ca}PERS employers with unfunded iiabilities in the Risk Sharing Poofs wiU have <br /> the benefit of locking in the�arnings rafe on the liability pre-payment at 7.75 percent; a fixed ra#e <br /> that exceeds the P�B cost of funds. <br /> C1t�?er employers vvill hav�the added bee�efit of eaming the actual CaIPERS eamings rate that <br /> has been between 12.3 percen#and 19.1 percent in recent years; rates that far exceed the POB <br /> cost of funds. <br /> In order to help local governments save money,Califomia Communities established the Pension <br /> Obligation 8ond Prvgram,which has refinanced$41Q million in Caiifornia Public Empioyses <br /> Retirement System(CaIPERS) unfunded liabilify#or 23 focal governments since 2004. The <br /> expected cumulative savings from the pensian bond program for these 23 agencies is more than <br /> $910 milGon. Caiifornia Cornmunities is tiie financing authority jointly sponsored by the League of <br /> Califomia Cities and the California State Association of Caunties(CSAC}. <br /> Th8�a!ifornia�nmm�r.lt�Q�program�rnvirla$: <br /> • A streamlined bond issuance process <br /> + A team of experfs handle the de#ails <br /> • Minimal interna!staf�requirements <br /> ff you are interested in determining the benefifis of issuing pensian bands and possibly joining the <br /> current program, contact California Communities Program Manager Terrenee Murphy at(800) <br /> 635-3993(ext.223)or;.r�.rta��.ii_a_`,!Cw'.�c�;�t�:�rr};"ft�iYl6%4E,i�,<)i"�,,_. You can also contact RBC Capital Markets <br /> Managing Director Catherine Bando a#(92i3) 362-4137 or r�k��K_rvr;�:;��:s!�;.+r�(n� �xx;r�;r,�.,>f. <br /> Catifornia Senate Publishes Guide to Joint Working Powers Agreem�nts <br /> 7he Cali#ornia State Senate recentky published"Governments Working Together: A Citizen's <br /> Guide to Joint Powers Agreements." The publica#ion is useful for community activists, local <br /> officials, public employees and researchers. <br /> A joint powers agreement(JPA)refers to situafions in which governmenfs agree fo combine <br /> powers and resources to address common concerris.The guide provides details on how JPAs <br /> work,discusses pros and cons associated with JPAs as we{I as informatian about how public <br /> officiafs can use JPAs to betfer deiiver services and facilities_The 32-page citizen guide aiso <br /> features a frequently asked questipn section and addifiona!resources fpr users. <br /> ro oraEr,request"Govern►nents Working Toge#her—siock number 9404-S,p and send a check <br /> (credit cards not acc�pted)for$8.08 made payable to the Senate Rules Commi#ee to: <br /> Senate Publications& Flags <br /> 1020 N Street, Room 8-53 <br /> Sacrarrsento,CA 95814 <br /> For more information, call fhe Senate Publica#ions 8�Flags office a#(916)651-1538. <br /> Find a Bili, Legistators, Leg Committee,or Ask League Leg�taff <br /> Visit(and bookmark!)the League�S �_._::�.Ef�)lf.9�J:IC:,�i'P.Sri,}��Jr,.;s.�;_Web page <br /> ._ _ __.. .�_... <br /> (•,��r:,:n:�, �EE:�^�a E���,r,F;r����.:;:°F�s). You'll find a roster and contact information for fhe League`s <br /> legislative staff; the online Bill Search program, background maferials on lobbying your <br /> legisiators, and more. <br /> 8 <br />