$108,020,000 Taxable Obligation Bonds, June 2020
The City of Carson successfully issued $108,020,000 in Taxable Obligation Bonds in June 2020. The proceeds of the bonds refinanced the City’s Unfunded Accrued Liability (UAL) with CalPERS. The True Interest Cost (TIC) of 3.42% on the taxable bonds is significantly lower than the rate of the refinanced debt. This resulted in future pension cost reductions of over $40 million. In addition to significant budgetary savings, the City has removed budgeting uncertainty for this unfunded pension liability. Kosmont Transactions Services served as co-Municipal Advisor to the City of Carson.