The City of Brawley will save approximately $300,000 a year by restructuring debt.
Last week the City of Brawley completed a transaction that paid off $16,310.000 in CalPers Side Funds. The CalPers Side Fund was created in 2003 when the City joined a risk pool in which unfunded pension benefits were deemed a liability. In January of this year the Brawley City Council authorized a validation action for issuance of Taxable Pension Obligation Bonds. The City was able to take advantage of a change in rates and terms that result in the City saving the $300,000 per year. Brawley Mayor Sam Couchman said , " We understand that we are public stewards of scarce and precious resources. This financial solution is a big way to improve our bottom line. We set out to examine what alternatives would best serve our short and long term financial needs. This is a win for the City of Brawley."