Finance Highlights 2011 1202 - Laserfiche WebLink

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Not later than the third Business Day immediately preceding each Interest Payment Date, the City is required to transfer to the Trustee for deposit in the Interest Account and the Principal Account, as applicable, of the Debt Service Fund, an amount which, when added to the amount then on deposit in the such Account, equals the aggregate amount coming due and payable on the Bonds on such date. Funds held by the Trustee may be invested in Permitted Investments (as defined in the Indenture) specified by the City. In the absence of any such direction from the City, the Trustee will invest any such amounts in Permitted Investments consisting of money market funds. The Bonds are not Lease Revenue Bonds The Bonds are an obligation of the City payable from any legally available funds. Unlike most bonds payable from the general fund of a California city, the Bonds are not lease revenue bonds. This means that the City's obligation to pay debt service is not a contingent lease obligation that is based on the availability of a leased asset and is not subject to abatement in the event the leased asset is not available for use and occupancy of the City. In addition, because the Bonds are not lease revenue bonds, the City's obligation to pay debt service is subject to acceleration in the event of a default by the City under the Indenture. PERS PENSION PLANS General. The following information concerning PERS is excerpted from publicly available sources, which the City believes to be accurate. PERS is not obligated in any manner for payment of debt service on the Bonds, and the assets of PERS are not available for such payment. PERS should be contacted directly at CaIPERS, Lincoln Plaza, 400 P Street Sacramento, California 95814 or (888) 225 -7377 for other information, including information relating to its financial position and investments. The City provides retirement benefits to certain of their employees through contracts with PERS, a multiple - employer public sector employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of- living adjustments and death benefits to PERS members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State. PERS is a contributory plan deriving funds from employee contributions as well as from employer contributions and earnings from investments. PERS maintains more than one pension plan for cities based on the type of employee (i.e. a city may have a plan for "Safety Employees" and a separate plan for "Miscellaneous Employees "). The City contributes to PERS amounts equal to the recommended rates for the PERS Plans multiplied by the payroll of those employees of the City who are eligible under PERS. Actuarial Valuations. The staff actuaries at PERS prepare annually an actuarial valuation which covers a fiscal year ending approximately 15 months before the actuarial valuation is prepared. The actuarial valuations express the City's required contribution rates in percentages of payroll, which percentages the City must contribute in the fiscal year immediately following the fiscal year in which the actuarial valuation is prepared. PERS rules require the City to implement the actuary's recommended rates. 9