Marysville officials issued low-interest pension obligation bonds this week to reduce the burden of the city’s CalPERS unfunded pension liability and its B Street property debt. The move is expected to save the city approximately $9.8 million over the term of the bonds, or $385,000 annually.

Currently, the city’s annual CalPERs interest rate for its unfunded pension liability is around 7 percent. Under the new financing structure, it will lock in an interest rate of 3.75 percent, resulting in annual savings of an estimated $260,000. The bond will be paid off in 2046 and is estimated to save the city a total of $7.1 million.

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