Demystifying legacy costs associated with City and Special District reorganizations

Held January 13, 2020 in Orange County

This course covers the complex topic of legacy costs including CalPERS, OPEB, leave accrual payouts, claims liabilities and other known obligations. Analysis of these costs is instructive to determine potential impact on the financial capacity of the successor agency and tax payers, as well as informing conditions of approval for LAFCos. Estimating these costs and the length of time to amortize them is crucial to decisions by a city, district, LAFCo, JPA Board and third parties such as CalPERS.

This expert panel will share lessons learned from the perspective of LAFCo and special district practitioners, the mechanics and ramifications of amendment or termination of CalPERS contracts, amortizing unfunded liabilities and application of LAFCo terms and conditions related to legacy costs from legal and state perspectives.