El Cerrito Short-Term Cash Flow Financing and Pension Prepayment

Unique Characteristics of Project: The City of El Cerrito intended to prepay its normal pension costs to take advantage of the discount offered by CalPERS if paid in full at the beginning of the fiscal year.  In addition, given recent changes to the revenue collections for sales tax, the City recognized the impact on monthly cash flow and needed to fund the short-term liquidity issues it projected early in the fiscal year.

Executive Summary: NHA Advisors worked with the City to develop a monthly cash flow projection to determine the amount of short-term funds it needed and to analyze the financial cost and benefit of borrowing funds on a short-term basis.  NHA Advisors was able to quantify the benefit of the financing and manage the sale process to provide funds under a very short timeline and at competitive rates.