Staff presented the city's long‑term debt and investments. Attachment materials show the Umqua Bank gap loan — originally $1.4 million — will be paid off this fiscal year; staff said closeout documents were received and the payoff will free approximately $87,000. Staff reported a CalPERS pension obligation bond outstanding of roughly $6.4 million and a sewage certificate of participation (COP) of about $8.9 million, the latter combining prior sewage financing and current bond proceeds for lift stations and related work.

Staff explained that the pension obligation bonds were issued in separate transactions between the general fund and the sewage fund; each fund was allocated a share of the unfunded pension liability based on cost allocations. Staff warned the council that CalPERS investment underperformance can increase unfunded liabilities and that prefunding options (Trust 115) are generally unaffordable for smaller cities.

On investments, staff listed current balances: US Bank Treasury money market ~$650,000 at about 3.7%; LAIF (Local Agency Investment Fund) ~$334,000 at ~4.34%; one CD $250,000 at ~4%; checking approximately $2.2 million; and small amounts in other accounts. Staff noted the city spends ~60% of annual expenses in the first half of the fiscal year but receives roughly 45% of revenues in that same period, which requires maintaining liquidity into winter months until major property‑tax receipts arrive in January.

Ending: Staff will proceed with Umqua loan closeout paperwork, monitor CalPERS liability changes and work with the bank to identify higher‑yield, liquid options to improve returns without harming winter cash‑flow.