Dear Legislators,
Last week the City of Chula Vista paid big fees to Wall Street firms and lied about the consequences of the transaction.
On February 12, Chula Vista issued $350 million in pension obligation bonds that it claims allow it to convert 7% debt to 2.54% debt. But no such conversion took place. As explained here, POBs don’t convert debt. They increase pension assets.
POBs are nothing more than interest-bearing and fee-generating accounting schemes. Tell your local governments to just say no.
