Water_Agency_Swap_Confirm_2.pdf

This is a swap confirmation document related to Sacramento County's water agency revenue bonds. The document confirms the terms of an interest rate swap agreement entered into by the County for its 2007B Water Agency Revenue Bonds, which are indexed to the Secured Overnight Financing Rate (SOFR). The swap agreement establishes the County's obligations and rights regarding the hedging of its variable rate debt exposure. The County is currently seeking proposals from swap advisory firms through its Request for Proposals for Swap Advisory Services to provide ongoing advisory support, rate validation services, and analysis related to existing and potential future swap agreements. The advisory contract is intended for a four-year initial term with an option to extend for an additional one year, during which the selected advisor will work alongside the County's existing financing team comprised of PFM Financial Advisors LLC as Municipal Advisor, Orrick as Bond Counsel, and Stradling Yocca Carlson & Rauth, P.C. as Disclosure Counsel.

The confirmation document establishes the specific terms and conditions of the County's existing swap arrangement for the Water Agency Revenue Bonds. The County is evaluating proposals that may include not only advisory services for ongoing swap management but also swap valuation services and accounting compliance reporting under GASB 53 and GASB 72 standards as a potential second phase of the engagement. This procurement demonstrates the County's commitment to sophisticated debt management practices and maintaining appropriate hedging strategies for its variable rate obligations in the current interest rate environment.