SACRAMENTO, Calif. (AP) — Oakland's city leaders took a risk when, rather than lay off more staff or cut services, they decided to borrow nearly $213 million to cover pension payments owed to retired city workers. They're betting that the pension fund's investments will earn more than the cost of issuing pension obligation bonds.

If they're right, a financial burden is eased. If not, the city is saddled with paying interest on top of the payments it has promised retirees.

Len Raphael, an accountant and former candidate for city council, says officials who approved the bonds last year acted without understanding the risks or crafting a long-term plan to bring the city's finances in order.