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REQUEST FOR PROPOSALS FOR PENSION FUNDING STRATEGY FOR EMPLOYEE RETIREMENT Page 3 Case Study: City of Walnut Creek NHA worked with the City of Walnut Creek in early 2025 to (1) educate stakeholders about their CalPERS pension liability, (2) provide stress testing scenario modeling to account for potential changes to the discount rate in the future, (3) develop a customized model that helped optimize the timing and amounts of Section 115 Trust deposits and withdrawals, and (4) review and support potential changes to the City’s pension funding policy. Similar to the City of Pleasanton, Walnut Creek projected sizeable General Fund deficits caused by rising pension increases and needed a “fresh look” at how their Section 115 Trust assets could be best leveraged. Ultimately, City staff and NHA tag-teamed a presentation to Council that garnered unanimous support to amend their budget and reserve/pension policies. Included in Appendix B is the final presentation to Council, as well as the staff report. We would encourage you to reach out to Kirsten LaCasse (Administrative Services Director) and Dan Buckshi (City Manager) as a reference. Case Study: City of Riverside NHA was hired in 2018 to serve as the City’s pension consultant and was tasked to provide robust education about pension cost management to several of the City’s stakeholders, including department heads, labor groups, and Council. The City used this work to develop their “CalPERS Challenge” project, which encouraged significant stakeholder education and idea sharing to better illuminate this growing challenge and develop strategies. NHA then served as the City’s consultant and municipal advisor on its $430 million Pension Obligation Bond (“POB”) in 2020. This financing was the culmination of 9 months of significant due diligence, risk assessment/stress testing, scenario modeling, and Council education. Policy was adopted to soak up any savings from the POB and place into its Section 115 Trust, a balance that is now closing in on $100 million. Annually, the City relies upon NHA to “re-fresh” the ongoing strategy, which includes tailored ADPs, Fresh Start, and Section 115 Trust smoothing analysis. While there are dozens of materials that can be shared from this work, Appendix C includes the materials listed below. We would encourage you to reach out to Edward Enriquez (Assistant City Manager/CFO) as a reference. • 2018 CalPERS Education and Cost Management Strategies • January 2020 POB Workshop • May 2020 Final POB Approval With Stress Testing and Risk Assessment • 2023 Analysis of 6/30/2022 CalPERS Valuation Case Study: City of Santa Rosa Like Pleasanton, as well as Walnut Creek and Riverside, Santa Rosa is currently facing near term deficits in the General Fund. NHA was hired in 2025 and HAS NOT been in front of Council yet but is working closely with the Finance Director (Scott Wagner) to develop tailored options to leverage the current assets in the Section 115 Trust over the next 7-10 years. ADPs, Fresh Starts, and Section 115 Trust smoothing have been analyzed, with a hybrid Fresh Start/115 “ramp-up” option being preliminarily tailored for maximum budget relief and stakeholder buy in. While currently NOT being recommended, a policy that allows for a POB when certain parameters are met is also being evaluated. The draft presentation we’ve worked on with Scott is attached as Appendix D, and we believe a version of this will make its way to council next month, with accompanying changes being recommended for their pension funding policy. Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F