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1/15/2026 4 RiversideCA.gov 19 NEAR TERM SAVINGS RANGE Estimated Savings Dependent on Size of Restructuring •$5M to $9M in average annual savings for first 15 years •$10M to $14M in average annual savings for first 15 years •$15M to $20M+ in average annual savings for first 15 years Small $150M - $200M (25-30% of UAL) Medium $250M - $375M (40-60% of UAL) Large $400M - $600M (60-95% of UAL) RiversideCA.gov 20 UAL RESTRUCTURING – SIZING CONCEPTS Balancing Risk vs. Reward Less UAL Taken Out = +Lower amount of reinvestment / market timing risk BUT-Lower amount of potential savings and ability to smooth payments More UAL Taken Out = +Largest amount of potential savings and payment smoothing BUT-Higher re-investment / market timing risk Risks discussed in detail in Section V RiversideCA.gov 21 •For ease of presentation, detailed savings analysis only shown for a medium-size restructure –Many other alternatives would be evaluated during proposed due diligence process •$300M size chosen to balance risk/reward and maximize savings to General Fund •Level debt service amortization assumed with first three years interest only BASE CASE: $300M RESTRUCTURING RiversideCA.gov 22 •Annual savings for next 15 years ranges up to $14M; averaging about $10.5M –$175M total savings through FY 2039 •Increased annual payments ranges up to 18M from FY 2040 to FY 2050 –$125M total increase in payments after FY 2039 •Cumulative estimated savings of $50M –Even with longer amortization and 3- years interest only BASE CASE: $300M MEDIUM SIZE RESTRUCTURE Chart and Estimated Savings $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 $55,000,000 $60,000,000 $65,000,000 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 4 1 20 4 2 20 4 3 20 4 4 20 4 5 20 4 6 20 4 7 20 4 8 20 4 9 20 5 0 Orange Line represents current total payments (before a UAL restructure) Est. NEW POB Interest Remaining GF UAL Payments to CalPERS Other GF Debt RiversideCA.gov 23 1.$300M POB (≈ 47% of total City UAL) could potentially generate over $10M of average annual savings for the next 15 years –More near term savings could be created (at the expense of larger payments in out years) and overall payment shape further smoothed if principal deferral technique is used (see appendix for technical details) 2.The City and its advisor will explore smaller and larger options and various amortization shapes during recommended due diligence period 3.Under any scenario, even a principal deferral one, it is the City’s intention to ensure that projected payments after a restructuring are lower than currently projected (without a restructuring) TAKEAWAYS FROM BASE CASE ANALYSIS IV. RECENT UAL RESTRUCTURINGS BY OTHER CITIES 19 20 21 22 23 24 Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F