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1/15/2026
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<br />RiversideCA.gov
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<br />•POBs were commonplace in the 1990’s and 2000’s
<br />–150+ issued nationwide; over 75 in CA
<br />•After San Bernardino and Stockton bankruptcies, investors
<br />became skittish about purchasing POBs and issuance halted
<br />•Over last 2 years, investor interest in POBs has grown; feasible for
<br />cities who:
<br />1.Have a strong credit rating (“A” or higher); or
<br />2.Structure with very short maturity; or
<br />3.Have a pension tax override (only 22 cities in CA have this)
<br />•Near record low interest rates in bond market have resulted in
<br />strong interest in POB’s by CalPERS members
<br />POB HISTORY
<br />RiversideCA.gov
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<br />CURRENT INTEREST RATES AT HISTORICAL LOWS
<br />30-Year History of the 30-Year Treasury Rate
<br />1.00%
<br />2.00%
<br />3.00%
<br />4.00%
<br />5.00%
<br />6.00%
<br />7.00%
<br />8.00%
<br />9.00%
<br />10.00%
<br />Nov-89 Nov-94 Nov-99 Nov-04 Nov-09 Nov-14 Nov-19
<br />RiversideCA.gov
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<br />SELECTED RECENT POB ISSUANCES
<br />Monterey
<br />Regional FD Pacifica Marysville Hawthorne Glendora Baldwin
<br />Park
<br />(2019)(2019)(2019)(2019)(2019)(2019)
<br />AA-AA+A AA-AAA AA-
<br />Chowchilla Tulare
<br />County La Verne Riverside Monrovia Brawley
<br />(2019)(2018)(2018)(2017)(2017)(2017)
<br />A+AA-AA+AA-AA A-
<br />RiversideCA.gov
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<br />RECENT POBS
<br />Restructuring for Smoothing is a Common Theme
<br /> $-
<br /> $1,000,000
<br /> $2,000,000
<br /> $3,000,000
<br /> $4,000,000
<br /> $5,000,000
<br /> $6,000,000
<br /> $7,000,000
<br />20
<br />2
<br />1
<br />20
<br />2
<br />2
<br />20
<br />2
<br />3
<br />20
<br />2
<br />4
<br />20
<br />2
<br />5
<br />20
<br />2
<br />6
<br />20
<br />2
<br />7
<br />20
<br />2
<br />8
<br />20
<br />2
<br />9
<br />20
<br />3
<br />0
<br />20
<br />3
<br />1
<br />20
<br />3
<br />2
<br />20
<br />3
<br />3
<br />20
<br />3
<br />4
<br />20
<br />3
<br />5
<br />20
<br />3
<br />6
<br />20
<br />3
<br />7
<br />20
<br />3
<br />8
<br />20
<br />3
<br />9
<br />20
<br />4
<br />0
<br />20
<br />4
<br />1
<br />20
<br />4
<br />2
<br />20
<br />4
<br />3
<br />20
<br />4
<br />4
<br />20
<br />4
<br />5
<br />20
<br />4
<br />6
<br />20
<br />4
<br />7
<br />Glendora $64M POB (100% UAL; 2.85% Interest Rate )
<br />Miscellaneous Total Safety 2019 POB
<br /> $-
<br /> $2,000,000
<br /> $4,000,000
<br /> $6,000,000
<br /> $8,000,000
<br /> $10,000,000
<br /> $12,000,000
<br /> $14,000,000
<br />20
<br />2
<br />1
<br />20
<br />2
<br />2
<br />20
<br />2
<br />3
<br />20
<br />2
<br />4
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<br />2
<br />5
<br />20
<br />2
<br />6
<br />20
<br />2
<br />7
<br />20
<br />2
<br />8
<br />20
<br />2
<br />9
<br />20
<br />3
<br />0
<br />20
<br />3
<br />1
<br />20
<br />3
<br />2
<br />20
<br />3
<br />3
<br />20
<br />3
<br />4
<br />20
<br />3
<br />5
<br />20
<br />3
<br />6
<br />20
<br />3
<br />7
<br />20
<br />3
<br />8
<br />20
<br />3
<br />9
<br />20
<br />4
<br />0
<br />20
<br />4
<br />1
<br />20
<br />4
<br />2
<br />20
<br />4
<br />3
<br />20
<br />4
<br />4
<br />20
<br />4
<br />5
<br />20
<br />4
<br />6
<br />20
<br />4
<br />7
<br />20
<br />4
<br />8
<br />20
<br />4
<br />9
<br />20
<br />5
<br />0
<br />Hawthorne $120M POB (100% UAL; 3.6% Interest Rate)
<br />Miscellaneous Total Safety 2019 POB
<br /> $-
<br /> $1,000,000
<br /> $2,000,000
<br /> $3,000,000
<br /> $4,000,000
<br /> $5,000,000
<br /> $6,000,000
<br /> $7,000,000
<br />20
<br />2
<br />0
<br />20
<br />2
<br />1
<br />20
<br />2
<br />2
<br />20
<br />2
<br />3
<br />20
<br />2
<br />4
<br />20
<br />2
<br />5
<br />20
<br />2
<br />6
<br />20
<br />2
<br />7
<br />20
<br />2
<br />8
<br />20
<br />2
<br />9
<br />20
<br />3
<br />0
<br />20
<br />3
<br />1
<br />20
<br />3
<br />2
<br />20
<br />3
<br />3
<br />20
<br />3
<br />4
<br />20
<br />3
<br />5
<br />20
<br />3
<br />6
<br />20
<br />3
<br />7
<br />20
<br />3
<br />8
<br />20
<br />3
<br />9
<br />20
<br />4
<br />0
<br />20
<br />4
<br />1
<br />20
<br />4
<br />2
<br />20
<br />4
<br />3
<br />20
<br />4
<br />4
<br />20
<br />4
<br />5
<br />20
<br />4
<br />6
<br />20
<br />4
<br />7
<br />20
<br />4
<br />8
<br />La Verne $54 POB (100% UAL; 4.26% Interest Rate)
<br />Total Miscellaneous Total Safety 2018 POB
<br /> $-
<br /> $2,000,000
<br /> $4,000,000
<br /> $6,000,000
<br /> $8,000,000
<br /> $10,000,000
<br /> $12,000,000
<br />20
<br />1
<br />9
<br />20
<br />2
<br />0
<br />20
<br />2
<br />1
<br />20
<br />2
<br />2
<br />20
<br />2
<br />3
<br />20
<br />2
<br />4
<br />20
<br />2
<br />5
<br />20
<br />2
<br />6
<br />20
<br />2
<br />7
<br />20
<br />2
<br />8
<br />20
<br />2
<br />9
<br />20
<br />3
<br />0
<br />20
<br />3
<br />1
<br />20
<br />3
<br />2
<br />20
<br />3
<br />3
<br />20
<br />3
<br />4
<br />20
<br />3
<br />5
<br />20
<br />3
<br />6
<br />20
<br />3
<br />7
<br />20
<br />3
<br />8
<br />20
<br />3
<br />9
<br />20
<br />4
<br />0
<br />20
<br />4
<br />1
<br />20
<br />4
<br />2
<br />20
<br />4
<br />3
<br />20
<br />4
<br />4
<br />20
<br />4
<br />5
<br />20
<br />4
<br />6
<br />20
<br />4
<br />7
<br />20
<br />4
<br />8
<br />Monrovia $112M POB (100% UAL; 4.05% Interest Rate)
<br />Miscellaneous Total Safety 2017 POB
<br />Note: Interest rates and UAL funding all
<br />estimated based on review of bond documents
<br />V. ADDRESSING RISKS AND CONCERNS
<br />RiversideCA.gov
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<br />PRIMARY RISKS AND CONCERNS
<br />(1) Re-Investment/Market Timing Risk
<br />(2) Future UAL Can Still Change
<br />(3) Principal Deferral/Maturity Extension
<br />(4) Increased Bond Debt
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<br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F
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