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1/15/2026
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<br />RiversideCA.gov
<br />37
<br />LOOKING FORWARD: A Process to Deliver a
<br />Carefully Crafted Restructuring Solution
<br />Communication of options/risk analysis to stakeholders at
<br />future meetings to make prudent decision
<br />Use actuarial sensitivity model to carefully quantify reinvestment
<br />risks and stress-test UAL restructuring options
<br />Different sizes, different repayment shapes, lots of “what-if”
<br />scenarios
<br />Develop structuring options and pay-off strategy that
<br />mitigate risks
<br />Strategic restructuring tailored to City’s General Fund
<br />budgetary objectives and minimize risksPrimary Focus on GF
<br />portion of CalPERS costs
<br />Assess partial Misc.
<br />Plan Restructure for additional relief
<br />Focus on toxic layers of
<br />UAL that create near term peak
<br />Analyze POB vs.
<br />Internal Loan or combination of both
<br />Evaluate refi of 2004
<br />POBs to remove FY 2021 – 2023 peak
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<br />RECOMMENDED SCHEDULE
<br />Oct/Nov:
<br />Finance
<br />Dept. and
<br />Advisor
<br />evaluate
<br />preliminary
<br />options
<br />Nov/Dec: Discussions
<br />and feedback
<br />with City’s CalPERS
<br />Challenge
<br />Committee
<br />January 8:
<br />Presentation to Finance
<br />Committee; Q&A and
<br />direction
<br />given
<br />Jan 14:
<br />Presentation
<br />to CC;
<br />Underwriter
<br />RFP issued
<br />and
<br />continued
<br />due
<br />diligence
<br />and
<br />evaluation
<br />February:
<br />Hire UW,
<br />Financing
<br />team
<br />develops
<br />legal
<br />documents & refined
<br />structuring options
<br />Feb/Mar:
<br />Actuarial
<br />sensitivity
<br />analysis; refine final
<br />structuring strategy,
<br />credit rating
<br />Apr/May:
<br />Final CC
<br />approval;
<br />execute
<br />restructure
<br />and begin
<br />paying off
<br />UAL with
<br />CalPERS
<br />APPENDIX
<br />WRAPPING CONCEPT EXPLAINED
<br />LEVEL AMORTIZATION VS. PRINCIPAL DEFERRAL
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<br />•Some degree of wrapping (principal deferral) may be desired to stabilize aggregate payments
<br />–Two extremes shown below (teal/light teal) for presentation purposes
<br />PRINCIPAL DEFERRAL (WRAPPING) CONCEPT
<br />0
<br />5,000,000
<br />10,000,000
<br />15,000,000
<br />20,000,000
<br />25,000,000
<br />30,000,000
<br />35,000,000
<br />40,000,000
<br />45,000,000
<br />50,000,000
<br />55,000,000
<br />60,000,000
<br />65,000,000
<br />20
<br />2
<br />1
<br />20
<br />2
<br />3
<br />20
<br />2
<br />5
<br />20
<br />2
<br />7
<br />20
<br />2
<br />9
<br />20
<br />3
<br />1
<br />20
<br />3
<br />3
<br />20
<br />3
<br />5
<br />20
<br />3
<br />7
<br />20
<br />3
<br />9
<br />20
<br />4
<br />1
<br />20
<br />4
<br />3
<br />20
<br />4
<br />5
<br />20
<br />4
<br />7
<br />20
<br />4
<br />9
<br />0
<br />5,000,000
<br />10,000,000
<br />15,000,000
<br />20,000,000
<br />25,000,000
<br />30,000,000
<br />35,000,000
<br />40,000,000
<br />45,000,000
<br />50,000,000
<br />55,000,000
<br />60,000,000
<br />65,000,000
<br />20
<br />2
<br />1
<br />20
<br />2
<br />3
<br />20
<br />2
<br />5
<br />20
<br />2
<br />7
<br />20
<br />2
<br />9
<br />20
<br />3
<br />1
<br />20
<br />3
<br />3
<br />20
<br />3
<br />5
<br />20
<br />3
<br />7
<br />20
<br />3
<br />9
<br />20
<br />4
<br />1
<br />20
<br />4
<br />3
<br />20
<br />4
<br />5
<br />20
<br />4
<br />7
<br />20
<br />4
<br />9
<br />No Wrap; Level POB Amortization
<br />More Near Term
<br />Savings + More
<br />Smoothing Higher
<br />Payments
<br />Full Wrap; POB Principal Deferral
<br />37 38
<br />39 40
<br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F
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