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1/15/2026 <br />2 <br />RiversideCA.gov <br />7 <br />•Size: City evaluated sizes ranging from $100M to $642M <br />•Length/Term: City evaluated keeping POB at same <br />maturity as current UAL (2045) and also extending debt <br />out to 25 to 30 years <br />•Shapes: Level Debt Service vs. Proportional Savings <br />POB OPTIONS EVALUATED <br />RiversideCA.gov <br />8 <br />•Minimum of $7M in General Fund (GF) annual savings targeted for <br />FY 2021 and FY 2022 <br />–At least $9-$10M in annual GF savings from FY 2023 - FY 2032 <br />•Helps to address a sizable portion (but not all) of projected deficits <br />•Target both Safety and Miscellaneous Plans <br />–Equitably spread savings to both plans <br />–Keep funding ratios under 95%, reducing the risk of overfunding <br />•Proportional Savings <br />–Original strategy (Jan./Feb.) focused on level debt service option with <br />maturity extension <br />–Currently recommended proportional option doesn’t extend maturity and creates savings in every year <br />KEY OBJECTIVES DRIVING REFINED OPTIONS <br />RiversideCA.gov <br />9 <br />WHY THE TRANSITION FROM LEVEL DEBT SERVICE <br />TO PROPORTIONAL SAVINGS? <br /> - <br /> 10.0 <br /> 20.0 <br /> 30.0 <br /> 40.0 <br /> 50.0 <br /> 60.0 <br /> 70.0 <br /> 80.0 <br />Current UAL Payments <br />Est. Payments After POB (Proportional - No Extension) <br />Est. Payments After POB (Level Pmts - w/Maturity Extension) <br />Prior Level Debt Service strategy <br />created more upfront savings, but <br />higher payments on the back end <br />with extended maturity <br />New Proportional <br />savings strategy <br />creates savings in <br />every year and lowers <br />the interest rate and <br />length of debt <br />III. REFINED STRUCTURING <br />OPTIONS FOR REVIEW <br />RiversideCA.gov <br />11 <br />1.55% of Total UAL (≈$350M) <br />–Increases funding ratio (assets/liability) to 89% <br />2.67% of Total UAL (≈$430M) <br />–Increases funding ratio (assets/liability) to 92% <br />3.79% of Total UAL (≈$500M) <br />–Increases funding ratio (assets/liability) to 95% <br />* Funding ratios based on most recent actuarial valuation and do not reflect potential FY 2019/20 <br />CalPERS returns (see Section VI – Impacts of Recent Market Developments for more detail) <br />REFINED STRUCTURING OPTIONS <br />3 SCENARIOS – ALL PROPORTIONAL SAVINGS <br />RiversideCA.gov <br />12 <br />POB OPTIONS – SUMMARY OF SAVINGS* <br />____________________ <br />Note: All present value calculations discounted at All-in Interest Rate with Costs for each scenario <br />* Preliminary estimates; subject to change depending on market conditions and other factors <br />Summary of Financing Scenario 1 Scenario 2 Scenario 3 <br />% of Safety UAL Funded 60%70%80% <br />% of Miscellaneous UAL Funded 50%64%77% <br />Total UAL Funded ($ millions)$353.90 $430.70 $503.40 <br />Target Funding Ratio (Both Plans)89%92%95% <br />All-in Interest Rate with Costs 3.53%3.53%3.53% <br />Average Life of Bonds (Years)12.1 11.6 11.3 <br />Projected Benefit Summary <br />Projected Cumulative Benefit <br />($ millions) <br />Projected Present Value Benefit <br />($ millions) <br />Projected Present Value Benefit <br />(% of UAL Funded) <br />Projected Annual General Fund Savings (2021- <br />2032, $ millions)$7.0 - $10.0 $7.0 - $10.9 $7.0 - $13.0 <br />28.67%27.99%28.03% <br />$132.20 $159.88 $195.45 <br />$101.47 $120.56 $141.38 <br />7 8 <br />9 10 <br />11 12 <br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F