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1/15/2026
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<br />Cost Management Strategy Option 1
<br />Net General Fund UAL Payments
<br />Fresh Start + 6 Year Section 115
<br />Ramp Up
<br />Assumes $16M of Section 115
<br />Trust assets, growing @ 5% per
<br />year, is exhausted over the next
<br />6 years (2027 – 2032)
<br />Annual net General Fund
<br />payment growing 2% a year –
<br />from $32M to $37M – to
<br />provide near-term budget relief
<br />$27.7M of General Fund cash
<br />flow reduction over next 7
<br />years (2027 – 2033)
<br />UAL Payments
<br />(6/30/2024 Valuation)
<br />Net Payments
<br />(Fresh Start + Section
<br />115 Trust)
<br />20
<br />Cost Management Strategy Option 1
<br />Net General Fund UAL Payments
<br />Option 1 (Fresh Start + Section 115 Trust)
<br />Fiscal Year UAL Payments (6/30/2024
<br />Actuarial Valuation)Fresh Start UAL Payments Section 115 Trust
<br />Withdrawals
<br />Net General Fund UAL
<br />Payment
<br />Difference vs. Current UAL
<br />Payments
<br />2027 $35,015,828 $37,061,953 $4,574,658 $32,487,295 $2,528,533
<br />2028 $36,357,877 $37,061,953 $3,924,912 $33,137,041 $3,220,836
<br />2029 $39,837,741 $37,061,953 $3,262,171 $33,799,782 $6,037,959
<br />2030 $40,286,223 $37,061,953 $2,586,176 $34,475,778 $5,810,445
<br />2031 $40,616,348 $37,061,953 $1,896,660 $35,165,293 $5,451,055
<br />2032 $38,997,006 $37,061,953 $1,193,354 $35,868,599 $3,128,407
<br />2033 $38,552,470 $37,061,953 $0 $37,061,953 $1,490,517
<br />2034 $36,252,430 $37,061,953 $0 $37,061,953 ($809,523)
<br />2035 $35,228,412 $37,061,953 $0 $37,061,953 ($1,833,541)
<br />2036 $33,626,066 $37,061,953 $0 $37,061,953 ($3,435,887)
<br />2037 $30,832,267 $37,061,953 $0 $37,061,953 ($6,229,686)
<br />2038 $29,338,058 $37,061,953 $0 $37,061,953 ($7,723,896)
<br />2039 $27,743,033 $37,061,953 $0 $37,061,953 ($9,318,921)
<br />2040 $26,536,004 $37,061,953 $0 $37,061,953 ($10,525,949)
<br />2041 $26,616,412 $37,061,953 $0 $37,061,953 ($10,445,541)
<br />2042 $22,426,469 $24,103,575 $0 $24,103,575 ($1,677,106)
<br />2043 $19,287,919 $0 $0 $0 $19,287,919
<br />2044 $26,904,814 $0 $0 $0 $26,904,814
<br />2045 $1,636,761 $0 $0 $0 $1,636,761
<br />2046 $378,302 $0 $0 $0 $378,302
<br />2047 $1,009,892 $0 $0 $0 $1,009,892
<br />2048 $195,331 $0 $0 $0 $195,331
<br />Total $587,675,666 $580,032,875 $17,437,932 $562,594,943 $25,080,723
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<br />Cost Management Strategy Option 2
<br />Net General Fund UAL Payments
<br />No Fresh Start, but still execute
<br />a 6 Year Section 115 Ramp Up
<br />Assumes $16M of Section 115
<br />Trust assets, growing @ 5% per
<br />year, is exhausted over the next
<br />6 years (2027 – 2032)
<br />Annual net General Fund
<br />payment growing 2% a year –
<br />from $34M to $39M – to
<br />provide near-term budget relief
<br />$18.2M of General Fund cash
<br />flow reduction over next 7
<br />years (2027 – 2033)
<br />UAL Payments
<br />(6/30/2024 Valuation)
<br />Net Payments
<br />(Current UAL +
<br />Section 115 Trust)
<br />22
<br />Cost Management Strategy Option 2
<br />Net General Fund UAL Payments
<br />Option 2 (Current UAL Payments + Section 115 Trust)
<br />Fiscal Year UAL Payments
<br />(6/30/2024 Actuarial Valuation)Section 115 Trust Withdrawals Net General Fund UAL Payment Difference vs.
<br />Current UAL Payments
<br />2027 $35,015,828 $1,271,065 $33,744,763 $1,271,065
<br />2028 $36,357,877 $1,938,219 $34,419,659 $1,938,219
<br />2029 $39,837,741 $4,729,690 $35,108,052 $4,729,690
<br />2030 $40,286,223 $4,476,010 $35,810,213 $4,476,010
<br />2031 $40,616,348 $4,089,931 $36,526,417 $4,089,931
<br />2032 $38,997,006 $1,740,060 $37,256,945 $1,740,060
<br />2033 $38,552,470 $0 $38,552,470 $0
<br />2034 $36,252,430 $0 $36,252,430 $0
<br />2035 $35,228,412 $0 $35,228,412 $0
<br />2036 $33,626,066 $0 $33,626,066 $0
<br />2037 $30,832,267 $0 $30,832,267 $0
<br />2038 $29,338,058 $0 $29,338,058 $0
<br />2039 $27,743,033 $0 $27,743,033 $0
<br />2040 $26,536,004 $0 $26,536,004 $0
<br />2041 $26,616,412 $0 $26,616,412 $0
<br />2042 $22,426,469 $0 $22,426,469 $0
<br />2043 $19,287,919 $0 $19,287,919 $0
<br />2044 $26,904,814 $0 $26,904,814 $0
<br />2045 $1,636,761 $0 $1,636,761 $0
<br />2046 $378,302 $0 $378,302 $0
<br />2047 $1,009,892 $0 $1,009,892 $0
<br />2048 $195,331 $0 $195,331 $0
<br />Total $587,675,666 $18,244,975 $569,430,691 $18,244,975
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<br />Cost Management Strategy Option 3
<br />Net General Fund UAL Payments
<br />Assumes $16M of Section 115
<br />Trust assets is exhausted at FYE
<br />2026 by making a $16M ADP to
<br />CalPERS
<br />ADP pays off UAL amortization
<br />bases of 5-7 years that contribute
<br />to the near-term peak
<br />Annual net General Fund
<br />payments would result in a
<br />“ramp-up” structure to provide
<br />near-term budget relief, but not
<br />as linear as Option 1 & Option 2
<br />$19.3M of General Fund cash
<br />flow reduction over next 7 years
<br />(2027 – 2033)
<br />UAL Payments
<br />(6/30/2024 Valuation)
<br />Net Payments
<br />(Section 115 Trust
<br />Used for ADP)
<br />24
<br />Cost Management Strategy Option 3
<br />Net General Fund UAL Payments
<br />Option 3 (Section 115 Trust Used for ADP)
<br />Fiscal Year UAL Payments
<br />(6/30/2024 Actuarial Valuation)
<br />Reduction in UAL Payments from
<br />ADP Net General Fund UAL Payment Difference vs.
<br />Current UAL Payments
<br />2027 $35,015,828 $3,206,228 $31,809,600 $3,206,228
<br />2028 $36,357,877 $3,296,003 $33,061,875 $3,296,003
<br />2029 $39,837,741 $3,388,291 $36,449,451 $3,388,291
<br />2030 $40,286,223 $3,483,163 $36,803,060 $3,483,163
<br />2031 $40,616,348 $3,580,691 $37,035,657 $3,580,691
<br />2032 $38,997,006 $1,175,719 $37,821,287 $1,175,719
<br />2033 $38,552,470 $1,208,639 $37,343,832 $1,208,639
<br />2034 $36,252,430 $0 $36,252,430 $0
<br />2035 $35,228,412 $0 $35,228,412 $0
<br />2036 $33,626,066 $0 $33,626,066 $0
<br />2037 $30,832,267 $0 $30,832,267 $0
<br />2038 $29,338,058 $0 $29,338,058 $0
<br />2039 $27,743,033 $0 $27,743,033 $0
<br />2040 $26,536,004 $0 $26,536,004 $0
<br />2041 $26,616,412 $0 $26,616,412 $0
<br />2042 $22,426,469 $0 $22,426,469 $0
<br />2043 $19,287,919 $0 $19,287,919 $0
<br />2044 $26,904,814 $0 $26,904,814 $0
<br />2045 $1,636,761 $0 $1,636,761 $0
<br />2046 $378,302 $0 $378,302 $0
<br />2047 $1,009,892 $0 $1,009,892 $0
<br />2048 $195,331 $0 $195,331 $0
<br />Total $587,675,666 $19,338,733 $568,336,933 $19,338,733
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<br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F
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