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1/15/2026
<br />5
<br />25
<br />$0
<br />$5
<br />$10
<br />$15
<br />$20
<br />$25
<br />$30
<br />$35
<br />$40
<br />$45
<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 />Mi
<br />l
<br />l
<br />i
<br />o
<br />n
<br />s
<br />Comparison of Option 1 / Option 2 / Option 3
<br />Net General Fund UAL Payments
<br />UAL Payments
<br />(6/30/2024 Valuation)
<br />Option 1 Option 2 Option 3
<br />26
<br />Comparison of Option 1 / Option 2 / Option 3
<br />Net General Fund UAL Payments
<br />Option 1
<br />(Fresh Start + Section 115 Trust)
<br />Option 2
<br />(Current UAL Payments + Section 115 Trust)
<br />Option 3
<br />(Section 115 Trust Used for ADP)
<br />Fiscal
<br />Year
<br />UAL Payments
<br />(6/30/2024
<br />Valuation)
<br />Fresh Start
<br />UAL Payments
<br />Section 115
<br />Trust
<br />Withdrawals
<br />Net General
<br />Fund UAL
<br />Payment
<br />Difference vs.
<br />Current UAL
<br />Payments
<br />Section 115
<br />Trust
<br />Withdrawals
<br />Net General
<br />Fund UAL
<br />Payment
<br />Difference vs.
<br />Current UAL
<br />Payments
<br />Reduction in
<br />UAL Payments
<br />from ADP
<br />Net General
<br />Fund UAL
<br />Payment
<br />Difference vs.
<br />Current UAL
<br />Payments
<br />2027 $35,015,828 $37,061,953 $4,574,658 $32,487,295 $2,528,533 $1,271,065 $33,744,763 $1,271,065 $3,206,228 $31,809,600 $3,206,228
<br />2028 $36,357,877 $37,061,953 $3,924,912 $33,137,041 $3,220,836 $1,938,219 $34,419,659 $1,938,219 $3,296,003 $33,061,875 $3,296,003
<br />2029 $39,837,741 $37,061,953 $3,262,171 $33,799,782 $6,037,959 $4,729,690 $35,108,052 $4,729,690 $3,388,291 $36,449,451 $3,388,291
<br />2030 $40,286,223 $37,061,953 $2,586,176 $34,475,778 $5,810,445 $4,476,010 $35,810,213 $4,476,010 $3,483,163 $36,803,060 $3,483,163
<br />2031 $40,616,348 $37,061,953 $1,896,660 $35,165,293 $5,451,055 $4,089,931 $36,526,417 $4,089,931 $3,580,691 $37,035,657 $3,580,691
<br />2032 $38,997,006 $37,061,953 $1,193,354 $35,868,599 $3,128,407 $1,740,060 $37,256,945 $1,740,060 $1,175,719 $37,821,287 $1,175,719
<br />2033 $38,552,470 $37,061,953 $0 $37,061,953 $1,490,517 $0 $38,552,470 $0 $1,208,639 $37,343,832 $1,208,639
<br />2034 $36,252,430 $37,061,953 $0 $37,061,953 ($809,523)$0 $36,252,430 $0 $0 $36,252,430 $0
<br />2035 $35,228,412 $37,061,953 $0 $37,061,953 ($1,833,541)$0 $35,228,412 $0 $0 $35,228,412 $0
<br />2036 $33,626,066 $37,061,953 $0 $37,061,953 ($3,435,887)$0 $33,626,066 $0 $0 $33,626,066 $0
<br />2037 $30,832,267 $37,061,953 $0 $37,061,953 ($6,229,686)$0 $30,832,267 $0 $0 $30,832,267 $0
<br />2038 $29,338,058 $37,061,953 $0 $37,061,953 ($7,723,896)$0 $29,338,058 $0 $0 $29,338,058 $0
<br />2039 $27,743,033 $37,061,953 $0 $37,061,953 ($9,318,921)$0 $27,743,033 $0 $0 $27,743,033 $0
<br />2040 $26,536,004 $37,061,953 $0 $37,061,953 ($10,525,949)$0 $26,536,004 $0 $0 $26,536,004 $0
<br />2041 $26,616,412 $37,061,953 $0 $37,061,953 ($10,445,541)$0 $26,616,412 $0 $0 $26,616,412 $0
<br />2042 $22,426,469 $24,103,575 $0 $24,103,575 ($1,677,106)$0 $22,426,469 $0 $0 $22,426,469 $0
<br />2043 $19,287,919 $0 $0 $0 $19,287,919 $0 $19,287,919 $0 $0 $19,287,919 $0
<br />2044 $26,904,814 $0 $0 $0 $26,904,814 $0 $26,904,814 $0 $0 $26,904,814 $0
<br />2045 $1,636,761 $0 $0 $0 $1,636,761 $0 $1,636,761 $0 $0 $1,636,761 $0
<br />2046 $378,302 $0 $0 $0 $378,302 $0 $378,302 $0 $0 $378,302 $0
<br />2047 $1,009,892 $0 $0 $0 $1,009,892 $0 $1,009,892 $0 $0 $1,009,892 $0
<br />2048 $195,331 $0 $0 $0 $195,331 $0 $195,331 $0 $0 $195,331 $0
<br />Total $587,675,666 $580,032,875 $17,437,932 $562,594,943 $25,080,723 $18,244,975 $569,430,691 $18,244,975 $19,338,733 $568,336,933 $19,338,733
<br />*Source: CalPERS Actuarial Valuation as of June 30, 2024
<br />CONCLUSION
<br />28
<br />Conclusion/ Recommendation
<br />Recommendation: Option 1 – Fresh Start + 115 Trust Combo
<br />Maximum Savings: $27.7M over next 7 years; __% of projected deficit
<br />Budgetary Flexibility: Drawing down 115 Trust over 7 years provides budgetary
<br />flexibility vs. liquidating immediately
<br />Investments should be aligned with withdrawal strategy
<br />Budget Predictability: Fresh Start payments create more stable/predictable payment
<br />vs. current UAL amortization
<br />Early Retirement of UAL Debt: Under Option 1, UAL is extinguished 6 years earlier
<br />APPENDIX – ADDITIONAL RESOURCES
<br />30
<br />CalPERS Historical Preliminary Investment Returns (Time-Weighted)*
<br />*Preliminary Investment Returns represent the time-weighted rate of return and
<br />reflect private market asset valuations as of March 31. The money-weighted
<br />rate of return, used in the CalPERS ACFR and Valuation Reports may differ from
<br />the Preliminary Investment Returns. Source: CalPERS.
<br />12.2%11.9%
<br />18.8%
<br />-2.9%
<br />-23.6%
<br />11.1%
<br />20.7%
<br />1.0%
<br />12.5%
<br />18.4%
<br />2.4%0.6%
<br />11.2%
<br />8.6%6.7%
<br />4.7%
<br />21.3%
<br />-6.1%
<br />5.8%
<br />9.3%
<br />11.6%
<br />-30.0%
<br />-25.0%
<br />-20.0%
<br />-15.0%
<br />-10.0%
<br />-5.0%
<br />0.0%
<br />5.0%
<br />10.0%
<br />15.0%
<br />20.0%
<br />25.0%
<br />2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
<br />Annual Return Target Discount Rate
<br />25 26
<br />27 28
<br />29 30
<br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F
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