JOINT POWERS FINANCING AUTHORITY AGENDA PACKET 9-15-26

3 FINANCING PLAN The 2026 Bonds are being issued to provide funds to (i) assist the City with financing certain improvements to the Water System (as described herein, the “Project”), and (ii) pay the costs of issuing the 2026 Bonds. The Project The Project is expected to consist primarily of improvements (generally described as the “2026 Water Project”), and any other improvements to the Water System approved by the City Council, including but not limited to associated management, administration, financing, planning, environmental studies, permitting, procurement, right-of-way acquisition, legal service, engineering, inspection, outreach, construction, and closeout costs. The proceeds of the 2026 Bonds will be used to finance all or a portion of the following improvements: • Water Meter and Advanced Metering Infrastructure (AMI) System Replacement • City Groundwater Supply Project(s) • Water System Emergency Power Improvements Program • Annual Water Distribution System Improvements • Any other improvements to the Water System approved by the City Council For additional information, see “THE WATER SYSTEM – Capital Improvement Program.” As provided in the Indenture and the Installment Sale Agreement, amounts not used for the above-described projects may be expended for other improvements to the Water System approved by the City Council. Estimated Sources and Uses of Funds The estimated sources and uses of funds relating to the 2026 Bonds are as follows: Sources: Principal Amount of 2026 Bonds $ Plus/Less [Net] Original Issue Premium/Discount Total Sources $ Uses: Deposit to Project Fund Costs of Issuance(1) Total Uses $ (1) Costs of Issuance include legal fees, Municipal Advisor’s fee, Underwriter’s discount, printing costs, rating agency fees, and other expenses related to the issuance of the 2026 Bonds. For details regarding the Underwriter’s discount, see “UNDERWRITING.” Page 131 of 205