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RFP No. 21-025 <br />EXHIBIT B <br />Tax -IF:xa•Iro pt IFxChari.go <br />}1,400,090 $11 Million Tax -Exempt Bonds <br />$9.0 Million Deferred UAL Savings <br />}:I..ft200,000 $6.8 Million NPV Savings -63% <br />■ IJAFI_ P:yWimwrrc4g RPolgr,.. �aaSe ttti> <br />j P.., 7;a4J0,iUU41 Iboalal. Sei viq e <br />$800,000 <br />%00,000 <br />a400,000 <br />;200,1 00 <br />$0 <br />CP "ia'„�. SiY'D . S1, V. , ciY'n, iY'e.''aI4 �'iY'1, q'rS� �?'�L Csy4 <.y3�e �irc S1) a.'"rh r ra''b.5 6. ° a'`� 4`ti9°'a, ca•".w <br />Y. ti' Y b' Y. Y. ➢. Y. b Y> b Y. Y.' 1. V. 9: Y' 5 Y Y 9: <br />Tax-exempt exchange can be viewed as an alternative to ADPs from reserves and is best suited <br />as a strategy to manage future pension liabilities. <br />Pension Obligation Bands (POBs) <br />Given recent and substantial increases in UAL's across the state many local agencies are seeking <br />funding options to effectively reduce annual payments with the goal of retaining reserves and <br />current service levels. <br />The passage of PEPRA and the change to a fixed amortization schedule and dollar payment <br />amounts, Pension Obligation Bonds (POBs) have come back into discussion and study. Combined <br />with all-time historic lows in the taxable municipal bond market, POBS have become more <br />prominent and accepting to municipal bond investors. Since 2017, sixteen POBS exceeding $50 <br />million in issuance size have been issued in California. As noted, most are in Southern California <br />with issuance on average of $187 million (see chart below). <br />City Council 23 — 50 5/18/2021 <br />