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RFP No. 21-025 <br />EXHIBIT B <br />Given this context, Pension Obligation Bonds (POBs) in California may be viewed as a debt <br />"refinancing. PORs must be issued on a taxable basis because the pension benefits private <br />individuals (the City's current and former employees). Nonetheless, POBs present the only <br />financing tool available to significantly impact the City's required UAL payment schedule. <br />Options for City Council Consideration <br />Our study of the City's UAL and financial viability to meet its current and forecasted obligation <br />led us to assume two (2) POB funding options for City consideration; 1) a POB equal to 500/ of <br />the City's current UAL; and 2) a POB equal to 90% of the City's current UAL. <br />In preparing the analysis for the 50% UAL option the following was taken into consideration: <br />1. POBs — SO% UAL <br />a. $358 Million POBs with Hybrid — Level Debt Service <br />b. 25-Year Final Maturity <br />c. Target Longest Safety Bases Only <br />sod% UAL If" A:1 Rs Year (:5ulfiAy OrTIy). I tylarid Lcnrcl <br />S:�al,00n,ono <br />$358 Million POO <br />$1113 Million nwfarrnd UAL CocK <br />?Jo.000,ono .. $32 Million 9udgac2ry Savings <br />° y 5144 Million NPV Savings =41% <br />AA- 5[Ok -1S d05 = 3.15 11L." <br />fif4),0of1,00o •• •••-•.• d10,s, UAL Papn=nhx <br />• �ti7""ofnlnp 5A.nV UN <br />Sim o00,00o VOIl Uc4v inns <br />UnvUe9=lar) < asPo Flow SavfiveN*, <br />J ,.nal WA 1',yr..nu <br />$30,po{ypao <br />tz+�,on2onn <br />i I n,nnr? 00;Y <br />I4V." •013 -!0I4 'I1Z5.[OZfi ]11 f! •0 ttl 9)P9 to 11) Al t 1803Z do a r 4114 11 V, JO A, A;; A) IK In 14 ko4020,11 Soo/ B143 10442014 AW, J041 Z041i <br />$14),GIlo,000 <br />In preparing the analysis for the 90% UAL option the following was taken into consideration: <br />2. POBs-90% UAL Million <br />a. $642 Million POBs with Hybrid —Level Debt Service <br />b. 2S-Year Final Maturity <br />c. Misc. Base #14 & #16 remain outstanding <br />City Council 23 — 52 5/18/2021 <br />