Finance Committee
September 9, 2024

AGENDA

FINANCE COMMITTEE

SPECIAL MEETING NOTICE
SEPTEMBER 9, 2024
PUBLIC MEETING 3:00 P.M.

M
embers
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Felicia Williams, District 2
S
TAFF
Matthew Hawkesworth, Director of Finance
Lisa Hosey, Assistant City Attorney
Gloria Acevedo, Recording Secretary
M

ISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.

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n compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.

Please call (626) 744-4124 to request use of a listening device.

Lang
uage translation services are available for this meeting by calling (626)744-4124 at least 24 hours in advance.

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Meet
ings are broadcast live on cable Channel 3 and on the Internet at http://pasadena.granicus.com/mediaplayer.php?camera_id=2&publish_id=9 an d https://www.pasadenamedia.org/watch/ (Click on Video Streamlining on the right side of the screen).

I
tems on the agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
https://www.cityofpasadena.net/commissions/city-council-finance-committee/ Mat
erials related to an item on this Agenda submitted to the Finance/Audit Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”

PUBLIC COMMENT AT THE FINANCE COMMITTEE SPECIAL MEETING FOR SEPTEMBER 9, 2024, AT 3:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.

Li
nk to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
T
O VIEW A LIVE STREAM OF THE MEETING:
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AND
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PASADENAMEDIA.ORG
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AS SOON AS POSSIBLE AT (626) 744-4124 OR
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SPECIAL MEETING
AGENDA

FINANCE COMMITTEE
SEPT
EMBER 9, 2024
Public Meeting: 3:00 P.M.

Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING – 3:00 P.M.

ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING

AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS CONSIDERED

APPROVAL OF MINUTES
August 12, 2024 Cancellation Notice
August 26, 2024 Special Meeting

NEW BUSINESS

1. AM
ENDMENTS TO THE FIRE DEPARTMENT’S AND PUBLIC HEALTH
DEPARTMENT’S FISCAL YEAR 2025 ADOPTED OPERATING BUDGETS

2. Q

UARTERLY INVESTMENT REPORT ENDING - QUARTER ENDING
JUNE 30, 2024

INFORMATION ONLY

3. CI
TY OF PASADENA 2010B BAB’S/ 2010D RZEDB’S UPDATED

RESTRUCTURING OPTIONS

ADJOURN
PAGE 1
APPR

OVAL OF MINUTES
 August 12, 2024 Cancellation Notice
 August 26, 2024 Special Meeting
PAGE 2
PAGE 3
01 8/26/24 Finance Committee

CITY OF PASADENA

FINANCE COMMITTEE MINUTES

PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
AUGUST 26, 2024

SPECIAL MEETING
OP
ENING Chair Gordo called the special meeting of the Finance Committee to order at 3:08 p.m.

ROL
L CALL: Mayor Victor M. Gordo (Chair)
Councilmember Tyron Hampton (Absent)
Councilmember Felicia Williams

Staff: Miguel Márquez, City Manager
Brenda Harvey-Williams, Assistant City Manager
Matthew Hawkesworth, Acting Assistant City Manager/Director of Finance
Lisa Hosey, Assistant City Attorney
Kris Markarian, Acting Director of Public Works
Hayden, Melbourn, Principal Engineer
Wendy Macias, Senior Project Manager
Gloria Acevedo, Recording Secretary
APP
ROVAL OF MINUTES: It was moved by Councilmember Williams, seconded by Chair Gordo, to approve the minutes of the July 22, 2024, (special meeting) as submitted. (Motion Unanimously carried) (Absent:

Councilmember Hampton)
NEW
BUSINESS: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT

WITH CORNER KEYSTONE CONSTRUCTION CORPORATION FOR
VILLA PARKE COMMUNITY CENTER – ADA IMPROVEMENTS –

LOCKER ROOM PROJECT FOR AN AMOUNT NOT TO EXCEED
$687,389 AND AMEND THE FY 2025 CIP BUDGET TO APPROPRIATE $237,389
Chai
r Gordo introduced the item and Kris Markarian , Acting Director of Public Works, provided an overview and introduced Hayden Melbourne, Principal Engineer, who presented a PowerPoint presentation.

Chai
r Gordo expressed gratitude for the long awaited and very needed project.

PAGE 4
02 8/26/24 Finance Committee
It was moved by Councilmember Williams, seconded by Chair Gordo, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent: Councilmember Hampton)

AUTHORIZE THE CITY MANAGER TO ENTER INTO AN

AGREEMENT WITH THE FEDERAL HIGHWAY ADMINISTRATION
FOR $2M FOR THE RECONNECTING COMMUNITIES PLANNING
GRANT FOR THE 710 MASTER PLAN AND SPECIFIC PLAN
PROCESS, AND AMEND THE CITY MANAGER’S OFFICE FISCAL
YEAR 2025 OPERATING BUDGET
Chair Gordo introduced the item and Matthew Hawksworth, Acting Assistant City Manager, Director of Finance, introduced Wendy Macias, Senior Project Manager, who provided a PowerPoint presentation and answered questions.

Chair Gordo requested a nationwide list of cities who have received this type of grant. Staff will provide the data to the City Manager.

It was moved by Councilmember Williams, seconded by Chair Gordo, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent: Councilmember Hampton)
ADJOURNMENT: On the order of the Chair, the special meeting of the Finance Committee was adjourned at 3:19 p.m.

AT
TEST: _______________________
Mayor Victor M. Gordo, Chair
Finance Committee
________
_____________
Gloria Acevedo
Recording Secretary
PAGE 5

NEW BUSINESS
ITEM 1

1. AMENDMENTS TO THE FIRE DEPARTMENT’S AND PUBLIC
HEALTH DEPARTMENT'S FISCAL YEAR 2025 ADOPTED OPERATING

BUDGETS
PAGE 6
PAGE 7
PAGE 8
PAGE 9
PAGE 10

NEW BUSINESS
ITEM 2

2. QU ARTERLY INVESTMENT REPORT ENDING - QUARTER
ENDING JUNE 30, 2024
PAGE 11
Agenda Report
September 16, 2024
TO: Honorable Mayor and City Council
THROUGH: Finance Committee (September 9, 2024)
FROM: Department of Finance
SUBJECT: QUARTERLY INVESTMENT REPORT - QUARTER ENDING
JUNE 30, 2024
RECOMMENDATION:

This report is for information only.

BACKGROUND:

Government Code Section 53646 (2)(b)(1) states that in the case of a local agency, the Treasurer or Chief Fiscal Officer (CFO) may render a quarterly report to the legislative body of the local agency containing detailed information on: 1) all securities, investments, and moneys of the local agency; 2) a statement of compliance of the portfolio with the statement of investment policy; and 3) a statement of the local agency's ability to meet its pool's expenditure requirements for the next six-months. By making these reports optional, this bill does not impose a state-mandated local program; however, encourages local agencies to continue to report. The bill also states that the Treasurer or CFO may report whatever additional information or data may be required by the legislative body of the local agency.

The quarterly report shall include the following:

1. The type of investment, name of the issuer, date of maturity, par, dollar amount invested in each security, and money within the treasury;

2. The weighted average maturity of the investments within the treasury;

3. Any funds, investments, or programs, including loans, that are under the management of contracted parties;

4. The market value as of the date of the report and the source of this valuation for any security within the treasury; and

5. A description of the compliance with the Statement of Investment Policy.

MEETING OF _____ _
PAGE 12 AGENDA ITEM NO. ____ _ Quarterly Investment Report - Quarter Ending June 30, 2024 September 16, 2024

Economic Summary:

The US economy started 2024 with positive performance in the first and second quarter (Q1, Q2) of 2024. Here's a breakdown of key indicators:

Growth : Real Gross Domestic Product (GDP) grew at an annualized rate of 2.8% for Q2 of 2024, according to the latest estimates of the U.S. Bureau of Economic Analysis. This was higher than the forecasted 2.0% growth, coming in above analyst expectations. The Q2 growth increased from a 1.4% expansion in Q1 2024.

R^al GDP: Percent chsirtg^ trom (ar^c^cling ciuat-t^r
6 4
2 0
-2
Ot.'l 02- Q.3
2023
U.S. 8ur^>au of E<rc»nom;c AT"t<=iIysis
Q,4 Q I Q,;2
2024
Se^tsot^ciUy d<Jjust:©c! anriudt rates
Labor Market: The US added a significant number of jobs in the first three-months of 2024, but cooled in the Q2 of the year per the latest report from the Bureau of Labor Statics. Job creation in April, May, and June was in line with census estimates, with 175,000, 272,000, and 206,000 jobs added to the U.S. economy in each of the respective months. The unemployment rate however ticked up to 4.1% in June, up from

3.9% and 4.0% in April and May and increased to 4.3% in July. •• Total Un<employmerit Work^
M 3;ob Opem ngs oh 6/30/Z4 T
;• "r"r
1-20000
1-15000
-3,0000
h-sooo
3un ... Dec ... Jun ... Dec-.- ^un ... Dec..- -3un
2017 | 2018 I 2019 !
tJ'SL'STO" :<-^<K. l.i-.S L,-'-.B.rT-.pS,oyn-<"t Li'f.a'T-ptoy•C.soyrfSitTKE 2!?1-^ ELMitT.ba'-B F;'-..»n.=* -3un ... Dec ... Jun ... Dec .-. 3un ... Dec .-- J
2020 | 2021 | 2022 | 2C
Dec ... Jun
•023 s Z024
ir.ffs S-aily'-ll.&.i^.S^.^S-^
Inflation: Inflation has eased since its June 2022 peak of 9.1 %, and this trend continued in Q2 of 2024. As measured by the consumer price index, headline inflation over the year through June 2024 had slowed to 3.0 %. During Q2, the average monthly PAGE 13
Quarterly Investment Report - Quarter Ending June 30, 2024 September 16, 2024

rate of inflation was just 0.1 % (or 1.1 % at an annual rate), slowing from an average of

0.4 % per month (4.6 % annualized) during Q1 of this year. ^_
;
HeiidtineCPI ; : 2.894750
Core CPr (excludes Food and Energy) 3.171270
Personal Consumption Expenditure Core on 6/30/24 2.630270 PPI Final Demand : ^ - 2.Z492ZO
.

Inflation Indicators
Fed T»(fgc<
.i._....I
^-^^
—^^^^•^""""—"""——j--^'-^/--"-
:-::':-.l^
.Jg.—K——-"W"«J^^g-—
I12.000000
-•f- IO.OCWOOO
t-8.000000 'y
+6.000000
t4.000000
^ I2.894750
k 0.000000
k-2.000000
2013 2014 2015 2016 2017
CP? y'OV :!'d.ex (.U'S-CF'I UrtsaR COf.s:te?T-.ers '"oY ?t5.^') •*.-hiteCF:
2018 2019 2020 2021
Cwavs PCS 'toRthly 12JUft.2012-lS^L-G2024
Z022 2023 2024
CopynghlS 2'&2.4 SliSOff-'&eT^ FiF'-asc's L.P.
16-A^s-20240S--Oi>:Z6
Consumer Spending: Consumer spending continued to be a source of strength for the U.S. economy accounting for nearly 70% of the Q2, GDP growth. It grew 2.3% year-over-year adjusted for inflation in Q2. The increase reflected higher spending on both goods and services. Retail sales recorded a solid increase in July, up by 1% month-over-month compared to 0% growth rate the prior month and 0.4% growth expectation by the market survey.

Housing Market: The housing market slowed in Q2. Elevated mortgage rates and higher home prices, lead to a sales drop in both existing and new homes. The inventory-to-sales ratios for new and existing homes increased as the supply of homes arriving on the market rose more than sales. The Housing Starts month-over- month declined by 6.8% in July and the month-to-month Building Permits dropped by 4%.

Equity Markets: The stock market started 2024 on a positive trend and the trend continued in Q2. For the first six-months of 2024, the Dow Jones Industrial Average was up 4.8%, the S&P 500 was up 15.3%, and the NASDAQ was up 18.6%. The equity market rapidly recovered after it dipped by as much as 7% the first week of August and as of August 21, 2024, the Dow Industrial Average was up 8.39% for the year, the S&P was up 17.66% and the NASDAQ was up 19%.

PAGE 14
Quarterly Investment Report - Quarter Ending June 30, 2024 September 16, 2024

h41SOO 19000
1SSOO-1S&P 500 IndeA <R1>
Nasciaq Irtdex: <L1>
Dow Jones Index <R2>
^-»1000 56.CK>
18000-1
5400
-40000
17000-<
-39SOO
5200
16500-1
-39000
16000-1
50CIO- 3SSOO
1SSOO-1

3.5000 -i4SOO
14500-1
Feb JaMaAp-r May"
Z024
•MT.ftScoc-kM.3r-:..et.1r<='ai«^s. DsRy 32.D.E^:2-0^3.-.ZE^.U.SZCf24 Jun Jul
C.opr-rlOhTE Z-&2.-4 BT&a-fT-.acr-^ F
Aug
'•-3f<ca L..P.
^3SOOO
^37500
-37000
l=-A'uo.-20i2^ ^S:£..&:^S
On August 21, 2024, the Bureau of Labor Statistics (BLS), in preliminary data, marked down the U.S. payroll numbers by the most it had done since 2009. The US job growth was far less robust as reported by the BLS and is expected to be revised down by 818,000 jobs for the twelve-month period ending March 2024. The financial market has already priced in Fed Funds rate cuts in September, November, and December and the recent payroll number revision by the BLS encouraged the traders of the interest rate futures to price in Fed Funds rate cuts by as much as 1% by the end of 2024.

Total Funds Under Management
The table below represents total City funds under management based on their market values as of June 30, 2024.
6/30/20243/31/2024Change
Pooled Investment Portfolio
Capital Endowment
Stranded Investment Reserve Portfolio
Special Funds
Investments Held with Fiscal Agents
PARS Section 115 Trust
Total Funds Under Management
$740,104,042
1,976,617
42,265,492
18,584,855
35,574,151
15,707,890
$723,191,335
1,955,294
41,890,618
18,400,619
40,453,898
15,581,239
$16,912,707
21,323
374,874
184,236
(4,879,747)
126,651
$854,213,047 $841,473,003 $12,740,044
PAGE 15
Quarterly Investment Report - Quarter Ending June 30, 2024 September 16, 2024

The Pooled Investment Portfolio value increased by a net $16,912,707 due to the following cash transactions during the quarter:

Net Investment Earnings (Fair Market Value Change plus Interest Income) | $ 7,583,948 Deposits and Credit Card Receipts136,105,658
Property Tax Revenues52,909,306
Sales Tax and Other State Appori:ionments17,647,728
HDD Receipts Net of Payments and Loans3,758,996
Payroll and Payroll-related Expenses(90,779,938)
Vendor Payments and Accounts Payable Checks(63,403,820) Debt Service Payments Net of Reimbursements and Subsidies(18,601,131) Water and Power Payments Net of Receipts(20,133,739)
Net Transfer from Other Funds(1,815,640)
Purchase Property on 2111 E Walnut(3,858,661)
PCOC Loan for 10 year per Council Approval(2,500,000)
Total$ 16,912,707
The Capital Endowment Fund increased by $21,323, representing $6,158 investment earnings for the period and an increase in market value of investments by $15,165.

The Stranded Investment Reserve portfolio increase by $374,874 representing investment earnings for the period adjusted by the change in market value of investments.

Special Funds increased by $184,236 representing investment earnings and the net increase in the market value of investments.

Investments held with fiscal agents decreased by a net $4,879,747 due to a $4,760,191 debt sen/ice payment made to the 2008 Paseo Bonds and the 2016A Rose Bowl Bonds and a decrease of $119,556 representing investment earnings adjusted by the change in market value of the investments.

The PARS Section 115 Trust account increase by $126,651. The change was comprised of a $145,450 increase in market value of investments adjusted by $18,799 of investment expenses.

The City pools all internal funds to gain economies of scale and to simplify the investment function. There are over 100 funds in the Pooled Investment Portfolio. As of June 30, 2024, the General Fund's investment balance was estimated at $117.7 million representing 15.90% of the June 30, 2024, Pooled Portfolio value. The General Fund's cash balance fluctuates daily based on the timing of revenues receipts and payment of expenditures. Investments in the Capital Endowment Fund, the Stranded Investment Reserve Fund, the Special Funds, the PARS Section 115 Trust account, and funds held with fiscal agents are restricted funds or bond proceeds reserved in accordance with the City Charter, City ordinances, bond indentures, and Trust Agreements. The City targets PAGE 16
Quarterly Investment Report - Quarter Ending June 30,2024 September 16, 2024

an average duration oftwo-years in managing the pooled portfolio with an effective historic duration range of 1.5 to 2.5 years based on market conditions and the portfolio's risk and return evaluation, the Treasury yield curve, and industry best practices as it pertains to public funds management. As of June 30, 2024, the portfolio's effective duration was 1.42 years.

Per government code requirements, attached are reports by each fund indicating the type of investments, date of maturity, par and dollar amount invested in each security, and investment and moneys within the Treasury with market values as of March 31, 2024. On a monthly basis, the City Treasurer prices the pooled portfolio and all other funds and investments under management. The market values are obtained from Interactive Data Corporation (IDC) and from Bloomberg Financial System. IDC is an independent third-party whose sole service is to provide market prices for all types of securities.

The types of securities held in the portfolio and their percentage allocation to the total are in compliance with the City's Fiscal Year 2024 Investment Policy, which was adopted by the City Council on June 12, 2023, and Section 53600 of the State Government Code. The City Treasurer targets to maintain at least $70 million short- term, liquid investments (1-to-90-day maturities), which represents approximately 1/12th of the City's total aggregate annual Operating Budget. As of June 30, 2024, the portfolio had $92.6 million in overnight short-term investments. This balance, along with anticipated cash flows into the City's account, represents a strong liquidity position to meet budgeted expenditures for the next three-months.

The yield to maturity on the pooled portfolio began gradually increasing beginning April 2023 as a result of the Fed tightening the monetary policy by raising the Fed Funds rate. Interest rates across the treasury yield curve increased with the most increases occurring on the six-month to two-year maturities. The yield on the pooled portfolio more than doubled in the last twelve-months and is expected to continue to increase over the next 12-month period. The earnings rate on the pooled portfolio as of the quarter ending June 2024 was 3.057%.

PAGE 17
Quarterly Investment Report - Quarter Ending June 30, 2024 September 16, 2024

The graph below represents the historic yield of the Pooled Portfolio from July 2021 to July 31, 2024:

Pooled Portfolio earnings rate

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
t-i^-i^-i-MT-i<-i(NrMrsir^rsr^rsir^r\lrNir^rsiromromcorommropomm r^rsjrsir\ir^rNirNir^fN<Nr^r\i(^rsir^rsirsir^rNjr^r\i^tioa.-{^>uc^!hi;>-c-:;ajOQ.-^>uti:-Qi=i;>.i!:-i;Boa.-^;>ui!:-ai::i;:>-<!:
^l'<?§|s§S|^|l^i&§|^S|^|l^l^§|slS|^|l^
COUNCIL POLICY CONSIDERATION:

This quarterly report supports the City Council's strategic planning goal to maintain fiscal responsibility and stability.

PAGE 18
Quarterly Investment Report - Quarter Ending June 30,2024 September 16, 2024

FISCAL IMPACT:

There is no fiscal impact as a result of this action report, nor will it have any indirect or support cost requirements. There is no anticipated impact to other operational programs or capital projects.

Respectfully submitted,
~r-f
MATTHEW £. HAWKESWORTH
Director of Finance
Preparedby;
Vie Erg^nian
City Tt-easurer/Deputy Director of Finance
Approved by:

A^^J) A.
?IARQUEZ
City Manager
Attachment: (1)
Attachment A - Quarterly Investment Report - Quarter Ending June 30,2024 PAGE 19
Attachment A
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INFORMATION ONLY
ITEM 3

3. CITY OF PASADENA 2010B BAB’S/ 2010D RZEDB’S

UPDATED RESTRUCTURING OPTIONS
PAGE 58
City of Pasadena
2010B BABs / 2010D RZEDBs
Updated Restructuring Options
Finance Committee
September 9, 2024
PAGE 59

Section 1:

Factors that Impact Savings of the
2010 BABs/RZEDBs
PAGE 60

10-Year AAA MMD and US Treasury Yields Since January 1, 2019 Source: TM3 and Bloomberg.
0%
1%
2%
3%
4%
5%
2019 2020 2021 2022 2023 2024
Yield
10-Year UST
10-Year MMD
Yields as of 9/3/2024
10-Year UST: 3.84%
10-Year MMD: 2.71%
PAGE 61

Ratios Have Trended Higher Since the Beginning of August Source: TM3 and Bloomberg.
¹10 and 20-year US Treasury yields are the Treasury Rates used for the BAB/RZEDB refunding.

See the following section for more detail.
²Analysis in the presentation dated August 14 was based on market conditions as of August 5.  As of late, AAA Municipal Market Data (MMD) tax-exem pt yields have outperformed Treasury yields, leading to higher ratios
64%
66%
68%
70%
72%
74%
76%
78%
80%
6/3 6/10 6/17 6/24 7/1 7/8 7/15 7/22 7/29 8/5 8/12 8/19 10/20-Year¹ Muni-to-Treasury Ratios Since 6/1/24
10-Year 20-Year
Analysis (8/5)²
67% (10-Year)
75% (20-Year)
Analysis (7/26)
67% (10-Year)
75% (20-Year)
Analysis (8/22)
70% (10-Year)
79% (20-Year)
PAGE 62

“Muni-to-Treasury” Ratio and its Impact on Savings
 AAA MMD (tax-exem pt Municipal Market Data) yields will impact the borrowing cost, or the overall cost of the refunding bonds  Higher AAA MMD yields will incr ease the borrowing cost  Lower AAA MMD yields will decreas e the borrowing cost  US Treasury (taxable) yields will impact the redem ption price, or the amount paid to the bondholder called for redemption
 Higher US Treasury yields will decreas e the redemption price*  Lower US Treasury yields will incr ease the redemption price*  Relationship is referred to as the “Muni-to-T reasury” ratio  Ratio: AAA MMD yields divided by US Treasury yields
 Ideal environment to refund the Build America Bonds (BABs)/Recovery Zone Econ
omic Development Bonds (RZEDBs): lower muni-to-treasury ratio  i.e. lower AAA MMD yields and higher US Treasury yields *Redemption price: based on the present value of future payments, discounted back using a benchmark US Treasury yield (yield dictated by the legal documents of the BABs/RZEDBs). As stated above, a higher US Treasury yield will result in a lower redemption price and a lower US Treasury yield will result in a higher redemption price. See page 5 for more detail.

PAGE 63

Fed Chair Powell Declares ‘Time Has Come’ for Rate Cuts¹ 0 1
2 3
4 5
6 7
8 0%
20%
40%
60%
80%
100%
120%
140%
160%
18-Sep-24 7-Nov-24 18-Dec-24 29-Jan-25 19-Mar-25 7-May-25 # of Rate Cuts Expected
Probability of Rate Cut
Upcoming Fed Meetings
Market Expectations of Future Fed Actions (Upcoming Meetings)  Market currently anticipates four rates cuts by the end of the year  At least a 25 basis point cut (-0.25 %) is expected at the Sept 18 meeting  Lower Fed Funds rate can lead to lower Treasury yields (higher redemption price
s for the BABs/RZEDBs)
¹Title of Wall Street Journal article on August 23, 2024. Comments made by Fed Chair Jerome Powell at the Jackson Hole summit.

PAGE 64

Section 2:

Make Whole Optional Redemption (MWOR) and
Extraordinary Optional Redemption (EOR) Prices
PAGE 65

Calculation of the Redemption Price*
 Make Whole Redemp tion (MWOR) price: sum of the PV of principal and interest payments to be redeemed, discounted at the Treasury Rate plus 35 basis points
 Extraordinary Redemption (EOR) price: sum of the PV of principal and interest payme
nts to be redeemed, discounted at the Treasury Rate plus 100 basis points
 Treasury Rate (i.e. discount rate): yield to maturity as of such redemption date of US Treasury securities with a constant maturity
 Higher Treasury Rate will produce a lower redemption price  Source and Selection Timing of Treasury Rate: Fe deral Reserve Statistical Release H.15 website at least two business days prior to the redemption date  Bonds subject to the MWOR and EOR:
 2010B BABs: Ter m Bonds due 2034 and 2043
 2010D RZEDBs: Ter m Bonds due 2043
*Definitions above are paraphrased. Please see the 2010 Official Statement for more detail and the full definitions.

PAGE 66

Calculation of MWOR and EOR Redemption Prices/Premiums
 Estimated redemption prices/premiums (BABs + RZEDBs) are based on market con
ditions as of August 22, 2024
MWOR Redemption Price/Premium Calculation
2010B BABs 2010D RZEDBs
2034 Term 2043 Term 2043 Term Aggregate
Applicable Treasury Rate 10-year 20-year 20-year
Par Amount Called (A) $9,745,000 $96,915,000 $7,400,000 $114,060,000 Redemption Price / Sum of PV (B) 11,767,216 122,989,827 9,751,673 144,508,716 Redemption Premium (B-A) 2,022,216 26,074,827 2,351,673 30,448,716 MWOR Call Price (B/A) $120.75 $126.90 $131.78
EOR Redemption Price/Premium Calculation
2010B BABs 2010D RZEDBs
2034 Term 2043 Term 2043 Term Aggregate
Applicable Treasury Rate 10-year 20-year 20-year
Par Amount Called (A) $9,745,000 $96,915,000 $7,400,000 $114,060,000 Redemption Price / Sum of PV (B) 11,252,716 115,631,229 9,073,801 135,957,746 Redemption Premium (B-A) 1,507,716 18,716,229 1,673,801 21,897,746 EOR Call Price (B/A) $115.47 $119.31 $122.62
Source of Treasury Rate: H15 website (August 22, 2024).

PAGE 67

Section 3:

Restructuring Options for the 2010 BABs/RZEDBs
PAGE 68

Existing Rose Bowl Debt Profile
Existing Rose Bowl Debt Profile
Fiscal
Year
2010A
CABs¹
2010B
BABs¹,²
2010D
RZEDBs¹,²
2016A
Bonds
2018A
Bonds
2018B
Bonds
Total
Payments
%
Increase
2025 $0 $5,097,944 $304,491 $5,371,000 $1,529,250 $1,064,531 $13,367,216 -- 2026 0 5,097,944 304,491 5,560,750 1,529,250 1,277,788 13,770,223 3.0% 2027 2,095,000 5,097,944 304,491 3,659,250 1,529,250 1,492,463 14,178,398 3.0% 2028 6,250,000 5,097,944 304,491 0 1,695,000 1,236,263 14,583,698 2.9% 2029 6,520,000 5,097,944 304,491 0 3,036,875 0 14,959,310 2.6% 2030 6,725,000 5,097,944 304,491 0 3,012,750 0 15,140,185 1.2% 2031 6,935,000 5,097,944 304,491 0 2,985,875 0 15,323,310 1.2% 2032 7,445,000 5,097,944 304,491 0 2,966,000 0 15,813,435 3.2% 2033 5,955,000 6,807,944 304,491 0 2,942,875 0 16,010,310 1.2% 2034 0 13,052,774 304,491 0 2,916,500 0 16,273,765 1.6% 2035 0 13,276,068 304,491 0 2,886,875 0 16,467,434 1.2% 2036 0 13,502,555 304,491 0 2,868,625 0 16,675,671 1.3% 2037 0 13,733,394 304,491 0 2,841,500 0 16,879,385 1.2% 2038 0 13,966,908 304,491 0 2,810,625 0 17,082,024 1.2% 2039 0 14,271,421 304,491 0 2,776,000 0 17,351,913 1.6% 2040 0 14,521,906 304,491 0 2,747,375 0 17,573,772 1.3% 2041 0 14,774,081 304,491 0 2,719,375 0 17,797,947 1.3% 2042 0 15,031,029 304,491 0 2,691,750 0 18,027,270 1.3% 2043 0 7,890,597 7,704,491 0 2,649,625 0 18,244,713 1.2% TOTALS $41,925,000 $181,612,227 $13,185,333 $14,591,000 $49,135,375 $5,071,045 $305,519,980 ¹Does not include debt service reserve fund earnings.
²Assumes that the current subsidy payments of 33.005% (BABs) and 42.435% (RZEDBs) are received through maturity.  2010A, 2016A, and 2018B Bonds are non-cal lable; 2018A Bonds are callable in 2028 PAGE 69

Summary of Financing Assumptions and Restructuring Options  Financing assumptions for restructuring options:
 Market conditions as of August 22, 2024
 AA+ S&P rating
 Closing date in late November 2024 with 30-day escrow  City exercises the EOR provision of the BABs and RZEDBs  10-year optional call provision
 8-9
years possible without yield penalty; however, each addt’l year subject to cal
l will cause NPV savings to decrease by at least $1.7mm, depending on option  Release of full amount from the 2010 Reserve Fund into the escrow ($10,946,755*)  Add
t’l restructuring options for the City’s consideration:
 Option 1: Mimic of existing structure, smooth out annual increases in later years  Opt
ion 2: Level annual payments starting FY 2026, no extension of term  Opt
ion 3: Maintain existing structure through FY 2032, level annual payments st
arting FY 2032, extend term by one year
 Option 4: Target $13.7mm in annual payments starting FY 2026, extend term by
six years, use of capital appreciation bonds (CABs)
*Market value (7/31) of 2010 reserve investment (2010A CABs + 2010B BABs + 2010D RZEDBs) PAGE 70

Option 1: Mimic Existing Payment Structure
Difference in AGGREGATE Payments (Existing to Proposed) Fiscal
Year
Existing
Payments¹
Proposed
Payments¹
Nominal
$ Change
PV
$ Change²
2025 $13,367,216 $13,361,328 ($5,888) ($5,829)
2026 13,770,223 13,854,538 84,315 80,540
2027 14,178,398 14,262,713 84,315 77,710
2028 14,583,698 14,668,013 84,315 74,979
2029 14,959,310 15,043,625 84,315 72,344
2030 15,140,185 15,224,500 84,315 69,802
2031 15,323,310 15,407,625 84,315 67,349
2032 15,813,435 15,897,750 84,315 64,982
2033 16,010,310 15,894,625 (115,685) (86,026)
2034 16,273,765 16,072,750 (201,015) (144,227)
2035 16,467,434 16,250,875 (216,559) (149,920)
2036 16,675,671 16,425,625 (250,046) (167,019)
2037 16,879,385 16,611,000 (268,385) (172,969)
2038 17,082,024 16,789,625 (292,399) (181,824)
2039 17,351,913 16,975,001 (376,912) (226,141)
2040 17,573,772 17,164,625 (409,147) (236,855)
2041 17,797,947 17,351,375 (446,572) (249,436)
2042 18,027,270 17,543,250 (484,020) (260,853)
2043 18,244,713 17,738,125 (506,588) (263,421)
TOTALS $305,519,980 $302,536,968 ($2,983,011) ($1,636,815) ¹Does not include debt service reserve fund earnings.
²Nominal $ change discounted back at the true interest cost of the 2024 Bonds (see page 23).  Change relative to Existing Payments:
 Nominal payments: ($3.0mm)
 PV of nominal payments: ($1.6mm)
$0
$5
$10
$15
$20
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
Millions
Aggregate Payments: Existing and Option 1
Existing Option 1
PAGE 71

Option 2: Level Debt Starting FY 2026
Difference in AGGREGATE Payments (Existing to Proposed) Fiscal
Year
Existing
Payments¹
Proposed
Payments¹
Nominal
$ Change
PV
$ Change²
2025 $13,367,216 $13,366,940 ($276) ($274)
2026 13,770,223 15,824,538 2,054,315 1,963,323
2027 14,178,398 15,820,213 1,641,815 1,514,552
2028 14,583,698 15,823,763 1,240,065 1,104,180
2029 14,959,310 15,823,625 864,315 742,853
2030 15,140,185 15,824,250 684,065 567,497
2031 15,323,310 15,823,625 500,315 400,631
2032 15,813,435 15,822,000 8,565 6,620
2033 16,010,310 15,819,875 (190,435) (142,075)
2034 16,273,765 15,823,250 (450,515) (324,427)
2035 16,467,434 15,819,625 (647,809) (450,287)
2036 16,675,671 15,821,375 (854,296) (573,174)
2037 16,879,385 15,822,500 (1,056,885) (684,449)
2038 17,082,024 15,821,625 (1,260,399) (787,874)
2039 17,351,913 15,822,501 (1,529,412) (922,802)
2040 17,573,772 15,823,375 (1,750,397) (1,019,426)
2041 17,797,947 15,822,875 (1,975,072) (1,110,292)
2042 18,027,270 15,824,500 (2,202,770) (1,195,251)
2043 18,244,713 15,821,875 (2,422,838) (1,268,965)
TOTALS $305,519,980 $298,172,330 ($7,347,649) ($2,179,639)  Change relative to Existing Payments:
 Nominal payments: ($7.3mm)
 PV of nominal payments: ($2.2mm)
$0
$5
$10
$15
$20
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
Millions
Aggregate Payments: Existing and Option 2
Existing Option 2
¹Does not include debt service reserve fund earnings.
²Nominal $ change discounted back at the true interest cost of the 2024 Bonds (see page 23).

PAGE 72

Option 3: Level Debt Starting FY 2032
Difference in AGGREGATE Payments (Existing to Proposed) Fiscal
Year
Existing
Payments¹
Proposed
Payments¹
Nominal
$ Change
PV
$ Change²
2025 $13,367,216 $13,349,765 ($17,451) ($17,275)
2026 13,770,223 13,867,538 97,315 92,905
2027 14,178,398 14,275,713 97,315 89,600
2028 14,583,698 14,681,013 97,315 86,413
2029 14,959,310 15,056,625 97,315 83,339
2030 15,140,185 15,237,500 97,315 80,375
2031 15,323,310 15,420,625 97,315 77,516
2032 15,813,435 15,910,750 97,315 74,759
2033 16,010,310 15,912,625 (97,685) (72,374)
2034 16,273,765 15,910,500 (363,265) (259,566)
2035 16,467,434 15,912,375 (555,059) (382,502)
2036 16,675,671 15,910,125 (765,546) (508,787)
2037 16,879,385 15,913,250 (966,135) (619,261)
2038 17,082,024 15,915,125 (1,166,899) (721,340)
2039 17,351,913 15,914,501 (1,437,412) (856,956)
2040 17,573,772 15,914,875 (1,658,897) (953,822)
2041 17,797,947 15,914,875 (1,883,072) (1,044,205)
2042 18,027,270 15,913,000 (2,114,270) (1,130,706)
2043 18,244,713 15,913,125 (2,331,588) (1,202,574)
2044 0 12,390,000 12,390,000 6,163,142
TOTALS $305,519,980 $305,233,905 ($286,074) ($1,021,318)  Change relative to Existing Payments:
 Nominal payments: ($0.3mm)
 PV of nominal payments: ($1.0mm)
$0
$5
$10
$15
$20
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
Millions
Aggregate Payments: Existing and Option 3
Existing Option 3
¹Does not include debt service reserve fund earnings.
²Nominal $ change discounted back at the true interest cost of the 2024 Bonds (see page 23).

PAGE 73

Option 4: Targeting $13.7mm in Payments Starting FY 2026 Difference in AGGREGATE Payments (Existing to Proposed) Fiscal
Year
Existing
Payments¹
Proposed
Payments¹
Nominal
$ Change
PV
$ Change²
2025 $13,367,216 $13,346,649 ($20,567) ($20,339)
2026 13,770,223 13,735,038 (35,185) (33,439)
2027 14,178,398 13,736,213 (442,185) (403,876)
2028 14,583,698 13,735,513 (848,185) (744,521)
2029 14,959,310 13,731,875 (1,227,435) (1,035,447)
2030 15,140,185 13,734,750 (1,405,435) (1,139,418)
2031 15,323,310 13,731,875 (1,591,435) (1,239,949)
2032 15,813,435 13,733,750 (2,079,685) (1,557,239)
2033 16,010,310 13,735,625 (2,274,685) (1,636,898)
2034 16,273,765 13,733,500 (2,540,265) (1,756,799)
2035 16,467,434 13,735,375 (2,732,059) (1,815,833)
2036 16,675,671 13,733,125 (2,942,546) (1,879,542)
2037 16,879,385 13,731,250 (3,148,135) (1,932,523)
2038 17,082,024 13,733,375 (3,348,649) (1,975,531)
2039 17,351,913 13,733,001 (3,618,912) (2,051,800)
2040 17,573,772 13,733,625 (3,840,147) (2,092,414)
2041 17,797,947 13,732,125 (4,065,822) (2,129,074)
2042 18,027,270 13,734,500 (4,292,770) (2,160,344)
2043 18,244,713 13,732,375 (4,512,338) (2,182,376)
2044 0 13,735,000 13,735,000 6,384,095
2045 0 13,735,000 13,735,000 6,135,389
2046 0 13,735,000 13,735,000 5,896,372
2047 0 13,735,000 13,735,000 5,666,666
2048 0 13,735,000 13,735,000 5,445,909
2049 0 6,252,736 6,252,736 2,382,619
TOTALS $305,519,980 $335,481,275 $29,961,296 $4,123,689  Change relative to Existing Payments:
 Nominal payments: +$30.0mm
 PV of nominal payments: +$4.1mm
$0
$5
$10
$15
$20
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
Millions
Aggregate Payments: Existing and Option 4
Existing Option 4
¹Does not include debt service reserve fund earnings.
²Nominal $ change discounted back at the true interest
cost of the 2024 Bonds (see page 23).

PAGE 74

Section 4:

Summary of Options and Refunding Considerations
PAGE 75

Summary of Options: Impact to Rose Bowl Debt Profile
Summary of Options: Impact to Rose Bowl Debt Profile
Fiscal
Year
Existing
Payments¹,²
Option 1¹:

Mimic
Option 2¹:

Level (FY 2026)
Option 3¹:

Level (FY 2032)
Option 4¹:
$13.7mm (FY 2026)
2025 $13,367,216 -- $13,361,328 -- $13,366,940 -- $13,349,765 -- $13,346,649 -- 2026 13,770,223 3.0% 13,854,538 3.7% 15,824,538 18.4% 13,867,538 3.9% 13,735,038 2.9% 2027 14,178,398 3.0% 14,262,713 2.9% 15,820,213 0.0% 14,275,713 2.9% 13,736,213 0.0% 2028 14,583,698 2.9% 14,668,013 2.8% 15,823,763 0.0% 14,681,013 2.8% 13,735,513 0.0% 2029 14,959,310 2.6% 15,043,625 2.6% 15,823,625 0.0% 15,056,625 2.6% 13,731,875 0.0% 2030 15,140,185 1.2% 15,224,500 1.2% 15,824,250 0.0% 15,237,500 1.2% 13,734,750 0.0% 2031 15,323,310 1.2% 15,407,625 1.2% 15,823,625 0.0% 15,420,625 1.2% 13,731,875 0.0% 2032 15,813,435 3.2% 15,897,750 3.2% 15,822,000 0.0% 15,910,750 3.2% 13,733,750 0.0% 2033 16,010,310 1.2% 15,894,625 0.0% 15,819,875 0.0% 15,912,625 0.0% 13,735,625 0.0% 2034 16,273,765 1.7% 16,072,750 1.1% 15,823,250 0.0% 15,910,500 0.0% 13,733,500 0.0% 2035 16,467,434 1.2% 16,250,875 1.1% 15,819,625 0.0% 15,912,375 0.0% 13,735,375 0.0% 2036 16,675,671 1.3% 16,425,625 1.1% 15,821,375 0.0% 15,910,125 0.0% 13,733,125 0.0% 2037 16,879,385 1.2% 16,611,000 1.1% 15,822,500 0.0% 15,913,250 0.0% 13,731,250 0.0% 2038 17,082,024 1.2% 16,789,625 1.1% 15,821,625 0.0% 15,915,125 0.0% 13,733,375 0.0% 2039 17,351,913 1.6% 16,975,001 1.1% 15,822,501 0.0% 15,914,501 0.0% 13,733,001 0.0% 2040 17,573,772 1.3% 17,164,625 1.1% 15,823,375 0.0% 15,914,875 0.0% 13,733,625 0.0% 2041 17,797,947 1.3% 17,351,375 1.1% 15,822,875 0.0% 15,914,875 0.0% 13,732,125 0.0% 2042 18,027,270 1.3% 17,543,250 1.1% 15,824,500 0.0% 15,913,000 0.0% 13,734,500 0.0% 2043 18,244,713 1.2% 17,738,125 1.1% 15,821,875 0.0% 15,913,125 0.0% 13,732,375 0.0% 2044 0 0 0 12,390,000 -22.1% 13,735,000 0.0%
2045 0 0 0 0 13,735,000 0.0%
2046 0 0 0 0 13,735,000 0.0%
2047 0 0 0 0 13,735,000 0.0%
2048 0 0 0 0 13,735,000 0.0%
2049 0 0 0 0 6,252,736 -54.5%
TOTALS $305,519,980 $302,536,968 $298,172,330 $305,233,905 $335,481,275 ¹Does not include debt service reserve fund earnings.
²Assumes that the current subsidy payments of 33.005% (BABs) and 42.435% (RZEDBs) are received through maturity.

PAGE 76

Summary of Options: Savings for BABs + RZEDBs
Summary of Savings for Each Option
OPTION 1: Mimic
Existing Structure
OPTION 2: Level
(FY 2026)
OPTION 3: Level
(FY 2032)
OPTION 4: $13.7mm
(FY 2026)
True Interest Cost 3.64% 3.60% 3.69% 4.05%
Weighted Avg Mat (years) 14.08 13.22 14.48 14.45
NPV Savings ($) ($9,164,932) ($8,203,646) ($9,974,180) ($15,095,404) NPV Savings (%) (8.04%) (7.19%) (8.74%) (13.23%)
Total Cash Flow Savings 2,983,013 7,347,651 286,074 (29,961,294) 2025 $5,888 $277 $17,451 $20,567
2026 (84,315) (2,054,315) (97,315) 35,185
2027 (84,315) (1,641,815) (97,315) 442,185
2028 (84,315) (1,240,065) (97,315) 848,185
2029 (84,315) (864,315) (97,315) 1,227,435
2030 (84,315) (684,065) (97,315) 1,405,435
2031 (84,315) (500,315) (97,315) 1,591,435
2032 (84,315) (8,565) (97,315) 2,079,685
2033 115,685 190,435 97,685 2,274,685
2034 201,015 450,515 363,265 2,540,265
2035 216,559 647,809 555,059 2,732,059
2036 250,046 854,296 765,546 2,942,546
2037 268,385 1,056,885 966,135 3,148,135
2038 292,399 1,260,399 1,166,899 3,348,649
2039 376,913 1,529,413 1,437,413 3,618,913
2040 409,147 1,750,397 1,658,897 3,840,147
2041 446,572 1,975,072 1,883,072 4,065,822
2042 484,020 2,202,770 2,114,270 4,292,770
2043 506,588 2,422,838 2,331,588 4,512,338
2044 0 0 (12,390,000) (13,735,000)
2045 0 0 0 (13,735,000)
2046 0 0 0 (13,735,000)
2047 0 0 0 (13,735,000)
2048 0 0 0 (13,735,000)
2049 0 0 0 (6,252,736)
Detailed Annual Cash Flow Savings
PAGE 77

Summary of Options: Savings for BABs Only
Summary of Savings for Each Option
OPTION 1: Mimic
Existing Structure
OPTION 2: Level
(FY 2026)
OPTION 3: Level
(FY 2032)
OPTION 4:
$13.7mm (FY 2026)
True Interest Cost 3.60% 3.56% 3.66% 4.05%
NPV Savings ($) ($7,375,558) ($6,411,384) ($8,187,883) ($13,387,571) NPV Savings (%) (6.92%) (6.01%) (7.68%) (12.55%)
Total Cash Flow Savings 4,460,536 8,825,175 1,763,599 (28,493,340) 2025 $253 ($5,358) $11,816 $14,862
2026 (10,806) (1,980,806) (23,806) 108,444
2027 (10,806) (1,568,306) (23,806) 515,444
2028 (10,806) (1,166,556) (23,806) 921,444
2029 (10,806) (790,806) (23,806) 1,300,694
2030 (10,806) (610,556) (23,806) 1,478,694
2031 (10,806) (426,806) (23,806) 1,664,694
2032 (10,806) 64,944 (23,806) 2,152,944
2033 189,194 263,944 171,194 2,347,944
2034 274,524 524,024 436,774 2,613,524
2035 290,068 721,318 628,568 2,805,318
2036 323,555 927,805 839,055 3,015,805
2037 341,894 1,130,394 1,039,644 3,221,394
2038 365,908 1,333,908 1,240,408 3,421,908
2039 450,421 1,602,921 1,510,921 3,692,171
2040 482,656 1,823,906 1,732,406 3,913,406
2041 520,081 2,048,581 1,956,581 4,139,081
2042 557,529 2,276,279 2,187,779 4,366,029
2043 740,097 2,656,347 2,565,097 4,740,597
2044 0 0 (12,390,000) (13,735,000)
2045 0 0 0 (13,735,000)
2046 0 0 0 (13,735,000)
2047 0 0 0 (13,735,000)
2048 0 0 0 (13,735,000)
2049 0 0 0 (6,252,736)
Detailed Annual Savings
PAGE 78

Summary of Options: Savings for RZEDBs Only
Summary of Savings for Each Option
OPTION 1: Mimic
Existing Structure
OPTION 2: Level
(FY 2026)
OPTION 3: Level
(FY 2032)
OPTION 4:
$13.7mm (FY 2026)
True Interest Cost 4.06% 4.06% 4.06% 4.06%
NPV Savings ($) ($1,789,374) ($1,792,262) ($1,786,298) ($1,707,833) NPV Savings (%) (24.18%) (24.22%) (24.14%) (23.08%)
Total Cash Flow Savings (1,477,524) (1,477,524) (1,477,524) (1,467,953) 2025 $5,635 $5,635 $5,635 $5,705
2026 (73,509) (73,509) (73,509) (73,259)
2027 (73,509) (73,509) (73,509) (73,259)
2028 (73,509) (73,509) (73,509) (73,259)
2029 (73,509) (73,509) (73,509) (73,259)
2030 (73,509) (73,509) (73,509) (73,259)
2031 (73,509) (73,509) (73,509) (73,259)
2032 (73,509) (73,509) (73,509) (73,259)
2033 (73,509) (73,509) (73,509) (73,259)
2034 (73,509) (73,509) (73,509) (73,259)
2035 (73,509) (73,509) (73,509) (73,259)
2036 (73,509) (73,509) (73,509) (73,259)
2037 (73,509) (73,509) (73,509) (73,259)
2038 (73,509) (73,509) (73,509) (73,259)
2039 (73,509) (73,509) (73,509) (73,259)
2040 (73,509) (73,509) (73,509) (73,259)
2041 (73,509) (73,509) (73,509) (73,259)
2042 (73,509) (73,509) (73,509) (73,259)
2043 (233,509) (233,509) (233,509) (228,259)
2044 0 0 0 0
2045 0 0 0 0
2046 0 0 0 0
2047 0 0 0 0
2048 0 0 0 0
2049 0 0 0 0
Detailed Annual Savings
PAGE 79

Considerations for Refunding the BABs and RZEDBs
 Quantitative:
 Estimated NPV savings are negative for each option
 Liquidation value of 2010 reserve investment currently below market value  A new reserve of approximately $6.0m would need to be placed using City investment portfolio.  Except for Option 4, estimated cash flow savings are positive for each option (du
e primarily to the application of the 2010 Reserve Investment)  Policy and administration:
 Eliminates exposure to BAB/RZEDB programs, process, and sequestration  Since 2013, sequestration has resulted in lower subsidy payments by an est
imated aggregate amount of $2.1mm (see page 32)
 Current sequestration will continue through at least 2030 (estimated future red
uction of $1.0mm) unless Congress extends, modifies, or eliminates  Future flexibility:
 Refunding bonds would be structured with an optional call provision  Hypothetical future savings analysis provided on page 23 PAGE 80

Estimated Impact of Sequestration
 Since FY 2013, sequestration (see ‘Subsidy Payment’ columns below) has resul
ted in lower payments by an estimated aggregate amount of $2.1mm Estimated Impact of Sequestration on Interest Paid
Fiscal
Year
Subsidy
Payment
BABs
Subsidy
Payment
RZEDBs Aggregate
Reduction Net of
35% Subsidy
Net of Revised
Subsidy
Impact of
Reduction
Net of
45% Subsidy
Net of Revised
Subsidy
Impact of
Reduction
2011 35.0% $1,346,448 $1,346,448 $0 45.0% $79,196 $79,196 $0 $0 2012 35.0% 4,946,136 4,946,136 0 45.0% 290,924 290,924 0 0 2013 32.0% 4,946,136 4,946,136 0 41.1% 290,924 290,924 0 0 2014 32.5% 4,946,136 5,177,843 (231,707) 41.8% 290,924 311,632 (20,708) (252,415) 2015 32.4% 4,946,136 5,137,893 (191,757) 41.7% 290,924 308,062 (17,138) (208,895) 2016 32.6% 4,946,136 5,140,557 (194,421) 41.9% 290,924 308,300 (17,376) (211,797) 2017 32.6% 4,946,136 5,127,240 (181,104) 41.9% 290,924 307,110 (16,186) (197,290) 2018 32.7% 4,946,136 5,129,904 (183,768) 42.0% 290,924 307,348 (16,424) (200,192) 2019 32.8% 4,946,136 5,121,914 (175,778) 42.2% 290,924 306,633 (15,709) (191,487) 2020 32.9% 4,946,136 5,111,260 (165,124) 42.3% 290,924 305,681 (14,757) (179,881) 2021 33.0% 4,946,136 5,103,270 (157,134) 42.3% 290,924 304,967 (14,043) (171,177) 2022 33.0% 4,946,136 5,097,944 (151,808) 42.3% 290,924 304,491 (13,567) (165,375) 2023 33.0% 4,946,136 5,097,944 (151,808) 42.3% 290,924 304,491 (13,567) (165,375) 2024 33.0% 4,946,136 5,097,944 (151,808) 42.3% 290,924 304,491 (13,567) (165,375) TOTALS $65,646,216 $67,582,433 ($1,936,217) TOTALS $3,861,208 $4,034,250 ($173,042) ($2,109,259) PAGE 81

Hypothetical Future Savings Analysis
¹Preliminary and subject to change. Actual results may differ, and Stifel makes no commitment to underwrite at these levels. Analysis was performed with no changes to the term or the structure of the debt service from each option. The use of a ‘AA+' rating is consistent with the rating of the outstanding bonds. Refunding escrow has been funded with SLGS but in no way is Stifel recommending this or any other investment strategy. Costs of issuance and underwriter's discount assumptions are estimates for discussion purposes.

Hypothetical Savings Analysis Assuming the City Refinances Each Option in 10 Years OPTION 1: Mimic
Existing Structure
OPTION 2:

Level (FY 2026)
OPTION 3:

Level (FY 2032)
OPTION 4:
$13.7mm (FY 2026)
NPV $ NPV % NPV $ NPV % NPV $ NPV % NPV $ NPV %
Market Rates $11,241,748 10.4% $10,147,081 10.1% $11,971,352 11.0% $16,580,698 12.9% Market Rates + 1.0% 6,024,691 5.6% 5,426,973 5.4% 6,350,222 5.9% 6,768,606 5.3%  Hypothetical analysis¹ assumes that each option would be refinanced in 10 yea
rs at par (March 1, 2034) at market rates or market rates + 1.0%  Market rates are based on market conditions as of August 22, 2024 PAGE 82