1 SAVINGS MEMORANDUM
TO: Successor Agency to the Redevelopment Agency of the City of Santa Monica FROM: Urban Futures, Inc.
Michael Busch, Chief Strategy Officer
Branden Kfoury, Director
DATE: December 15, 2025
RE: Independent Municipal Advisor’s Report: Debt Service Savings Analysis for the Successor Agency to the Redevelopment Agency of the City of Santa Monica 2026 Tax Allocation Refunding Bonds
_____________________________________________________________________________________ Background
The Successor Agency to the Redevelopment Agency of the City of Santa Monica (the “Agency”) is authorized under Section 34177.5(a)(1) of the California Health and Safety Code to issue refunding tax allocation bonds and other indebtedness for economic savings within the parameters set forth in Section 34177.5(a)(1) of the California Health and Safety Code (the “Savings Parameters”). In addition, Section 34177.5(h) of the California Health and Safety Code provides, in relevant part, that the Agency “…shall make use of an independent financial advisor in developing financing proposals and shall make the work products of the financial advisor available to the Department of Finance at its request.” Urban Futures, Inc., has been retained by the Agency to serve as its independent municipal advisor to determine compliance with the Savings Parameters for purposes of the incurrence by the Agency of the tax allocation refunding bonds in one or more series (collectively, “2026 Bonds”).
The Agency will issue the 2026 Bonds to refund the following obligations of the former Redevelopment Agency: (i) Earthquake Recovery Redevelopment Project 2006 Tax Allocation Refunding Bonds, Series A (“2006 Bonds”); and (ii) Earthquake Recovery Redevelopment Project 2011 Tax Allocation Bonds (“2011 Bonds” and together with the 2011 Bonds, the “Refunded Bonds”).
The Agency has selected Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) to structure and negotiate the refunding of the Refunded Bonds. The financing goal is to maximize economic savings by reducing total debt service, and the savings generated from this refunding are anticipated to result in higher future property tax distributions to the taxing entities. This report may be used in presentations to the Agency Board and Los Angeles County Third Supervisorial District Consolidated Oversight Board, but actual savings will be final only after the pricing of the 2026 Bonds.
Plan of Refunding
Based on market conditions as of December 8, 2025, the Underwriter estimates that the refunding of the Refunded Bonds will achieve combined debt service savings of approximately $12.2 million and Net Present Value savings of approximately $7.0 million, or 12.2% of refunded par. The Underwriter’s estimates include the following key assumptions for the 2026 Bonds:
(i) a public market negotiated sale;
(ii) an underlying rating of “AA” assigned by S&P;
2 (iii) the use of a reserve surety in lieu of a cash funded reserve fund; and (iv) a proportional savings structure by refunded series.
The Agency may select an alternative structure for the 2026 Bonds and other assumptions may be adjusted, which would change the refunding results.
Refunding Results
The following table shows the estimated sources and uses for the 2026 Bonds.
The tables on the following page show estimated Cash Flow and Net Present Value savings results assuming market conditions as of December 8, 2025. Additional information can be found in the attached Refunding Analysis.
Sources: Refunding of 2006 Bonds Refunding of 2011 Bonds Total Par Amount $ 15,755,000 $ 35,760,000 $ 51,515,000
Premium 610,363 4,294,338 4,904,701
$ 16,365,363 $ 40,054,338 $ 56,419,701
Prior Bonds Available Funds - 2,319,388 2,319,388
$ - $ 2,319,388 $ 2,319,388
Total Sources of Funds $ 16,365,363 $ 42,373,726 $ 58,739,089 Uses: Refunding of 2006 Bonds Refunding of 2011 Bonds Total Refunding Escrow Deposit $ 16,137,259 $ 41,867,169 $ 58,004,428 Costs of Issuance(1) $ 228,103 $ 506,557 $ 734,661
Total Uses of Funds $ 16,365,363 $ 42,373,726 $ 58,739,089 (1) Includes estimated costs of issuance, underwriter's discount, reserve surety expense, and contingency amount.
Table 1: Sources and Uses of Funds
3 Proposed Refunding Complies With State Law
Based on the 2026 Bonds’ proposed structure and the estimated debt service savings according to numbers prepared by the Underwriter, Urban Futures, Inc. expects that the 2026 Bonds will comply with the Savings Parameters and other requirements of State Law as described below.
A. Total debt service (principal and interest) on the refunding bonds is less than total debt service on the refunded bonds (sec. 34177.5(a)(1)(A)): Section 34177.5(a)(1)(A) requires that the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be Refunding of
2006 Bonds
Refunding of
2011 Bonds Total
7/1/2026 $ 1,236 $ 3,273 $ 4,509
7/1/2027 106,333 515,413 621,745
7/1/2028 110,813 515,413 626,225
7/1/2029 110,063 515,413 625,475
7/1/2030 795,413 795,413
7/1/2031 796,413 796,413
7/1/2032 796,663 796,663
7/1/2033 796,163 796,163
7/1/2034 797,075 797,075
7/1/2035 794,675 794,675
7/1/2036 793,831 793,831
7/1/2037 794,250 794,250
7/1/2038 793,238 793,238
7/1/2039 794,350 794,350
7/1/2040 797,294 797,294
7/1/2041 796,731 796,731
7/1/2042 792,663 792,663
$ 328,443 $ 11,888,267 $ 12,216,710
Table 2: Cash Flow Savings
Refunding of
2006 Bonds
Refunding of
2011 Bonds Total
PV of savings from cash flow $ 306,029 $ 8,979,927 $ 9,285,956 Less: Prior funds on hand(1) $ - $ (2,319,388) $ (2,319,388) Plus: Refunding funds on hand $ 4,238 $ (1,561) $ 2,677 Net PV Savings $ 310,268 $ 6,658,977 $ 6,969,245
Net PV Savings as % of Refunded Par 1.95% 16.22% 12.24% (1) Consists of reserve account release in connection with defeasance of 2011 Bonds.
Table 3: Net PV Savings Summary
4 refunded. The refunding of the Refunded Bonds is expected to generate an estimated total debt service savings of approximately $12.2 million calculated as follows: (i) total debt service on the Refunded Bonds, minus (ii) total debt service on the 2026 Bonds. Net Present Value savings are estimated to be approximately $7.0 million, or 12.2% of refunded par. The combined Net Present Value savings satisfy the Savings Parameters in Section 34177.5(a)(1) and is well-above the 3% minimum savings threshold in the Successor Agency’s Debt Management Policy.
B. Refunding bonds principal shall be used only for purposes of refunding outstanding Agency obligations (sec. 34177.5(a) (1)(B)): Section 34177.5(a)(1)(B) requires that the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance. The anticipated sources and uses of funds for the 2026 Bonds show that all proceeds of the 2026 Bonds will be used only to defease the Refunded Bonds and to pay related costs of issuance.
Proceeds of the 2026 Bonds will not be used for any other purposes, including new-money purposes.
C. Agency shall make diligent efforts to ensure lowest long-term cost financing is obtained, to structure refunding that does not provide for any bullets or spikes or variable rates, and shall hire an independent financial advisor (sec. 34177.5(h)): The Agency has retained Urban Futures, Inc., an independent financial advisor registered with the SEC and MSRB, to monitor the pricing of the 2026 Bonds. In order to achieve the lowest long-term cost of financing, the financing team will explore replacing the cash-funded debt service reserve fund of the 2011 Bonds with a reserve policy. In accordance with Section 34177.5(h), the 2026 Bonds will not be structured to include any bullet principal maturities, debt service spikes or variable rates.
Issuance of the 2026 Bonds by the Agency for the purpose of refunding the Refunded Bonds is recommended to achieve debt service savings.
5 Appendix: Refunding Analysis
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 1
SOURCES AND USES OF FUNDS
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Dated Date 04/29/2026
Delivery Date 04/29/2026
Refunding 2006 Refunding 2011
Tax Allocation Tax Allocation
Sources: Bonds Bonds Total
Bond Proceeds:
Par Amount 15,755,000.00 35,760,000.00 51,515,000.00
Premium 610,362.60 4,294,338.45 4,904,701.05
16,365,362.60 40,054,338.45 56,419,701.05
Other Sources of Funds:
Prior Debt Service Reserve Fund 2,319,387.90 2,319,387.90 16,365,362.60 42,373,726.35 58,739,088.95
Refunding 2006 Refunding 2011
Tax Allocation Tax Allocation
Uses: Bonds Bonds Total
Refunding Escrow Deposits:
Cash Deposit 0.25 0.83 1.08
SLGS Purchases 16,137,259.00 41,867,168.00 58,004,427.00 16,137,259.25 41,867,168.83 58,004,428.08
Delivery Date Expenses:
Cost of Issuance 91,749.98 208,250.02 300,000.00
Underwriter's Discount 102,407.50 232,440.00 334,847.50 Surety Reserve (175 bps) 29,707.54 67,428.87 97,136.41
223,865.02 508,118.89 731,983.91
Other Uses of Funds:
Additional Proceeds 4,238.33 -1,561.37 2,676.96
16,365,362.60 42,373,726.35 58,739,088.95
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 2
SUMMARY OF REFUNDING RESULTS
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Refunding 2006 Refunding 2011
Tax Allocation Tax Allocation
Bonds Bonds Total
Dated Date 04/29/2026 04/29/2026 04/29/2026
Delivery Date 04/29/2026 04/29/2026 04/29/2026
Arbitrage Yield 3.258832% 3.258832% 3.258832%
Escrow Yield 3.258759% 3.258833% 3.258812%
Value of Negative Arbitrage 0.96 -0.04 0.92
Bond Par Amount 15,755,000.00 35,760,000.00 51,515,000.00 True Interest Cost 3.016678% 3.667472% 3.619632%
Net Interest Cost 3.099210% 3.928933% 3.874315%
Average Coupon 5.000000% 5.000000% 5.000000%
Average Life 1.696 10.605 7.880
Par amount of refunded bonds 15,875,000.00 41,050,000.00 56,925,000.00 Average coupon of refunded bonds 4.738131% 5.534256% 5.488329% Average life of refunded bonds 1.729 10.925 8.360
PV of prior debt 16,505,559.97 50,171,245.78 66,676,805.75 Net PV Savings 310,267.65 6,658,977.55 6,969,245.20
Percentage savings of refunded bonds 1.954442% 16.221626% 12.242855% Percentage savings of refunding bonds 1.969328% 18.621302% 13.528575% Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 3
SAVINGS
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Present Value
Prior Refunding to 04/29/2026
Date Debt Service Debt Service Savings @ 3.2588316%
07/01/2026 5,208,110.00 5,203,601.39 4,508.61 4,483.58
07/01/2027 6,709,495.00 6,087,750.00 621,745.00 602,561.85 07/01/2028 6,711,475.00 6,085,250.00 626,225.00 587,643.30 07/01/2029 6,708,975.00 6,083,500.00 625,475.00 568,231.90 07/01/2030 4,517,412.50 3,722,000.00 795,412.50 698,724.31 07/01/2031 4,514,662.50 3,718,250.00 796,412.50 677,248.28 07/01/2032 4,516,412.50 3,719,750.00 796,662.50 655,812.19 07/01/2033 4,517,162.50 3,721,000.00 796,162.50 634,454.92 07/01/2034 4,513,825.00 3,716,750.00 797,075.00 614,729.82 07/01/2035 4,516,675.00 3,722,000.00 794,675.00 593,135.02 07/01/2036 4,514,831.26 3,721,000.00 793,831.26 573,391.99 07/01/2037 4,513,000.00 3,718,750.00 794,250.00 555,163.41 07/01/2038 4,513,237.50 3,720,000.00 793,237.50 536,595.75 07/01/2039 4,513,600.00 3,719,250.00 794,350.00 520,020.46 07/01/2040 4,513,543.76 3,716,250.00 797,293.76 505,098.61 07/01/2041 4,512,481.26 3,715,750.00 796,731.26 488,435.35 07/01/2042 4,514,912.50 3,722,250.00 792,662.50 470,225.40 84,029,811.28 71,813,101.39 12,216,709.89 9,285,956.14
Savings Summary
PV of savings from cash flow 9,285,956.14
Less: Prior funds on hand -2,319,387.90
Plus: Refunding funds on hand 2,676.96
Net PV Savings 6,969,245.20
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 4
SAVINGS
Santa Monica Redevelopment Agency
Refunding 2006 Tax Allocation Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Present Value
Prior Refunding to 04/29/2026
Date Debt Service Debt Service Savings @ 3.2588316%
07/01/2026 4,076,903.75 4,075,668.06 1,235.69 1,228.83
07/01/2027 4,447,082.50 4,340,750.00 106,332.50 102,271.43 07/01/2028 4,449,062.50 4,338,250.00 110,812.50 103,266.51 07/01/2029 4,446,562.50 4,336,500.00 110,062.50 99,262.55 17,419,611.25 17,091,168.06 328,443.19 306,029.32
Savings Summary
PV of savings from cash flow 306,029.32
Plus: Refunding funds on hand 4,238.33
Net PV Savings 310,267.65
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 5
SAVINGS
Santa Monica Redevelopment Agency
Refunding 2011 Tax Allocation Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Present Value
Prior Refunding to 04/29/2026
Date Debt Service Debt Service Savings @ 3.2588316%
07/01/2026 1,131,206.25 1,127,933.33 3,272.92 3,254.75
07/01/2027 2,262,412.50 1,747,000.00 515,412.50 500,290.41 07/01/2028 2,262,412.50 1,747,000.00 515,412.50 484,376.79 07/01/2029 2,262,412.50 1,747,000.00 515,412.50 468,969.36 07/01/2030 4,517,412.50 3,722,000.00 795,412.50 698,724.31 07/01/2031 4,514,662.50 3,718,250.00 796,412.50 677,248.28 07/01/2032 4,516,412.50 3,719,750.00 796,662.50 655,812.19 07/01/2033 4,517,162.50 3,721,000.00 796,162.50 634,454.92 07/01/2034 4,513,825.00 3,716,750.00 797,075.00 614,729.82 07/01/2035 4,516,675.00 3,722,000.00 794,675.00 593,135.02 07/01/2036 4,514,831.26 3,721,000.00 793,831.26 573,391.99 07/01/2037 4,513,000.00 3,718,750.00 794,250.00 555,163.41 07/01/2038 4,513,237.50 3,720,000.00 793,237.50 536,595.75 07/01/2039 4,513,600.00 3,719,250.00 794,350.00 520,020.46 07/01/2040 4,513,543.76 3,716,250.00 797,293.76 505,098.61 07/01/2041 4,512,481.26 3,715,750.00 796,731.26 488,435.35 07/01/2042 4,514,912.50 3,722,250.00 792,662.50 470,225.40 66,610,200.03 54,721,933.33 11,888,266.70 8,979,926.82
Savings Summary
PV of savings from cash flow 8,979,926.82
Less: Prior funds on hand -2,319,387.90
Plus: Refunding funds on hand -1,561.37
Net PV Savings 6,658,977.55
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 6
BOND PRICING
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Serial Bond:
07/01/2026 4,760,000 5.000% 2.660% 100.393 18,706.80
07/01/2027 3,750,000 5.000% 2.650% 102.691 100,912.50
07/01/2028 3,935,000 5.000% 2.630% 104.968 195,490.80
07/01/2029 4,130,000 5.000% 2.610% 107.227 298,475.10
07/01/2030 1,975,000 5.000% 2.620% 109.344 184,544.00
07/01/2031 2,070,000 5.000% 2.660% 111.234 232,543.80
07/01/2032 2,175,000 5.000% 2.730% 112.810 278,617.50
07/01/2033 2,285,000 5.000% 2.810% 114.132 322,916.20
07/01/2034 2,395,000 5.000% 2.830% 115.729 376,709.55
07/01/2035 2,520,000 5.000% 2.930% 116.539 416,782.80
07/01/2036 2,645,000 5.000% 3.080% 115.236 C 3.230% 07/01/2035 100.000 402,992.20 07/01/2037 2,775,000 5.000% 3.210% 114.120 C 3.465% 07/01/2035 100.000 391,830.00 07/01/2038 2,915,000 5.000% 3.350% 112.932 C 3.672% 07/01/2035 100.000 376,967.80 07/01/2039 3,060,000 5.000% 3.460% 112.010 C 3.830% 07/01/2035 100.000 367,506.00 07/01/2040 3,210,000 5.000% 3.600% 110.849 C 3.990% 07/01/2035 100.000 348,252.90 07/01/2041 3,370,000 5.000% 3.790% 109.295 C 4.167% 07/01/2035 100.000 313,241.50 07/01/2042 3,545,000 5.000% 3.970% 107.848 C 4.320% 07/01/2035 100.000 278,211.60 51,515,000 4,904,701.05
Dated Date 04/29/2026
Delivery Date 04/29/2026
First Coupon 07/01/2026
Par Amount 51,515,000.00
Premium 4,904,701.05
Production 56,419,701.05 109.520918%
Underwriter's Discount -334,847.50 -0.650000%
Purchase Price 56,084,853.55 108.870918%
Accrued Interest
Net Proceeds 56,084,853.55
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 7
AGGREGATE DEBT SERVICE
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Refunding 2006 Refunding 2011
Period Tax Allocation Tax Allocation Aggregate
Ending Bonds Bonds Debt Service
07/01/2026 4,075,668.06 1,127,933.33 5,203,601.39
07/01/2027 4,340,750.00 1,747,000.00 6,087,750.00
07/01/2028 4,338,250.00 1,747,000.00 6,085,250.00
07/01/2029 4,336,500.00 1,747,000.00 6,083,500.00
07/01/2030 3,722,000.00 3,722,000.00
07/01/2031 3,718,250.00 3,718,250.00
07/01/2032 3,719,750.00 3,719,750.00
07/01/2033 3,721,000.00 3,721,000.00
07/01/2034 3,716,750.00 3,716,750.00
07/01/2035 3,722,000.00 3,722,000.00
07/01/2036 3,721,000.00 3,721,000.00
07/01/2037 3,718,750.00 3,718,750.00
07/01/2038 3,720,000.00 3,720,000.00
07/01/2039 3,719,250.00 3,719,250.00
07/01/2040 3,716,250.00 3,716,250.00
07/01/2041 3,715,750.00 3,715,750.00
07/01/2042 3,722,250.00 3,722,250.00
17,091,168.06 54,721,933.33 71,813,101.39
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 8
SUMMARY OF BONDS REFUNDED
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
2006 Tax Allocation Bonds, 2006, SERIAL:
07/01/2026 4.500% 3,705,000 05/29/2026 100.000
07/01/2027 4.600% 3,870,000 05/29/2026 100.000
07/01/2028 5.000% 4,050,000 05/29/2026 100.000
07/01/2029 4.625% 4,250,000 05/29/2026 100.000
15,875,000
2011 Tax Allocation Bonds, 2011, TERM32:
07/01/2032 5.000% 7,105,000 05/29/2026 100.000
2011 Tax Allocation Bonds, 2011, TERM36:
07/01/2036 5.875% 11,390,000 05/29/2026 100.000
2011 Tax Allocation Bonds, 2011, TERM42A:
07/01/2042 5.875% 12,600,000 05/29/2026 100.000
2011 Tax Allocation Bonds, 2011, TERM42B:
07/01/2042 5.000% 9,955,000 05/29/2026 100.000
56,925,000
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 9
ESCROW REQUIREMENTS
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Period Principal
Ending Interest Redeemed Total
05/29/2026 1,235,890.45 56,925,000 58,160,890.45
1,235,890.45 56,925,000 58,160,890.45
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 10
ESCROW DESCRIPTIONS DETAIL
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Type of Type of Maturity First Int Par Max
Security SLGS Date Pmt Date Amount Rate Rate
Refunding 2006 Tax Allocation Bonds, Global Proceeds Escrow, Apr 29, 2026:
SLGS Certificate 05/29/2026 05/29/2026 14,122,508 3.750% 3.750% SLGS Certificate 05/29/2026 2,014,751 3.750%
16,137,259
Refunding 2011 Tax Allocation Bonds, Global Proceeds Escrow, Apr 29, 2026:
SLGS Certificate 05/29/2026 05/29/2026 36,640,837 3.750% 3.750% SLGS Certificate 05/29/2026 5,226,331 3.750%
41,867,168
58,004,427
SLGS Summary
SLGS Rates File 16DEC25
Total Certificates of Indebtedness 58,004,427.00
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 11
ESCROW CASH FLOW
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Net Escrow
Date Principal Interest Receipts
05/29/2026 58,004,427.00 156,462.37 58,160,889.37
58,004,427.00 156,462.37 58,160,889.37
Escrow Cost Summary
Purchase date 04/29/2026
Purchase cost of securities 58,004,427.00
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.
Dec 16, 2025 4:19 pm Prepared by Stifel Public Finance (SOB) (Finance 8.901 Santa Monica TABs:120825-2025) Page 12
UNDERWRITER EXCLUSION DISCLOSURE
Santa Monica Redevelopment Agency
2026 Tax Allocation Refunding Bonds
**************************************************************************************************** Market Conditions as of December 8, 2025 (+0.20% Cushion) **************************************************************************************************** Stifel, Nicolaus & Company, Incorporated ('Stifel') has been engaged or appointed to serve as an underwriter or placement agent with respect to a particular issuance of municipal securities to which the attached material relates and Stifel is providing all information and advice contained in the attached material in its capacity as underwriter or placement agent for that particular issuance. As outlined in the SEC's Municipal Advisor Rule, Stifel has not acted, and will not act, as your municipal advisor with respect to the issuance of the municipal securities that is the subject to the engagement.
Stifel is providing information and is declaring to the proposed municipal issuer that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm's-length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.
These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and / or counsel as you deem appropriate.
Notes:
1. Preliminary and subject to change.
2. Interest rates reflect current market conditions and similar credits.
3. The refunding assumes an S&P rating of 'AA' which is consistent with the rating of the Prior Bonds.
4. Cost of Issuance and Underwriter's Discount are estimates for discussion purposes.
5. The refunding has been structured with no change to the term or debt service profile relative to the Prior Bonds.
6. Stifel neither guarantees these results nor commits to underwrite at these levels.