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CITY OF SANTA ANA— Pension/QPEB Analysis & Financing Solutions City's Management, Economic Development, Infrastructure, Budget and Technology Committee, and City Council. We believe that addressing rising retirement costs will be the most significant financial Issue that most municipal employees and elected officials will face in their careers, This problem Is complex and Involves many financial and legal/administrativeintricacies. We have found that this issue requires a significant education process before buy -in can be achieved for a recommended solution. UFI believes that this education process is so critical that we highlighted it as a key step in the proposal, Conducting City Council workshop is often the best initial step toward the implementation of financial solutions. UFI can conduct a Council Workshop; 1) to explain the pension/OPEB liabilities and 2) to present potential solutions to addressing these costs as well implementation requirements. Wefindthat conducting one-on-one or "2-2.1" meetings before the Council Workshop provides an ideal setting for Council to learn, ask key questions, and formulate opinions. Perhaps of greater Importance, these "pre - sessions" provide staff with a clearer picture of council leanings regarding potential solutions. We anticipate that the City Council wail request that the Economic Development, Infrastructure, Budget and Technology Committee convene and provide a recommendation to the City Council, We will be availableto make presentationsto this Committee to further facilitate the approval process. 4t. IMPLEMENTATION OF a AND RHOMMENDATIONS UFi will work with the City staff to provide specific and detailed recommendations regarding addressing Its retirement costs and needed steps to maintain or improve Its financial position. We anticipate that the City will select more than orle financial solution. UFI will he available to assist the City In implementing each selected strategy; • UFI can assist with the issuance of bonds to facilitate tax-exempt exchange UFI can help the City select the Amortization Base to provide optimal savings, If you make additional discretionary payments (ADPs) e UFI can review/refine the investment strategy for monles held in a 115 Trust Moreover, UFI wilt actively monitor the City's retirement Ilabillty; and will provide follow-up service on an as -needed basis. MoirCt TEAM We have assigned three of outmost senior staff to your project. Collectively, we have over 50 years of combined executive -level government and public finance experience, including financial forecast modeling, capital project financing, fiscal sustainability, strategies and restructurings, pension (and QPEB) analytics and management, and pension obligations bands.