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City of Santa Ana, California Proposal for Municipal Financial Advisory Services March 12, 2020 4. Propose,-.' !.i'rt,', Approach to Non -Bond Financing Scope of Services UFI has been providing the City with various non -bond financing services since 2013. In August 2013, we completed a reorganization of the Community Redevelopment Agency. In September 2013, we completed a comprehensive analysis of the City's debt portfolio. We have served as the City s dissemination agent since 2014. In 2019, we were engaged by the City to analyze the City's pension liability and contemplated issuance of pension obligation bonds. Through this process, we have developed an amortization model for each of the City's 41 amortization bases that comprise the $681 million unfunded accrued liability (UAL). This model serves as the foundation to evaluate potential funding solutions for the City's unfunded pension and OPEB liability. We are pleased to have had the opportunity to serve the City in various capacities over the past seven years, which has enabled us to provide a deep institutional knowledge of the City and its finances. We believe we are uniquely positioned to be able to continue to offer the City on -call services in addition to traditional municipal advisory work. Furthermore, we believe we are the only municipal advisory firm with dedicated full-time staff in the area of pension advisory. Public Management Group UFI's Public Management Group offers clients a broad spectrum of financial consulting services, including strategic planning, long-term financial forecasting, special studies, and performance improvement services, including pension & OPEB modeling services. What sets the Public Management Group apart is the practical, insightful recommendations honed by executive -level government experience. UFI's goal is for our Public Management Group to serve as an extension of staff. UFI is headquartered in Tustin, less than five miles from City Hall. It is our intent to coordinate the team in providing the types of 24/7 "on -call" financial advisory services as requested by the City. Review of City's Financial Forecast At UP, we believe the best approach to developing sound financial policies, strategies and plans begins with a solid long-term financial forecast of the General Fund. This tool can significantly help cities achieve both fiscal stability and service sustainability through more informed decision -making. Armed with a robust forecast, leadership (both appointed and elected) can identify critical unmet needs, develop options to close funding gaps and create plans that achieve the City s strategic objectives because they are aligned to a solid and continuously updated financial forecast and plan. We acknowledge that the City currently has a financial forecast in use to achieve these goals. We are prepared to conduct a review of this forecast, as outlined in the scope below. Revenue and Expenditure Analysis and Opportunity Identification A. Assessment of General Fund Revenue Streams, Including Possible Revenue Restructuring Options and/or Ballot Measures to Enhance Stability and Sustainability We can help the City assess identified revenue streams through a series of progressive steps that allow management to iteratively evaluate both existing revenue streams and possible new revenue streams, and determine which opportunities are worth pursuing and discard options that are determined to be of low value. These four steps include the following: OUFI 10 25F-29