Item 40 - Refinancing City’s Pension Obligations with California Public Employees Retirement System

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17 4826-7904-2280v7/200434-0005 the COVID-19 outbreak or other factors. See the captions “THE CITY—COVID-19 Outbreak” and “RISK FACTORS—Impacts and Potential Impacts of COVID-19 on the City.” For additional information relating to the City’s pension plans, see Note 4 to the City’s audited financial statements set forth in Appendix A and CalPERS’ internet website at www.calpers.ca.gov for CalPERS’ most recent actuarial valuation reports and other information that concerns benefits and other matters, which information on CalPERS’ internet website is not incorporated herein by reference. PLAN OF REFINANCING On June 25, 2021, the Court entered the Validation Judgment to the effect, among other things, that: (i) the Bonds and any and all contracts and agreements executed and delivered in connection therewith are valid, legal and binding obligations of the City and the approval thereof was in conformity with applicable provisions of law; and (ii) the City has the authority under State law to provide for the refunding of its Pension Liability and its normal annual contributions for the current fiscal year by issuing the Bonds and applying the proceeds of the Bonds to the retirement of its Pension Liability and payment of its current year normal annual contributions. On July 25, 2021, the Validation Judgment became binding and conclusive in accordance with State law. See the caption “VALIDATION.” CalPERS has notified the City as to the amount of the Pension Liability based on the June 30, 2019 actuarial valuation, which is the most recent actuarial valuation performed by CalPERS for the City’s Miscellaneous Plan and Safety Plan. City of Santa Ana Unfunded Accrued Liability of CalPERS Pension Plans Miscellaneous Plan Safety Plan Combined Accrued Liability $ 948,084,339 $ 1,191,809,847 $ 2,139,894,186 Market Value of Assets 645,902,345 787,086,636 1,432,988,981 Unfunded Accrued Liability $ 302,181,994 $ 404,723,211 $ 706,905,205 Percentage of Accrued Liability Funded 68.1% 66.0% 67.0% Source: CalPERS Actuarial Valuations as of June 30, 2019. ESTIMATED SOURCES AND USES OF FUNDS The proceeds to be received from the sale of the Bonds and other funds are estimated to be applied as set forth below. Sources Principal Amount of Bonds $ City Contribution __________ Total Sources $ __________ Uses Funding of Pension Liability(1) Miscellaneous Plan $ Safety Plan Costs of Issuance(2) Total Uses $ __________ (1) Deposit to CalPERS Payment Fund. See the caption “PLAN OF REFINANCING.” (2) Includes Underwriter’s discount, fees of rating agency, Municipal Advisor, Bond Counsel and Disclosure Counsel and the Trustee, printing costs and other costs of issuance.