Preliminary Official Statement
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PRELIMINARY OFFICIAL STATEMENT DATED MARCH __, 2022
NEW ISSUE – BOOK-ENTRY-ONLY FORM
RATINGS: See “RATINGS” herein.
In the opinion of Bond Counsel, assuming the accuracy of certain representations and certifications and the continuing compliance with
certain tax covenants, under existing statutes, regulations, rulings and court decisions, interest on the Bonds (i) is excludable from gross
income for federal income tax purposes and (ii) is exempt from income taxation under the laws of the State of Arizona. Further, interest
on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. See “TAX
EXEMPTION” herein for a description of certain other federal tax consequences of ownership of the Bonds.
$10,995,000*
CITY OF EL MIRAGE, ARIZONA
GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2022
Dated: Date of Initial Authentication and Delivery
Due: July 1, as shown on the inside front cover page
The General Obligation Refunding Bonds, Series 2022 (the “Bonds”) of the City of El Mirage, Arizona (the “City”), will be issued in the
form of fully-registered bonds, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New
York (“DTC”). Beneficial ownership interests in the Bonds may be purchased in amounts of $5,000 of principal due on a specific maturity
date or integral multiples thereof. The Bonds will mature on the dates and in the principal amounts and will bear interest from their date
of delivery to their maturity or prior redemption as set forth on the inside front cover page. Interest on the Bonds will accrue from the
date of initial authentication and delivery and will be payable semiannually on January 1 and July 1 of each year commencing on July 1,
2022*, until maturity or prior redemption.
The Bonds are being issued for the purpose of (i) refunding and redeeming the Bonds Being Refunded (as defined herein), (ii) paying
capitalized interest on the Bonds through July 1, 2022 and (iii) and paying costs relating to the issuance of the Bonds.
SEE MATURITY SCHEDULE ON INSIDE FRONT COVER PAGE
The City will initially utilize DTC’s “book-entry-only system,” although the City and DTC each reserve the right to discontinue the book-
entry-only system at any time. Utilization of the book-entry-only system will affect the method and timing of payment of principal of
and interest on the Bonds and the method of transfer of the Bonds. So long as the book-entry-only system is in effect, a single fully-
registered Bond, for each maturity of the Bonds, will be registered in the name of Cede & Co., as nominee of DTC, on the registration
books maintained by U.S. Bank National Association, the initial bond registrar and paying agent for the Bonds. DTC will be responsible
for distributing the principal and interest payments to its direct and indirect participants who will, in turn, be responsible for distribution
to the beneficial owners of the Bonds (the “Beneficial Owners”). So long as the book-entry-only system is in effect and Cede & Co. is
the registered owner of the Bonds, all references herein (except under the heading “TAX EXEMPTION”) to owners of the Bonds will
refer to Cede & Co. and not the Beneficial Owners. See APPENDIX F – “BOOK-ENTRY-ONLY SYSTEM” herein.
Certain of the Bonds will be subject to redemption prior to their stated maturity dates as described under the heading “THE BONDS –
Redemption Provisions” herein.*
The Bonds will be payable as to principal and interest from a continuing, direct, annual, ad valorem tax levied against all of the taxable
property located within the boundaries of the City as more fully described herein. The Bonds will be payable from such tax without limit
as to rate but limited in amount so that the total aggregate of taxes levied to pay principal and interest on the Bonds in the aggregate will
not exceed the total aggregate of principal of and interest due on the Bonds Being Refunded from the date of issuance of the Bonds to
the final date of maturity of the Bonds Being Refunded. The application of such taxes to the payment of the Bonds will be subject to the
rights vested in the owners of the Bonds Being Refunded to the payment of the Bonds Being Refunded from the same source in the event
of a deficiency in the securities to be purchased with the proceeds of the Bonds and held in trust to pay principal of and interest on the
Bonds Being Refunded. The owners of the Bonds must rely on the sufficiency of the monies and securities held in such trust for payment
of the Bonds Being Refunded. See “SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS” and “PLAN OF
REFUNDING” herein.
The Bonds will be offered when, as and if issued by the City and received by the underwriter identified below (the “Underwriter”),
subject to the legal opinion of Greenberg Traurig, LLP, Phoenix, Arizona, Bond Counsel, as to validity and tax exemption. Certain legal
matters will be passed on for the Underwriter by its counsel _______________. It is expected that the Bonds will be available for delivery
through the facilities of DTC on or about April __, 2022*.
This cover page contains certain information with respect to the Bonds for convenience of reference only. It is not a summary of the issue
of which the Bonds are a part. Investors must read this entire Official Statement to obtain information essential to the making of an
informed investment decision with respect to the Bonds.
UNDERWRITER TBD
* Preliminary, subject to change.
$10,995,000*
CITY OF EL MIRAGE, ARIZONA
GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2022
MATURITY SCHEDULE*
Base CUSIP® No. 28328R(a)
Maturity
Date
(July 1)
Principal
Amount
Interest
Rate
Yield
CUSIP® (a)
No. 28328R
2022
$160,000
2023
680,000
2024
705,000
2025
370,000
2026
380,000
2027
395,000
2028
415,000
2029
430,000
2030
450,000
2031
465,000
2032
485,000
2033
500,000
2034
525,000
2035
545,000
2036
570,000
$3,920,000 4.00% Term Bond due July 1, 2042 – Yield __.__% CUSIP®(1) 28328R___
(a) CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (“CGS”) is managed on
behalf of the American Bankers Association by S&P Global Market Intelligence. Copyright© 2022 CGS. All rights reserved.
CUSIP® data herein is provided by CGS. This data is not intended to create a database and does not serve in any way as a
substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the City, Bond
Counsel, the Underwriter, the Financial Advisor (each as defined herein) or their agents or counsel assume responsibility for
the accuracy of such numbers.
* Preliminary, subject to change.
(i)
CITY OF EL MIRAGE, ARIZONA
CITY COUNCIL
Alexis Hermosillo, Mayor
Monica Dorcey, Vice Mayor
Roy Delgado, Councilmember
Michael Hutchinson, Councilmember
Anita Norton, Councilmember
David Shapera, Councilmember
Donna Winston, Councilmember
CITY ADMINISTRATIVE OFFICIALS
Crystal Dyches, City Manager
Robert Nilles, Deputy City Manager
Dana Williams, Finance Director
Pierce Coleman PLLC, City Attorney
Sharon Antes, City Clerk
Michael Parascandola, City Magistrate
BOND COUNSEL
Greenberg Traurig, LLP
Phoenix, Arizona
FINANCIAL ADVISOR
Piper Sandler & Co.
Phoenix, Arizona
BOND REGISTRAR, PAYING AGENT AND ESCROW TRUSTEE
TBD
Phoenix, Arizona
(ii)
REGARDING THIS OFFICIAL STATEMENT
This Official Statement does not constitute an offering of any security other than the City of El Mirage, Arizona (the
“City”) General Obligation Refunding Bonds, Series 2022 (the “Bonds”), identified on the inside front cover page
hereof. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall
be no sale of the Bonds by any person in any jurisdiction in which it is unlawful to make such offer, solicitation or
sale. No dealer, broker, salesperson or other person has been authorized by the City to give any information or to
make any representations other than as contained in this Official Statement, and if given or made, such other
information or representations must not be relied upon as having been authorized by any of the foregoing.
The information set forth in this Official Statement has been provided by the City, Maricopa County, the State of
Arizona Department of Revenue and other sources which are considered to be reliable and customarily relied upon in
the preparation of similar official statements, but such information is not guaranteed as to accuracy or completeness
and is not to be construed as the promise or guarantee of the City or Piper Sandler & Co. (the “Financial Advisor”) or
__________________ (the “Underwriter”). The presentation of information, including tables of receipts from taxes
and other sources, is intended to show recent historical information and is not intended to indicate future or continuing
trends in the financial position or other affairs of the City. All estimates and assumptions contained herein have been
based on the latest information available and are believed to be reliable, but no representations are made that such
estimates and assumptions are correct, will be realized or will be repeated in the future. The information and any
expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official
Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no
change in the affairs of the City or any other parties or matters described herein since the date thereof.
The sale and issuance of the Bonds will not be registered under the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, or the Arizona Securities Act in reliance upon exemptions provided under such
acts for the sale and issuance of securities such as the Bonds. The Bonds will not be listed on any stock or other
securities exchange. Neither the Securities and Exchange Commission nor any other federal, State or other
government entity or agency will have passed upon the merits of the Bonds or the accuracy or adequacy of this Official
Statement or approved the Bonds for sale.
None of the City, the Underwriter, the Financial Advisor and Bond Counsel (as defined herein) are actuaries, nor have
any of them performed any actuarial or other analysis of the City’s unfunded liabilities under the Arizona Public Safety
Retirement System, the Arizona State Retirement System or the Elected Officials’ Retirement Plan.
The Underwriter has provided the following sentence for inclusion into this Official Statement: The Underwriter has
reviewed the information in this Official Statement in accordance with, and as part of its responsibilities to investors
under federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does
not guarantee the accuracy or completeness of such information.
In connection with this offering, the Underwriter may allow concessions or discounts from the initial public offering
prices to dealers and others, and the Underwriter may over allot or engage in transactions intended to stabilize the
prices of the Bonds at levels above those which might otherwise prevail in the open market in order to facilitate their
distribution. Such stabilization, if commenced, may be discontinued at any time.
A wide variety of other information, including financial information, concerning the City is available from
publications and websites of the City and others. Any such information that is inconsistent with the information set
forth in this Official Statement should be disregarded. No such information is a part of, or incorporated into, this
Official Statement, except as expressly noted herein.
The information contained herein in APPENDIX F – “BOOK-ENTRY-ONLY SYSTEM” has been furnished by The
Depository Trust Company and no representation has been made by the City, the Financial Advisor or any of their
counsel or agents, as to the accuracy or completeness of such information.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY ALLOW CONCESSIONS OR
DISCOUNTS FROM THE INITIAL PUBLIC OFFERING PRICES TO DEALERS AND OTHERS, AND THE
UNDERWRITER MAY OVERALLOT OR ENGAGE IN TRANSACTIONS INTENDED TO STABILIZE THE
PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN
MARKET IN ORDER TO FACILITATE THEIR DISTRIBUTION. SUCH STABILIZATION, IF COMMENCED,
MAY BE DISCONTINUED AT ANY TIME.
(iii)
TABLE OF CONTENTS
Page
INTRODUCTORY STATEMENT ............................................................................................................................... 1
THE BONDS ................................................................................................................................................................. 1
Authorization and Purpose ..................................................................................................................................... 1
General Description ................................................................................................................................................ 1
Bond Registrar and Paying Agent .......................................................................................................................... 2
Redemption Provisions ........................................................................................................................................... 2
Coronavirus Disease 2019 (“COVID-19”) ............................................................................................................. 3
SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS ....................................................................... 3
General ................................................................................................................................................................... 3
Defeasance.............................................................................................................................................................. 4
PLAN OF REFUNDING ............................................................................................................................................... 4
Schedule of Bonds Being Refunded ....................................................................................................................... 4
VERIFICATION OF MATHEMATICAL COMPUTATIONS .................................................................................... 5
SOURCES AND USES OF FUNDS ............................................................................................................................. 5
ESTIMATED DEBT SERVICE REQUIREMENTS .................................................................................................... 6
LITIGATION ................................................................................................................................................................ 7
LEGAL MATTERS ...................................................................................................................................................... 7
TAX EXEMPTION ....................................................................................................................................................... 7
General ................................................................................................................................................................... 7
Original Issue Premium .......................................................................................................................................... 8
Changes in Federal and State Tax Law .................................................................................................................. 9
Information Reporting and Backup Withholding ................................................................................................... 9
RATINGS ...................................................................................................................................................................... 9
UNDERWRITING ........................................................................................................................................................ 9
RELATIONSHIP AMONG PARTIES ....................................................................................................................... 10
CONTINUING DISCLOSURE ................................................................................................................................... 10
FINANCIAL ADVISOR ............................................................................................................................................. 10
FINANCIAL STATEMENTS ..................................................................................................................................... 11
CONCLUDING STATEMENT .................................................................................................................................. 11
APPENDIX A: CITY OF EL MIRAGE, ARIZONA – GENERAL AND DEMOGRAPHIC INFORMATION
APPENDIX B:
CITY OF EL MIRAGE, ARIZONA – FINANCIAL INFORMATION
APPENDIX C:
FORM OF APPROVING LEGAL OPINION
APPENDIX D: FORM OF CONTINUING DISCLOSURE UNDERTAKING
APPENDIX E:
CITY OF EL MIRAGE, ARIZONA – AUDITED ANNUAL FINANCIAL STATEMENTS FOR
THE FISCAL YEAR ENDED JUNE 30, 2021
APPENDIX F:
BOOK-ENTRY-ONLY SYSTEM
OFFICIAL STATEMENT
$10,995,000*
CITY OF EL MIRAGE, ARIZONA
GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2022
INTRODUCTORY STATEMENT
This Official Statement, which includes the cover page, the inside cover page and the Appendices attached hereto,
sets forth information concerning the offering by the City of El Mirage, Arizona (the “City”) of its General Obligation
Refunding Bonds, Series 2022 (the “Bonds”) in the aggregate principal amount of $10,995,000*. See APPENDIX A
– “CITY OF EL MIRAGE, ARIZONA – GENERAL AND DEMOGRAPHIC INFORMATION”, APPENDIX B –
“CITY OF EL MIRAGE, ARIZONA – FINANCIAL INFORMATION” and APPENDIX E – “CITY OF EL
MIRAGE, ARIZONA – AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED
JUNE 30, 2021” for certain information regarding the City.
Reference to provisions of the State of Arizona (the “State” or “Arizona”) law, whether codified in the Arizona
Revised Statutes or uncodified, or of the Arizona Constitution, are reference to those current provisions. The
provisions may be amended, repealed or supplemented.
THE BONDS
Authorization and Purpose
The Bonds will be issued pursuant to Title 35, Chapter 3, Article 4, Arizona Revised Statutes (the “Act”), and a
resolution adopted by the Mayor and Council of the City on February 15, 2022 (the “Resolution”).
Proceeds from the sale of the Bonds will be used to (i) establish an irrevocable trust of monies and obligations issued
by the United States of America (the “Government Obligations”) which will pay, when due, principal of and interest
on the hereinafter defined Bonds Being Refunded, and (ii) pay costs of issuance of the Bonds. The monies and the
Government Obligations will be held in an irrevocable trust (the “Trust”) for the owners of the Bonds Being Refunded
___________________ (the “Escrow Trustee”).
The City has general obligation bonds currently outstanding, and additional general obligation bonds may be
authorized at future special bond elections. See TABLE 14A – “Direct General Obligation Bonded Debt Outstanding
and to be Outstanding” in APPENDIX B – “CITY OF EL MIRAGE, ARIZONA – FINANCIAL INFORMATION.”
General Description
The Bonds will be dated as of the date of their initial delivery and initially will be registered only in the name of Cede
& Co., the nominee of The Depository Trust Company, New York, New York (“DTC”), under the book-entry-only
system described in APPENDIX F – “BOOK-ENTRY-ONLY SYSTEM” (the “Book-Entry-Only System”).
Beneficial ownership interests in the Bonds may be purchased through direct and indirect participants of DTC in
amounts of $5,000 of principal due on a specific maturity date or integral multiples thereof. See APPENDIX F –
“BOOK-ENTRY-ONLY SYSTEM.” The Bonds will mature on the dates and in the principal amounts and bear
interest at the rates from their date, all as set forth on the inside cover page and will be payable on July 1, 2022*, and
on each January 1 and July 1 thereafter until maturity or prior redemption. The City has chosen the fifteenth day of
the month preceding an interest payment date as the “Record Date” for the Bonds.
See “TAX EXEMPTION” herein for a discussion of the treatment of interest income on the Bonds for federal or State
income tax purposes.
* Preliminary, subject to change.
2
Bond Registrar and Paying Agent
___________________, will serve as the initial bond registrar, transfer agent and paying agent (the “Bond Registrar
and Paying Agent”) for the Bonds. The City may change the Bond Registrar and Paying Agent without notice to or
consent of the owners of the Bonds.
Redemption Provisions*
Optional Redemption. The Bonds maturing before and on July 1, 20__ will not be subject to redemption prior to their
stated maturity dates. The Bonds maturing on and after July 1, 20__ will be subject to optional redemption prior to
their stated maturity dates, at the direction of the City, in whole or in part in denominations of $5,000 or integral
multiples thereof from maturities selected by the City, on July 1, 20__ and on any date thereafter, at a redemption
price equal to the principal amount of Bonds being redeemed plus accrued interest to the date fixed for redemption,
without premium.
Mandatory Redemption. The Bonds maturing on July 1, 2042 (the “Term Bonds”) are subject to mandatory redemption
and will be redeemed in the years and in the amounts set forth below, at a redemption price equal to the principal
amount thereof, without premium, plus interest accrued to the date fixed for redemption as follows:
Term Bond due July 1, 20__
Redemption
Date
Principal
Amount
20__
$_________
20__
20__
20__
20__
20__
20__ (maturity)
See APPENDIX F for DTC’s method of appointment when less than all of the Bonds of a maturity are called prior to
redemption. If the Book-Entry-Only System is discontinued, the Bond Registrar and Paying Agent shall proceed to
select for redemption (by lot in such manner as the Bond Registrar and Paying Agent may determine) from the Term
Bonds, a principal amount of the Term Bonds equal to the aggregate principal amount of the Term Bonds redeemable
with the required mandatory payment, and shall call such Term Bonds for redemption on the next July 1 and give
notice of such redemption.
Whenever Bonds subject to mandatory redemption are purchased, redeemed (other than pursuant to mandatory
redemption) or delivered by the City to the Bond Registrar and Paying Agent for cancellation, the principal amount
of the Bonds so retired shall satisfy and be credited against the mandatory redemption requirements for such Bonds
for such years as the City may direct.
Notice of Redemption. So long as the Bonds are held under the Book-Entry-Only System, notices of redemption will
be sent to DTC in the manner required by DTC. See APPENDIX F – “BOOK-ENTRY-ONLY SYSTEM.” If the
Book-Entry-Only System is discontinued, notice of redemption of any Bond will be mailed to the registered owner of
the Bond or Bonds being redeemed at the address shown on the bond register maintained by the Bond Registrar and
Paying Agent not more than sixty (60) nor less than thirty (30) days prior to the date set for redemption. Notice of
redemption may be sent to any securities depository by mail, facsimile transmission, wire transmission or any other
means of transmission of the notice generally accepted by the respective securities depository. Neither the failure of
any registered owner of Bonds to receive a notice of redemption nor any defect therein will affect the validity of the
proceedings for redemption of Bonds as to which proper notice of redemption was given.
Notice of any redemption will also be provided as set forth in APPENDIX D – “FORM OF CONTINUING
DISCLOSURE UNDERTAKING,” but no defect in said further notice or record nor any failure to give all or a portion
3
of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as
prescribed above.
If monies for the payment of the redemption price and accrued interest are not held in separate accounts by the City
or the Bond Registrar and Paying Agent prior to sending the notice of redemption, such redemption shall be conditional
on such monies being so held on the date set for redemption and if not so held by such date, the redemption shall be
cancelled and be of no force and effect.
Coronavirus Disease 2019 (“COVID-19”)
The COVID-19 global pandemic continues to affect the nation and the State with ongoing concerns related to health
and safety, appropriate preventative protocols, fiscal and economic issues, and student learning loss. At present,
government and business operations in the State, following the rescindment of numerous COVID-19-related Executive
Orders by Arizona Governor Doug Ducey, essentially function without government-imposed restrictions relating to
the pandemic.
While the City does not currently anticipate the collection of ad valorem taxes, which is the security and source of
payment of principal and interest due on the Bonds, will be materially adversely affected by the continued existence
of COVID-19, should adverse economic conditions reduce the ability of property tax payers to pay amounts levied, it
could have an adverse effect on the collection of ad valorem taxes.
The City, however, cannot predict how the spread of COVID-19 or the various governmental or private actions taken
in response to COVID-19 will affect City finances or the collection of ad valorem taxes, which is the security and
source of payment of principal and interest due on the Bonds. The full financial effect of COVID-19 on the City could
change significantly as circumstances and events evolve. The City will monitor events as they occur, particularly those
that may have a material adverse effect on the City’s budget and finances.
SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS
General
The Bonds will be payable as to principal and interest from a continuing, direct, annual, ad valorem tax to be levied
against all of the taxable property within the boundaries of the City. The Bonds will be payable from such tax without
limit as to rate but limited in amount so that the total aggregate of taxes levied to pay principal and interest on the
Bonds in the aggregate will not exceed the total aggregate of principal of and interest due on the Bonds Being Refunded
from the date of issuance of the Bonds to the final date of maturity of the Bonds Being Refunded. The application of
such taxes to the payment of the Refunding Bonds will be subject to the rights vested in the owners of the Bonds
Being Refunded to the payment of the Bonds Being Refunded from the same source in the event of a deficiency in the
monies and the Government Obligations held in the Trust to pay principal of and interest on the Bonds Being
Refunded. The owners of the Bonds must rely on the sufficiency of the monies and the Government Obligations held
in the Trust for payment of the Bonds Being Refunded.
Subject to such limitation, such taxes are to be levied, assessed and collected as other taxes of the City, in an amount
sufficient to pay the interest on all the Bonds then outstanding and installments of the principal of the Bonds becoming
due and payable in the ensuing year.
General obligation bonds heretofore and hereafter issued by the City have and will have an equal claim with the Bonds
upon the proceeds of taxes levied for debt service on the Bonds. See TABLE 14A – Direct General Obligation Bonded
Debt Outstanding and to be Outstanding in APPENDIX B – “CITY OF EL MIRAGE, ARIZONA – FINANCIAL
INFORMATION.”
4
Defeasance
Pursuant to the Resolution, payment of all or any part of the Bonds may be provided for by the irrevocable deposit, in
trust, of monies or obligations issued or guaranteed by the United States of America (“Defeasance Obligations”) or
both, which, with the maturing principal of and interest on such Defeasance Obligations, if any, will be sufficient, as
evidenced by a certificate or report of an accountant, to pay when due the principal or redemption price of and interest
on such Bonds. Any Bonds so provided for will no longer be outstanding under the Resolution or payable from ad
valorem taxes on taxable property in the City, and the owners of such Bonds shall thereafter be entitled to payment
only from the monies and Defeasance Obligations deposited in trust.
PLAN OF REFUNDING
The net proceeds from the sale of the Bonds, after payment of costs relating to the issuance of the Bonds, will be
placed in the Trust with the Escrow Trustee pursuant to the terms of an Escrow Trust Agreement, to be dated as of
April 1, 2022*, between the City and the Escrow Trustee, to be applied to the payment of the bonds as identified below
(collectively, the “Bonds Being Refunded”) on the date and at the price identified below. To the extent the monies
and the Government Obligations held in the Trust are not sufficient to pay, when due, the principal of and interest on
the Bonds Being Refunded, then the ad valorem taxes levied to pay debt service on the Bonds will be subject to the
prior right of the owners of the Bonds Being Refunded to payment of such tax levy. See “SECURITY FOR AND
SOURCES OF PAYMENT OF THE BONDS” and “VERIFICATION OF MATHEMATICAL COMPUTATIONS.”
Schedule of Bonds Being Refunded*
______________________
(a) See footnote (a) on the inside front cover page.
The ad valorem property tax to be levied for the payment of the Bonds will be unlimited as to rate, but limited in
amount so that the total aggregate of taxes levied to pay principal and interest on the Bonds in the aggregate will not
exceed the total aggregate of principal and interest due on the Bonds Being Refunded from the date of issuance of the
Bonds to the final date of maturity of the Bonds Being Refunded. The Act provides that the issuance of the Bonds will
in no way infringe upon the rights of holders of the Bonds Being Refunded to rely upon a tax levy for the payment of
principal of and interest on the Bonds Being Refunded if the monies and the Government Obligations held in the Trust
prove insufficient. The Act further provides that owners of the Bonds must rely upon the sufficiency of such monies
and the Government Obligations held in the Trust for the payment of the Bonds Being Refunded. See “SECURITY
FOR AND SOURCES OF PAYMENT OF THE BONDS.”
* Preliminary, subject to change.
Issue
Series
Maturity
Date
(July 1)
Interest
Rate
Principal
Amount
Outstanding
Principal
Amount
Refunded
Redemption
Date
(July 1)
Redemption
Price
CUSIP No.
28328R (a)
2012A
2023
3.000
395,000
$
395,000
$
2022
100
AL0
2024
3.250
405,000
405,000
2022
100
AM8
2025
3.250
420,000
420,000
2022
100
AN6
2027
3.680
875,000
875,000
2022
100
AP1
2033
4.080
3,065,000
3,065,000
2022
100
AR7
2042
3.800
6,450,000
6,450,000
2022
100
AQ9
2012B
2023
3.000
340,000
340,000
2022
100
BC9
2024
3.250
350,000
350,000
2022
100
BD7
12,300,000
$
12,300,000
$
%
%
5
VERIFICATION OF MATHEMATICAL COMPUTATIONS
Causey Demgen & Moore P.C., a firm of independent certified public accountants, will deliver to the City, on or
before the settlement date of the Bonds, its verification report indicating that it has verified, in accordance with the
Statement on Standards for Consulting Services established by the American Institute of Certified Public Accountants
(the “AICPA”), the mathematical accuracy of (a) the mathematical computations of the adequacy of the cash and the
maturing principal of and interest on the Government Obligations, to pay, when due, the maturing principal of, interest
on and related call premium requirements, if any, of the Bonds Being Refunded and (b) the mathematical computations
of yield used by Greenberg Traurig, LLP (“Bond Counsel”) to support its opinion that interest on the Bonds will be
excluded from gross income for federal income tax purposes.
Causey Demgen & Moore P.C. relied on the accuracy, completeness and reliability of all information provided to it
by, and on all decisions and approvals of, the City. In addition, Causey Demgen & Moore P.C. has relied on any
information provided to it by the City’s retained advisors, consultants or legal counsel. Causey Demgen & Moore
P.C. was not engaged to perform audit or attest services under AICPA auditing or attestation standards or to provide
any form of attest report or opinion under such standards in conjunction with this engagement.
SOURCES AND USES OF FUNDS
Sources of Funds
Principal Amount of the Bonds
$10,995,000.00*
[Net] Original Issue Premium (a)
Total Sources of Funds
Uses of Funds
Payment of Bonds Being Refunded
Costs of Issuance Fund (b)
Deposit to the Interest Fund
Total Uses of Funds
(a)
Net original issue premium consists of original issue premium on the Bonds, less original issue discount on the
Bonds.
(b)
Will include bond insurance premium, if any, and compensation and costs of the Underwriter (as defined
herein) with respect to the Bonds.
* Preliminary, subject to change.
6
ESTIMATED DEBT SERVICE REQUIREMENTS
The following schedule sets forth the (i) annual debt service on the outstanding general obligation bonds of the City,
net of the Bonds Being Refunded; (ii) less the Bonds Being Refunded, (iii) estimated annual debt service on the Bonds;
and (iv) total estimated annual debt service requirements on the general obligation bonds of the City after the issuance
of the Bonds.
TABLE 1
Schedule of Estimated Annual Debt Service Requirements (a)
City of El Mirage, Arizona
*
(a) Prepared by Piper Sandler & Co. (“Financial Advisor”). See APPENDIX B – “CITY OF EL MIRAGE,
ARIZONA – FINANCIAL INFORMATION – DIRECT AND OVERLAPPING BONDED INDEBTEDNESS –
Direct General Obligation Bonded Debt Outstanding and to be Outstanding” for a discussion of certain matters
that may impact the calculation of outstanding debt.
(b) Interest on the Bonds is estimated.
(c) The first interest payment on the Bonds will be due on July 1, 2022*. Thereafter, interest payments will be made
semiannually on each January 1 and July 1 until maturity or prior redemption.
* Preliminary, subject to change.
Estimated
Net General
Fiscal
Outstanding
Obligation
Year
General Obligation
Less:
Plus:
Bonded Debt
Ended
Bonded Debt
The Bonds Being Refunded*
The Bonds*
Service to be
July 1
Debt Service
Principal
Interest
Principal
Interest (b)
Outstanding*
2022
1,694,856
$
267,981
$
160,000
$
103,842
$
1,690,717
$
2023
2,105,363
735,000
$
535,963
680,000
433,400
1,947,800
2024
2,106,413
755,000
513,913
705,000
406,200
1,948,700
2025
2,118,575
420,000
489,375
370,000
378,000
1,957,200
2026
2,114,925
430,000
475,725
380,000
363,200
1,952,400
2027
2,113,275
445,000
460,675
395,000
348,000
1,950,600
2028
2,029,500
465,000
445,100
415,000
332,200
1,866,600
2029
2,024,500
480,000
426,500
430,000
315,600
1,863,600
2030
907,300
500,000
407,300
450,000
298,400
748,400
2031
907,300
520,000
387,300
465,000
280,400
745,400
2032
906,500
540,000
366,500
485,000
261,800
746,800
2033
904,900
560,000
344,900
500,000
242,400
742,400
2034
907,500
585,000
322,500
525,000
222,400
747,400
2035
908,250
615,000
293,250
545,000
201,400
746,400
2036
907,500
645,000
262,500
570,000
179,600
749,600
2037
905,250
675,000
230,250
590,000
156,800
746,800
2038
906,500
710,000
196,500
615,000
133,200
748,200
2039
906,000
745,000
161,000
635,000
108,600
743,600
2040
908,750
785,000
123,750
665,000
83,200
748,200
2041
909,500
825,000
84,500
695,000
56,600
751,600
2042
908,250
865,000
43,250
720,000
28,800
748,800
28,100,906
$
12,300,000
$
6,838,731
$
10,995,000
$
4,934,042
$
24,891,217
$
(c)
7
LITIGATION
To the knowledge of the City, no litigation or administrative action or proceeding is pending, restraining or enjoining,
or seeking to restrain or enjoin, the issuance or delivery of the Bonds or the levy, collection or receipt of ad valorem
property taxes to pay the debt service on the Bonds, contesting or questioning the proceedings and authority under
which the Bonds have been authorized and are to be issued, sold, executed or delivered, or the validity of the Bonds.
An authorized City representative will deliver a certificate to the same effect at the time of the original delivery of the
Bonds.
LEGAL MATTERS
Legal matters incident to the authorization, sale and issuance by the City of the Bonds and with regard to the tax-
exempt status thereof will be passed upon by Bond Counsel, whose services have been retained by the City. The
signed legal opinion of Bond Counsel, dated and premised on the law in effect as of the date of the Bonds, will be
delivered to the Underwriter at the time of original delivery of the Bonds. The form of that opinion is included as
APPENDIX C - “FORM OF APPROVING LEGAL OPINION” hereto. The legal opinion to be delivered may vary
from the text of APPENDIX C – “FORM OF APPROVING LEGAL OPINION” if necessary to reflect the facts and
law existing on the date of delivery. The opinion will speak only as of its date, and subsequent distribution, by
recirculation of this Official Statement or otherwise, should not be construed as a representation that Bond Counsel
has reviewed or expressed any opinion concerning any matters relating to the Bonds subsequent to the original delivery
of the Bonds.
Certain legal matters will be passed upon for the Underwriter by ___________________, counsel to the Underwriter.
From time to time, there are legislative proposals (and interpretations of such proposals by courts of law and other
entities and individuals) which, if enacted, could alter or amend the property tax system of the State and numerous
matters, both financial and nonfinancial, impacting the operations of municipalities which could have a material
impact on the City and could adversely affect the secondary market value or marketability of the Bonds. It cannot be
predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to
obligations (such as the Bonds) issued prior to enactment.
The legal opinions to be delivered concurrently with the delivery of the Bonds will express the professional judgment
of the attorneys rendering the opinion as to the legal issues explicitly addressed therein dated and speaking only as of
the date of delivery of the Bonds. By rendering a legal opinion, the opinion giver does not become an insurer or
guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of
parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may
arise out of the transaction.
TAX EXEMPTION
General
The Internal Revenue Code of 1986, as amended (the “Code”), includes requirements which the City must continue
to meet after the issuance of the Bonds in order that the interest on the Bonds be and remain excludable from gross
income for federal income tax purposes. The City’s failure to meet these requirements may cause the interest on the
Bonds to be included in gross income for federal income tax purposes retroactively to the date of issuance of the
Bonds. The City has covenanted in the Ordinance to take the actions required by the Code in order to maintain the
exclusion from gross income for federal income tax purposes of interest on the Bonds.
8
In the opinion of Bond Counsel, assuming the accuracy of certain representations and certifications of the City and
continuing compliance by the City with the tax covenants referred to above, under existing statutes, regulations, rulings
and court decisions, the interest on the Bonds is excludable from gross income of the holders thereof for federal income
tax purposes. Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum
tax imposed on individuals. Bond Counsel is further of the opinion that the interest on the Bonds is exempt from
income taxation under the laws of the State. Bond Counsel will express no opinion as to any other tax consequences
regarding the Bonds. Prospective purchasers of the Bonds should consult with their own tax advisors as to the status
of interest on the Bonds under the tax laws of any state other than the State.
The above opinion on federal tax matters with respect to the Bonds will be based on and will assume the accuracy of
certain representations and certifications of the City, and compliance with certain covenants of the City to be contained
in the transcript of proceedings and that are intended to evidence and assure the foregoing, including that the Bonds
will be and will remain obligations the interest on which is excludable from gross income for federal income tax
purposes. Bond Counsel will not independently verify the accuracy of those certifications and representations. Bond
Counsel will express no opinion as to any other consequences regarding the Bonds.
Except as described above, Bond Counsel will express no opinion regarding the federal income tax consequences
resulting from the receipt or accrual of the interest on the Bonds, or the ownership or disposition of the Bonds.
Prospective purchasers of Bonds should be aware that the ownership of Bonds may result in other collateral federal
tax consequences, including (i) the denial of a deduction for interest on indebtedness incurred or continued to purchase
or carry the Bonds, (ii) the reduction of the loss reserve deduction for property and casualty insurance companies by
the applicable statutory percentage of certain items, including the interest on the Bonds, (iii) the inclusion of the
interest on the Bonds in the earnings of certain foreign corporations doing business in the United States for purposes
of a branch profits tax, (iv) the inclusion of the interest on the Bonds in the passive income subject to federal income
taxation of certain Subchapter S corporations with Subchapter C earnings and profits at the close of the taxable year
and (v) the inclusion of interest on the Bonds in the determination of the taxability of certain Social Security and
Railroad Retirement benefits to certain recipients of such benefits. The nature and extent of the other tax consequences
described above will depend on the particular tax status and situation of each owner of the Bonds. Prospective
purchasers of the Bonds should consult their own tax advisors as to the impact of these other tax consequences.
Bond Counsel’s opinions are based on existing law, which is subject to change. Such opinions are further based on
factual representations made to Bond Counsel as of the date thereof. Bond Counsel assumes no duty to update or
supplement its opinions to reflect any facts or circumstances that may thereafter come to Bond Counsel’s attention, or
to reflect any changes in law that may thereafter occur or become effective. Moreover, Bond Counsel’s opinions are
not a guarantee of a particular result, and are not binding on the Internal Revenue Service or the courts; rather, such
opinions represent Bond Counsel’s professional judgment based on its review of existing law, and in reliance on the
representations and covenants that it deems relevant to such opinion.
Original Issue Premium
The Bonds (for purposes of this section, “Premium Bonds”) may be offered and sold to the public at a price in excess
of their stated redemption price (the principal amount) at maturity (or earlier for certain Premium Bonds callable prior
to maturity). That excess constitutes bond premium. For federal income tax purposes, bond premium is amortized
over the period to maturity of a Premium Bond, based on the yield to maturity of that Premium Bond (or, in the case
of a Premium Bond callable prior to its stated maturity, the amortization period and yield may be required to be
determined on the basis of an earlier call date that results in the lowest yield on that Premium Bond), compounded
semiannually (or over a shorter permitted compounding interval selected by the owner). No portion of that bond
premium is deductible by the owner of a Premium Bond. For purposes of determining the owner’s gain or loss on the
sale, redemption (including redemption at maturity) or other disposition of a Premium Bond, the owner’s tax basis in
the Premium Bond is reduced by the amount of bond premium that accrues during the period of ownership. As a result,
an owner may realize taxable gain for federal income tax purposes from the sale or other disposition of a Premium
Bond for an amount equal to or less than the amount paid by the owner for that Premium Bond.
9
Owners of Premium Bonds should consult their own tax advisors as to the determination for federal income tax
purposes of the amount of bond premium properly amortizable in any period with respect to the Premium Bonds and
as to other federal tax consequences, and the treatment of bond premium for purposes of state and local taxes on, or
based on, income.
Changes in Federal and State Tax Law
From time to time, there are legislative proposals suggested, debated, introduced or pending in congress or in the State
legislature that, if enacted into law, could alter or amend one or more of the federal tax matters, or state tax matters,
respectively, described above including, without limitation, the excludability from gross income of interest on the
Bonds, adversely affect the market price or marketability of the Bonds, or otherwise prevent the holders from realizing
the full current benefit of the status of the interest thereon. It cannot be predicted whether or in what form any such
proposal may be enacted, or whether, if enacted, any such proposal would affect the Bonds. Prospective purchasers
of the Bonds should consult their tax advisors as to the impact of any proposed or pending legislation.
Information Reporting and Backup Withholding
Interest paid on tax-exempt bonds such as the Bonds is subject to information reporting to the Internal Revenue Service
in a manner similar to interest paid on taxable obligations. This reporting requirement does not affect the excludability
of interest on the Bonds from gross income for federal income tax purposes. However, in conjunction with that
information reporting requirement, the Code subjects certain non-corporate owners of the Bonds, under certain
circumstances, to “backup withholding” at the rates set forth in the Code, with respect to payments on the Bonds and
proceeds from the sale of the Bonds. Any amount so withheld would be refunded or allowed as a credit against the
federal income tax of such owner of the Bonds. This withholding generally applies if the owner of the Bonds (i) fails
to furnish the payor such owner’s social security number or other taxpayer identification number (“TIN”), (ii)
furnished the payor an incorrect TIN, (iii) fails to properly report interest, dividends, or other “reportable payments”
as defined in the Code, or (iv) under certain circumstances, fails to provide the payor or such owner’s securities broker
with a certified statement, signed under penalty of perjury, that the TIN provided is correct and that such owner is not
subject to backup withholding. Prospective purchasers of the Bonds may also wish to consult with their tax advisors
with respect to the need to furnish certain taxpayer information in order to avoid backup withholding.
RATINGS
Moody’s Investors Service, Inc. (“Moody’s”) and S&P Global Ratings, a division of Standard & Poor’s Financial
Services LLC (“S&P”) have assigned ratings of “___” and “___,” respectively, to the Bonds. Such ratings reflect only
the views of Moody’s and S&P. An explanation of the significance of a rating assigned by Moody’s may be obtained
at One Front Street, Suite 1900, San Francisco, CA 94111. An explanation of the significance of a rating assigned by
S&P may be obtained at One California Street, 31st Floor, San Francisco, California 94111. Such ratings may be
revised or withdrawn entirely at any time by Moody’s or S&P if, in their respective judgment, circumstances so
warrant. Any downward revision or withdrawal of such ratings may have an adverse effect on the market price or
marketability of the Bonds. The City will convenant in its continuing disclosure undertaking with respect to the Bonds
that it will file notice of any formal change in any ratings relating to the Bonds. See “CONTINUING DISCLOSURE”
and APPENDIX D – “FORM OF CONTINUING DISCLOSURE UNDERTAKING” herein.
UNDERWRITING
________________ (the “Underwriter”) has agreed to purchase the Bonds, subject to certain conditions, at a purchase
price of $_________. If the Bonds are sold to produce the yields shown on the inside front cover page hereof, the
Underwriter’s compensation will be $___________. The Bonds may be offered and sold to certain dealers (including
the Underwriter and other dealers depositing the Bonds into investment trusts) at prices lower than the public offering
prices, and such public offering prices may be changed, from time to time, by the Underwriter. The Underwriter’s
obligations are subject to certain conditions precedent, and the Underwriter will be obligated to purchase all of the Bonds
if any of the Bonds are purchased.
10
RELATIONSHIP AMONG PARTIES
Bond Counsel has previously represented, and is currently representing, the Underwriter and the Financial Advisor,
with respect to other financings and has acted or is acting as bond counsel with respect to other bonds underwritten
by the Underwriter and the Financial Advisor and may do so in the future. Bond Counsel also serves and has served
as bond counsel for one or more of the political subdivisions that the City territorially overlaps. Counsel to the
Underwriter has previously acted as bond counsel with respect to other bonds underwritten by the Underwriter and
the Financial Advisor and may continue to do so in the future if requested.
CONTINUING DISCLOSURE
The City will covenant for the benefit of the owners of the Bonds to provide certain financial information and operating
data relating to the City by not later than February 1 in each year commencing February 1, 2023 (the “Annual
Reports”), and to provide notices of the occurrence of certain enumerated events (the “Notices of Listed Events”). The
Annual Reports, the Notices of Listed Events and any other document or information required to be filed by the City
as such will be filed with the Municipal Securities Rulemaking Board (the “MSRB”) through the MSRB’s Electronic
Municipal Market Access System (“EMMA”), each as described in APPENDIX D – “FORM OF CONTINUING
DISCLOSURE UNDERTAKING.” The specific nature of the information to be contained in the Annual Reports
and the Notices of Listed Events is also set forth in APPENDIX D – “FORM OF CONTINUING DISCLOSURE
UNDERTAKING.” These covenants will be made in order to assist the Underwriter in complying with the Securities
and Exchange Commission’s Rule 15c2-12(b)(5) (the “Rule”). A failure by the City to comply with these covenants
must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities
dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure
may adversely affect the transferability and liquidity of the Bonds and their market price. Pursuant to Arizona Law,
the ability of the City to comply with such covenants will be subject to annual appropriation of funds sufficient to
provide for the costs of compliance with such covenants. Should the City not comply with such covenants due to a
failure to appropriate for such purpose, the City has covenanted to provide notice of such fact to the MSRB. Absence
of continuing disclosure, due to non- appropriation or otherwise, could adversely affect the Bonds and specifically
their market price and transferability.
The City has implemented written procedures to facilitate compliance with such undertakings. [To be updated upon
receipt of third party report]
FINANCIAL ADVISOR
The Financial Advisor has been engaged by the City for the purpose of advising the City as to certain debt service
structuring matters specific to the Bonds and on certain matters relative to the City’s overall debt financing program.
The Financial Advisor has assisted in the assembly and preparation of this Official Statement at the direction and on
behalf of the City. No person is entitled to rely on the Financial Advisor’s participation as an assumption of
responsibility for, or an expression of opinion of any kind with regard to, the accuracy or completeness of the
information contained herein.
11
FINANCIAL STATEMENTS
The annual comprehensive financial report of the City for the fiscal year ended June 30, 2021, a copy of which is
included in APPENDIX E – “CITY OF EL MIRAGE, ARIZONA – AUDITED ANNUAL FINANCIAL
STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021” of this Official Statement, includes the City’s
financial statements for the fiscal year ended June 30, 2021 that were audited by HintonBurdick, CPAs & Advisors,
Certified Public Accountants, to the extent indicated in its report thereon. The City has not requested the consent
of HintonBurdick, CPAs & Advisors to include its report and HintonBurdick, CPAs & Advisors has performed
no procedures subsequent to rendering its report on the financial statements.
CONCLUDING STATEMENT
To the extent that any statements made in this Official Statement involve matters of opinion or estimates, whether or
not expressly stated to be such, they are made as such and not as representations of fact or certainty and no
representation is made that any of these opinions or estimates have been or will be realized. Information in this Official
Statement has been derived by the City from official and other sources and is believed by the City to be accurate and
reliable. Information other than that obtained from official records of the City has not been independently confirmed
or verified by the City and its accuracy is not guaranteed. Neither this Official Statement nor any statement that may
have been or that may be made orally or in writing is to be construed as part of a contract with the original purchasers
or subsequent owners of the Bonds.
CITY OF EL MIRAGE, ARIZONA
By:
Mayor
A-1
APPENDIX A
CITY OF EL MIRAGE, ARIZONA –
GENERAL AND DEMOGRAPHIC INFORMATION
General
Located in the northwest portion of the greater Phoenix metropolitan area, the City has grown from a small town
dependent on agriculture to a diverse urban economy with a 2010 census population of 31,767. The City was founded
in 1937 from agricultural beginnings. The City was later incorporated in 1951 and was at the time primarily a compact
residential community. The City is located approximately 16 miles north of Phoenix, Arizona. As development in
the Phoenix metropolitan area accelerated to the northwest, the City experienced significant growth, primarily since
the year 2000.
TABLE 2
POPULATION STATISTICS
City of El Mirage, Arizona
Year
City of
El Mirage
Maricopa
County
State of
Arizona
2021 Estimate (a)
36,101
4,507,419
7,285,370
2020 Census
35,805
4,420,568
7,151,502
2010 Census
31,797
3,817,117
6,392,017
2000 Census
7,609
3,072,149
5,130,632
1990 Census
5,001
2,122,101
3,665,305
1980 Census
4,307
1,509,175
2,716,546
(a) Population estimate as of July 2021 (data released in December 2021) provided by Arizona Office of Economic
Opportunity.
Source: Except as otherwise noted, the U.S. Census Bureau.
Municipal Government and Utilities
The City operates pursuant to a Council/Manager form of government. The Mayor and six City Councilmembers are
elected at large on a non-partisan ballot for four-year terms. The Council determines the duties and compensation of
City officials and employees, and enacts ordinances and resolutions relating to City services, tax levies, appropriating
and borrowing money, licensing and regulating businesses and trades and other municipal purposes. The City Council
appoints the City Manager.
The City Manager is responsible for executing City Council policies and administering City operations. The Finance
Director is responsible for the financial management of the City. The City government is responsible for furnishing
basic municipal services. Primary services delivered by the City’s approximately 220 full-time and part-time,
permanent employees include police, City courts, fire protection, parks and recreation, sanitation, water, sewer,
building safety, public works and general administration. For fiscal year 2021/22, the operating budget is $54.7
million and the total adopted budget, which includes the operating budget, depreciation, capital outlay and other
financing uses, is $104.0 million.
A-2
Economy
Historically the City’s economy was based around agriculture and farming. However, due to the residential growth of
the Phoenix metropolitan area, including the City, employment opportunities in the services industries have increased.
The City is home to numerous retail establishments that accommodate the City’s increased residential population’s
need for goods and services.
TABLE 3
MAJOR EMPLOYERS
City of El Mirage, Arizona
Employer
Description
Approximate
Number of
Employees
Dysart Unified School District No. 89
Education
510
Wal-Mart
Retail
280
City of El Mirage
Government
200
DVC Construction Company
Construction
160
CalPortland Company
Construction
150
Parks Sons of Sun City Inc
Business Services
130
BNSF Railway Co.
Transportation & Distribution
120
Someset Landscape
Business Services
110
Southwest Steel Inc
Construction
100
Top Line Construction Inc.
Construction
90
Source:
Annual Comprehensive Financial Reports for El Mirage and Finance Department of the City.
The following table illustrates the unemployment rate averages for the City, Maricopa County, Arizona (the
“County”), the State and the United States of America.
TABLE 4
UNEMPLOYMENT RATE AVERAGES
Year
City of
El Mirage
Maricopa
County
State of
Arizona
United
States
2021 (a)
6.4%
5.3%
5.8%
5.5%
2020
8.1
7.4
7.9
8.1
2019
4.5
4.2
4.9
3.7
2018
4.6
4.1
4.8
3.9
2017
4.7
4.2
4.9
4.4
2016
5.1
4.7
5.5
4.9
(a) Data through November 2021 and is not seasonally adjusted.
Source: Arizona Office of Economic Opportunity and Population Statistics, in cooperation with the U.S. Department
of Labor, Bureau of Labor Statistics.
A-3
Commerce
The following table illustrates the past five years of sales tax collections.
TABLE 5
SALES TAX COLLECTIONS
City of El Mirage, Arizona
Fiscal
Year
Amount
2020/21
$13,385,017
2019/20
11,658,020
2018/19
8,511,646
2017/18
8,017,809
2016/17
7,382,109
Source:
Annual Comprehensive Financial Reports for El Mirage and Finance Department of the City.
Transportation
The City is accessible via the Loop 101 and U.S. 60 from the Phoenix Metropolitan area. Glendale Municipal Airport
serves the residents of the City with a 5,350 foot lighted and paved runway. Residents also have access to the Phoenix
Sky Harbor Airport which is approximately a 45-minute drive away. The Union Pacific rail line also runs through the
City, providing industrial sites with rail access.
Education
Within the City are four elementary schools, one junior high and one high school. Two private elementary schools are
also within the City limits. Several community colleges, including Glendale Community College and Estrella
Mountain Community College, are located in nearby communities. Arizona State University also has a campus
located in Glendale, Arizona, Arizona State University-West, which is approximately nine miles from the City.
Arizona State University-West offers resources for study and research including libraries and museums with
collections, studios and performing arts spaces and scientific and technological research facilities. Arizona State
University-West campus balances the traditions of a liberal arts education with the applied sciences and technologies
required in the workplace.
Estrella Mountain Community College offers day and evening classes to over 7,300 students in the western portion of
the County. Estrella Mountain Community College offers certificate and degree programs in Business and Personal
Computers, Business Technology in the Office, Hospitality and Hotel Management, and Organizational Leadership.
Transfer programs are available in Communication, English, Mathematics, and Sociology. Glendale Community
College offers day and evening classes to over 32,000 students. Glendale Community College offers a large number
of degree and certificate program in Justice Studies, Applied Science, Art History, Athletics, Automotive Technology,
Biology, Computer Information Systems, Business Technology for the Office, Chemistry, Child and Family Studies,
Computer Science, Electronics and Semiconductor Manufacturing Technology, English, Engineering Science,
Geology, Journalism, Mathematics, Psychology and Video Production. Glendale Community College is also the
location of the GM Training Center, which was formed in 1985 through a partnership with General Motors. This
Training Center offers training and retraining to GM dealership technicians in the latest repair and service procedures.
The Center also provides an associate’s degree program for new dealership technicians through partnerships with
General Motors, Ford, Chrysler, Toyota and Nissan.
B-1
APPENDIX B
CITY OF EL MIRAGE, ARIZONA –
FINANCIAL INFORMATION
PROPERTY TAXES
As described under the heading “SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS,” the City
will be required by law to levy or to cause to be levied on all the taxable property in the City a continuing, direct,
annual, ad valorem property tax sufficient to pay all principal, interest, and costs of administration for the Bonds as
the same become due, limited as described under such heading. The State’s ad valorem property tax levy and collection
procedures are summarized under this heading “PROPERTY TAXES.”
Taxable Property
Real property and improvements and personal property are either valued by the Assessor of the County or the Arizona
Department of Revenue (the “Department of Revenue”). Property valued by the Assessor of the County is referred to
as “locally assessed” property and generally encompasses residential, agricultural and traditional commercial and
industrial property. Property valued by the Department of Revenue is referred to as “centrally valued” property and
generally includes large mine and utility entities.
Locally assessed property is assigned two values: Full Cash Value and Limited Property Value (both as defined
herein). Centrally valued property is assigned one value: Full Cash Value.
Full Cash Value
In the context of a specific property parcel, full cash value (“Full Cash Value”) is statutorily defined to mean “the
value determined as prescribed by statute” or if a statutory method is not prescribed it is “synonymous with market
value which means the estimate of value that is derived annually by using standard appraisal methods and techniques,”
which generally include the market approach, the cost approach and the income approach. In valuing locally assessed
property, the Assessor of the County generally uses a cost approach to value commercial/industrial property and a
market approach to value residential property. In valuing centrally valued property, the Department of Revenue begins
generally with information provided by taxpayers and then applies procedures provided by State law. State law allows
taxpayers to appeal such Full Cash Values by providing evidence of a lower value, which may be based upon another
valuation approach. Full Cash Value is used as the ceiling for determining Limited Property Value. Unlike Limited
Property Value, increases in Full Cash Value are not limited.
Limited Property Value
In the context of a specific property parcel, limited property value (“Limited Property Value”) is a property value
determined pursuant to the Arizona Constitution and the Arizona Revised Statutes. Except as described in the next
sentence, for locally assessed property in existence in the prior year, Limited Property Value is limited to the lesser of
Full Cash Value or an amount 5% greater than Limited Property Value determined for the prior year for such specific
property parcel. In the following circumstances, Limited Property Value is established at a level or percentage of Full
Cash Value that is comparable to that of other properties of the same or a similar use or classification: property that
was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of
the matters described in this sentence; property for which a change in use has occurred since the preceding tax year
and property that has been modified by construction, destruction, or demolition since the preceding valuation year
such that the total value of the modification is equal to or greater than fifteen percent of the Full Cash Value. (Limited
Property Value of property that has been split, subdivided or consolidated varies depending on when the change
occurred.) A separate Limited Property Value is not provided for centrally valued property.
B-2
Full Cash Value and Limited Property Value for Taxing Jurisdictions
The Full Cash Value in the context of a taxing jurisdiction is the sum of the Full Cash Value associated with each
parcel of property in the jurisdiction. Full Cash Value of the jurisdiction is the basis for determining constitutional and
statutory debt limits for certain political subdivisions in Arizona, including the City.
The Limited Property Value in the context of a taxing jurisdiction is the sum of the Limited Property Value associated
with each parcel of locally assessed property within the jurisdiction plus the sum of the Full Cash Value associated
with each parcel of centrally valued property within the jurisdiction. Limited Property Value of the jurisdiction is used
as the basis for levying both primary and secondary taxes. See “Primary Taxes” and “Secondary Taxes” below.
Property Classification and Assessment Ratios
All property, both real and personal, is assigned a classification (defined by property use) and related assessment ratio
that is multiplied by the Limited Property Value or Full Cash Value of the property, as applicable, to obtain the
“Limited Assessed Property Value” and the “Full Cash Assessed Value,” respectively.
The assessment ratios for each property classification are set forth by tax year in the following table.
TABLE 6
PROPERTY TAX ASSESSMENT RATIOS
Tax Year 2017 through Tax Year 2021
Tax Year
Property Classification (a)
2017
2018
2019
2020
2021
Mining, utilities, commercial and industrial (b)
18%
18%
18%
18%
18%
Agriculture and vacant land
15
15
15
15
15
Owner occupied residential
10
10
10
10
10
Leased or rented residential
10
10
10
10
10
Railroad, private car company and airline
flight property (c)
15
14
15
15
15
(a) Additional property classifications exist, but seldom amount to a significant portion of a municipal body’s total
valuation.
(b) The assessment ratio for this property classification will decrease to 17.5% for tax year 2022, 17% for tax year
2023, 16.5% for tax year 2024 and 16% for each tax year thereafter.
(c) This percentage is determined annually pursuant to Section 42-15005, Arizona Revised Statutes.
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
Primary Taxes
Per State statute, taxes levied for the maintenance and operation of counties, cities, towns, school districts, community
college districts and the State are “primary taxes.” Primary taxes are levied against Net Limited Assessed Property
Value (as defined herein). “Net Limited Assessed Property Value” is determined by excluding the value of property
exempt from taxation from Limited Assessed Property Value of locally assessed property and from Full Cash Assessed
Value of centrally valued property and combining the resulting two amounts.
The primary taxes levied by each county, city, town and community college district are constitutionally limited to a
maximum increase of 2% over the maximum allowable prior year’s levy limit plus any taxes on property not subject
to taxation in the preceding year (e.g., new construction and property brought into the jurisdiction because of
annexation). The 2% limitation does not apply to primary taxes levied on behalf of school districts.
B-3
The combined taxes on owner occupied residential property only, for purposes other than voter-approved bond
indebtedness and overrides and certain special district assessments, are constitutionally limited to 1% of the Limited
Property Value of such property. This constitutional limitation on the combined tax levies for owner occupied
residential property is implemented by reducing the school district’s taxes. To offset the effects of reduced school
district property taxes, the State compensates the school district by providing additional State aid.
Secondary Taxes
Per State statute, taxes levied for payment of bonds like the Bonds, voter-approved budget overrides, the maintenance
and operation of special purpose districts such as sanitary, fire, road improvement, water conservation and career
technical education districts, and taxes levied by school districts for qualified desegregation expenditures are
“secondary taxes.” Like primary taxes, secondary taxes are also levied against Net Limited Assessed Property Value.
There is no constitutional or statutory limitation on annual levies for voter-approved bond indebtedness and overrides
and certain special district assessments.
Calculating Debt Limitations
Net Full Cash Assessed Value is determined by excluding the value of property exempt from taxation from Full Cash
Assessed Value of both locally assessed and centrally valued property and combining the resulting two amounts. Net
Full Cash Assessed Value is the basis for determining bonded debt limitations for certain political subdivisions in
Arizona, including the City.
Tax Procedures
The State tax year has been defined as the calendar year, notwithstanding the fact that tax procedures begin prior to
January 1 of the tax year and continue through May of the succeeding calendar year.
On or before the third Monday in August each year the Board of Supervisors of the County prepares the tax roll setting
forth certain valuations by taxing district of all property in the County subject to taxation. The tax roll is then forwarded
to the Treasurer of the County. (The Assessor of the County is required to have completed the assessment roll by
December 15th of the year prior to the levy. This roll identifies the valuation and classification of each parcel located
within the County for the tax year).
With the various budgetary procedures having been completed by the governmental entities, the appropriate tax rate
for each jurisdiction is then levied upon each non-exempt parcel of property in order to determine the total tax owed
by each property owner. Any subsequent decrease in the value of the tax roll due to appeals or other reasons reduces
the amount of taxes received by each jurisdiction.
The property tax lien on real property attaches on January 1 of the year the tax is levied. Such lien is prior and superior
to all other liens and encumbrances on the property subject to such tax except liens or encumbrances held by the State
or liens for taxes accruing in any other years. Set forth below is a record of property taxes levied and collected in the
City for a portion of the current fiscal year and all of the previous five fiscal years.
B-4
TABLE 7
Property Taxes Levied and Collected (a)(b)
City of El Mirage, Arizona
(a) Taxes are certified and collected by the Treasurer of the County. Taxes in support of debt service are levied by
the Board of Supervisors of the County as required by Arizona Revised Statutes. Delinquent taxes are subject to
an interest and penalty charge of 16% per annum which is prorated at a monthly rate of 1.33%. Delinquent interest
is waived if a taxpayer, delinquent as to the November 1 payment pays the entire year’s tax bill by December 31.
Interest and penalty collections for delinquent taxes are not included in the collection figures above, but are
deposited in the County General Fund.
(b) The Tax Levy is adjusted downward in future years after the initial levy as a result of successful taxpayer appeals.
The Tax Levy, net of resolutions (as presented in the Maricopa County Treasurer’s Office report), is noted in this
presentation.
(c) Fiscal Year 2021/22 taxes in course of collections. The first installment was due on October 1, 2021 and became
delinquent on November 1, 2021. The second installment will be due on March 1, 2022 and will become
delinquent on May 1, 2022.
SRP In Lieu Contribution
SPECIAL NOTE: The assessed value of property owned by the Salt River Project Agricultural Improvement and
Power District (“SRP”) is not included in the assessed value of the City in the prior table or in any other valuation
information set forth in this Official Statement. Because of SRP’s quasi-governmental nature, property owned by SRP
is exempt from property taxation.
However, SRP may elect each year to make voluntary contributions in lieu of property taxes with respect to certain of
its electrical facilities (the “SRP Electric Plant”). If SRP elects to make the in lieu contribution for the year, the Full
Cash Value of the portion of the SRP Electric Plant located within the City and the in lieu contribution amount is
determined in the same manner as the Full Cash Value and property taxes owed is determined for similar non-
governmental public utility property, with certain special deductions.
If SRP elected not to make such contributions, the City would be required to contribute funds from other sources or
levy an increased tax rate on all other taxable property to provide sufficient amounts to pay debt service on the Bonds.
If after electing to make the in lieu contribution, SRP then failed to make the in lieu contribution when due, the
Treasurer and the City have no recourse against the property of SRP and there may be a delay in the payment of that
portion of the debt service on the Bonds that would have been paid by SRP’s in lieu contribution.
Since 1964, when the in lieu contribution was originally authorized by the Arizona Revised Statutes, SRP has always
elected to make the in lieu contribution. The fiscal year 2021/22 in lieu assessed valuation of SRP within the City is
$5,950 which represents approximately 0.0043% of the fiscal year 2021/22 Net Assessed Limited Property Value in
the City.
Source:
Property Tax Rates and Assessed Values, Arizona Tax Research Association and the Treasurer of the
County.
Adjusted
Adjusted
Fiscal
Adopted
Tax Levy as
% of Adj.
Levy as of
% of Adj.
Year
Tax Rate
Tax Levy
of June 30th
Amount
Levy
12/31/2021
Amount
Levy
2021/22
3.3906
$
4,683,439
$
4,683,439
$
(c)
(c)
4,679,092
$
2,648,424
$
56.00
2020/21
3.6834
4,473,196
4,457,136
4,375,709
$
98.00
4,456,444
4,417,434
99.00
2019/20
3.7438
4,207,720
4,178,343
4,102,616
98.00
4,177,296
4,181,051
100.00
2018/19
3.9610
4,345,042
4,342,970
4,210,907
96.00
4,231,580
4,230,152
99.97
2017/18
3.6337
3,693,234
3,689,581
3,624,214
98.23
3,672,228
3,671,173
99.97
2016/17
3.7834
3,697,789
3,682,607
3,594,068
97.60
3,665,568
3,664,528
99.00
Collected to June 30th
of Initial Fiscal Year
Cumulative Collections
to December 31, 2021
%
%
B-5
Delinquent Tax Procedures
The property taxes due the City are billed, along with State and other taxes, each September and are due and payable
in two installments on October 1 and March 1 and become delinquent on November 1 and May 1, respectively.
Delinquent taxes are subject to an interest penalty of 16% per annum prorated monthly as of the first day of the month.
(Delinquent interest is waived if a taxpayer, delinquent as to the November 1 payment, pays the entire year’s tax bill
by December 31.) After the close of the tax collection period, the Treasurer of the County prepares a delinquent
property tax list and the property so listed is subject to a tax lien sale in February of the succeeding year. In the event
that there is no purchaser for the tax lien at the sale, the tax lien is assigned to the State, and the property is reoffered
for sale from time to time until such time as it is sold, subject to redemption, for an amount sufficient to cover all
delinquent taxes.
After three years from the sale of the tax lien, the tax lien certificate holder may bring an action in a court of competent
jurisdiction to foreclose the right of redemption and, if the delinquent taxes plus accrued interest are not paid by the
owner of record or any entity having a right to redeem, a judgment is entered ordering the Treasurer of the County to
deliver a treasurer’s deed to the certificate holder as prescribed by law.
In the event of bankruptcy of a taxpayer pursuant to the United States Bankruptcy Code (the “Bankruptcy Code”), the
law is currently unsettled as to whether a lien can attach against the taxpayer’s property for property taxes levied
during the pendency of bankruptcy. Such taxes might constitute an unsecured and possibly non-interest bearing
administrative expense payable only to the extent that the secured creditors of a taxpayer are oversecured, and then
possibly only on the prorated basis with other allowed administrative claims. It cannot be determined, therefore, what
adverse impact bankruptcy might have on the ability to collect ad valorem taxes on property of a taxpayer within the
City. Proceeds to pay such taxes come only from the taxpayer or from a sale of the tax lien on delinquent property.
When a debtor files or is forced into bankruptcy, any act to obtain possession of the debtor’s estate, any act to create
or perfect any lien against the property of the debtor or any act to collect, assess or recover a claim against the debtor
that arose before the commencement of the bankruptcy is stayed pursuant to the Bankruptcy Code. While the automatic
stay of a bankruptcy court may not prevent the sale of tax liens against the real property of a bankrupt taxpayer, the
judicial or administrative foreclosure of a tax lien against the real property of a debtor would be subject to the stay of
bankruptcy court. It is reasonable to conclude that “tax sale investors” may be reluctant to purchase tax liens under
such circumstances, and, therefore, the timeliness of the payment of post-bankruptcy petition tax collections becomes
uncertain.
It cannot be determined what impact any deterioration of the financial conditions of any taxpayer, whether or not
protection under the Bankruptcy Code is sought, may have on payment of or the secondary market for the Bonds.
None of the City, the Financial Advisor, the Underwriter or their respective agents or consultants has undertaken any
independent investigation of the operations and financial condition of any taxpayer, nor have they assumed
responsibility for the same.
In the event the County is expressly enjoined or prohibited by law from collecting taxes due from any taxpayer, such
as may result from the bankruptcy of a taxpayer, any resulting deficiency could be collected in subsequent tax years
by adjusting the City’s tax rate charged to non-bankrupt taxpayers during such subsequent tax years.
B-6
ASSESSED VALUATIONS AND TAX RATES
TABLE 8
Direct and Overlapping Net Limited Assessed Property Value and Tax Rates
Per $100 Assessed Valuation
(a)
Includes the “State Equalization Assistance Property Tax” which is levied by the County and has been set at
$0.4263 per $100 Net Limited Assessed Property Value for fiscal year 2021/22. Such amount is adjusted
annually pursuant to Arizona Revised Statutes, Section 41-1276.
(b)
The assessed valuation of the flood control district does not include the personal property assessed valuation
of the County.
(c)
Value shown for the Central Arizona Water Conservation District covers only the County portion of such
district. (See footnote (b) following TABLE 16).
Source:
Property Tax Rates and Assessed Values, Arizona Tax Research Association.
Total Tax Rates Per $100 Assessed Valuation
The total overlapping property tax rate for property owners within the City ranges from $7.0682 to $13.4142 per $100
Net Assessed Limited Property Value, depending upon the specific jurisdictions which overlap the property.
2021-22
Combined Primary and
2021-22
Secondary Tax Rates
Net Assessed
Rates Per $100
Limited
Net Assessed Limited
Overlapping Jurisdiction
Property Value
Property Value
State of Arizona
74,200,360,570
$
None
Maricopa County
48,724,126,672
$1.7722 (a)
Maricopa County Community College District
48,724,126,672
1.2257
Maricopa County Library District
48,724,126,672
0.0556
Maricopa County Flood Control District
44,882,715,452
0.1792 (b)
Maricopa County Fire District Assistance Tax
48,724,126,672
0.0086
Maricopa County Special Health Care District
48,724,126,672
0.2970
Central Arizona Water Conservation District
48,724,126,672
0.1400 (c)
Electrical District No. 7
1,105,637,893
0.0061
Dysart Unified School District
1,621,415,957
6.1820
Western Maricopa Education District No. 402
18,085,233,843
0.1579
City of El Mirage
136,892,780
3.3899
B-7
TABLE 9
Net Limited Assessed Property Value by Property Classification (a)
City of El Mirage, Arizona
(a)
Totals may not add up due to rounding.
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue and Property Tax Rates
and Assessed Values, Arizona Tax Research Association.
TABLE 10
Net Limited Assessed Property Value of Major Taxpayers
City of El Mirage, Arizona
(a)
Some of such taxpayers or their parent corporations are subject to the informational requirements of the
Securities Exchange Act of 1934, as amended, and in accordance therewith file reports, proxy statements and
other information with the Securities and Exchange Commission (the “Commission”). Such reports, proxy
statements and other information (collectively, the “Filings”) may be inspected, copied and obtained at
prescribed rates at the Commission’s public reference facilities at 100 F Street, N.E., Washington, D.C. 20549-
2736. In addition, the Filings may also be inspected at the offices of the New York Stock Exchange at 20
Broad Street, New York, New York 10005. The Filings may also be obtained through the Internet on the
Commission’s EDGAR data base at http://www.sec.gov. No representative of the City, the Financial Advisor,
the Underwriter, Bond Counsel or counsel to the Underwriter have examined the information set forth in the
Filings for accuracy or completeness, nor do they assume responsibility for the same.
Source:
Assessor of the County.
Class
2021-22
2020-21
2019-20
2018-19
2017-18
Commercial, industrial, utilities and mines
40,925,049
$
29,961,297
$
30,244,942
$
25,940,103
$
24,700,993
$
Agricultural and vacant
4,690,459
4,852,779
4,461,229
4,153,048
4,039,469
Residential (owner occupied)
60,428,725
55,369,863
52,015,967
49,513,757
46,375,071
Residential (rental)
29,495,263
27,901,317
27,227,358
25,868,210
24,861,040
Railroad
1,353,284
1,330,819
1,373,206
1,329,360
1,434,548
Totals (a)
136,892,780
$
119,416,075
$
115,322,702
$
106,804,478
$
101,411,121
$
As % of
2021-22
City’s Total
Net Assessed
Net Assessed
Limited
Net Assessed Limited
Major Taxpayer (a)
Property Value
Property Value
Microscoft Corporation
$10,078,650
7.36
Arizona Public Service Company
4,815,874
3.52
Pueblo El Mirage LLC
3,806,280
2.78
Pipe Portfolio Owner (multi) LP
3,312,293
2.42
Wal Mart Stores Inc.
3,129,678
2.29
Clayton Homes Inc.
2,113,509
1.54
BNSF Railway Company
1,746,099
1.28
Coyote Pass RV and Mini Storage LLC
1,648,062
1.20
El Mirage RV & Boat Storage
1,340,170
0.98
Cives Corporation
1,278,234
0.93
Total
$33,268,849
24.30
%
%
B-8
Net Assessed Limited Property Value Comparisons and Trends
The following table is shown to indicate for fiscal years 2017/18 through 2021/22, the Net Assessed Limited Property
Values of the City, the County and the State, each on a comparative basis.
TABLE 11
Comparative Net Assessed Limited Property Values
City of El Mirage, Arizona
Source:
Property Tax Rates and Assessed Values, Arizona Tax Research Association.
TABLE 12
Estimated Net Full Cash Value History
City of El Mirage, Arizona
Fiscal
Year
Estimated
Net Full Cash
Value (a)
2021/22
$ 2,153,183,607
2020/21
1,843,080,701
2019/20
1,646,041,021
2018/19
1,471,741,368
2017/18
1,287,882,125
(a) Estimated Net Full Cash Value is the total estimated market value of the property within the City as determined
by the Arizona Department of Revenue, Division of Property and Special Taxes, less the estimated exempt
property within the City.
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
Fiscal
City of
Maricopa
State of
Year
El Mirage
County
Arizona
2021-22
136,892,780
$
48,724,126,672
$
74,200,233,397
$
2020-21
119,416,075
45,704,969,813
69,914,521,042
2019-20
115,322,702
43,194,326,395
66,154,632,834
2018-19
106,804,478
40,423,232,421
62,328,357,186
2017-18
101,411,121
38,236,246,402
59,404,007,785
B-9
DIRECT AND OVERLAPPING BONDED INDEBTEDNESS
TABLE 13
Current Year Statistics (For Fiscal Year 2021/22)
City of El Mirage, Arizona
Net Limited Assessed Property Value
$ 136,892,780
Net Full Cash Assessed Value
250,003,509
Estimated Net Full Cash Value
2,153,183,607
Total General Obligation Bonds Outstanding and to be Outstanding
$ 18,715,000 * (a)
Total Water and Sewer Revenue Obligations Outstanding
17,198,541
(a)
Includes the Bonds and is net of the Bonds Being Refunded. See footnotes (b) and (c) to TABLE 15 for a
description of the treatment of certain proceeds of the Bonds and other general obligation bonds of the City for
State debt limit purposes.
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue and Property Tax Rates
and Assessed Values, Arizona Tax Research Association and the District.
TABLE 14A
Direct General Obligation Bonded Debt Outstanding and to be Outstanding
City of El Mirage, Arizona
* Preliminary, subject to change.
Final
Original
Maturity
Principal
Issue
Principal
Date
Balance
Series
Amount
Purpose
(July 1)
Outstanding
2012A
14,900,000
$
General Obligation Bonds
2042
11,990,000
$
2012B
3,305,000
Refunding Bonds
2024
1,015,000
2017REF
8,385,000
Refunding Bonds
2029
7,015,000
Total General Obligation Bonded Debt Outstanding
20,020,000
$
Less: Bonds Being Refunded
(12,300,000)
Plus: The Bonds
10,995,000
*
General Obligation Bonded Debt Outstanding and to be Outstanding
18,715,000
$
*
B-10
TABLE 14B
Water and Wastewater Revenue Obligations Outstanding
City of El Mirage, Arizona
(a)
These obligations take the form of loan agreements with the Water Infrastructure Finance Authority of Arizona
(“WIFA”), a State bond bank, pursuant to which the City has agreed to make semi-annual payments equal to
the principal and interest on such WIFA loans.
Final
Original
Maturity
Principal
Issue
Principal
Dates
Balance
Series (a)
Amount
Purpose
(July 1)
Outstanding
2006 (DWSRF)
16,143,128
$
Restructure Debt
2025
3,772,962
$
2008 (DWSRF)
4,040,000
New Money/New Projects
2027
1,808,729
2012 (CWSRF)
500,000
New Money/New Projects
2032
344,438
2012 (DWSRF)
4,050,000
New Money/New Projects
2032
2,584,912
2020 (DWSRF)
8,687,200
New Money/New Projects
2045
8,687,500
Total Water and Wastewater System Obligations Outstanding
17,198,541
$
B-11
Direct General Obligation Bonded Debt, Legal Limitation
and Available General Obligation Bonding Capacity
City of El Mirage, Arizona
Under the provisions of the Arizona Constitution, the limit for general obligation bonded indebtedness of a city for
general municipal purposes may not exceed six percent (6%) of Net Full Cash Assessed Value in that city. In addition
to the six percent (6%) limitation for general purpose bonds, cities may issue general obligation bonds up to an
additional twenty percent (20%) of the Net Full Cash Assessed Value for such city for water, artificial light or sewers,
for the acquisition and development of land for open space preserves, parks, playgrounds and recreational facilities,
for the acquisition and development of public safety, law enforcement, fire and emergency facilities and streets and
transportation facilities.
TABLE 15
General Municipal Purpose Bonds
Water, Light, Sewer, Open Space, Public Safety,
Law Enforcement, Fire and Emergency Services,
Park, Street, and Transportation Bonds
Total 6% General Obligation
Bonding Capacity
$15,000,211
Total 20% General Obligation
Bonding Capacity
$ 50,000,702
Less: 6% General Obligation
Bonds Outstanding
(1,540,000)*(a)
Less: 20% General Obligation
Bonds Outstanding
(18,480,000)*(a)
Less: Original Issue Premium
.*(b)
Less: Original Issue Premium
.*(b)
Less: Unamortized Original Issue
Premium
(8,390)*(c)
Less: Unamortized Original Issue
Premium
(100,283)*(c)
Net 6% General Obligation
Bonding Capacity
$13,451,821
Net 20% General Obligation
Bonding Capacity
$31,420,418
(a)
Includes the Bonds and is net of the Bonds Being Refunded.
(b)
This amount reduces in equal amount the City’s borrowing capacity. Such capacity will be recaptured as
premium is amortized. This is the excess amount between the par amount of the Bonds Being Refunded and
the par amount of the Bonds.
(c)
This amount reduces in equal amount the City’s borrowing capacity. Such capacity will be recaptured as
premium is amortized.
* Preliminary, subject to change.
B-12
TABLE 16
Direct and Overlapping General Obligation Bonded Debt *
City of El Mirage, Arizona
(a)
Proportion applicable to the City is computed on the ratio of Net Assessed Limited Property Value for 2021/22.
Includes proportionate stated principal amount of general obligation bonds outstanding (without regard to
premium).
(b)
Does not include outstanding principal amounts of certificates of participation, revenue obligations, loan
obligations, improvement bonds, or other debt not secured by ad valorem
(c)
property taxes. Includes total stated principal amount of general obligation bonds outstanding. Additional
bonds may be authorized by voters within overlapping jurisdictions pursuant to future elections.
Also does not include the obligation of the Central Arizona Water Conservation District (“CAWCD”) to the
United States Department of the Interior (the “Department of the Interior”), for repayment of certain capital
costs for construction of the Central Arizona Project (“CAP”), a major reclamation project that has been
substantially completed by the Department of the Interior. The obligation is evidenced by a master contract
between CAWCD and the Department of the Interior. In April 2003, the United States and CAWCD agreed to
settle litigation over the amount of the construction cost repayment obligation, the amount of the respective
obligations for payment of the operation, maintenance and replacement costs and the application of certain
revenues and credits against such obligations and costs. Under the agreement, CAWCD’s obligation for
substantially all of the CAP features that have been constructed so far will be set at $1.646 billion, which
amount assumes (but does not mandate) that the United States will acquire a total of 667,724 acre feet of CAP
water for federal purposes. The United States will complete unfinished CAP construction work related to the
water supply system and regulatory storage stages of CAP at no additional cost to CAWCD. Of the $1.646
billion repayment obligation, 73% will be interest bearing and the remaining 27% will be non-interest bearing.
These percentages will be fixed for the entire 50-year repayment period, which commenced October 1, 1993.
CAWCD is a multi-county water conservation district having boundaries coterminous with the exterior
boundaries of Arizona’s Maricopa, Pima and Pinal Counties. It was formed for the express purpose of paying
administrative costs and expenses of the CAP and to assist in the repayment to the United States of the CAP
capital costs. Repayment will be made from a combination of power revenues, subcontract revenues (i.e.,
agreements with municipal, industrial and agricultural water users for delivery of CAP water) and a tax levy
against all taxable property within CAWCD’s boundaries. At the date of this Official Statement, the tax levy is
limited to 14 cents per $100 of Net Limited Assessed Property Value, of which 14 cents is being levied. (See
Sections 48-3715 and 48-3715.02, Arizona Revised Statutes.) There can be no assurance that such levy limit
will not be increased or removed at any time during the life of the contract.
(d)
Includes the Bonds, net of the Bonds Being Refunded
Source:
Various entities, Property Tax Rates and Assessed Values, Arizona Tax Research Association, State and
County Abstract of the Assessment Roll, Arizona Department of Revenue and the Treasurer of the County.
* Preliminary, subject to change.
Overlapping
Proportion Applicable to
General
City of El Mirage (a)
Obligation
Approximate
Net Debt
Overlapping Jurisdiction
Bonded Debt (b)
Percent
Amount
State of Arizona
None
0.18
None
Maricopa County
None
0.28
None
Maricopa County Community College District
184,715,000
$
0.28
518,966
$
Maricopa County Special Health Care District
640,695,000
0.28
1,800,063
Dysart Unified School District
97,086,000
8.34
8,094,174
Western Maricopa Education District No. 402
144,220,000
0.76
1,100,141
City of El Mirage (c)
18,715,000
100.00
18,715,000
Total Direct and Overlapping General Obligation Bonded Debt to be Outstanding
30,228,344
$
*
*
%
B-13
TABLE 17
Direct and Overlapping General Obligation Bonded Debt Ratios
City of El Mirage, Arizona
Per Capita
Bonded Debt
Population
Estimated @
36,101
As % of City’s
Total 2021/22
Net Assessed
Limited
Property Value
As % of City’s
2021/22
Estimated Full
Cash Value
Net Direct General Obligation Bonded Debt Outstanding
and to be Outstanding (a)*
$518.41
13.67%
0.87%
Net Direct and Overlapping General Obligation Bonded
Debt Outstanding and to be Outstanding (a)*
$837.33
22.08%
1.40%
(a) Includes the Bonds and is net of the Bonds Being Refunded.
Source: State and County Abstract of the Assessment Roll, Arizona Department of Revenue, Property Tax Rates and
Assessed Values, Arizona Tax Research Association and the U.S. Census Bureau.
CITY EMPLOYEE RETIREMENT SYSTEM
All full-time employees of the City, excluding the Mayor and City Council participate in one of the two pension plans
administered by the State described below. See Note 8 in APPENDIX E for further discussion of the retirement plans
of the City.
The Government Accounting Standards Board adopted GASB Statement Number 68, Accounting and Financial
Reporting for Pensions (“GASB 68”), which, beginning with fiscal years starting after June 15, 2014, requires cost-
sharing employers to report their “proportionate share” of the plan’s net pension liability in their government-wide
financial statements. GASB 68 will also require that the cost-sharing employer’s pension expense component include
its proportionate share of the plan’s pension expense, the net effect of annual changes in the employer’s proportionate
share and the annual differences between the employer’s actual contributions and its proportionate share.
Arizona State Retirement System
All full-time City employees (except public safety personnel and elected officials) participate in the Arizona State
Retirement System (the “System”), a multiple-employer cost-sharing defined benefit pension plan. The System was
established in 1953 and became effective in 1971. The System provides for retirement, disability, health insurance
premium benefits, and death and survivor benefits. The System is administered in accordance with A.R.S. Title 38,
Chapter 5.
The actuarially determined contribution rates for the fiscal year 2020/21 were 12.22% (12.04% retirement and 0.18%
long-term disability) for both employees and employers. The City’s contribution to the System for the fiscal year
2020/21 was $2,484,277 equal to the required contributions, not including alternate contributions.
Effective July 1, 2021, the City’s annual contribution rates are 12.41% (11.65% retirement and 0.39% long-term
disability) for fiscal year 2021/22 for both employees and employers.
The System has reported increases in its unfunded liabilities as compared to both the smoothed value of plan assets
and the market value of plan assets. The most recent annual reports for the System may be accessed at:
https://www.azasrs.gov. The effect of the increase in the System’s unfunded liabilities on the City, or on the City’s
and its employees’ future annual contributions to the System, cannot be determined at this time.
* Preliminary, subject to change.
B-14
Arizona Public Safety Personnel Retirement System (Full-Time Police and Firefighter Employees)
All full-time sworn police officers and firefighters are eligible to participate in the Public Safety Personnel Retirement
System (the “PSPRS”) in separate agent multiple-employer defined benefit retirement plans. The PSPRS is jointly
administered by the fund manager (a five-member board appointed by the Governor and the State Legislature) and
257 local boards. The PSPRS provides for retirement, health insurance premium benefits, and death and survivor
benefits. The PSPRS is administered in accordance with A.R.S. Title 38, Chapter 5, Article 4.
The actuarially determined contribution rates for the fiscal year ended June 30, 2021 were 36.08% of annual covered
payroll for police tiers 1 and 2, 29.08% for tier 3 defined benefit (DB) and 10.41% for tier 3 defined contribution
(DC). For firefighters the contribution rate was and 19.07% for tiers 1 and 23.07% for tier 2, 16.46% for tier 3 DB
and 13.93% for tier 3 DC. The City’s employer contribution to the PSPRS for the fiscal year ended June 30, 2021
was $1,334,619 for police and $517,018 for firefighters, equal to the required contributions, not including alternate
contributions.
Effective July 1, 2021, the City’s annual contribution rates are 7.65% for both groups of employees in tier 1, 11.65%
for both groups in tier 2, 9.94% for Police tier 3 DB, 9.88% for Police DC, 12.94% for Fire DB and 9.88% for Fire
DC. The rates are as follows for employers:
Tier 1 Contribution Rate
Hired into a PSPRS position before January 1, 2012:
Police: 36.87%
Fire: 19.20%
Tier 2 Contribution Rate
Hired into a PSPRS position on/after January 1, 2012 and before July 1, 2017:
Police: 36.87%
Fire: 23.20%
Tier 3 Contribution Rate
Hired into a PSPRS position on/after July 1, 2017:
Defined Benefit:
Police: 31.33%
Fire: 17.43%
Defined Contribution:
Police: 31.27%
Fire: 14.37%
The PSPRS has reported increases in its unfunded liabilities as compared to both the smoothed value of plan assets
and the market value of plan assets. The most recent annual reports for the PSPRS may be accessed at:
http://www.psprs.com/investments-financials/annual-reports. The City’s net pension liability is $1,649,378 for fire
and $10,925,223 for police as of June 30, 2021.
REVENUES AND EXPENDITURES
The following revenue and expenditure information was derived from the City’s budgeted figures for fiscal year
2021/22 and audited financial statements for the fiscal years 2016/17 through 2020/21. Budgeted expenditure figures
for fiscal year 2021/22 are on a cash basis and are presented in the format required by state law. Budgeted figures for
fiscal year 2021/22 are “forward looking” statements that may not be realized during the course of the fiscal year as
presented herein and thus must be viewed with an abundance of caution. All other figures are prepared on a modified
accrual basis from the audited financial statements of the City. School districts in Arizona are not required to submit
revenue budgets. See APPENDIX E – “CITY OF EL MIRAGE, ARIZONA – AUDITED ANNUAL FINANCIAL
STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021” for the most recent audited financial statements
of the City. The presentation which follows has not been independently subject to any audit procedures.
Such audited financial statements are the most recent available for the City, are not current and therefore must be
considered with an abundance of caution. The City has not requested the consent of HintonBurdick, CPAs &
Advisors to include its report and HintonBurdick, CPAs & Advisors has performed not procedures subsequent
to rendering its report on the financial statements.
B-15
TABLE 18
General Fund
(a)
These amounts are preliminary and unaudited, subject to change upon audit.
(b)
These amounts are from audited financial statements of the City for the years indicated. This table has not,
however, been the subject of any separate audit process.
Adopted (a)
Audited (b)
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
REVENUES
Property taxes
2,600,000
$
2,326,061
$
2,216,903
$
2,226,575
$
1,650,815
$
1,656,488
$
City sales taxes
12,000,000
13,385,017
11,673,068
8,538,740
8,020,802
7,445,186
Franchise taxes
700,000
772,317
696,912
742,741
774,856
712,143
Licenses, permits and fees
535,000
708,361
837,063
449,482
295,737
269,103
Intergovernmental revenue
10,570,000
11,095,571
9,857,849
9,353,989
9,171,311
8,615,041
Charges for services
235,000
234,762
277,748
1,213,951
620,855
272,747
Fees
955,000
1,414,414
1,040,871
-
-
-
Fines and forfeitures
430,000
555,715
479,266
415,490
387,602
390,592
Investment earnings
65,000
51,737
515,501
1,386,675
700,768
275,568
Other revenues
15,000
186,530
201,077
305,202
184,377
214,754
TOTAL REVENUES
28,105,000
$
30,730,485
$
27,796,258
$
24,632,845
$
21,807,123
$
19,851,622
$
EXPENDITURES
Current:
General government
12,956,500
$
7,638,489
$
7,386,048
$
5,960,933
$
5,787,226
$
5,897,470
$
Public safety
16,990,017
14,704,179
11,197,805
12,403,422
10,380,987
10,344,620
Culture and recreation
-
-
-
851,186
840,136
794,042
Contingency
109,731
-
-
803,162
-
Capital outlay
4,421,700
1,144,547
845,749
1,156,144
1,125,007
5,494,389
Debt service
Principal
-
-
2,308,750
157,500
151,500
-
Interest and fiscal charges
-
-
114,100
120,925
126,450
126,150
TOTAL EXPENDITURES
34,477,948
$
23,487,215
$
21,852,452
$
21,453,272
$
18,411,306
$
22,656,671
$
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES BEFORE OTHER
FINANCING SOURCES (USES)
(6,372,948)
$
7,243,270
$
5,943,806
$
3,179,573
$
3,395,817
$
(2,805,049)
$
OTHER FINANCING SOURCES (USES)
Sale of assets
30,000
$
42,411
$
31,307
$
486,041
$
288,961
$
-
$
Transfers out
-
(826,500)
(11,095,500)
(1,389,000)
(2,179,500)
(1,425,500)
Transfers in
12,430,000
4,706,910
3,768,642
2,632,500
2,833,008
2,806,491
TOTAL OTHER FINANCING SOURCES (USES)
12,460,000
$
3,922,821
$
(7,295,551)
$
1,729,541
$
942,469
$
1,380,991
$
Net change in fund balances
6,087,052
$
11,166,091
$
(1,351,745)
$
4,909,114
$
4,338,286
$
(1,424,058)
$
FUND BALANCE, BEGINNING OF YEAR
43,331,265
32,165,174
33,516,919
28,607,804
24,269,518
25,693,576
FUND BALANCE, END OF YEAR
49,418,317
$
43,331,265
$
32,165,174
$
33,516,918
$
28,607,804
$
24,269,518
$
C-1
APPENDIX C
FORM OF APPROVING LEGAL OPINION
[Closing Date]
Mayor and Council
City of El Mirage, Arizona
Re:
City of El Mirage, Arizona General Obligation Refunding Bonds, Series 2022
We have examined copies of the proceedings of the Mayor and Council of the City of El Mirage, Arizona
(the “City”), and other proofs submitted to us relative to the issuance of the captioned Bonds (the “Bonds”). In
addition, we have examined such other proceedings, proofs, instruments, certificates and other documents as well as
such other materials and such matters of law as we have deemed necessary or appropriate for the purposes of the
opinion rendered herein below. In such examination, we have assumed the genuineness of all signatures, the
authenticity of all documents submitted to us as originals and the conformity to the original documents of all
documents submitted to us as copies. As to any facts material to our opinion, we have, when relevant facts were not
independently established, relied upon the aforesaid proceedings and proofs.
We are of the opinion that such proceedings and proofs show lawful authority for the sale and
issuance of the Bonds pursuant to the Constitution and laws of the State of Arizona now in force, particularly the
provisions of Title 35, Chapter 3, Article 4, Arizona Revised Statutes, as amended, and that the Bonds are valid and
legally binding obligations of the City, all of the taxable property within which is subject to the levy of a tax, without
limitation as to rate, to pay the principal of and interest on the Bonds, but limited to a total amount not greater than
the total aggregate principal and interest to become due on the bonds being refunded with proceeds of the sale of the
Bonds (the “Bonds Being Refunded”) from the date of issuance of the Bonds to the final date of maturity of the Bonds
Being Refunded. The net proceeds of the Bonds have been invested in obligations issued by or guaranteed by the
United States government which mature with interest so as to provide funds to pay when due, or called for redemption,
the Bonds Being Refunded together with interest thereon, and such proceeds and obligations have been deposited in
the respective principal and interest redemption funds, and shall be held in trust for the payment of, the Bonds Being
Refunded with interest on maturity or upon an available redemption date. The owners of the Bonds must rely on the
sufficiency of such funds and securities held irrevocably in the trust for payment of the Bonds Being Refunded. The
issuance of the Bonds shall in no way infringe upon the rights of the holders of the Bonds Being Refunded to rely
upon a tax levy for the payment of principal and interest on the Bonds Being Refunded if such funds and securities
prove insufficient.
Based on the representations and covenants of the City and subject to the assumption stated in the
last sentence of this paragraph, under existing statutes, regulations, rulings and court decisions, interest on the Bonds
is excludable from the gross income of the owners thereof for federal income tax purposes, and the interest on the
Bonds is exempt from income taxation under the laws of the State of Arizona. Furthermore, interest on the Bonds is
not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. We express
no opinion regarding other tax consequences resulting from the ownership, receipt or accrual of interest on, or
disposition of, the Bonds. The Internal Revenue Code of 1986, as amended (the “Code”), includes requirements which
the City must continue to meet after the issuance of the Bonds in order that interest on the Bonds not be included in
gross income for federal income tax purposes. The failure of the City to meet these requirements may cause interest
on the Bonds to be included in gross income for federal income tax purposes retroactive to their date of issuance. The
Mayor and Council of the City have resolved in Resolution No. _____, adopted by the Mayor and Council of the City
C-2
on February 15, 2022, to take the actions required by the Code in order to maintain the exclusion from gross income
for federal income tax purposes of interest on the Bonds. (Subject to the same limitations in the penultimate paragraph
hereof with respect to such covenants, the City has full legal power and authority to comply with such covenants.) In
rendering the opinion expressed above, we have assumed continuing compliance with the tax covenants referred to
above that must be met after the issuance of the Bonds in order that interest on the Bonds not be included in gross
income for federal tax purposes.
The rights of the holders of the Bonds and the enforceability of those rights may be subject to
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights. The enforcement of
such rights may also be subject to the exercise of judicial discretion in accordance with general principles of equity.
This opinion represents our legal judgment based upon our review of the law and the facts we deem
relevant to render such opinion and is not a guarantee of a result. This opinion is given as of the date hereof, and we
assume no obligation to review or supplement this opinion to reflect any facts or circumstances that may hereafter
come to our attention or any changes in law that may hereafter occur.
Respectfully submitted,
D-1
APPENDIX D
FORM OF CONTINUING DISCLOSURE UNDERTAKING
$10,995,000*
CITY OF EL MIRAGE, ARIZONA
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2022
This Continuing Disclosure Undertaking (this “Undertaking”) is executed and delivered by the City of El
Mirage, Arizona (the “City”), in connection with the sale and issuance of $10,995,000* principal amount of City of
El Mirage, Arizona General Obligation Refunding Bonds, Series 2022 (the “Bonds”). The Bonds are being issued
pursuant to a resolution adopted by the Mayor and Council of the City on February 15, 2022 (the “Bond Resolution”).
The City covenants and agrees as follows:
1.
Definitions. In addition to those defined hereinabove, the terms set forth below shall have the
following meanings in this Undertaking, unless the context clearly otherwise requires:
“Annual Financial Information” means the financial information and operating data set forth in Exhibit I.
“Annual Financial Information Disclosure” means the dissemination of disclosure concerning Annual
Financial Information and the dissemination of the Audited Financial Statements as set forth in Section 4.
“Audited Financial Statements” means the audited financial statements of the City prepared pursuant to the
standards and as described in Exhibit I.
“Commission” means the Securities and Exchange Commission.
“Dissemination Agent” means any agent designated as such in writing by the City and which has filed with
the City a written acceptance of such designation, and such agent’s successors and assigns.
“EMMA” means the Electronic Municipal Market Access system of the MSRB. Information regarding
submissions to EMMA is available at http://emma.msrb.org.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Final Official Statement” means the Final Official Statement relating to the Bonds, dated ________, 2022.
“Financial Obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with,
or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) a guarantee of (i) or
(ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has
been provided to the MSRB consistent with the Rule.
“GAAP” means generally accepted accounting principles, as applied to governmental units as modified by
the laws of the State.
“Listed Event” means the events set forth in Exhibit II.
“Listed Events Disclosure” means dissemination of disclosure concerning a Listed Event as set forth in
Section 5.
“MSRB” means the Municipal Securities Rulemaking Board.
* Preliminary, subject to change.
D-2
“Participating Underwriter” means each broker, dealer or municipal securities dealer acting as an
underwriter in the primary offering of the Bonds.
“Rule” means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Exchange Act.
“State” means the State of Arizona.
2.
Purpose of this Undertaking. This Undertaking is executed and delivered by the City as of the date
set forth below for the benefit of the beneficial owners of the Bonds and in order to assist the Participating Underwriter
in complying with the requirements of the Rule. The City represents that it will be the only obligated person with
respect to the Bonds at the time the Bonds are delivered to the Participating Underwriter and that no other person is
expected to become so committed at any time after such delivery of the Bonds.
3.
CUSIP Numbers. The CUSIP Numbers of the Bonds are as follows:
CUSIP No.
(Base 28328R)
Maturity Date
(July 1)
4.
Annual Financial Information Disclosure. Subject to annual appropriation to cover the costs of
preparation and mailing thereof and Section 8 of this Undertaking, the City shall disseminate its Annual Financial
Information and its Audited Financial Statements, if any (in the form and by the dates set forth in Exhibit I), through
EMMA.
If any part of the Annual Financial Information can no longer be generated because the operations to which
it is related have been materially changed or discontinued, the City will disseminate a statement to such effect as part
of its Annual Financial Information for the year in which such event first occurs.
If any amendment is made to this Undertaking, the Annual Information for the year in which such amendment
is made shall contain a narrative description of the reasons for such amendment and its impact on the type of
information being provided.
5.
Listed Events Disclosure. Subject to annual appropriation to cover the costs of preparation and
mailing thereof and Section 8 of this Undertaking, the City shall disseminate in a timely manner, but not more than
ten (10) business days after the occurrence of the event, Listed Events Disclosure through EMMA. Whether events
subject to the standard “material” would be material shall be determined under applicable federal securities laws.
6.
Consequences of Failure of the City to Provide Information. The City shall give notice in a timely
manner through EMMA of any failure to provide Annual Financial Information Disclosure when the same is due
hereunder.
In the event of a failure of the City to comply with any provision of this Undertaking, the beneficial owner
of any Bond may seek mandamus or specific performance by court order, to cause the City to comply with its
obligations under this Undertaking. A default under this Undertaking shall not be deemed an event of default under
the Bond Resolution, and the sole remedy available to such owners of the Bonds under this Undertaking in the event
of any failure of the City to comply with this Undertaking shall be an action to compel performance.
7.
Amendments; Waiver. Notwithstanding any other provision of this Undertaking, the City by
certified resolution or ordinance authorizing such amendment or waiver, may amend this Undertaking, and any
provision of this Undertaking may be waived only if:
D-3
(a)
The amendment or waiver is made in connection with a change in circumstances that arises
from a change in legal requirements, change in law, or change in the identity, nature, or status of the City, or
type of business conducted;
(b)
This Undertaking, as amended or affected by such waiver, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
(c)
The amendment or waiver does not materially impair the interests of the beneficial owners
of the Bonds, as determined by parties unaffiliated with the City or by approving vote of the owners of the
Bonds at the time of the amendment.
The Annual Financial Information containing amended operating data or financial information resulting from
such amendment or waiver, if any, shall explain, in narrative form, the reasons for the amendment or waiver and the
impact of the change in the type of operating data or financial information being provided. If an amendment or waiver
is made specifying an accounting principle to be followed in preparing financial statements and such changes are
material, the Annual Financial Information for the year in which the change is made shall present a comparison
between the financial statements or information prepared on the basis of the new accounting principles. Such
comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the
change in the accounting principles in the presentation of the financial information in order to provide information to
investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible,
such comparison also shall be quantitative. If the accounting principles of the City change or the fiscal year of the
City changes, the City shall file a notice of such change in the same manner as for a notice of Listed Event.
8. Non-Appropriation. The performance by the City of its obligations in this Undertaking shall be
subject to the annual appropriation of any funds that may be necessary to permit such performance. In the event of a
failure by the City to comply with its covenants under this Undertaking due to a failure to appropriate the necessary
funds, the City covenants to provide prompt notice of such fact to the MSRB through EMMA, in a format prescribed
by the MSRB.
9.
Termination of Undertaking. This Undertaking shall be terminated hereunder if the City shall no
longer have liability for any obligation on or relating to repayment of the Bonds under the Bond Resolution.
10.
Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent
to assist it in carrying out its obligations under this Undertaking, and may discharge any such Agent, with or without
appointing a successor Dissemination Agent.
11.
Additional Information. Nothing in this Undertaking shall be deemed to prevent the City from
disseminating any other information, using the means of dissemination set forth in this Undertaking or any other means
of communication, or including any other information in any Annual Financial Information Disclosure or notice of
occurrence of a Listed Event, in addition to that which is required by this Undertaking. If the City chooses to include
any information from any document or notice of occurrence of a Listed Event in addition to that which is specifically
required by this Undertaking, the City shall have no obligation under this Undertaking to update such information or
include it in any future Annual Financial Information Disclosure or Listed Events Disclosure.
12.
Beneficiaries. This Undertaking has been executed in order to assist the Participating Underwriter
in complying with the Rule; however, this Undertaking shall inure solely to the benefit of the City, the Dissemination
Agent, if any, and the beneficial owners of the Bonds, and shall create no rights in any other person or entity.
13.
Recordkeeping. The City shall maintain records of all Annual Financial Information Disclosure and
Listed Events Disclosure including the content of such disclosure, the names of the entities with whom such disclosure
was filed and the date of filing such disclosure.
14.
Governing Law. This Undertaking shall be governed by the laws of the State.
D-4
DATED: [Closing Date]
CITY OF EL MIRAGE, ARIZONA
By ...............................................................................................
Mayor
ATTEST:
.......................................................................................
City Clerk
D-5
EXHIBIT I
ANNUAL FINANCIAL INFORMATION AND TIMING AND
AUDITED FINANCIAL STATEMENTS
“Annual Financial Information” means financial information and operating data of the type contained in the
Final Official Statement in Tables 7, 9, 10, 14A, 15 and 16 (in each case, actual results for most recently completed
fiscal year only).
All or a portion of the Annual Financial Information and the Audited Financial Statements as set forth below
may be included by reference to other documents which have been submitted through EMMA or filed with the
Commission. If the information included by reference is contained in a final official statement, the final official
statement must be available from the MSRB. The City shall clearly identify each such item of information included
by reference.
Annual Financial Information exclusive of Audited Financial Statements will be provided through EMMA
by February 1 of each year, commencing February 1, 2022. Audited Financial Statements as described below should
be filed at the same time as the Annual Financial Information. If Audited Financial Statements are not available when
the Annual Financial Information is filed, unaudited financial statements shall be included, to be followed up by
Audited Financial Statements within 30 days after availability to the City.
Audited Financial Statements will be prepared according to GAAP.
If any change is made to the Annual Financial Information as permitted by Section 4 of the Undertaking, the
City will disseminate a notice of such change as required by Section 4, including changes in fiscal year or GAAP.
D-6
EXHIBIT II
EVENTS FOR WHICH LISTED EVENTS DISCLOSURE IS REQUIRED
1.
Principal and interest payment delinquencies.
2.
Non-payment related defaults, if material.
3.
Unscheduled draws on debt service reserves reflecting financial difficulties.
4.
Unscheduled draws on credit enhancements reflecting financial difficulties.
5.
Substitution of credit or liquidity providers, or their failure to perform.
6.
Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of
taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations, in
each case, with respect to the tax status of the security, or other material events affecting the tax status of the
security.
7.
Modifications to the rights of security holders, if material.
8.
Bond calls, if material, or tender offers.
9.
Defeasances.
10.
Release, substitution or sale of property securing repayment of the securities, if material.
11.
Rating changes.
12.
Bankruptcy, insolvency, receivership or similar events of the City, being if any of the following occur: the
appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S.
Bankruptcy Code or in any other proceeding under State or federal law in which a court or governmental
authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession
but subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having
supervision or jurisdiction over substantially all of the assets or business of the City.
13.
The consummation of a merger, consolidation or acquisition involving the City or the sale of all or
substantially all of the assets of the City, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive agreement relating to any
such actions, other than pursuant to its terms, if material.
14.
Appointment of a successor or additional trustee or the change of name of a trustee, if material.
15.
Incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default,
remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect
security holders, if material.
16.
Default, event of acceleration, termination event, modification of terms, or other similar events under the
terms of a Financial Obligation of the City, any of which reflect financial difficulties.
E-1
APPENDIX E
CITY OF EL MIRAGE, ARIZONA –
AUDITED ANNUAL FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
F-1
APPENDIX F
BOOK-ENTRY-ONLY SYSTEM
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The
Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee)
or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond will be
issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited
with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct
Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales
and other securities transactions in deposited securities, through electronic computerized book-entry transfers and
pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust &
Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation
and Fixed Income Securities Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by
the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-
U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants” and together with
the Direct Participants, the “Participants”). DTC has Standard & Poor’s rating of: “AA+.” The DTC Rules applicable
to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be
found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit
for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”)
is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written
confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect
Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of
Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds,
except in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of
DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of
DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee
do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited,
which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for
keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the
Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the
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Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial
Owners may wish to provide their names and addresses to the Bond Registrar and Paying Agent and request that
copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless
authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede &
Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
Payment of principal of and interest on the Bonds and the redemption price of any Bond will be made to Cede & Co.,
or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the Bond
Registrar and Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records.
Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as
is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be
the responsibility of such Participant and not of DTC, the Bond Registrar and Paying Agent or the City, subject to any
statutory or regulatory requirements as may be in effect from time to time. Payment of principal of and interest on
the Bonds and the redemption price of any Bonds will be made to Cede & Co. (or such other nominee as may be
requested by an authorized representative of DTC) is the responsibility of the City or Bond Registrar and Paying
Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of
such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable
notice to the City or the Bond Registrar and Paying Agent. Under such circumstances, in the event that a successor
depository is not obtained, certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that
the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.