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This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstance shall this Preliminary Official
Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
PRELIMINARY OFFICIAL STATEMENT DATED APRIL 20, 2026
NEW ISSUE – BOOK-ENTRY-ONLY
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, but in the case of the
alternative minimum tax imposed by Section 55(b)(2) of the Internal Revenue Code of 1986, as amended (the
“Code”), on applicable corporations (as defined in Section 59(k) of the Code), interest on the Bonds is not
excluded from the determination of adjusted financial statement income. See “TAX EXEMPTION” herein for a
description of certain other federal tax consequences of ownership of the Bonds.
$56,275,000*
CITY OF MESA, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2026
Dated: Date of Initial Delivery
Due: July 1, as shown on inside front cover page
The City of Mesa, Arizona (the “City”), General Obligation Bonds, Series 2026 (the “Bonds”), will be initially
issued in book-entry-only form, registered in the name of Cede & Co., as nominee of The Depository Trust
Company (“DTC”). Beneficial interests in the Bonds will be offered for sale in the amount of $5,000 of principal
due on a specific maturity date and integral multiples thereof. The Bonds are being issued to provide funds to (i)
acquire and construct certain public safety, parks and recreation and streets and transportation projects and (ii) pay
the costs of issuance of the Bonds.
The Bonds will mature on the dates and in the principal amounts and will bear interest from their dated date at the
rates set forth on the inside front cover page hereof. Interest on the Bonds will be payable semiannually on January
1 and July 1 of each year, commencing on January 1, 2027*, until maturity. So long as the Bonds are in book-
entry-only form, principal of and interest on the Bonds will be paid to DTC for credit to the accounts of the DTC
participants and, in turn, to the accounts of the owners of beneficial interests in the Bonds. See APPENDIX E –
“Book-Entry-Only System.”
See Inside Front Cover Page for Maturity Schedule and Additional Information
Certain of the Bonds are subject to redemption prior to their stated maturity dates.* See “THE BONDS –
Redemption Provisions,” herein.
Upon their issuance, the Bonds will be payable as to both principal and interest from a continuing, direct, annual
ad valorem tax to be levied against all taxable property in the City, such tax to be levied without limitation as to
rate or amount. See “SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS” herein.
Proposals for the Bonds may be submitted solely as an electronic bid using the facilities of PARITY® up to
and including the hour of [9:00] A.M., Pacific Daylight Time (“PDT”), on [April 28, 2026]. See “NOTICE
INVITING BIDS FOR THE PURCHASE OF BONDS” for the Bonds herein.
The Bonds are offered when, as and if issued by the City, subject to the approving legal opinion of Greenberg
Traurig, LLP, Phoenix, Arizona, Bond Counsel, as to validity and tax exemption. It is expected that the Bonds
will be available for delivery through the facilities of DTC on or about May 21, 2026*.
This cover page contains certain information with respect to the Bonds for convenience of reference only. It is not
a summary of all material information with respect to the Bonds. Investors are advised to read this entire Official
Statement and all appendices to obtain information essential to the making of an informed investment decision
with respect to the Bonds.
* Subject to change.
DRAFT V3
03-11-26
$56,275,000*
CITY OF MESA, ARIZONA
GENERAL OBLIGATION BONDS, SERIES 2026
MATURITY SCHEDULE*
Maturity
(July 1)
Principal
Amount
Interest
Rate
Yield
CUSIP® (a)
(Base No. 590485)
2027
$ 610,000
%
%
2028
925,000
2029
975,000
2030
1,520,000
2031
1,600,000
2032
2,680,000
2033
2,810,000
2034
2,955,000
2035
3,100,000
2036
3,255,000
2037
2,635,000
2038
2,770,000
2039
2,905,000
2040
3,055,000
2041
3,205,000
2042
3,365,000
2043
3,500,000
2044
4,480,000
2045
4,660,000
2046
5,270,000
$________ Term Bond @ ____% Due July 1, 20__ - Yield ____% - ____
$________ Term Bond @ ____% Due July 1, 20__ - Yield ____% - ____
(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 FactSet Research Systems Inc. Copyright© 2026
CUSIP Global Services. 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, Municipal Advisor (each as defined
herein), or their agents or counsel assume responsibility for the accuracy of such numbers.
* Subject to change.
CITY OF MESA
CITY COUNCIL
Mark Freeman, Mayor
Scott Somers, Vice Mayor
Rich Adams, Councilmember
Jenn Duff, Councilmember
Alicia Goforth, Councilmember
Francisco Heredia, Councilmember
Dorean Taylor, Councilmember
CITY ADMINISTRATIVE OFFICERS
Scott Butler, City Manager
Michael Kennington, Deputy City Manager/Chief Financial Officer
Irma Ashworth, Finance Director
Mark Hute, City Treasurer
Holly Moseley, City Clerk
SPECIAL SERVICES
BOND COUNSEL
Greenberg Traurig, LLP
Phoenix, Arizona
MUNICIPAL ADVISOR
Hilltop Securities Inc.
Phoenix, Arizona
BOND REGISTRAR & PAYING AGENT
UMB Bank, n.a.
Phoenix, Arizona
REGARDING THIS OFFICIAL STATEMENT
This Official Statement does not constitute an offering of any security other than the General Obligation Bonds, Series
2026 (the “Bonds”), of the City of Mesa, Arizona (the “City”), identified on the 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.
The information set forth herein has been provided by the City, the Maricopa County Assessor’s, Finance and Treasurer’s
offices, 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 Hilltop Securities Inc., the
City’s municipal advisor (the “Municipal Advisor”). The presentation of information, including tables of receipts from
taxes and other revenue 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. No person, including any broker, dealer or salesman,
has been authorized to give any information or to make any representations other than those 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 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
or will be realized. All beliefs, assumptions, estimates, projections, forecasts and matters of opinion contained herein are
forward looking statements which must be read with an abundance of caution and which may not be realized or may not
occur 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 of the other parties or matters described herein
since the date hereof.
The Bonds will not be registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as
amended, in reliance upon the exemptions provided thereunder by Sections 3(a)(2) and 3(a)(12), respectively, pertaining
to the issuance and sale of municipal securities, nor will the Bonds be qualified under the Securities Act of Arizona in
reliance upon various exemptions contained in such act. Neither the Securities and Exchange Commission (the
“Commission”) nor any other federal, state or other governmental entity or agency will have passed upon the accuracy or
adequacy of the Official Statement or approved this series of securities for sale.
The City, the Municipal Advisor and Bond Counsel (as defined herein) are not actuaries, nor have any of them performed
any actuarial or other analysis of the City’s unfunded liabilities under the Arizona State Retirement System, the Arizona
Public Safety Personnel Retirement System or the Elected Officials Retirement Plan.
The City will covenant to provide continuing disclosure as described in this Official Statement under “CONTINUING
SECONDARY MARKET DISCLOSURE” and in APPENDIX G – “Form of Continuing Disclosure Undertaking”
pursuant to Rule 15c2-12 promulgated by the Commission.
A wide variety of 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.
References to website addresses presented herein are for informational purposes only and may be in the form of a
hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links
contained therein are not incorporated into, and are not part of, this Official Statement for purposes of Rule 15c2-12 of
the Commission.
TABLE OF CONTENTS
NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS ...................................................................................... i
INTRODUCTORY STATEMENT .................................................................................................................................... 1
THE BONDS ...................................................................................................................................................................... 1
Authorization and Purpose ............................................................................................................................................. 1
Other Expected Debt Offerings ...................................................................................................................................... 1
General Provisions ......................................................................................................................................................... 2
Redemption Provisions ................................................................................................................................................... 2
Optional Redemption .................................................................................................................................................. 2
Mandatory Sinking Fund Redemption ........................................................................................................................ 2
Notice of Redemption ................................................................................................................................................. 3
Effect of Call for Redemption ..................................................................................................................................... 3
Redemption of Less Than All of a Bond ...................................................................................................................... 3
SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS ............................................................................ 4
Security for the Bonds .................................................................................................................................................... 4
Defeasance...................................................................................................................................................................... 4
Sources of Payment of the Bonds and Other City Bonds ............................................................................................... 4
Utility Transfer Ordinance ............................................................................................................................................. 4
CITY GENERAL FUND ................................................................................................................................................... 5
CITY ENTERPRISE FUNDS ............................................................................................................................................ 6
CITY SPECIAL REVENUE FUNDS ................................................................................................................................ 7
ADDITIONAL GENERAL OBLIGATION BONDS ........................................................................................................ 8
SOURCES AND USES OF FUNDS .................................................................................................................................. 8
ESTIMATED DEBT SERVICE REQUIREMENTS ......................................................................................................... 9
RATINGS ......................................................................................................................................................................... 10
LEGAL MATTERS ......................................................................................................................................................... 10
TAX EXEMPTION .......................................................................................................................................................... 10
In General ..................................................................................................................................................................... 10
Original Issue Premium and Original Issue Discount .................................................................................................. 11
Changes in Federal and State Tax Law ........................................................................................................................ 12
Information Reporting and Backup Withholding ......................................................................................................... 12
LITIGATION ................................................................................................................................................................... 12
No Litigation Relating to the Bonds ............................................................................................................................. 12
Other Litigation Against the City ................................................................................................................................. 13
CERTIFICATION CONCERNING OFFICIAL STATEMENT ..................................................................................... 14
CONTINUING SECONDARY MARKET DISCLOSURE ............................................................................................ 14
MUNICIPAL ADVISOR ................................................................................................................................................. 14
GENERAL PURPOSE FINANCIAL STATEMENTS .................................................................................................... 15
CONCLUDING STATEMENT ....................................................................................................................................... 15
APPENDIX A: City of Mesa, Arizona – General Economic and Demographic Information
APPENDIX B: City of Mesa, Arizona – Financial Data
APPENDIX C: City of Mesa, Arizona – Utility Systems Information
APPENDIX D: City of Mesa, Arizona – Audited General Purpose Financial Statements for the Fiscal Year Ended
June 30, 2025
APPENDIX E: Book–Entry–Only System
APPENDIX F: Form of Approving Legal Opinion
APPENDIX G: Form of Continuing Disclosure Undertaking
i
$56,275,000*
CITY OF MESA, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2026
NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS
(Electronic Bidding Only)
NOTICE IS HEREBY GIVEN that unconditional bids will be received to and including the hour of [9:00] a.m., Pacific
Daylight Time (“PDT”), [April 28, 2026], by the City of Mesa, Arizona (the “City”), for the purchase of all, but not less
than all, of the City’s General Obligation Bonds, Series 2026 in the principal amount of $56,275,000* (the “Bonds”) as
electronic bids using the facilities of Ipreo LLC’s PARITY SYSTEM (“PARITY”). For purposes of the bids received
through the electronic bid process, the time as maintained by PARITY shall constitute the official time.
The City reserves the right to cancel or reschedule the sale of the Bonds or alter the terms thereof upon notice given
through PARITY at www.ipreo.com at any time prior to the time bids are to be received. If no legal bid or bids are
received for the Bonds on said date (or such later date as is established as provided herein) at the time specified, bids will
be received for the Bonds on such other date and at such other time as shall be designated through PARITY as soon as
practicable. As an accommodation to the bidders, telephonic, telecopied or emailed notice of the postponement of the
sale date or dates or of a change in the principal payment schedule will be given to any bidder who has requested such
notice of the City’s Municipal Advisor, Hilltop Securities Inc. (the “Municipal Advisor”), Janelle Gold (email:
janelle.gold@hilltopsecurities.com; telephone: (602) 224-7104). Failure of any bidder to receive such telephonic,
telecopied or emailed notice shall not affect the legality of the sale.
Any prospective purchaser that intends to submit an electronic bid must submit its electronic bid through the facilities of
PARITY. The normal fee for the use of PARITY may be obtained from PARITY, and such fee will be the responsibility
of those submitting bids. All bids must be submitted on the official bid form that resides on the PARITY system (the
“Official Bid Form”), without alteration or interlineation. All electronic bids must be submitted by [9:00] a.m., PDT, on
[April 28, 2026]. Subscription to i-Deal’s BIDCOMP Competitive Bidding System is required in order to submit an
electronic bid. Representatives of the City will not confirm any subscription nor be responsible for the failure of any
prospective purchaser to subscribe.
An electronic bid made through the facilities of PARITY shall be deemed an irrevocable offer to purchase the Bonds
on the terms provided in this Notice Inviting Bids for the Purchase of Bonds (this “Notice”) and shall be binding upon
the bidder as if made by a signed, sealed proposal delivered to the City. Neither the City nor the Municipal Advisor
shall be responsible for any malfunction or mistake made by, or as a result of, the use of the facilities of PARITY, the
use of such facilities being the sole risk of the bidder.
If any provisions of this Notice shall conflict with information provided by PARITY as the approved provider of
electronic bidding services, this Notice shall control. All electronic bids will be deemed to incorporate the provisions of
this Notice and the Official Bid Form. Further information about PARITY, including any fee charged, may be obtained
from IPREO at 1359 Broadway, 2nd Floor, New York, New York 10018, Attention: Customer Support (212) 849-5021
and from the following website: www.newissuehome.i-deal.com.
For information purposes only, bidders are requested to state in their electronic bid the “true interest cost” as described
under “AWARD AND DELIVERY” herein.
BONDS IN GENERAL
The Bonds will be dated the date of initial delivery. Interest on the Bonds will be payable semiannually on January
1 and July 1 of each year, commencing January 1, 2027*. The Bonds, when issued, will be registered in the name
of Cede & Co., as registered owner and nominee for The Depository Trust Company (“DTC”), New York, New York.
DTC will act as securities depository for the Bonds through its book-entry system. Purchases of beneficial ownership
interests in the Bonds will be made in book-entry form in amounts of $5,000 of principal due on a specific maturity date,
or any integral multiple thereof. Purchasers will not receive certificates representing their beneficial interests in the
Bonds. The principal of and interest on the Bonds will be paid by UMB Bank, n.a., as the Bond Registrar and Paying
Agent for the Bonds (the “Bond Registrar and Paying Agent”), to Cede & Co., as long as Cede & Co. is the registered
* Subject to change.
ii
owner of the Bonds. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and
disbursement of such payments to the purchasers of beneficial ownership interests in the Bonds is the responsibility of
DTC Participants and Indirect Participants, as more fully described in the preliminary official statement relating to the
Bonds (the “Preliminary Official Statement”).
Except as otherwise provided under “MODIFICATION OF MATURITY SCHEDULE AND PAR AMOUNT” and
“REDEMPTION PROVISIONS – Mandatory Redemption,” the Bonds will mature (or be subject to mandatory
redemption) on July 1 in each of the years and in the amounts as follows (the “Maturity Schedule”):
Maturity Date
(July 1)*
Principal
Amount*
Maturity Date
(July 1)*
Principal
Amount*
2027
$ 610,000
2037
$2,635,000
2028
925,000
2038
2,770,000
2029
975,000
2039
2,905,000
2030
1,520,000
2040
3,055,000
2031
1,600,000
2041
3,205,000
2032
2,680,000
2042
3,365,000
2033
2,810,000
2043
3,500,000
2034
2,955,000
2044
4,480,000
2035
3,100,000
2045
4,660,000
2036
3,255,000
2046
5,270,000
As described below under the heading “REDEMPTION PROVISIONS – Mandatory Redemption,” bidders may
combine maturities into one or more term Bonds. Term Bonds, if any, must consist of the total principal payments of
two or more consecutive years and mature in the latest of those years. Serial maturities converted to term Bonds, as
specified, must bear the same rate of interest. Any term Bonds will be subject to mandatory redemption in the same
principal amounts and on the same dates shown in the maturity schedule shown above.
MODIFICATION OF MATURITY SCHEDULE AND PAR AMOUNT
The preliminary aggregate principal amount of the Bonds and the preliminary principal amount of each annual principal
payment for the Bonds as set forth in this Notice (collectively, the “Preliminary Amounts”) may be revised before the
receipt of electronic bids for their purchase (such revised amounts referred to collectively as the “Revised Amounts”).
ANY SUCH REVISIONS WILL BE PUBLISHED ON PARITY NOT LATER THAN 5:00 P.M., PDT, ON THE
LAST BUSINESS DAY PRIOR TO THE DATE OF SALE. In the event that no such revisions are made, the
Preliminary Amounts will constitute the Revised Amounts. Bidders shall submit bids based on the Revised Amounts,
and the Revised Amounts will be used to compare bids and select the winning bidder.
The City reserves the right to increase or decrease the aggregate principal amount of Bonds set forth in this Notice after
determination of the winning bidder in an amount not to exceed $5,630,000. Further, the City reserves the right to change
the maturity schedule set forth in this Notice after determination of the winning bidder, by adjusting one or more principal
payments of the Bonds in increments of $5,000.
As promptly as reasonably possible after the bids are received, the City will notify the winning bidder, if and when
award is made, and such entity, upon such notice, shall advise the City of the initial reoffering prices to the public of
each maturity of the Bonds (the “Initial Reoffering Prices”). The Initial Reoffering Prices, among other things, will be
used by the City to calculate the final principal amount of each annual principal payment for the Bonds (collectively,
the “Final Amounts”) to accommodate the objectives of the City. THE WINNING BIDDER MAY NOT WITHDRAW
ITS BID OR CHANGE THE INTEREST RATES PROPOSED OR THE INITIAL REOFFERING PRICES AS A
RESULT OF ANY CHANGES MADE TO THE REVISED AMOUNTS. The dollar amount bid by such entity
will be adjusted to reflect changes in the dollar amount of the underwriter’s discount and the original issue
discount/premium, if any, but will not change the compensation per $1,000 of aggregate par amount of Bonds from the
compensation that would have been received based on the purchase price in the winning bid and the Initial Reoffering
Prices. The Final Amounts will be communicated to such entity as soon as possible, but not later than 3:00 p.m. PDT,
on the date of the sale.
* Subject to change. See “MODIFICATION OF MATURITY SCHEDULE AND PAR AMOUNT” herein.
iii
REDEMPTION PROVISIONS*
Optional Redemption. The Bonds maturing before and on July 1, 2036, will not be subject to redemption prior to their
stated maturity dates. The Bonds maturing on and after July 1, 2037, 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, 2036, 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. A bidder may specify that the principal amount of Bonds shall be combined into one or more
term Bonds maturing in the years as specified, which are subject to mandatory redemption, by lot, selected by the Bond
Registrar and Paying Agent annually until payment at maturity in the principal amounts shown in the maturity schedule
above at par and accrued interest to the date fixed for redemption, without premium. If so specified, then serial maturities
converted into a single term Bond must bear the same rate of interest. Term Bonds, if any, must consist of the total
principal payments of two or more consecutive years and mature in the latest of those years.
Notice of Redemption. Not more than 60, nor less than 30, days before any redemption date, the Bond Registrar and
Paying Agent will cause a notice of any such redemption to be provided to DTC as further described in the Preliminary
Official Statement. Such notice may provide that the redemption is conditional upon moneys for payment of the
redemption price being held in separate accounts by the Bond Registrar and Paying Agent.
AUTHORIZATION AND USE OF FUNDS
The Bonds are being issued by the City pursuant to Title 35, Chapter 3, Article 3, Arizona Revised Statutes, and a resolution
adopted by the City Council of the City on April 6, 2026* (the “Resolution”). The Bonds will constitute a portion of the
bonds authorized by the voters at special bond elections held in the City on November 3, 2020, November 8, 2022, and
November 5, 2024, and will be issued for the following purposes and to pay costs of issuance of the Bonds:
i.
Streets and Transportation
ii.
Public Safety; and
iii.
Parks and Recreation.
SECURITY AND SOURCE OF PAYMENT
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 or amount. Such tax is 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.
Pursuant to the Bond Resolution, payment of all or any part of the Bonds may be provided for by the irrevocable deposit,
in trust, of moneys or obligations issued or guaranteed by the United States government (“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. If the maturing principal of the Defeasance Obligations or other moneys, or both, is sufficient to pay the
principal of, premium, if any, and interest on such Bonds as the same matures, comes due or becomes payable upon prior
redemption, a certificate or report of an accountant shall not be required. Any Bonds so provided for will no longer be
outstanding under the Bond 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 moneys and Defeasance Obligations deposited in
trust.
* Subject to change.
iv
BID DETAILS AND PARAMETERS
Form of Bids. Bids for the Bonds must be unconditional, and for not less than the entire offering of the Bonds. By
submitting a bid, each bidder agrees to all of the terms and conditions of this Notice (including any amendments issued
by the City through PARITY and i-Deal Prospectus). Bids must be submitted electronically PARITY. Bids may not be
withdrawn or revised after the time that bids are due.
Interest Rates Bid. Interest on the Bonds is payable commencing on January 1, 2027*, and thereafter on January 1 and
July 1 of each year. Interest is calculated on the basis of a 30-day month and 360-day year from the date of the Bonds.
Bids may specify any number of interest rates in multiples of one-eighth of one percent (1/8 of 1 percent) or one-twentieth
of one percent (1/20 of 1 percent). All Bonds of the same maturity must bear interest at the same rate and no Bond shall
bear interest at more than one rate. No rate of interest may exceed 6.00% per annum. The highest rate bid may not
exceed the lowest rate bid by more than 3.00%.
Premium and Discount. No bid will be considered for a price that is less than 100 percent of the aggregate par value of
the Bonds.
ESTABLISHMENT OF ISSUE PRICE†
(a)
The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver
to the City on the date of issuance of the Bonds (the “Closing Date”) an “issue price” or similar certificate setting
forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together
with the supporting pricing wires or equivalent communications, substantially in the form attached as the Exhibit
to this Notice, with such modifications as may be appropriate or necessary, in the reasonable judgment of the
winning bidder, the City, the Municipal Advisor, and Greenberg Traurig, LLP (“Bond Counsel”).
(b)
The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale”
for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the
“competitive sale requirements”) because:
(1)
the City shall disseminate this Notice to potential underwriters in a manner that is reasonably designed
to reach potential underwriters;
(2)
all bidders shall have an equal opportunity to bid;
(3)
the City may receive bids from at least three underwriters of municipal bonds who have established
industry reputations for underwriting new issuances of municipal bonds; and
(4)
the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer in
conformance with this Notice to purchase the Bonds at a price that produces the lowest true interest
cost to the City, as set forth in this Notice under the heading “AWARD AND DELIVERY.”
Any bid submitted pursuant to this Notice shall be considered a firm offer for the purchase of the Bonds, as specified in
the bid.
(c)
In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder.
The City may determine to treat (i) the first price at which 10% of a maturity of the Bonds (the “10% test”) is
sold to the public as the issue price of that maturity and/or (ii) the initial offering price to the public as of the
sale date of any maturity of the Bonds as the issue price of that maturity (the “hold-the-offering-price rule”), in
each case applied on a maturity-by-maturity basis (and if different interest rates apply within a maturity, to each
separate CUSIP number within that maturity). The winning bidder shall advise the City if any maturity of the
Bonds satisfies the 10% test as of the date and time of the award of the Bonds. The City shall promptly advise
the winning bidder, at or before the time of award of the Bonds, which maturities (and if different interest rates
apply within a maturity, which separate CUSIP number within that maturity) of the Bonds shall be subject to
the 10% test or shall be subject to the hold-the-offering-price rule. Bids will not be subject to cancellation in
the event that the City determines to apply the hold-the-offering-price rule to any maturity of the Bonds. Bidders
* Subject to change.
† Note: 10% test or hold-the-offering-price rule may apply if competitive sale requirements are not satisfied.
v
should prepare their bids on the assumption that some or all of the maturities of the Bonds will be subject to the
hold-the-offering-price rule in order to establish the issue price of the Bonds.
(d)
By submitting a bid, the winning bidder shall (i) confirm that the underwriters have offered or will offer the
Bonds to the public on or before the date of award at the offering price or prices (the “initial offering price”), or
at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf
of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell
unsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that
is higher than the initial offering price to the public during the period starting on the sale date and ending on the
earlier of the following:
(1)
the close of the fifth (5th) business day after the sale date; or
(2)
the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the public
at a price that is no higher than the initial offering price to the public.
The winning bidder will advise the City promptly after the close of the fifth (5th) business day after the sale date whether
it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the
public.
(e)
If the competitive sale requirements are not satisfied, then until the 10% test has been satisfied as to each
maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold
Bonds of that maturity have been sold to the public. That reporting obligation shall continue, whether or not
the Closing Date has occurred, until either (i) all Bonds of that maturity have been sold or (ii) the 10% test has
been satisfied as to the Bonds of that maturity, provided that, the winning bidder’s reporting obligation after the
Closing Date may be at reasonable periodic intervals or otherwise upon request of the City or Bond Counsel.
(f)
The City acknowledges that, in making the representations set forth above, the winning bidder will rely on (i)
the agreement of each underwriter to comply with the requirements for establishing issue price of the Bonds,
including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the
Bonds, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling
group has been created in connection with the initial sale of the Bonds to the public, the agreement of each
dealer who is a member of the selling group to comply with the requirements for establishing issue price of the
Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable
to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that
an underwriter or dealer who is a member of the selling group is a party to a third-party distribution agreement
that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-
dealer that is a party to such agreement to comply with the requirements for establishing issue price of the
Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable
to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The City further
acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding
the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply
with the hold-the-offering-price rule, if applicable to the Bonds, and that no underwriter shall be liable for the
failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer
that is a party to a third-party distribution agreement to comply with its corresponding agreement to comply
with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to
comply with the hold-the-offering-price rule, if applicable to the Bonds.
(g)
By submitting a bid, each bidder confirms that:
(1)
any agreement among underwriters, any selling group agreement and each third-party distribution
agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together
with the related pricing wires, contains or will contain language obligating each underwriter, each
dealer who is a member of the selling group, and each broker-dealer that is a party to such third-party
distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity
allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that
maturity allocated to it have been sold or it is notified by the winning bidder that the 10% test
has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after
vi
the Closing Date may be at reasonable periodic intervals or otherwise upon request of the
winning bidder, and (ii) to comply with the hold-the-offering-price rule, if applicable, if and
for so long as directed by the winning bidder and as set forth in the related pricing wires,
(B) to promptly notify the winning bidder of any sales of Bonds that, to its knowledge, are
made to a purchaser who is a related party to an underwriter participating in the initial sale of
the Bonds to the public (each such term being used as defined below), and
(C) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer,
the winning bidder shall assume that each order submitted by the underwriter, dealer or broker-
dealer is a sale to the public.
(2)
any agreement among underwriters or selling group agreement relating to the initial sale of the Bonds
to the public, together with the related pricing wires, contains or will contain language obligating each
underwriter or dealer that is a party to a third-party distribution agreement to be employed in connection
with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-
party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of
each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of
that maturity allocated to it have been sold or it is notified by the winning bidder or such underwriter
that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting
obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of
the winning bidder or such underwriter, and (B) comply with the hold-the-offering-price rule, if
applicable, if and for so long as directed by the winning bidder or the underwriter and as set forth in
the related pricing wires.
(h)
Sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the
Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for
purposes of this Notice. Further, for purposes of this Notice:
(1)
“public” means any person other than an underwriter or a related party,
(2)
“underwriter” means (i) any person that agrees pursuant to a written contract with the City (or with the
lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the
public and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person
described in clause (A) to participate in the initial sale of the Bonds to the public (including a member
of a selling group or a party to a third-party distribution agreement participating in the initial sale of
the Bonds to the public),
(3)
a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the
purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power
or the total value of their stock, if both entities are corporations (including direct ownership by one
corporation of another), (ii) at least 50% common ownership of their capital interests or profits
interests, if both entities are partnerships (including direct ownership by one partnership of another),
or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or
the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation
and the other entity is a partnership (including direct ownership of the applicable stock or interests by
one entity of the other), and
(4)
“sale date” means the date that the Bonds are awarded by the City to the winning bidder.
RIGHT OF REJECTION
The City Council of the City, the Deputy City Manager/Chief Financial Officer of the City or the designees of any of
them reserve the right to reject any and all bids and to waive any irregularity or informality in any bid, except that the
time for receiving bids shall be of the essence.
vii
AWARD AND DELIVERY
Unless all bids are rejected or the receipt of bids is continued, the award of the Bonds will be made not later than 11:59
p.m., PDT, on [April 28, 2026]. The Bonds will be sold to the bidder submitting a bid in conformance with this Notice
that produces the lowest true interest cost to the City, based on the bid price, the interest rates specified in the bid and the
principal amounts identified in this Notice. The true interest cost will be the rate necessary, on a 30/360 basis and
semiannual compounding, to discount the debt service payments from the payment dates to the date of the Bonds and to
the price bid. The true interest cost calculations will be performed by the Municipal Advisor, and the City will base its
determination of the best bid solely on such calculations. (See “BID DETAILS AND PARAMETERS.”) Delivery of
the Bonds will be made to the purchaser through the facilities of DTC upon payment in federal or immediately available
funds, at the offices of Bond Counsel, or, at the purchaser’s request and expense, at any other place mutually agreeable
to both the City and the purchaser. The closing of the sale of the Bonds will be on or about May 21, 2026*, or on such
other date as is mutually agreed upon.
CANCELLATION
Pursuant to Arizona law, if within three years from the award of the contract for the purchase of the Bonds any
person who was significantly involved in initiating, negotiating, securing, drafting or creating a contract for the purchase
of the Bonds on behalf of the City becomes an employee or agent of the winning bidder in any capacity or a consultant
to the winning bidder with respect to the contract for the purchase of the Bonds, the City may cancel the award of the
contract without penalty or further obligation by the City and refuse to deliver the Bonds to the winning bidder. In
addition to such cancellation, if such person becomes an employee or agent of such entity with respect to the contract
for the purchase of the Bonds, the City may recoup any fees or commissions paid or due to the winning bidder with
respect to the award to the winning bidder and the actual sale of the Bonds.
GOOD FAITH DEPOSIT
The winning bidder for the Bonds shall deliver a good faith deposit in the amount of $1,126,000* to the City, as instructed
by the City. The good faith deposit must be paid by federal funds wire transfer delivered no later than four hours following
the winning bidder’s receipt of the verbal award. Wiring instructions will be provided to the winning bidder at the time
of the verbal award. If not so received, the bid of the lowest bidder will be rejected and the City may direct the second
lowest bidder to submit a Good Faith Deposit and thereafter may award the sale of the Bonds to the same. The good faith
deposit will be retained by the City as security for the performance of the winning bidder and shall be applied to the
purchase price of the Bonds upon delivery of the Bonds to the winning bidder. Pending delivery of the Bonds, the good
faith deposit may be invested for the sole benefit of the City. If the Bonds are ready for delivery and the winning bidder
fails or neglects to complete the purchase within 30 days following acceptance of its bid, the good faith deposit shall be
retained by the City as reasonable liquidated damages, and not as a penalty.
Such retention will constitute a full release and discharge of all claims by the City against the winning bidder and, in that
event, the City may call for additional bids. The City’s actual damages may be higher or lower than the amount of such
good faith deposit. Such amount constitutes a good faith estimate of the City’s actual damages. Each bidder waives the
right to claim that actual damages arising from such default are less than such amount.
LEGAL OPINION
The Bonds are sold with the understanding that the City will furnish the purchaser with the approving opinion of Bond
Counsel. Bond Counsel has been retained by the City to render its opinion only upon the legality of the Bonds
under Arizona law and on the exemption of the interest income on such Bonds from federal and State of Arizona income
taxes, the delivery of said opinion being a condition precedent to the delivery of the Bonds and the purchase thereof.
(See “TAX EXEMPTION.”) The fees of Bond Counsel will be paid from proceeds of the sale of the Bonds. Except
to the extent necessary to issue its approving opinion as to validity of the Bonds, Bond Counsel has not been requested
to examine or review, and has not examined or reviewed, any financial documents, statements or materials that have
been or may be furnished in connection with the authorization, issuance or marketing of the Bonds and accordingly will
not express any opinion with respect to the accuracy or completeness of any such financial documents, statements or
materials. In submitting a bid for the Bonds, the bidder agrees to the representation of the City by Bond Counsel. See
* Subject to change.
viii
“LEGAL MATTERS” in the Preliminary Official Statement and Appendix F – “Form of Approving Legal Opinion” to
the Preliminary Official Statement.
TAX EXEMPTION
The Internal Revenue Code of 1986, as amended (the “Code”), includes requirements which the City must continue
to meet with respect to the Bonds after the issuance thereof in order that interest on the Bonds not be included in gross
income for federal income tax purposes. The failure by 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 City has
covenanted to take the actions required by the Code in order to maintain the exclusion from federal gross income of
interest on the Bonds.
In the opinion of Bond Counsel to be rendered with respect to the Bonds on the date of issuance of the Bonds, 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, interest on the Bonds will
be excluded from gross income for federal income tax purposes. Interest on the Bonds will not be an item of tax
preference for purposes of the federal alternative minimum tax imposed on individuals, but in the case of the alternative
minimum tax imposed by Section 55(b)(2) of the Code on applicable corporations (as defined in Section 59(k) of the
Code), interest on the Bonds will not be excluded from the determination of adjusted financial statement income. Bond
Counsel is further of the opinion upon the date of issuance of the Bonds that the interest on the Bonds will be exempt
from income taxation under the laws of the State of Arizona.
Except as described above, Bond Counsel will express no opinion regarding the federal income tax consequences
resulting from the ownership of, receipt or accrual of interest on, or disposition of the Bonds. Prospective purchasers of
the Bonds should be aware that the ownership of the 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
or, in the case of a financial institution, that portion of an owner’s interest expense allocable to interest on a Bond; (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 interest on the Bonds in the
earnings of certain foreign corporations doing business in the United States for purposes of the branch profits tax; (iv)
the inclusion of interest on the Bonds in passive investment income subject to federal income taxation of certain
Subchapter S corporations with Subchapter C earnings and profits at the close of the taxable year; (v) the inclusion in
gross income of interest of the Bonds by recipients of certain Social Security and Railroad Retirement benefits; (vi) net
gain realized upon the sale or other disposition of property such as the Bonds generally must be taken into account when
computing the Medicare tax with respect to net investment income or undistributed net investment income, as applicable,
imposed on certain high income individuals and specified trusts and estates; and (vii) receipt of certain investment
income, including interest on the Bonds, is considered when determining qualification limits for obtaining the earned
income credit provided by Section 32(a) of the Code. 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 and any other tax consequences.
See “TAX EXEMPTION” in the Preliminary Official Statement.
CERTIFICATES TO BE DELIVERED
In connection with the initial issuance of the Bonds, representatives of the City will deliver a certificate certifying that
no litigation is pending affecting the sale and issuance of the Bonds, an arbitrage certificate covering expectations
concerning the use of proceeds from the sale of the Bonds and related matters and a certificate regarding the accuracy of
the hereinafter described final official statement for the Bonds.
CUSIP IDENTIFICATION NUMBERS
It is anticipated that CUSIP identification numbers will be printed on the Bonds; however, neither the failure to print
CUSIP numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser
thereof to accept delivery of and pay for the Bonds. The Municipal Advisor will obtain CUSIP numbers. The charge of
the CUSIP Service Bureau shall be paid by the City.
ix
PRELIMINARY OFFICIAL STATEMENT DEEMED FINAL; DELIVERY OF OFFICIAL STATEMENT
The City deems the Preliminary Official Statement to be final as of its date, except for the omission of the offering prices
or yields, the interest rates and any other terms or provisions required by the City to be specified in bids for the
Bonds, and other terms of the Bonds depending on such matters. The winning bidder shall supply the Deputy City
Manager/Chief Financial Officer of the City, within 24 hours after the award of the Bonds, all necessary pricing
information and any underwriter identification necessary to complete the final official statement to be used in
connection with the sale of the Bonds.
Promptly after receiving such information, the City will prepare such final official statement in substantially the same
form as the Preliminary Official Statement, subject to any amendments which the City believes should be made in
such final official statement.
The City will provide the winning bidder with such final official statements within seven (7) business days of the award
of the Bonds. Such final official statements will be provided to the winning bidder electronically. No hard copies of such
final official statement will be provided to the winning bidder.
CONTINUING DISCLOSURE
The City, as the “obligated person” with respect to the Bonds, 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, 2027 (the “Annual Reports”), and to provide notices of the occurrence of certain enumerated
events (the “Notices of Listed Events”). The Annual Reports and the Notices of Listed Events will be filed by the City
through the Electronic Municipal Market Access System. These covenants will be made in order to assist the purchaser
in complying with the Securities and Exchange Commission Rule 15c2-12(b)(5) (the “Rule”), and the form of the
undertaking necessary pursuant to the Rule is included as Appendix G – “Form of Continuing Disclosure Undertaking”
to the Preliminary Official Statement. 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.
A failure by the City to comply with these covenants, including due to failure to appropriate for such purposes, 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. See “CONTINUING SECONDARY
MARKET DISCLOSURE” in the Preliminary Official Statement.
FURTHER INFORMATION
Further information, including copies of the Bond Resolution and the Preliminary Official Statement, may be obtained
from the City of Mesa: Deputy City Manager/Chief Financial Officer at (480) 644-3606, or from Hilltop Securities
Inc., Municipal Advisor to the City: Janelle Gold (by telephone (602) 224-7104 or by email:
janelle.gold@hilltopsecurities.com).
DATED: [ April 28, 2026]
Michael Kennington,
Deputy City Manager/Chief Financial Officer
City of Mesa, Arizona
x
EXHIBIT TO NOTICE
ISSUE PRICE CERTIFICATE
$56,275,000*
CITY OF MESA, ARIZONA
GENERAL OBLIGATION BONDS, SERIES 2026
The undersigned, on behalf of [NAME OF UNDERWRITER/REPRESENTATIVE] [“([SHORT NAME
OF UNDERWRITER]”)] [(the “Representative”)] [, on behalf of itself and [NAMES OF OTHER
UNDERWRITERS] (together, the “Underwriting Group”)] hereby certifies as set forth below with respect to the
sale and issuance of the above-captioned obligations (the “Bonds”).
[Alternative 1-Competitive Sale Rule applies]
1. [ Reasonably Expected Initial Offering Price.]
(a)
As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by
[SHORT NAME OF UNDERWRITER] are the prices listed in Schedule A (the “Expected Offering Prices”).
The Expected Offering Prices are the prices for the Maturities of the Bonds used by [SHORT NAME OF
UNDERWRITER] in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy
of the bid provided by [SHORT NAME OF UNDERWRITER] to purchase the Bonds.
(b)
[SHORT NAME OF UNDERWRITER] was not given the opportunity to review other bids prior
to submitting its bid.
(c)
The bid submitted by [SHORT NAME OF UNDERWRITER] constituted a firm offer to purchase
the Bonds.]
[Alternatives 2-4 are available choices if Alternative 1 does not apply] [Note that Alternative 3
[where two rules apply] involves portions of Sections 1, 2(a) and 2(b) and Alternative 4 involves portions of
2(a) and 2(b)]
[1. Sale of the Bonds. [Alternative 2 – All Maturities Use General Rule: As of the date of this certificate,
for each Maturity of the Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to the
Public is the respective price listed in Schedule A.][Alternative 3 – Select Maturities Use General Rule: Sale of the
General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the
first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in
Schedule A.]
2. [Initial Offering Price of the [Bonds][Hold-the-Offering-Price Maturities]].
(a)
[Alternative 4 – All Maturities Use Hold-the-Offering-Price Rule: [SHORT NAME OF
UNDERWRITER][The Underwriting Group] offered the Bonds to the Public for purchase at the respective initial
offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the
pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B.] [Alternative 3
– Select Maturities Use Hold-the-Offering-Price Rule: [SHORT NAME OF UNDERWRITER][The Underwriting
Group] offered the Hold- the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices
listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent
communication for the Bonds is attached to this certificate as Schedule B.]
(b)
[Alternative 4 – All Maturities use Hold-the-Offering-Price Rule: As set forth in the Notice
Inviting Bids for the Purchase of Bonds and bid award, [SHORT NAME OF UNDERWRITER][the members of the
Underwriting Group] [has][have] agreed in writing that, (i) for each Maturity of the Bonds, [it][they] would neither
offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price
for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling
group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail
distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution
agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined
* Subject to change.
xi
below) has offered or sold any Maturity of the Bonds at a price that is higher than the respective Initial Offering Price
for that Maturity of the Bonds during the Holding Period.] [Alternative 3 - Select Maturities Use Hold-the-Offering-
Price Rule: As set forth in the Notice Inviting Bids for the Purchase of Bonds and bid award, [SHORT NAME OF
UNDERWRITER][the members of the Underwriting Group] [has][have] agreed in writing that, (i) for each Maturity
of the Hold-the-Offering-Price Maturities, [it][they] would neither offer nor sell any of the Bonds of such Maturity to
any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such
Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of
each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of
each broker-dealer who is a party to the retail distribution agreement, to comply with the hold-the-offering-price rule.
Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-the-
Offering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of
the Bonds during the Holding Period.]
[2.][3.] Total Issue Price. The total of the issue prices of all the Maturities is $....................
[2.][4.] Defined Terms.
[(a)
General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the
“General Rule Maturities.”]
[(b)
Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto
as the “Hold-the-Offering-Price Maturities.”]
[(c)
Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the
Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date ([DATE]), or (ii)
the date on which the [SHORT NAME OF UNDERWRITER][the Underwriters] [has][have] sold at least 10% of such
Hold-the- Offering-Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold-
the-Offering- Price Maturity.]
(a)
Issuer means the City of Mesa, Arizona.
(b)
Maturity means the Bonds with the same credit and payment terms. The Bonds with different
maturity dates, are treated as separate Maturities.
(c)
Public means any person (including an individual, trust, estate, partnership, association, company,
or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes
of the Bonds generally means any two or more persons who have greater than 50 percent common ownership,
directly or indirectly.
(d)
The Sale Date of the Bonds is April 28, 2026*.
(e)
Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with
the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and
(ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i)
of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group
or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate
represents [SHORT NAME OF UNDERWRITER/REPRESENTATIVE]’s interpretation of any laws, including
specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect
to certain of the representations set forth in the Certificate Relating To Federal Tax Matters of the Issuer and with
respect to compliance with the federal income tax rules affecting the Bonds, and by Greenberg Traurig, LLP, as Bond
Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for
federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income
tax advice that it may give to the Issuer from time to time relating to the Bonds.
* Subject to change.
xii
[UNDERWRITER/REPRESENTATIVE]
By:_______________________________________
Authorized Representative
Dated: [Closing Date]
SCHEDULE A
[EXPECTED OFFERING PRICES] [SALE PRICES]
(ATTACHED)
SCHEDULE B
[COPY OF UNDERWRITER’S BID]
(ATTACHED)
1
OFFICIAL STATEMENT
$56,275,000*
CITY OF MESA, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2026
INTRODUCTORY STATEMENT
This Official Statement, which includes the cover page, inside front cover page and appendices hereto, has been prepared
by the City of Mesa, Arizona (the “City”), in connection with the original issuance of $56,275,000* of its General
Obligation Bonds, Series 2026 (the “Bonds”), identified on the cover page hereof. Certain information concerning the
authorization, purpose, terms, conditions of sale, security for and sources of payment of the Bonds is set forth in this
Official Statement.
All financial and other information presented in this Official Statement has been provided by the City from its records,
except for information expressly attributed to other sources. 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, results of operations, or other affairs of the City. No representation is made
that past experience, as shown by such financial or other information, will necessarily continue or be repeated in the
future.
Reference to provisions of Arizona law, whether codified in the Arizona Revised Statutes or uncodified, or the Arizona
Constitution, or the Charter of the City are references to those provisions in their current form. Those provisions may be
amended, repealed or supplemented.
As used in this Official Statement, “debt service” means principal of and interest on the bonds, “County” means Maricopa
County, Arizona and “State” or “Arizona” means the State of Arizona.
THE BONDS
Authorization and Purpose
The Bonds will be issued pursuant to a resolution authorizing the issuance of the Bonds adopted by the City Council of
the City (the “City Council”) on April 6, 2026* (the “Bond Resolution”).
The Bonds will be issued pursuant to Arizona Revised Statutes, Title 35, Chapter 3, Article 3, as amended, approval given
by the qualified electors of the City in elections held on November 3, 2020, November 8, 2022, and November 5, 2024,
and the Bond Resolution. The Bonds are being issued to provide funds to (i) acquire and construct certain public safety,
parks and recreation and streets and transportation projects and (ii) pay the costs of issuance of the Bonds.
Set forth in the table below is a listing of the projects expected to be funded by the Bonds and estimates of their respective
costs.
Projects to be Funded
Estimated Cost *
Streets and Transportation
$29,000,000
Public Safety
19,000,000
Parks and Recreation
13,000,000
Total
$61,000,000
A copy of the full text of the Bond Resolution may be inspected at the Office of the Deputy City Manager/Chief Financial
Officer of the City, 20 East Main Street, Suite 700, Mesa, Arizona 85201.
Other Expected Debt Offerings
In addition to the Bonds, the City expects to offer $206,425,000* Utility Systems Revenue Refunding Obligations, Series
2026 (the “2026 Refunding Obligations”), $168,100,000* Utility Systems Revenue Obligations, Series 2026A (the
“2026A Obligations”), $153,735,000* Utility Systems Revenue Obligations, Series 2026B (the “2026B Obligations”)
* Subject to change.
2
pursuant to separate official statements in June 2026, respectively. The 2026 Refunding Obligations, the 2026A
Obligations and the 2026B Obligations will not be secured by, or payable from, ad valorem taxes.
General Provisions
The Bonds will be dated the date of initial delivery, and will bear interest from such date payable semiannually on January
1 and July 1 of each year, commencing on January 1, 2027* (each an “Interest Payment Date”), until maturity. The Bonds
will mature on the dates and in the principal amounts and will bear interest at the rates set forth on the inside front cover
page of this Official Statement.
UMB Bank, n.a., will act as the initial registrar and paying agent for the Bonds (the “Registrar” and the “Paying Agent”).
The City may change the Registrar or the Paying Agent at any time without prior notice. The City may retain separate
financial institutions to serve as the Registrar and the Paying Agent.
Initially, the Bonds will be administered under a book-entry-only system (the “Book-Entry-Only System”) by The
Depository Trust Company (“DTC”), a registered securities depository. Unless and until the Book-Entry-Only System is
discontinued, the Bonds will be registered in the name of Cede & Co., as nominee of DTC. Beneficial interests in the
Bonds will be offered for sale in the amount of $5,000 of principal due on a specific maturity date and integral multiples
thereof, and payments of principal of and interest on the Bonds will be made to DTC and, in turn, through participants in
the DTC system. See APPENDIX E – “Book-Entry-Only System.”
The Bonds will be issued only in fully registered form in the amount of $5,000 of principal due on a specific maturity
date, and any integral multiples thereof, and will be initially registered in the name of Cede & Co., as nominee for DTC.
For a description of registration and transfer of the Bonds through DTC, see APPENDIX E – “Book-Entry-Only System.”
SO LONG AS CEDE & CO., AS NOMINEE FOR DTC, IS THE REGISTERED OWNER OF THE BONDS,
REFERENCES IN THIS OFFICIAL STATEMENT TO THE REGISTERED OWNERS OF THE BONDS, EXCEPT
THOSE UNDER THE HEADING “TAX EXEMPTION,” WILL MEAN CEDE & CO. AND WILL NOT MEAN THE
BENEFICIAL OWNERS OF THE BONDS.
If the Book-Entry-Only System is discontinued, interest on the Bonds will be payable by check drawn on the Paying
Agent, and mailed on or prior to each Interest Payment Date to the registered owners of the Bonds at the addresses shown
on the books of the Registrar (the “Bond Register”) on the fifteenth (15th) day of the month preceding each such Interest
Payment Date (the “Record Date”). Principal of the Bonds will then be payable at maturity or prior redemption upon
presentation and surrender of the Bonds to the designated corporate trust office of the Paying Agent. Additionally, if the
Book-Entry-Only System is discontinued, payment of interest may also be made by wire transfer upon twenty (20) days’
prior written request delivered to the Paying Agent specifying a wire transfer address in the continental United States by
any owner of at least $1,000,000 aggregate principal amount of the Bonds. Interest will be computed on the basis of a
year comprised of 360 days consisting of 12 months of 30 days each.
Redemption Provisions*
Optional Redemption
The Bonds maturing on or prior to July 1, 2036*, will not be subject redemption prior to maturity. The Bonds maturing
on and after July 1, 2037*, will be subject to call for redemption prior to maturity, at the option of the City, in whole or
in part from maturities selected by the City and within any maturity by lot, on July 1, 2036*, or on any date thereafter, by
the payment of a redemption price equal to the principal amount of each Bond called for redemption plus accrued interest
to the date fixed for redemption, but without premium.
Mandatory Sinking Fund Redemption
The Bonds maturing on July 1 of the following years will be redeemed from funds of the City prior to maturity on the
following redemption dates and in the following amounts, by the payment of the redemption price equal to of the principal
amount of the Bonds called for redemption plus accrued interest, if any, on the Bonds so redeemed from the most recent
Interest Payment Date to the date of redemption, but without premium:
* Subject to change.
3
Redemption Date
(July 1)
Principal
Amount
Bonds Maturing in 20__
20__
$___,000
20__
___,000
20__
___,000
20__ (maturity)
___,000
Redemption Date
(July 1)
Principal
Amount
Bonds Maturing in 20__
20__
$___,000
20__
___,000
20__
___,000
20__ (maturity)
___,000
Whenever Bonds subject to mandatory redemption are redeemed (other than pursuant to mandatory redemption) or are
delivered to the Registrar 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. 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 not more
than sixty (60) nor less than thirty (30) days prior to the date set for redemption. Failure to properly give notice of
redemption shall not affect the redemption of any Bond for which notice was properly given. 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. Notice of any redemption will also be sent to the
Municipal Securities Rulemaking Board (the “MSRB”), currently through the MSRB’s Electronic Municipal Market
Access system (“EMMA”), in the manner required by the MSRB, but no defect in said further notice or record nor any
failure to give all or a portion 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 moneys for the payment of the redemption price and accrued interest are not on deposit with the held in separate
accounts by the City or by the Paying Agent prior to sending the notice of redemption, such redemption shall be
conditional on such moneys being so held on or prior to 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. The notice of redemption shall describe the conditional
nature of the redemption.
Effect of Call for Redemption
Notice of redemption having been given in the manner described above, the Bonds or portions thereof called for
redemption will become due and payable on the redemption date and if an amount of money sufficient to redeem all the
Bonds or portions thereof called for redemption is held in separate accounts by the City or by the Paying Agent, then the
Bonds or portions thereof called for redemption will cease to bear interest from and after such redemption date.
Redemption of Less Than All of a Bond
The City may redeem an amount which is included in a Bond in the denomination in excess of, but divisible by, $5,000.
In that event, if the Book-Entry-Only System is discontinued, the registered owner shall submit the Bond for partial
redemption and the Paying Agent shall make such partial payment and the Registrar shall cause a new Bond in a principal
amount which reflects the redemption so made to be authenticated, issued and delivered to the registered owner thereof.
4
SECURITY FOR AND SOURCES OF PAYMENT OF THE BONDS
Security for the Bonds
The Bonds will be payable as to both principal and interest from a continuing, direct, annual ad valorem tax levied against
all taxable property within the City, such tax to be levied without limitation as to rate or amount.
Following deposit of moneys into the debt service fund for payment of the Bonds, the City may invest such moneys in
investments comprised of, with certain restrictions: federally insured savings accounts or certificates of deposit from
eligible depositories; collateralized repurchase agreements; obligations issued or guaranteed by the United States of
America or any agency or instrumentality thereof; obligations of the State or any Arizona city (including the City), town
or school district; bonds of any county, municipality or municipal utility improvement district payable from property
assessments; the local government investment pool established by the State; commercial paper of prime quality that is
rated within the top two ratings by a nationally recognized rating agency (all commercial paper must be issued by
corporations organized and doing business in the United States of America); fixed income securities of corporations
organized and doing business in the United States rated “A” or better at the time of purchase, from at least two nationally
recognized rating agencies; and other investments permitted by the City’s approved written investment policy.
THE PROCEEDS OF THE BONDS ARE NOT PLEDGED TO, NOR DO THEY SECURE, PAYMENT OF THE
BONDS.
Defeasance
Pursuant to the Bond Resolution, payment of all or any part of the Bonds may be provided for by the irrevocable deposit,
in trust, of moneys 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. If the maturing principal of the Defeasance Obligations or other moneys, or both, is sufficient to pay the
principal of, premium, if any, and interest on such Bonds as the same matures, comes due or becomes payable upon prior
redemption, a certificate or report of an accountant shall not be required. Any Bonds so provided for will no longer be
outstanding under the Bond 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 moneys and Defeasance Obligations deposited in trust.
Sources of Payment of the Bonds and Other City Bonds
The City intends to provide for the payment of the Bonds solely from the levy of ad valorem taxes; however, a portion of
the City’s other outstanding general obligation bonds may continue to be paid from certain revenues and moneys of the
City’s General Fund, Enterprise Funds and Special Revenue Funds. The tables appearing on pages 6, 7, and 8 of this
Official Statement are a record of the revenues, expenses and changes in fund balances for each such fund for the most
recent five fiscal years for which such information is available. For an explanation of the characteristics and purposes of
each of these funds, see APPENDIX D – “City of Mesa, Arizona – Audited General Purpose Financial Statements for the
Fiscal Year Ended June 30, 2025.” Although the City may pay debt service on the Bonds from the funds as described
above, in no event are such funds pledged to repayment of the Bonds. In the future, however, in the event such revenues
and moneys are not available for the purpose of paying other outstanding general obligation bonds of the City, or the City
determines that such general obligation bonds will not be paid therefrom, the principal of and interest on such other
general obligation bonds are secured by and will be paid from the annual levy of an ad valorem tax, as described above
under “Security for the Bonds.”
Utility Transfer Ordinance
In January of 2020, City staff presented a proposal and ordinance to the City Council to formalize the City’s process of
transferring revenues of the City’s water, electrical, natural gas, wastewater and solid waste systems (collectively, the
“System”) to the City’s General Fund (the “Utility Transfer Ordinance”). The City Council adopted the Utility Transfer
Ordinance in March of that year. The Utility Transfer Ordinance amends the City Code to permit (i) a transfer of System
revenues in an amount not to exceed twenty-five percent (25%) of the System revenues to the City’s General Fund for
public safety purposes, and (ii) a transfer of System revenues in an amount not to exceed five percent (5%) of the System
revenues to the City’s General Fund for other general City purposes. Any such transfer in accordance with the Utility
Transfer Ordinance is at the discretion of the City Council. The Utility Transfer Ordinance expressly states that the
amendments to the City Code will not affect, limit, or alter the City’s payment obligations or payment priorities relating
to the City’s utility systems revenue bonds or obligations.
5
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 non-financial, impacting the operations of political subdivisions of the State which could have a material
impact on the City and could adversely affect the secondary market value 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.
CITY GENERAL FUND
Set forth below is a record of the City’s General Fund revenues, expenditures and changes in fund balance for the most
recent audited five years ending June 30 (“Fiscal Year”) and most recently concluded unaudited Fiscal Year for which
such information is available. This information is not intended to indicate future or continuing trends in the financial
affairs of the City.
CITY OF MESA, ARIZONA
SELECTED GOVERNMENTAL INFORMATION REVENUES AND EXPENSES
(IN THOUSANDS)
Audited
2020/21
2021/22
2022/23
2023/24
2024/25
Revenues:
Taxes
$156,542
$187,704
$206,202
$204,914
$205,061
Property Taxes
47,253
51,926
47,003
47,658
46,543
Licenses and Permits
35,031
39,363
35,619
35,735
40,372
Intergovernmental Revenues
167,047
176,137
210,312
250,757
227,941
Charges for Services
18,873
45,768
49,938
60,009
66,959
Fines and Forfeitures
6,954
7,689
7,058
6,829
6,382
Investment Income
1,468
(11,667)
3,572
22,467
23,488
Capital Contributions
-
-
41
19
13
Miscellaneous Revenues
4,706
5,105
5,342
8,462
6,120
Total Revenues
$437,874
$502,025
$565,087
$636,850
$622,879
Expenditures:
Current:
General Government
$ 91,140
$ 99,480
$105,851
$117,979
$139,392
Public Safety
205,961
305,069
321,556
361,458
356,180
Community Environment
11,894
13,783
17,194
27,941
30,678
Cultural-Recreational
33,951
50,513
60,414
66,914
68,658
Total Current Expenditures
$342,946
$468,845
$505,015
$574,292
$594,908
Revenues Over (Under)
Current Expenditures
$ 94,928
$ 33,180
$ 60,072
$ 62,558
$ 27,971
Capital Outlay
$ 21,963
$ 20,117
$ 14,992
$ 18,909
$ 24,435
Debt Service
43,154
49,623
45,192
44,495
47,335
Total Other Expenditures
$ 65,117
$ 69,740
$60,184
$ 63,404
$ 71,770
Revenues Over (Under) Expenditures
29,811
(36,560)
(112)
(846)
(43,799)
Operating Transfers In (Net)
52,831
93,056
51,663
59,497
58,596
Revenues and Transfers Over
(Under) Expenditures
$ 82,642
$ 56,496
$ 51,551
$ 58,651
$ 14,797
Unrestricted Fund Balance - Beginning
190,004
272,646
329,142
380,693
439,344
Total Fund Balance - Ending
$272,646
$329,142
$380,693
$439,344
$454,141
6
CITY ENTERPRISE FUNDS
The City annually provides for a significant portion of the City’s General Fund revenue from the transfer of certain net
revenues generated by the City’s Enterprise Funds, particularly the Utility Systems Enterprise Fund. Set forth below is a
record of City Enterprise Funds revenues, expenditures and changes in fund balance for the most recent audited five Fiscal
Years and most recently concluded unaudited Fiscal Year for which such information is available. This information is
not intended to indicate future or continuing trends in the financial affairs of the City.
CITY OF MESA, ARIZONA
ENTERPRISE FUNDS
REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
(IN THOUSANDS)
Audited
2020/21
2021/22
2022/23
2023/24
2024/25
Operating Revenue
$399,197
$433,048
$451,504
$463,897
$505,113
Operating Expense
209,594
218,868
247,839
273,797
264,882
Net Income From Operations
$189,603
$214,180
$203,665
$190,100
$240,231
Non Operating Revenue (Expense):
Development/Impact Fees
$ 20,350
$ 21,021
$ 14,142
$ 7,395
$4,067
Capital Contributions
14,010
28,319
21,378
52,915
15,539
Miscellaneous
(4,730)
(284)
(1,340)
571
11,101
Intergovernmental
227
208
268
173
339
Investment Income
15
(8,917)
3,618
12,712
11,147
Debt Service
(50,980)
(45,037)
(46,873)
(50,049)
(51,253)
Income Before Transfers
$168,495
$209,490
$194,858
$213,817
$231,171
Operating Transfers (Out)
(113,982)
(115,607)
(119,592)
(127,142)
(138,733)
Net Income
$ 54,513
$ 93,883
$ 75,266
$ 86,675
$ 92,438
Beginning Fund Balance
339,521
394,034
487,917
563,183
649,858
Ending Fund Balance
$394,034
$487,917
$563,183
$649,858
$742,296
7
CITY SPECIAL REVENUE FUNDS
Set forth below is a record of City Special Revenue Funds revenues, expenditures and changes in fund balance for the
most recent audited five Fiscal Years and most recently concluded unaudited Fiscal Year for which such information is
available. This information is not intended to indicate future or continuing trends in the financial affairs of the City.
CITY OF MESA, ARIZONA
SPECIAL REVENUE FUNDS
REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
(IN THOUSANDS)
Audited
2020/21
2021/22
2022/23
2023/24
2024/25
Revenues:
Taxes
$104,177
$125,075
$137,199
$136,260
$136,183
Licenses & Permits
7,604
9,211
10,494
4,219
3,933
Intergovernmental Revenues
73,499
152,974
123,104
126,964
119,184
Charges for Services
22,515
19,566
19,783
22,124
24,387
Fines and Forfeitures
895
1,246
1,315
1,334
1,274
Investment Income (Loss)
693
(8,387)
1,740
17,392
21,452
Contributions
130
166
66
128
44
Miscellaneous Revenues
2,075
2,227
3,072
4,664
5,709
Total Revenues
$211,588
$302,078
$296,773
$313,085
$312,166
Expenditures:
General Government
$ 7,283
$ 11,128
$ 16,598
$ 15,492
$ 21,502
Public Safety
45,497
60,818
69,008
73,131
82,379
Community Environment
64,840
113,854
89,874
97,532
95,879
Cultural-Recreational
11,645
12,029
9,967
11,248
19,283
Service Charges
2
2
2
1
-
Total Current Expenditures
$129,267
$197,831
$185,449
$197,404
$219,043
Revenues Over (Under)
Current Expenditures
$ 82,321
$104,247
$111,324
$115,681
$ 93,123
Capital Outlay
$ 33,751
$ 40,637
$ 39,672
$ 58,129
$ 51,841
Debt Service
12,441
12,389
11,812
11,802
11,666
Total Other Expenditures
$ 46,192
$ 53,026
$ 51,484
$ 69,931
$ 63,507
Revenues Over (Under) Expenditures
36,129
51,221
59,840
45,750
29,616
Operating Transfers In (Out)
(6,633)
(3,760)
(3,633)
(5,454)
(9,641)
Revenues and Transfers Over
(Under) Expenditures
$ 29,496
$ 47,461
$ 56,207
$ 40,296
$ 19,975
Fund Balance-Beginning
150,252
179,748
227,209
283,416
323,712
Fund Balance-Ending
$179,748
$227,209
$283,416
$323,712
$343,687
8
ADDITIONAL GENERAL OBLIGATION BONDS
The City expects to issue additional general obligation bonds in the future pursuant to existing and future voted bond
authorizations. Such bonds may be secured by, and payable from, the same sources of revenue, and the same levy of ad
valorem taxes, if applicable, as the Bonds and all outstanding general obligation bonds. After issuance of the Bonds, the
City will have $372,416,000* aggregate principal amount of voter authorized, but unissued, general obligation bonds
pursuant to voter approvals at special bond elections held on April 28, 1987, March 26, 1996, March 9, 2004, November
3, 2020, November 8, 2022 and November 5, 2024. In addition, certain amounts of net premium on general obligation
bonds of the City reduce the principal amount of authorized but unissued general obligation debt of the City. The purposes
and amounts of such authorized but unissued bonds are set forth below (in thousands).
Purpose of Bond
Authorization
1987
1996
2004
2020*
2022*
2024*
Remaining
Total General
Obligation Bonds
Authorized
but Unissued*
Public Safety
$ -
$ -
$ 8,145
$ -
$ 63,000
$ 90,000
$161,145
Fire and Medical
-
-
2,514
-
-
-
2,514
Parks and Recreation
-
7,150
9,750
-
-
152,000
168,900
Library
-
7,944
-
-
-
-
7,944
Storm Sewer
213
-
6,790
-
-
-
7,003
Streets and Transportation
-
-
-
24,910
-
-
24,910
Total
$ 213
$ 15,094
$ 27,199
$ 24,910 $ 63,000
$242,000
$372,416
SOURCES AND USES OF FUNDS
The proceeds of the Bonds will be applied as follows:
Sources of Funds
Principal amount of the Bonds
$
56,275,000.00 *
[Net] Original Issue Premium (a)
Total Sources of Funds
$
Uses of Funds
Deposit to Project Fund
$
Deposit to Debt Service Fund
Costs of Issuance (b)
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)
Costs incurred by the City in connection with the issuance of the Bonds, including underwriter’s compensation.
* Subject to change.
9
ESTIMATED DEBT SERVICE REQUIREMENTS
The table below sets forth (i) the annual debt service requirements of the City’s outstanding general obligation bonds, (ii)
the estimated annual debt service requirements of the Bonds, and (iii) the City’s estimated total annual general obligation
bond debt service requirements after issuance of the Bonds.
City of Mesa, Arizona
General Obligation Estimated Debt Service Requirements (a)
Period
Ending
(July 1)
General Obligation Bonds
Outstanding (b)
The Bonds*
Estimated
Combined
Annual
Principal
Interest
Principal
Interest (c)
Debt Service*
2026
$ 28,775,000
$19,138,988
$ 47,913,988
2027
29,860,000
18,127,670
$ 610,000
$3,126,389
51,724,059
2028
31,000,000
17,008,620
925,000
2,783,250
51,716,870
2029
32,135,000
15,853,943
975,000
2,737,000
51,700,943
2030
33,440,000
14,655,088
1,520,000
2,688,250
52,303,338
2031
34,425,000
13,154,300
1,600,000
2,612,250
51,791,550
2032
32,735,000
11,708,513
2,680,000
2,532,250
49,655,763
2033
30,815,000
10,492,063
2,810,000
2,398,250
46,515,313
2034
28,770,000
9,395,613
2,955,000
2,257,750
43,378,363
2035
26,845,000
8,187,563
3,100,000
2,110,000
40,242,563
2036
24,890,000
7,001,463
3,255,000
1,955,000
37,101,463
2037
22,845,000
5,911,738
2,635,000
1,792,250
33,183,988
2038
20,740,000
4,874,113
2,770,000
1,660,500
30,044,613
2039
18,590,000
3,890,100
2,905,000
1,522,000
26,907,100
2040
16,335,000
3,006,150
3,055,000
1,376,750
23,772,900
2041
13,990,000
2,212,600
3,205,000
1,224,000
20,631,600
2042
11,550,000
1,516,000
3,365,000
1,063,750
17,494,750
2043
8,990,000
938,500
3,500,000
895,500
14,324,000
2044
6,300,000
489,000
4,480,000
720,500
11,989,500
2045
3,480,000
174,000
4,660,000
496,500
8,810,500
2046
5,270,000
263,500
5,533,500
Total
$456,510,000
$56,275,000
$716,736,661
(a)
Prepared by the Municipal Advisor. Totals may not add due to rounding.
(b)
Represents all of the City’s outstanding general obligation bonds and general obligation refunding bonds.
(c)
The first interest payment on the Bonds is due on January 1, 2027*. Thereafter, interest payments will be made
semiannually on July 1 and January 1, until maturity. Interest is estimated at 5.00%.
* Subject to change.
10
RATINGS
Fitch Ratings, Inc. (“Fitch”) and Global Ratings, a division of Standard & Poor’s Financial Services LLC (“S&P”), have
assigned credit ratings of “__” and “__,” respectively, to the Bonds. Such ratings reflect only the views of Fitch and S&P.
An explanation of the significance of such ratings may be obtained from Fitch at One State Street Plaza, New York, New
York 10004 and from S&P at One California Street, 31st Floor, San Francisco, California 94111. Such ratings may
subsequently be revised downward or withdrawn entirely by Fitch or S&P, if, in their respective judgment, circumstances
so warrant. Any subsequent downward revision or withdrawal of such ratings may have an adverse effect on the market
price and transferability of the Bonds. The City will covenant in its Continuing Disclosure Undertaking (as defined
herein) (see “CONTINUING SECONDARY MARKET DISCLOSURE” below) that it will cause notices to be filed with
the MSRB of any formal change in the ratings relating to the Bonds. A securities rating is not a recommendation to buy,
sell or hold securities, including the Bonds.
LEGAL MATTERS
Legal matters relating to the issuance and delivery of the Bonds, the validity of the Bonds under Arizona law and the tax-
exempt status of the interest on the Bonds (see “TAX EXEMPTION” herein) are subject to the legal opinion of Greenberg
Traurig, LLP, Phoenix, Arizona (“Bond Counsel”). The signed legal opinion of Bond Counsel, dated and premised on
the law in effect only as of the date of original delivery of the Bonds, will be delivered substantially in the form of
APPENDIX F.
The form of the legal opinion is set forth as APPENDIX F – “FORM OF APPROVING LEGAL OPINION.” The legal
opinion to be delivered may vary from that text if necessary to reflect facts and law on the date of delivery. The opinion
will speak only as of its date, and subsequent distributions of it by recirculation of this Official Statement or otherwise
shall create no implication that Bond Counsel has reviewed or expressed any opinion concerning any of the matters
referred to in the opinion subsequent to its date. In rendering its opinion, Bond Counsel will rely upon certificates and
representations of facts to be contained in the transcript of proceedings which Bond Counsel will not have independently
verified.
While Bond Counsel has reviewed and participated in the preparation of portions of this Official Statement, Bond Counsel
has not undertaken an independent investigation to determine, and will express no opinion as to, the accuracy,
completeness or sufficiency of this Official Statement, nor of any other reports, financial information, offering or
disclosure documents or other information pertaining to the City or the Bonds that may be available.
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 opinion 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
In 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 Bond Resolution 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.
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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 will not be an item of tax preference for purposes of the federal alternative minimum
tax imposed on individuals, but in the case of the alternative minimum tax imposed by Section 55(b)(2) of the Code on
applicable corporations (as defined in Section 59(k) of the Code), interest on the Bonds is not excluded from the
determination of adjusted financial statement income. 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, (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, (vi) net gain realized upon the sale or other disposition of property such as the Bond generally
must be taken into account when computing the Medicare tax with respect to net investment income or undistributed net
investment income, as applicable, imposed on certain high income individuals and specified trusts and estates and (vii)
receipt of certain investment income, including interest on the Bonds, is considered when determining qualification limits
for obtaining the earned income credit provided by Section 32(a) of the Code. 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 and any 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 (the “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 and Original Issue Discount
Certain of the Bonds (“Discount Bonds”) may be offered and sold to the public at an original issue discount (“OID”).
OID is the excess of the stated redemption price at maturity (the principal amount) over the “issue price” of a Discount
Bond determined under Code Section 1273 or 1274 (i.e., for obligations issued for money in a public offering, the initial
offering price to the public (other than to bond houses and brokers) at which a substantial amount of the obligation of the
same maturity is sold pursuant to that offering). For federal income tax purposes, OID accrues to the owner of a Discount
Bond over the period to maturity based on the constant yield method, compounded semiannually (or over a shorter
permitted compounding interval selected by the owner). The portion of OID that accrues during the period of ownership
of a Discount Bond (i) is interest excludable from the owner’s gross income for federal income tax purposes to the same
extent, and subject to the same considerations discussed above, as other interest on the Bonds, and (ii) is added to the
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owner’s tax basis for purposes of determining gain or loss on the maturity, redemption, prior sale, or other disposition of
that Discount Bond.
Certain of the Bonds (“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.
Owners of Discount and Premium Bonds should consult their own tax advisors as to the determination for federal income
tax purposes of the amount of OID or bond premium properly accruable or amortizable in any period with respect to the
Discount or Premium Bonds and as to other federal tax consequences, and the treatment of OID and 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 bonds such as the Bonds is subject to information reporting to the 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.
LITIGATION
No Litigation Relating to the Bonds
At the time of delivery of the Bonds, an officer of the City will certify that there is no action, suit, proceeding, inquiry or
investigation, at law or in equity, before or by any court, public board or body, pending, or to the knowledge of the City,
overtly threatened against the City, affecting the existence of the City or the titles of its officers to their respective offices
or seeking to prohibit, restrain or enjoin the issuance, sale or delivery of the Bonds or that questions the City’s right or
authority to receive the sources of payment of the Bonds, or in any way contesting or affecting the validity or enforceability
of the Bonds, the Bond Resolution, or the Continuing Disclosure Undertaking, or contesting in any way the completeness
or accuracy of this Official Statement, or any amendment or supplement thereto, or contesting the power or authority of the
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City to execute and deliver the Continuing Disclosure Undertaking, or wherein an unfavorable decision, ruling or finding
would materially adversely affect the validity or enforceability of the Bonds, the Bond Resolution, or the Continuing
Disclosure Undertaking, or have a material adverse effect on the transactions contemplated by this Official Statement.
Other Litigation Against the City
Like any large municipality, the City is currently involved in multiple lawsuits and annually receives numerous claims
associated with City operations. Based on the information currently available to the City, as of the date of this Official
Statement none of the pending lawsuits or received claims are reasonably anticipated to exceed the City’s available
insurance coverage or materially adversely affect the City or the source of repayment of the Bonds.
Notwithstanding the foregoing, the City has received two notices of claims alleging that two elementary school-aged
children suffered damages after alleged exposure to hydrogen sulfide in a classroom while attending school; provided,
however, that as of the date of this Official Statement no lawsuit has been filed against the City in connection with these
notices. The notices of claims allege an amount owed by the City of $53,000,000. The notices state the charter school
attended by the two children is connected to the Town of Gilbert’s wastewater system but is also located near a wastewater
reclamation plant (the “WRP”) that is jointly owned and operated pursuant to an intergovernmental agreement among the
City, the Town of Gilbert, and the Town of Queen Creek. Pursuant to the intergovernmental agreement, the City acts as
the “lead agent” of the WRP and is responsible for, among other things, the operation and maintenance of the WRP.
Separate from the notices received by the City, the Town of Gilbert and the charter school were named in a lawsuit by the
two children and their parents/stepparent (“Plaintiffs”). In the lawsuit, the Plaintiffs generally allege that the Town of
Gilbert played a role in the children’s exposure to hydrogen sulfide. As of the date of this Official Statement, the City and
the WRP have not been named in the lawsuit. In November 2024 (a week before filing notices of claims with the City),
Plaintiffs amended their complaint in Maricopa County Superior Court, but they did not name the City as an additional
party in that amended complaint. The City is investigating the claimants’ allegations stated in the notices and anticipates
that, if the City or the WRP is added to the lawsuit, the City will defend on the merits. In its capacity as the lead agent of
the WRP, the City also monitors for the presence of gasses in the area surrounding the WRP and no data obtained by the
City from such monitoring indicates amounts of hydrogen sulfide in excess of permitted amounts originating from the
WRP. Other than the proximity of the WRP to the charter school, the notices do not present a factual basis connecting the
alleged presence of hydrogen sulfide in the charter school to the City or the City’s ownership interest in, or operation of,
the WRP. Because of the multiple potential parties alleged in the lawsuit and the notices, the City is unable to determine
whether a lawsuit, if filed against the City, could reasonably be expected to exceed available insurance coverage. Any
potential liability could be allocated among the charter school, the municipal owners of the WRP (including the City), and
other parties. Additionally, the WRP has its own insurance coverage that is expected to provide coverage to the municipal
owners (including the City) if Plaintiffs move forward with a lawsuit against the City. Based on the foregoing, as of the
date of this Official Statement, appropriate officers of the City do not reasonably anticipate that a lawsuit, if filed against
the City in connection with the notices of claims, would materially adversely affect the City.
The City has also received a notice of claim pertaining to an airplane accident in November 2024 where an airplane left
the runway at the City’s Falcon Field Airport facility, crossed into Greenfield Road, and collided with a passing
automobile resulting in the death of several passengers on the airplane and the sole occupant of the automobile. A final
report from the National Transportation Safety Board has not been issued. All the claims, except for one notice of claim,
have agreed to a settlement that is in the process of being finalized. The remaining notice of claim offers to settle these
remaining claims for an aggregate amount equal to $60,000,000. Among other things, the remaining notice alleges
negligence by the City related to the design and construction of certain runway safety areas and runway protection zones.
As of the date of this Official Statement, no lawsuit has been filed against the City in connection with this notice of claim.
On October 30, 2025, the City and the claimants entered into a tolling agreement to allow the parties to participate in a
mediation. As of the date of this Official Statement, the mediation process has not been completed. The City maintains
a $100 million insurance policy for its operations of Falcon Field Airport. If a lawsuit were filed, the City believes it has
a number of meritorious factual and legal defenses and would vigorously defend itself. As of the date of this Official
Statement, appropriate officers of the City do not reasonably anticipate that a lawsuit, if filed against the City in connection
with these notices of claims, would materially adversely affect the City. The City does not anticipate any material adverse
financial impact on the source of repayment of the Bonds in connection with these notices of claims.
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CERTIFICATION CONCERNING OFFICIAL STATEMENT
The closing documents will include a certificate confirming that, to the best knowledge, information and belief of the
City’s Deputy City Manager/Chief Financial Officer, the descriptions and statements contained in this Official Statement
are at the time of issuance of the Bonds, true, correct and complete in all material respects and do not contain an untrue
statement of a material fact, or omit to state a material fact required to be stated therein in order to make the statements,
in light of the circumstances under which they are made, not misleading. In the event this Official Statement is
supplemented or amended, the foregoing confirmation will also encompass such supplements or amendments.
CONTINUING SECONDARY MARKET DISCLOSURE
The City will covenant for the benefit of holders and Beneficial 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,
2027 (the “Annual Reports”), and to provide notices of the occurrence of certain enumerated events (the “Notices”), as
set forth in APPENDIX G – “Form of Continuing Disclosure Undertaking” (the “Continuing Disclosure Undertaking”).
The Annual Reports and Notices and any other documentation or information required to be filed by such covenants will
be filed by the City with the MSRB, in a format prescribed by the MSRB. Currently the MSRB requires filing through
EMMA system as described in APPENDIX G – “Form of Continuing Disclosure Undertaking.”
These covenants will be made in order to assist the underwriter in complying with the Securities and Exchange
Commission Rule 15c2-12 (the “Rule”). The form of the undertaking necessary pursuant to the Rule is included as
APPENDIX G hereto. 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. Also pursuant to Arizona law, the ability of the City to comply with such covenants
is 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 purposes, the City has covenanted to
provide notice of such fact in the same fashion it provides the Notices. Absence of continuing disclosure could adversely
affect the Bonds and specifically their market price and transferability. The City’s Finance Department has instituted
written policies and procedures to ensure timely and proper filing of its Annual Reports and Notices for all of the City’s
outstanding bonds.
The presentation of the financial and operating data referenced above has changed over time in the City’s various Official
Statements. Therefore, the presentation of such financial and operating data in the City’s Annual Reports may not match
the current presentation of such financial and operating data instead of the presentation of such financial and operating
data when bonds were originally issued or incurred. Similarly, certain references to financial and operating data in the
City’s prior disclosure undertakings do not specifically identify which data within an Official Statement appendix the
City was to provide in its Annual Reports. In such circumstances, the City has provided data pertaining to the City in its
Annual Reports, for example excise tax collections in the City, and the City’s Annual Reports do not include data not
specifically pertaining to the City, for example excise tax collections in the County or State.
MUNICIPAL ADVISOR
Hilltop Securities Inc. is the Municipal Advisor (the “Municipal Advisor”) to the City in connection with the issuance of
the Bonds. The Municipal Advisor’s fee for services rendered with respect to the sale of the Bonds is contingent upon
the issuance and delivery of the Bonds. The Municipal Advisor has not verified and does not assume any responsibility
for the information, covenants and representations contained in any of the legal documents with respect to the federal
income tax status of the Bonds, or the possible impact of any present, pending or future actions taken by any legislative
or judicial bodies.
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GENERAL PURPOSE FINANCIAL STATEMENTS
The City’s Audited General Purpose Financial Statements for the Fiscal Year Ended June 30, 2025, a copy of which is
included in APPENDIX D – “City of Mesa, Arizona – Audited General Purpose Financial Statements for the Fiscal
Year Ended June 30, 2025” of this Official Statement, have been audited by CliftonLarsonAllen LLP, certified public
accountants, to the extent and for the period indicated in their report thereon. The City is not aware of any facts that
would make such Audited General Purpose Financial Statements misleading. The Audited General Purpose Financial
Statements are for the fiscal year ended June 30, 2025, and are not current. The City neither requested nor obtained the
consent of CliftonLarsonAllen LLP to include the report, and CliftonLarsonAllen LLP has performed no procedures
subsequent to rendering its opinion on the financial statements.
CONCLUDING STATEMENT
To the extent that any statements made in this Official Statement involve beliefs, assumptions, estimates, projections,
forecasts, or other matters of opinion, 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 statements have been or will be realized.
Such beliefs, assumptions, estimates, projections, forecasts or other matters of opinion are forward looking statements
which must be read with an abundance of caution. Information set forth in this Official Statement has been derived from
the records of the City and from certain other sources, as referenced, 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 statements that may have been or that may be made orally or in writing are to be
construed as a part of a contract with the original purchasers or subsequent owners of the Bonds. This Official Statement
has been prepared by the City and executed for and on behalf of the City by its Deputy City Manager/Chief
Financial Officer, as indicated below.
CITY OF MESA, ARIZONA
By:
Deputy City Manager/Chief Financial Officer
[THIS PAGE INTENTIONALLY LEFT BLANK]
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APPENDIX A
CITY OF MESA, ARIZONA
GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION
General
The City is the third largest city in the State and the 37th largest city in the United States. Founded in 1878 and
incorporated in 1883, the City had an estimated 2025 population of 529,391. The following table illustrates the City’s
population statistics since 1990, along with the population statistics for the County and the State, respectively.
POPULATION STATISTICS
Year
City of Mesa
Maricopa County
State of Arizona
2025 Estimate (a)
529,391
4,787,790
7,718,747
2020 Census
504,258
4,420,568
7,151,502
2010 Census
439,041
3,817,117
6,392,017
2000 Census
396,375
3,072,149
5,130,632
1990 Census
288,091
2,122,101
3,665,228
(a)
Estimate as of July 1, 2025 (published December 2025).
Source: U.S. Census Bureau, Population Division – Annual Estimates of the Resident Population, Arizona Office of
Economic Opportunity – State, County, Place Level Population Estimates for July 1, and U.S. Census Bureau
(2020, 2010, 2000 and 1990) – Census of Population and Housing.
The following table sets forth a record of the City’s geographic area since 1970.
SQUARE MILE STATISTICS
City of Mesa, Arizona
Year
Square
Miles
2020
140.44
2010
133.14
2000
125.00
1990
122.11
1980
66.31
1970
20.80
Municipal Government and Organization
The City operates under a charter form of government with citizens electing a Mayor and six City Councilmembers to set
policy for the City. In 1998, a voter initiative was approved changing the way that City Councilmembers are elected from
an at-large to a district system. Six districts were created in March 2000 with City Councilmembers serving staggered
four-year terms. The Mayor continues to be elected at-large every four years. The Mayor and City Councilmembers are
elected on a non-partisan basis, and the Vice Mayor is a City Councilmember selected by the City Council.
The City Manager, who has full responsibility for carrying out City Council policies and administering City operations,
is appointed by the City Council. The City Manager is responsible for the appointment of City department heads.
Additionally, City employees are hired under merit system procedures as specified in the City Charter. The various
functions of City government and operations are undertaken by City employees working in the various City departments.
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City Administrative Staff
Scott Butler, City Manager. Mr. Butler was appointed by the City Council to serve as City Manager effective June 1,
2025. Prior to being appointed, Mr. Butler served as Assistant City Manager. Under the City’s council-manager form of
government, the City Manager serves as the chief operating officer of the City, one of the fastest-growing cities of the
United States. Mr. Butler implements the policies established by the City Council and coordinates all City departments
and other affairs assigned by the City Charter.
Prior to joining the City in 2005, Mr. Butler served in variety of roles at the local, state and federal level. He served as
policy advisor for the Judiciary Committee of the Georgia House of Representatives and as a media/elected official
outreach liaison for the White House Office of Scheduling and Advance. While serving as a Senior Policy Advisor to the
Georgia Secretary of State, he helped lead the department’s efforts to implement the first statewide electronic voting
system in the nation.
Mr. Butler has a Bachelor of Arts degree in Political Science from the University of Georgia and a Master of Public
Administration degree from Arizona State University.
Michael Kennington, Deputy City Manager/Chief Financial Officer. Mr. Kennington was hired as the City’s Chief
Financial Officer in July 2012 and was promoted to Deputy City Manager/Chief Financial Officer in 2019. He is
responsible for the City’s overall financial policies, strategies, planning, and forecasts. Mr. Kennington has a Master of
Accountancy degree and Master of Business Administration degree from Brigham Young University and is a Certified
Public Accountant.
Economy
The City’s major economic sectors are comprised of manufacturing, non-manufacturing, government, and commercial
activities (including construction and commerce), and tourism.
The following table sets forth unemployment rate averages for the United States, the State, the County and the City for
the current year and most recent five years for which such information is available.
UNEMPLOYMENT RATE AVERAGES
Year
United
States
State of
Arizona (a)
Maricopa
County (a)
City of
Mesa (a)
2026 (b)
2025 (c)
4.3%
4.2%
3.7%
3.6%
2024
4.0
3.6
3.2
3.1
2023
3.6
3.7
3.2
3.2
2022
3.7
3.7
3.3
3.3
2021
5.4
5.0
4.6
4.5
(a)
This table includes restated data: Local Area Unemployment Statistics (“LAUS”) program data is intermittently
revised to incorporate new population controls, updated inputs, re-estimation of models, and adjustment to new
census division and national control totals.
(b)
Data is not seasonally adjusted, is an average through [__], 2026.
(c)
Data is not seasonally adjusted, is preliminary and is an average through November 2025 for the National
Unemployment rate and through September 2025 for LAUS data.
Source: U.S. Department of Labor, Bureau of Labor Statistics– Local Area Unemployment Statistics and National Labor
Force Statistics. Data accessed January 7, 2026.
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Manufacturing and Non-Manufacturing Employment
A list of significant employers located within the City is set forth in the following table.
MAJOR EMPLOYERS
City of Mesa, Arizona
Employer
Description
Approximate
Employment
Mesa Unified School District No. 4
Public Education
7,977
Banner Health
Hospital Network
6,468
City of Mesa
Government
4,919
The Boeing Company
Helicopter Manufacturing and Assembly
4,353
Walmart
Retail
2,988
Maricopa County Community College
Higher Education
1,889
Dexcom
Medical Equipment and Supplies
1,867
Fry’s Food Store
Retail
1,232
Home Depot
Retail
1,132
Maricopa County Government
Government
1,094
Source: City of Mesa, Arizona - Annual Comprehensive Financial Report for Fiscal Year 2024/25.
Mesa Gateway Airport and the Airport/Campus District
Mesa Gateway Airport (formerly known as Williams Gateway Airport, and subsequently Phoenix-Mesa Gateway Airport)
has three runways (10,401 feet, 10,201 feet, and 9,300 feet) and a passenger terminal. Mesa Gateway Airport is a small-
hub commercial airport serving the Mesa metropolitan area with direct service to more than 45 destinations currently
provided by Allegiant Air and Sun Country Airlines.
Mesa Gateway Airport is also developing as an international aerospace center with aircraft maintenance, modification,
testing, and pilot training. Currently more than 60 companies operate on the airport, including manufacturer service
centers for Gulfstream, Cessna and Embraer. In 2021, the Arizona Department of Transportation completed an economic
impact study of the State’s airport system, including Mesa Gateway Airport. According to that study, the airport’s
economic benefit (including all multiplier effects) totaled $1.8 billion, with $829.4 million in economic activity generated
by on-airport activity, creating and supporting 10,224 jobs in the area.
Mesa Gateway Airport is owned and operated by the Mesa Gateway Airport Authority whose members include the City,
Town of Gilbert, Town of Queen Creek, the City of Apache Junction, and the Gila River Indian Community.
Adjacent to Mesa Gateway Airport, the Airport/Campus District serves approximately 8,700 students. The campus
includes five higher education partners - Arizona State University (“ASU”) Polytechnic campus, Chandler-Gilbert
Community College, Embry-Riddle Aeronautical University, Mesa Community College and UND Aerospace (University
of North Dakota, John D. Odegard School of Aerospace Sciences – Phoenix Flight Training Center). The ASU
Polytechnic campus is 600-acres and includes advanced learning labs and classroom space, faculty offices and a 450-seat
auditorium.
State Route 24, a one-mile freeway segment extending access from the existing State Route 202 freeway eastward, was
completed May 2014. This freeway segment lies immediately north of Mesa Gateway Airport and provides freeway
access to the east side of the airport property. Such access is beneficial for the economic development of properties
located on, and adjacent to, Mesa Gateway Airport, as well as future terminal development on the east side.
A-4
Construction
The following tables set forth annual records of building permit values and new housing permits issued within the City.
VALUE OF BUILDING PERMITS
City of Mesa, Arizona
($000’s omitted)
Fiscal Year
Residential
Commercial
Other
Total
2025/26 (a)
$260,782
$ 612,106
$ 51
$ 872,939
2024/25
652,684
2,759,724
548
3,412,956
2023/24
596,590
1,579,275
2,465
2,178,330
2022/23
379,304
2,620,529
3,035
3,002,868
2021/22
894,064
1,348,806
3,112
2,245,982
2020/21
740,870
1,074,928
4,499
1,820,297
(a)
Partial Fiscal Year data from July 1, 2025, through December 31, 2025.
Construction is valued on the basis of estimated cost, not on market price or value of construction at the time the permit
is issued. The date on which the permit is issued is not to be construed as the date of construction.
NEW HOUSING PERMITS
City of Mesa, Arizona
Fiscal Year
Total New
Housing Units
2025/26 (a)
467
2024/25
1,300
2023/24
1,167
2022/23
735
2021/22
2,318
2020/21
2,151
(a)
Partial Fiscal Year data from July 1, 2025, through December 31, 2025.
The date on which the permit is issued is not to be construed as the date of construction.
Retail
The following table sets forth a record of retail sales activity within the City.
TAXABLE RETAIL SALES
City of Mesa, Arizona
Fiscal Year
Retail Sales
2025/26 (a)
$3,646,098,646
2024/25
8,654,798,381
2023/24
8,438,742,187
2022/23
8,483,005,834
2021/22
8,134,561,575
2020/21
7,171,741,191
(a)
Partial Fiscal Year data from July 1, 2025, through November 30, 2025.
A-5
Tourism
The tourism sector is a significant contributor to the City’s economy. The City’s hotels, motels, golf courses, parks and
playgrounds, restaurants and retail shops provide tourists with accommodations and recreational facilities. There are
more than 60 hotels in the City, with all of the major hotel brands represented. The table below contains a listing of
certain hotels located within the City.
HOTELS
City of Mesa, Arizona
Hotel Name
Number of
Sleeping Rooms
Phoenix Marriott Mesa
275
Hilton Phoenix East-Mesa
260
Holiday Inn Mesa
246
Dobson Ranch Inn & Suites
213
Arizona Golf Resort
187
Sheraton Mesa at Wrigleyville West
180
Westgate Painted Mountain
152
Hyatt Place Phoenix-Mesa
152
Marriott Courtyard
149
Best Western Mezona Inn
132
Country Inn and Suites
126
La Quinta (West)
125
Days Hotel Mesa-Gilbert
120
Quality Inn/Suites
119
Source: Mesa Convention and Visitors Bureau.
The City owns and operates the Mesa Convention Center (the “Convention Center”) which offers convention facilities.
The Convention Center is situated on a 17-acre site adjacent to the Phoenix Marriott Mesa. The Convention Center
includes Centennial Hall, which is a multipurpose facility of approximately 15,000 square feet, and the Centennial
Conference Center and the Rendezvous Center, which offer an additional 18,500 square feet of meeting space. The City
operates and maintains 58 parks, including 11 sports complexes and 133 basins covering more than 2,000 acres. In
addition, the City manages 9 aquatic facilities, 2 Major League Baseball Spring Training stadiums and a par 72, 18-hole
championship golf course. The award-winning Mesa Arts Center facility opened in spring of 2005 and is located in the
downtown area of the City. The Mesa Arts Center is a 212,775 square-foot performing arts, visual arts and arts education
facility, the largest and most comprehensive arts center in the State.
Agriculture
Although still a contributor to the economic base, the agricultural sector is no longer a significant factor of the City’s
economy due to the industrial, commercial, and residential development which has occurred over the past 30 years. The
principal products of the City’s remaining agricultural sector are dairy and citrus.
Cybersecurity
The City, like all modern public and private organizations, depends on its digital infrastructure to deliver services and
maintain daily operations. As a recipient and provider of personal, confidential, and other sensitive information, the City
faces an evolving landscape of cyber threat – including hacking, malware, ransomware, and other sophisticated attack
vectors. Federal agencies have repeatedly cautioned that critical infrastructure sectors, including certain municipal
systems, remain high-value targets for nation-state actors and criminal organizations.
To address these risks, the City implemented a cybersecurity program designed to strengthen its defenses, enhance system
resilience, and promote cyber awareness across the City’s workforce. These efforts include continuous security
hardening, investments in modern protective technologies, and employee training focused on safeguarding the City’s
digital assets.
While the City is committed to maintaining reasonable and practicable standards of cybersecurity, no organization can
guarantee complete protection against all threats. As such, despite the City’s proactive posture and ongoing mitigation
efforts, the possibility remains that a significant cyber incident could impact City operations or financial resources.
[THIS PAGE INTENTIONALLY LEFT BLANK]
B-1
APPENDIX B
CITY OF MESA, ARIZONA
FINANCIAL DATA
Current Year Statistics (For Fiscal Year 2024/25)
City of Mesa, Arizona
Total General Obligation Bonds to be Outstanding
$ 512,785,000 *(a)
Total Utility Systems Revenue Bonds to be Outstanding
771,697,065 *(b)
Total Utility Systems Revenue Obligations to be Outstanding
1,138,910,000 *(c)
Total Street and Highway User Revenue Bonds Outstanding
7,660,000 (d)
Total Excise Tax Revenue Obligations Outstanding
43,355,000 (e)
Net Assessed Limited Property Value
5,166,189,909 (f)(g)
Estimated Net Full Cash Value
87,660,089,888 (g)(h)
(a)
Represents all general obligation bonds of the City to be outstanding including the Bonds. See “STATEMENTS
OF BONDS OUTSTANDING – General Obligation Bonds to be Outstanding” in this appendix.
(b)
Represents all utility systems revenue bonds to be outstanding net of the bonds being refunded by the 2026
Refunding Obligations. See “STATEMENTS OF BONDS OUTSTANDING – Utility Systems Revenue Bonds
Outstanding” in this appendix.
(c)
Represents all utility systems revenue obligations to be outstanding following the issuance of the 2026A
Obligations and 2026B Obligations. See “STATEMENTS OF BONDS OUTSTANDING – Utility Systems
Revenue Obligations to be Outstanding” in this appendix and “THE BONDS – Other Expected Debt Offerings”.
(d)
Represents all street and highway user revenue bonds outstanding. See “STATEMENTS OF BONDS
OUTSTANDING – Street and Highway User Revenue Bonds Outstanding” in this appendix.
(e)
Represents all excise tax revenue obligations outstanding. See “STATEMENTS OF BONDS OUTSTANDING –
Excise Tax Revenue Obligations Outstanding” in this appendix.
(f)
Net of property exempt from taxation; reflects application of applicable assessment ratios.
(g)
The City’s preliminary Fiscal Year 2026/27 Net Assessed Limited Property Value is estimated at $5,457,986,697,
a change of approximately 5.65% from the Fiscal Year 2025/26 Net Assessed Limited Property Value. The City’s
preliminary Fiscal Year 2026/27 estimated net full cash value, as defined in footnote (h), is estimated at
$92,024,768,131, a change of approximately 4.98% from the Fiscal Year 2025/26 estimated net full cash value.
Valuations are not official until approved by the Board of Supervisors of the County on or before the third Monday
in August for each Fiscal Year. Although the final valuations are not expected to differ materially from the
estimated valuations, they are subject to positive or negative adjustments until approved by the Board of
Supervisors.
(h)
Estimated net full cash value is the total market value of the property less unsecured personal property and less
estimated exempt property within the City, as projected by the Arizona Department of Revenue, Division of
Property and Special Taxes.
Source: State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
* Subject to change.
B-2
STATEMENTS OF BONDS OUTSTANDING
General Obligation Bonds to be Outstanding
City of Mesa, Arizona
Issue
Series
Purpose
Original
Amount
Maturity
Date Range
Balance
Outstanding
2012
Various Purpose
$ 27,290,000
7-1-13/32
$ 14,875,000
2013
Various Purpose
59,960,000
7-1-14/33
32,525,000
2014
Various Purpose
37,550,000
7-1-15/34
18,800,000
2015
Various Purpose
13,690,000
7-1-16/35
4,315,000
2016A
Refunding
20,475,000
7-1-17/27
10,485,000
2016B
Refunding
22,935,000
7-1-17/29
10,495,000
2016
Various Purpose
37,700,000
7-1-17/36
23,100,000
2017
Refunding
47,450,000
7-1-17/29
27,025,000
2017
Various Purpose
47,180,000
7-1-18/37
29,630,000
2018
Various Purpose
16,120,000
7-1-19/38
5,525,000
2019
Various Purpose
33,065,000
7-1-20/39
12,965,000
2020
Various Purpose
22,075,000
7-1-21/40
8,825,000
2020
Refunding
23,900,000
7-1-21/30
18,530,000
2021
Various Purpose
19,030,000
7-1-21/41
1,685,000
2021
Refunding
14,495,000
7-1-21/31
10,260,000
2022
Various Purpose
22,620,000
7-1-23/32
8,100,000
2023
Various Purpose
83,340,000
7-1-24/43
68,665,000
2025
Various Purpose
154,265,000
7-1-25/45
150,705,000
Total General Obligation Bonds Outstanding
$456,510,000
Plus the Bonds
56,275,000*
Total General Obligation Bonds to be Outstanding
$512,785,000*
* Subject to change.
B-3
Utility Systems Revenue Bonds to be Outstanding
City of Mesa, Arizona
Issue
Series
Purpose
Original
Amount
Maturity
Date Range
Balance
Outstanding
2008
Utility Improvement
52,875,000
7-1-23/32
$ 650,000
2009
WIFA Loans
3,758,810
7-1-10/29
667,065
2013
Utility Improvement
47,290,000
7-1-37
47,290,000 (a)
2014
Utility Improvement
36,385,000
7-1-37/38
36,385,000 (a)
2014
Refunding
102,945,000
7-1-18/30
77,880,000
2015
Utility Improvement
30,220,000
7-1-20/39
23,445,000 (a)
2016
Refunding
138,035,000
7-1-25/32
134,660,000 (a)
2016
Utility Improvement
90,500,000
7-1-20/40
83,925,000 (a)
2017
Refunding
75,435,000
7-1-23/28
43,620,000
2017
Utility Improvement
123,875,000
7-1-21/41
112,050,000
2018
Utility Improvement
112,120,000
7-1-19/42
91,120,000
2019A
Utility Improvement
93,825,000
7-1-20/43
76,730,000
2019B
Refunding
54,225,000
7-1-20/33
41,560,000
2019C
Refunding
79,335,000
7-1-20/35
58,055,000
2020
Utility Improvement
71,070,000
7-1-21/44
60,480,000
2020
Refunding
37,675,000
7-1-34
37,675,000
2021
Utility Improvement
34,685,000
7-1-22/45
27,395,000
2021
Refunding
44,870,000
7-1-35
44,870,000
Total Utility Systems Revenue Bonds Outstanding
$998,457,065
Less the Bonds Being Refunded
(226,760,000) (a)*
Total Utility Systems Revenue Bonds to be Outstanding
$771,697,065 *
(a)
Bonds anticipated to be refunded by the 2026 Refunding Obligations.
Utility Systems Revenue Obligations to be Outstanding
City of Mesa, Arizona
Issue
Series
Purpose
Original
Amount
Maturity
Date Range
Balance
Outstanding
2021
Utility Improvement
$ 14,015,000
7-1-23/45
$ 11,015,000
2022A
Utility Improvement
54,705,000
7-1-29/46
54,705,000
2022B
Utility Improvement
16,075,000
7-1-23/28
7,955,000
2022C
Refunding
57,655,000
7-1-36
57,655,000
2023
Utility Improvement
193,710,000
7-1-24/48
183,855,000
2025
Utility Improvement
295,465,000
7-1-26/49
295,465,000
Total Utility Systems Revenue Obligations Outstanding
$ 610,650,000
Plus the 2026 Refunding Obligations
206,425,000 *
Plus the 2026A Obligations
168,100,000 * (a)
Plus the 2026B Obligations
153,735,000 * (a)
Total Utility Systems Revenue Obligations to be Outstanding
$1,138,910,000 *
(a)
The City expects to offer the 2026 Refunding Obligations, 2026A Obligations and 2026B Obligations pursuant to
separate official statements in June 2026.
* Subject to change.
B-4
Street and Highway User Revenue Bonds Outstanding
City of Mesa, Arizona
Issue Series
Purpose
Original
Amount
Maturity
Date Range
Balance
Outstanding
2015
Refunding
17,555,000
7-1-24/27
$7,660,000
Total Street and Highway User Revenue Bonds Outstanding
$7,660,000
Excise Tax Revenue Obligations Outstanding
City of Mesa, Arizona
Issue Series
Purpose
Original
Amount
Maturity
Date Range
Balance
Outstanding
Senior Obligations:
2020
ASU Project
$36,010,000
7-1-21/40
$30,255,000
Subordinate Obligations:
2012
Mesa Gateway Airport Authority
19,220,000
7-1-14/38
13,100,000
Total Excise Tax Revenue Obligations Outstanding
$43,355,000
Direct General Obligation Bonded Debt, Legal Limitation
And Unused General Obligation Bonding Capacity (a)
City of Mesa, Arizona
The Arizona Constitution provides that the general obligation bonded indebtedness for a city for general municipal
purposes may not exceed six percent of the Net Full Cash Assessed Value of the taxable property in that city. In addition,
an incorporated city may become indebted in an amount not exceeding an additional twenty percent of the Net Full Cash
Assessed Value of the city for supplying such city with water, artificial light, or sewers, when the works for supplying
such water, light, or sewers are or shall be owned and controlled by the municipality, and for the acquisition and
development by the city of land or interests therein for open space preserves, parks, playgrounds and recreational facilities,
public safety, law enforcement, fire and emergency services facilities and streets and transportation facilities.
General Municipal Purpose Bonds
Total 6% General Obligation Bonding Capacity
585,284,833
Less 6% Original Issue Premium
(1,238,500)
* (b)
Less 6% General Obligation Bonds Outstanding
(15,004,500)
*
Net 6% General Obligation Bonding Capacity
569,041,833
*
Streets and Public Safety Bonds
Total 20% General Obligation Bonding Capacity
1,950,949,444
Less 20% Original Issue Premium
(29,641,500) * (b)
Less 20% General Obligation Bonds Outstanding
(497,780,500) *
Net 20% General Obligation Bonding Capacity
1,423,527,444 *
(a)
General obligation bonding capacity is calculated using the City’s Fiscal Year 2025/26 Net Full Cash Assessed
Value of $9,754,747,224. Table includes the Bonds.
(b)
$4,725,000* of this amount is premium on the Bonds and reduces (i) the borrowing capacity of the City under the
Arizona Constitution and (ii) the principal amount of general obligation bonds authorized at elections held on
November 3, 2020, November 8, 2022, and November 5, 2024. The City’s borrowing capacity (but not
authorization) will be recaptured as premium is amortized.
The City plans to amortize such premium as shown in the following table.
* Subject to change.
B-5
Schedule of Original Issue Premium Amortization
For General Obligation Bonding Capacity (in thousands)
Period
Ending
(July 1)
Series
2020
Refunding
Series
2020
Series
2021
Refunding
Series
2021
Series
2022
Series
2023
Series
2025
The
Bonds*
Combined*
2026
$ 10
$ 310
$ 5
$ 185
$ 65
$ 170
$ 10
$ 755
2027
10
345
5
205
65
180
10
$ 45
865
2028
15
390
-
220
70
190
10
80
975
2029
15
430
-
240
75
200
110
80
1150
2030
15
3,060
5
-
80
210
720
130
4220
2031
15
5
1,400
80
220
870
135
2725
2032
15
5
85
230
575
225
1135
2033
15
5
240
430
235
925
2034
15
5
250
1,345
250
1,865
2035
15
5
265
1,360
260
1,905
2036
15
5
280
1,175
275
1,750
2037
15
5
290
1,210
220
1,740
2038
15
5
305
1,270
235
1,830
2039
15
5
320
1,100
245
1,685
2040
15
10
340
975
255
1,595
2041
10
355
800
270
1,435
2042
10
375
565
285
1,235
2043
390
310
295
995
2044
575
375
950
2045
315
390
705
2046
440
440
Total
$215
$4,535
$90
$2,250
$520
$4,810
$13,735
$4,725
$30,880
B-6
Direct and Overlapping General Obligation Bonded Debt to be Outstanding
City of Mesa, Arizona
Portion Applicable to
City of Mesa (a)
Overlapping Jurisdiction
General Obligation
Bonded Debt (b)
Approximate
Percentage
Net Debt
Amount
State of Arizona
None
5.593%
None
Maricopa County
None
8.508
None
Maricopa County Community College District
$26,675,000
8.508
$2,269,398
Maricopa County Special Health Care District
512,560,000
8.543
43,786,523
East Valley Institute of Technology District No. 401
None
17.582
None
Mesa Unified School District No. 4
170,560,000
86.541
147,604,560
Tempe Elementary School District No. 3
180,165,000
1.091
1,966,056
Tempe Union High School District No. 213
136,260,000
0.472
643,820
Gilbert Unified School District No. 41
86,970,000
30.186
26,252,963
Queen Creek Unified School District No. 95
94,450,000
41.998
39,667,008
Higley Unified School District No. 60
52,165,000
4.660
2,430,645
Eastmark Community Facilities District No. 1
52,705,000
100.000
52,705,000
Eastmark Community Facilities District No. 2
4,855,000
100.000
4,855,000
Cadence Community Facilities District
11,725,000
100.000
11,725,000
City of Mesa
512,785,000*
100.000
512,785,000
*(c)
Total Direct and Overlapping General Obligation Bonded Debt to be Outstanding
$846,690,973
*
(a)
Proportion applicable to the City is computed on the ratio of Net Assessed Limited Property Value as calculated
for Fiscal Year 2025/26 for the overlapping jurisdiction to the amount of such valuation which lies within the City.
(b)
Includes total general obligation bonds outstanding less redemption funds on hand. Does not include authorized
but unissued general obligation bonds of such jurisdictions which may be issued in the future. Authorized but
unissued amounts in the following table may be subject to additional reductions based on net premium amounts.
Additional bonds may also be authorized by voters within overlapping jurisdictions pursuant to future elections.
Overlapping Jurisdiction
Authorized but Unissued
Tempe Elementary School District No. 3
$314,065,000
Eastmark Community Facilities District No. 1
363,220,000
Eastmark Community Facilities District No. 2
64,205,000
Cadence Community Facilities District
30,954,024
City of Mesa
372,416,000*(d)
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 of 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 have been fixed for the entire 50-year
repayment period, which commenced October l, 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
* Subject to change.
B-7
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 Assessed Limited Property Value, of which 14 cents
is currently being levied. (See Arizona Revised Statutes, Sections 48-3715 and 48-3715.02.) There can be no
assurance that such levy limit will not be increased or removed at any time during the life of the contract. Does
not include the obligation of the Maricopa County Flood Control District (the “County Flood Control District”) to
contribute $70 to $80 million to the CAP. The County Flood Control District’s sole source of revenue to pay the
contribution will be ad valorem taxes on real property and improvements.
(c)
Includes the Bonds. Does not include the City’s utility systems revenue bonds outstanding in the aggregate
principal amount of $771,697,065*. Does not include the City’s utility systems revenue obligations to be
outstanding in the aggregate principal amount of $1,138,910,000*. Does not include the City’s street and highway
user revenue bonds outstanding in the aggregate principal amount of $7,660,000. Does not include the City’s
excise tax revenue obligations outstanding in the aggregate principal amount of $43,355,000. Such excise tax
revenue obligations are secured and payable from a pledge of the City’s transaction privilege tax revenues and
certain other General Fund revenues.
(d)
Net of the Bonds.
Source: The various entities.
Direct and Overlapping General Obligation Bonded Debt Ratios
City of Mesa, Arizona
As a Percentage of City’s
Per Capita Bonded
Debt Population at
529,391 (a)
2025/26 Net
Assessed Limited
Property Value
2025/26
Estimated Net
Full Cash Value
Direct General Obligation Bonded Debt* (b)
969
9.93%
0.58%
Direct and Overlapping General Obligation Debt* (b)
1,599
16.39
0.97
(a)
Estimate as of July 1, 2025 (published December 2025).
(b)
Includes the Bonds.
Source: Arizona Department of Administration, Office of Employment and Population Statistics and State and County
2025 Abstract of the Assessment Roll, Arizona Department of Revenue.
Other Indebtedness
City of Mesa, Arizona
The City has other obligations which are payable from various City funds, including purchase obligations and other
contractual commitments. For additional information with respect to such obligations, please refer to Note 9 of the City’s
Audited General Purpose Financial Statements for the Fiscal Year Ended June 30, 2025, contained in APPENDIX D of
this Official Statement.
Pensions and Other Post Employment Benefits
City of Mesa, Arizona
All benefitted employees of the City are covered by one of three pension systems. The Arizona State Retirement System
(“ASRS”) is for the benefit of the employees of the state and certain other governmental jurisdictions. All benefited City
employees, except sworn fire and police personnel and the City Council, are included in the plan that is a multiple-
employer cost-sharing defined benefit pension plan. All sworn fire and police personnel participate in the Public Safety
Personnel Retirement System (“PSPRS”) that is an agent multiple-employer defined benefit pension plan. The Mayor
* Subject to change.
B-8
and City Council contribute to the State’s Elected Officials Retirement Plan (“EORP”) that is also a multiple-employer
cost-sharing pension plan. The EORP is not described herein because of its relative insignificance to the City’s financial
statements.
In addition, eligible employees are covered by other post-employment benefit plans. All sworn fire and police personnel
participate in the PSPRS that is an agent multiple employer defined benefit health insurance premium benefit (“OPEB”)
plan. Eligible City employees also participate in the City’s defined benefit medical plan OPEB plan. Eligible City
employees covered by Arizona State Retirement System also participate in the ASRS OPEB plan. The ASRS OPEB plan
is not described below because of its relative insignificance to the financial statements.
At June 30, 2025, the City reported the following unfunded liabilities related to pensions and OPEB for all plans to which
it contributes (in thousands):
Net Pension and OPEB Liabilities
Plan
Governmental
Activities
Business-Type
Activities
ASRS
$ 219,454
$ 55,934
PSPRS-Fire
263,264
-
PSPRS-Police
497,926
-
OPEB-Police
11,073
-
City OPEB
881,607
82,425
Total
$1,873,324
$138,359
For a more detailed description of these plans and the City contributions to the various plans, please refer to Note 16 of
the City’s Audited General Purpose Financial Statements for the Fiscal Year Ended June 30, 2025, contained in
APPENDIX D of this Official Statement.
PROPERTY TAXES
The City operated without a property tax from Fiscal Year 1944/45 to Fiscal Year 2008/09. The City began to impose a
property tax in Fiscal Year 2009/10 for payment of a portion of the City’s outstanding general obligation bonds.
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. 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 “that value
determined as prescribed by statute” or if no statutory method is prescribed it is “synonymous with market value which
means that 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.
B-9
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 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.
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.
Property Tax Assessment Ratios (Tax Year)
Property Classification (a)
2022
2023
2024
2025
2026
Mining, Utility, Commercial and Industrial (b)
17.5%
17.0%
16.5%
16.0%
15.5%
Agricultural and Vacant Land
15.0
15.0
15.0
15.0
[15.0]
Owner Occupied Residential
10.0
10.0
10.0
10.0
[10.0]
Leased or Rented Residential
10.0
10.0
10.0
10.0
[10.0]
Railroad Private Car Company
and Airline Flight Property (c)
15.0
14.0
14.0
13.0
[13.0]
(a)
Additional classes of property 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 15.0% for tax year 2027 and for each tax year
thereafter.
(c)
This percentage is determined annually pursuant to Arizona Revised Statutes, Section 42-15005.
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 Assessed Limited Property Value
(as defined herein). “Net Assessed Limited 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.
B-10
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.
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.
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 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 Assessed Limited Property Value. There is no constitutional or statutory
limitation on annual levies for voter approved bond indebtedness and overrides and certain special district assessments.
“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 general obligation bonded debt limitations for certain political
subdivisions in the State, 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 “Treasurer”). (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.
The State Legislature, from time to time, may change the manner in which taxes are levied, including changing the
assessment ratios and property classifications. The City cannot determine whether any such measures will become law
or how they might affect property tax collections for the City. However, removing or amending limits on the growth rate
of Limited Property Value for locally assessed property would require further amendment to the State Constitution.
On occasion, it may be determined that a taxpayer or class of taxpayers is due a property tax refund associated with a
successful appeal. These refunds may be for a single year or several years and may range widely in amount. Generally,
these refunds are paid by the treasurer of the appropriate county with amounts received by the underlying taxing
jurisdictions which, in most cases, may levy an additional property tax in the following year to account for that underlying
taxing jurisdiction’s proportion of the taxpayer refund.
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 prepares a delinquent property tax list and the property so
B-11
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 to deliver a treasurer’s deed
to the certificate holder as prescribed by law.
Chapter 176, Laws of Arizona 2024 (commonly referred to by its original bill number as “SB 1431”) revises the
redemption and foreclosure process for tax lien certificate holders whereby a delinquent taxpayer may request an entry of
judgment directing the sale of the property for excess proceeds. If a delinquent taxpayer requests an excess proceeds sale,
and an entry of judgment is granted to direct such excess proceeds sale, a tax lien certificate holder’s potential financial
return on the subject tax lien eligible for foreclosure may decrease relative to the tax lien certificate holder’s potential
financial return on such tax lien prior to the enactment of SB 1431. Therefore, in connection with the new excess proceeds
sale process instituted by SB 1431, it is reasonable to conclude that “tax sale investors” may be less willing to purchase
tax liens. The effective date of SB 1431 is September 14, 2024. None of the City, Municipal Advisor or the counsel or
agents of either of them, are able to determine or predict what impact, if any, SB 1431 will have on property tax collections
in the City.
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, Municipal Advisor 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-12
TAX RATES, VALUES AND TAX COLLECTIONS
Direct and Overlapping Assessed Values and Total Tax Rates
Per $100 Assessed Value
Overlapping Jurisdiction
2025/26 Net Assessed
Limited Property Value
2025/26 Combined
Tax Rate Per $100 of
Net Assessed Limited
Property Value (a)(b)
State of Arizona
$92,371,826,506
None
Maricopa County
60,724,517,168
$1.1591
Maricopa County Community College District
60,724,517,168
1.0828
Maricopa County Fire District Assistance
60,724,517,168
0.0076 (c)
Maricopa County Flood Control District
56,554,825,877
0.1428 (d)
Maricopa County Special Health Care District
60,474,824,210
0.3856
Maricopa County Library District
60,724,517,168
0.0462
Central Arizona Water Conservation District
60,474,824,210
0.1400 (e)
East Valley Institute of Technology District
29,382,856,266
0.0500
Mesa Unified School District No. 4
4,221,073,957
6.0878
Tempe Elementary School District No. 3
2,113,238,793
4.3537
Tempe Union High School District No. 213
4,880,653,534
2.2586
Gilbert Unified School District No. 41
3,032,141,969
5.1797
Queen Creek Unified School District No. 95
1,249,452,274
5.6576
Higley Unified School District No. 60
1,075,893,941
4.9483
Eastmark Community Facilities District No. 1
206,086,843
2.2700
Eastmark Community Facilities District No. 2
14,853,249
2.6600
Cadence Community Facilities District
44,592,625
2.1700
City of Mesa
5,166,189,908
0.8582
(a)
Represents the combined tax rate includes the tax rate for debt service payments and the tax rate for all other
purposes such as maintenance and operation and capital outlay.
(b)
All levies for library districts, hospital districts, fire districts, technology districts, water conservation districts and
flood control districts are levied on the net full cash assessed value.
(c)
The County is mandated to levy a tax annually in support of fire districts in the County.
(d)
Does not include the personal property assessed valuation within the County.
(e)
Includes only the assessed valuation located within the County.
Source: State and County 2025 Abstract of the Assessment Roll, Arizona Department of Revenue and Maricopa County
2025 Tax Levy, Maricopa County – Finance Department.
Combined Total Tax Rates
Per $100 Assessed Value
There are 18 taxing jurisdictions which overlap the City’s boundaries. The total overlapping property tax rate per $100
of assessed value for property owners within the City ranges from $8.8206 to $12.1899.
Source: Maricopa County – Finance Department.
B-13
Net Assessed Limited Property Value by Property Classification
City of Mesa, Arizona
Set forth below is a breakdown of the City’s Net Assessed Limited Property Value by property classification for the most
recent five Fiscal Years such information is available.
Class
2021/22
2022/23
2023/24
2024/25
2025/26
Utilities, Commercial & Industrial $1,110,534,438
1,153,863,242 $1,224,126,705 $1,392,874,410 $1,468,695,218
Agriculture and Vacant
80,930,826
87,141,358
97,719,921
102,455,522
119,322,243
Residential (Owner Occupied)
1,890,191,281
2,004,050,009
2,119,990,651
2,249,803,980
2,341,989,179
Residential (Rental)
889,782,304
964,177,339
1,047,271,253
1,117,028,983
1,201,751,573
Railroad
830,039
1,194,347
1,097,223
2,609,239
3,333,925
Residential Historic
17,572,452
22,995,114
26,383,374
29,274,881
30,344,368
Rented Residential Historic
114,261
114,521
119,406
125,377
131,646
Improvements
143,475
100,632
389,519
493,454
621,757
Total (a) $3,990,099,076 $4,233,636,562 $4,517,098,052 $4,894,665,847 $5,166,189,908
(a)
Totals may not add due to rounding.
Source: State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
Comparative Net Assessed Limited Property Value Comparisons and Trends
Fiscal Year
City of Mesa
Maricopa County
State of Arizona
2025/26
$5,166,189,908
$60,724,517,168
$92,371,826,506
2024/25
4,894,665,847
58,328,686,358
88,425,611,337
2023/24
4,517,098,052
54,722,326,231
83,026,530,244
2022/23
4,233,636,562
51,575,018,185
78,405,598,978
2021/22
3,990,099,076
48,724,126,672
74,200,233,397
Source: State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
Estimated Net Full Cash Value (a)
City of Mesa, Arizona
Fiscal Year
City of Mesa
2025/26
$87,660,089,888
(b)
2024/25
89,846,125,845
2023/24
72,316,478,822
2022/23
55,958,146,848
2021/22
51,311,123,782
(a)
The City’s estimated net full cash value approximates the total market value of all taxable property located within
the City, less the estimated exempt property within the City as calculated by the Arizona Department of Revenue,
Division of Property and Special Taxes.
(b)
Full Cash Value of the property for Fiscal Year 2025/26 is $98,076,281,400.
B-14
Net Assessed Limited Property Values of Major Taxpayers (a)(b)
City of Mesa, Arizona
Taxpayer (c)(d)
2025/26 Net
Assessed Limited
Property Value
As % of City’s Total
2025/26 Net Assessed
Limited Property Value
CMC STEEL FABRICATORS INC
$10,549,041
0.20%
APPLE INC
8,289,471
0.16
DEXCOM INC
7,676,231
0.15
QWEST CORPORATION
6,453,055
0.12
SOUTHWEST GAS CORPORATION (T&D)
6,356,243
0.12
VERIZON WIRELESS
4,338,396
0.08
BOEING COMPANY THE
3,261,570
0.06
FUJIFILM ELECTRONIC MATERIALS USA INC
2,538,672
0.05
NAMMO TALLEY, INC
2,443,673
0.05
AMAZONCOMAZDC LLC
2,101,692
0.04
Total (e)
$54,008,043
1.05%
(a)
The City has not made an independent determination of the financial position of any of the City’s major property
taxpayers.
(b)
Indicates Net Assessed Limited Property Value utilizing current constitutional and statutory property valuation
requirements.
(c)
Some of the major taxpayers are subject to the informational requirements of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), 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 and copied at the public reference facilities maintained
by the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of the Filings can be obtained from
the public reference section of the Commission at prescribed rates. 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 database at www.sec.gov.
None of the City, Bond Counsel or Municipal Advisor has examined the information set forth in the Filings for
accuracy or completeness, nor have they assumed responsibility for the same.
(d)
See “SPECIAL NOTE” for a description of Salt River Project property value equivalent and voluntary contribution
in lieu of property taxes.
(e)
Totals may not add due to rounding.
Source: Maricopa County Assessor’s Office.
SPECIAL NOTE: The assessed valuation of property owned by the Salt River Project Agricultural Improvement and
Power District (“SRP”) is not included in the assessed valuation of the City in the prior tables 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 SRP Electric Plant 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.
B-15
Since 1964, when the in lieu contribution was originally authorized by the Arizona Revised Statutes, SRP has always
made that election. The Fiscal Year 2025/26 in lieu Net Full Cash Assessed Value of SRP within the City is $ 90,984,000
which represents approximately 1.76% of the Net Assessed Limited Property Value in the City. SRP’s total estimated
contribution in lieu of property tax payments will be approximately $778,272 for Fiscal Year 2025/26.
Real and Secured Property Taxes Levied and Collected
City of Mesa, Arizona
Prior to Fiscal Year 2009/10, the City had operated without a property tax levy since Fiscal Year 1944/45. Beginning in
Fiscal Year 2009/10 the City imposed a property tax for payment of a portion of the City’s outstanding general obligation
bonds. The table below sets forth the City’s tax collections since Fiscal Year 2020/21.
[Pending request from County]
Collected to June 30
of Initial Fiscal Year (a)
Cumulative Collection
to [____] (a)
Fiscal
Year
Tax
Rate
City Tax Levy
Amount
% of
Levy
Amount
% of
Levy (b)
2025/26
$0.8582
$44,336,242
(c)
$
%
2024/25
0.8582
41,412,913
$40,808,154
98.54%
2023/24
0.8582
39,046,647
37,874,301
97.00
2022/23
0.9157
38,988,582
38,408,321
98.51
2021/22
1.1319
45,764,929
44,510,447
97.26
2020/21
1.1171
41,872,027
41,248,944
98.51
(a)
Taxes are collected by the Treasurer. Taxes in support of debt service are levied by the County Board of
Supervisors as required by Arizona Revised Statutes. Delinquent taxes are subject to an interest and penalty charge
of 16.00% per annum, which is prorated at a monthly rate of 1.33%. Interest and penalty collections for delinquent
taxes are not included in the collection figures above but are deposited in the County General Fund.
(b)
Percentage of levy collected is calculated using the adjusted levy as of June 30 of the initial Fiscal Year or as of
the query date, respectively.
(c)
Fiscal Year 2025/26 taxes in course of collection: first installment is due on October 1, 2025, and is delinquent on
November 1, 2025; second installment is due on March 1, 2026, and is delinquent on May 1, 2026.
Source: Maricopa County Treasurer’s Office.
C-1
APPENDIX C
CITY OF MESA, ARIZONA
UTILITY SYSTEMS INFORMATION
Electric System
The City Energy Resources Department’s Electric Utility System (“Electric System”) has been in operation since 1917.
The Electric System’s electric service area (“ESA”) covers approximately five and one half square miles including the
downtown business center of the City. As of fiscal year ending June 30 (“Fiscal Year”) 2025, the Electric System served
a total of 18,470 customers comprised of 15,669 residential and 2,801 commercial and other customers. The system
experienced a peak integrated hourly demand in calendar year 2025 of 89.04 megawatts (“MW”s) in August and Fiscal
Year 2024/25 Electric System energy requirements of 333,256 megawatt hours (“MWh”) were metered at the Rogers
Substation, the Electric System’s point of supply.
During Fiscal Year 2024/25, the Electric System’s power and transmission resource scheduling and utilization were
managed through its participation in the Resources Management Services program (“RMS”) administered by the Western
Area Power Administration (“Western”) of the United States Department of Energy. Western provided scheduling,
dispatching and accounting functions and purchased supplemental power, as needed, on a monthly, daily and real-time
basis. The RMS group consists of the active members of the City, Electrical District Number Two (ED-2), the Town of
Fredonia, Arizona, and Aha Macav Power Service. As part of the RMS group, Western pools these entities’ loads and
resources to achieve the benefits of diversity and greater economies of scale in purchased power transactions.
The Electric System is pursuing a large, utility scale solar project that would be located outside of the City’s service
territory. This utility scale solar project has the potential to capture economies of scale, such that the energy purchased
from the project is anticipated to be less expensive than the current energy available through conventional market
purchases (and thereby reducing the overall cost of electricity for the City’s customers). The project also includes a
Battery Energy Storage System (BESS), which will allow the City to dispatch stored energy during peak times and avoid
the purchase of inflated market prices during times of high power demand. Negotiations are ongoing and approaching
completion, and the City expects to add these resources to its portfolio during Fiscal Year 2027/28.
The supply-side resource portfolio of the Electric System for Fiscal Year 2024/25 was comprised of long-term purchased
power agreements and short-term seasonal and daily power market purchases. The Electric System contracts for long-
term power based on the results of competitive requests for proposals, and the executed contracts from the proposal
process are included in the table below. Additionally, the City held its first reverse auction for short-term power purchases
for specific months. The reverse auction allowed the City to set a cap price per MWh, and the counterparties underbid
each other to win the bid and sign a contract. The executed contracts from the reverse auction process are included in the
table below. Furthermore, as a member of RMS, the City has access to the wholesale power supply market and the ability
to engage in ad hoc, short-term firm and non-firm transactions. Power supply resources for the Electric System as of
January 2026 are as follows:
Maximum Contract
MW (a)
Electric Power Resources
Product
Delivery
Point
Start Date
Expiration
Dates
Summer
Winter
Western Area Power Administration
Parker-Davis Project
Hydro
Sep-2028
10.4
8.0
Colorado River Storage Project
Hydro
Sep-2057
4.3
3.4
BP Energy Company
6x16
WW500
Jun-2025
Sep-2026
15.0
0.0
Citigroup Energy Inc.
7x16
PPK
Jul-2025
Aug-2027
10.0
0.0
7x24
Mead
Oct-2026
Oct-2026
0.0
10.0
Constellation Energy Generation, LLC
7x24
Mead
May-2025
Apr-2028
15.0
15.0
C-2
Maximum Contract
MW (a)
Electric Power Resources
Product
Delivery
Point
Start Date
Expiration
Dates
Summer
Winter
Brookfield Renewable Trading and
Marketing LP
6x16
Mead
Jun-2026
Sep-2026
15.0
0.0
7x24
Mead
Jan-2026
Jan-2026
0.0
5.0
7x24
Mead
Feb-2026
Feb-2026
0.0
5.0
7x24
Mead
May-2026
May-2026
0.0
5.0
7x24
Mead
Dec-2026
Dec-2026
0.0
7.0
7x24
Mead
May-2027
May-2027
0.0
10.0
Salt River Project Irrigation &
Electrical District
Firm with
RECs
PPK
Jan-2025
Dec-2034
16.0
14.0
Utility Scale Solar
Solar
ED-5
Dec-2027
Dec-2047
25.0
25.0
BESS
ED-5
Dec-2027
Dec-2047
20.0
20.0
Onyx Solar Group LLC
Solar
ESA
Aug-2025
Oct-2050
2.8
2.8
Solar
ESA
Mar-2022
Dec-2047
806 kW
806 kW
(a)
Summer is considered to be June 1st to September 30th and Winter is considered to be the remainder of the year.
The City’s purchased power and energy resources are contractually transmitted over Western’s Parker-Davis and Pacific-
Intertie transmission systems. Beginning January 1, 2024, with Western’s “One Transmission Rate” (“OTR”) project,
the City was able to reduce its transmission expenses substantially by rolling its point-to-point transmission resources (15
MW from West Wing 500 to Pinnacle Peak 230) into its Network Integrated Transmission Service resources which
eliminated the capacity charges for the point-to-point resources (an annual savings of $302,000). Power is then
transmitted and distributed to the City’s service area through associated distribution transformers and lines. As of January
2026, there were approximately 66 miles of overhead primary and approximately 109 miles of underground primary
distribution lines that distribute power to the City’s end-use customers.
The table below contains information with respect to the City’s Electric System.
Electric System Fees and Charges (a)
Description of Electric Services
Fee/Charge (b)
Fiscal Year 2024/25
Residential Electric Service = E1.1
Monthly Bill Per Meter
May 1 to October 31st
Customer Charge
$19.50
Usage Charge
First 1200 kWh
$0.05231 per kWh
> 1200 kWh
$0.05027 per kWh
November 1 to April 30th
Customer Charge
$16.75
Usage Charge
First 800 kWh
$0.04317 per kWh
> 800 kWh
$0.03478 per kWh
Energy Cost Adjustment Factor (c)
Minimum
$19.50
Non-Residential Service = E3.1
Monthly Bill Per Meter
May 1 to October 31st
Customer Charge (d)
$19.72
C-3
Description of Electric Services
Fee/Charge (b)
Fiscal Year 2024/25
Demand Charge
Generation
First 50 kW
$0.00 per kW
>50 kW
$3.52 per kW
Distribution
First 50 kW
$0.00 per kW
>50 kW
$0.3968 per kW
Energy Cost Adjustment Factor (c)
Distribution
First 15,000 kWh
$0.06491 per kWh
15,001-75,000 kWh
$0.04866 per kWh
>75,000 kWh
$0.02901 per kWh
November 1 to April 30th
Customer Charge (d)
$19.72
Demand Charge
Generation
First 50 kW
$0.00
>50 kW
$3.20 per kW
Distribution
First 50 kW
$0.00
>50 kW
$0.1150 per kW
Energy Cost Adjustment Factor (c)
Distribution
First 15,000 kWh
$0.05375 per kWh
15,001-75,000 kWh
$0.03994 per kWh
>75,000 kWh
$0.02060 per kWh
(a)
The information in this table reflects only certain basic fees and charges of the City’s Electric System and is not a
comprehensive statement of all such fees.
(b)
The City may require special service agreements for consumers requiring large electric loads.
(c)
The Energy Cost Adjustment Factor is a monthly per kilowatt hours (“kWh”) charge that was implemented
November 1, 2004, which allows for the full recovery of the costs of fuel and purchased power. The average Fiscal
Year 2024/25 factor for residential was $0.09907 per kWh and the average Fiscal Year 2024/25 factor for non-
residential was $0.08772 per kWh.
(d)
Monthly Customer Charge for single phase E3.1 customers is $19.72. Monthly Customer Charge for three phase
E3.1 customers is $25.74.
The information above reflects only certain basic fees and charges of the City’s Electric System and is not a
comprehensive statement of all such fees.
Electric System Rate Changes
(2020 – 2026)
Date
Rate Change
January 1, 2026
$1.00 & $5.00
(a)
February 1, 2025
$2.75 & $5.00
(b)
February 1, 2024
$2.25 & $5.00
(c)
January 1, 2023
$0.00
February 1, 2022
$1.50 & $2.50
(d)
January 1, 2021
$1.00
(e)
August 1, 2020
$1.00
(f)
C-4
(a)
For residential customers, the monthly fixed component of rates (Electric System Service Charge) was increased
by $1.00. For commercial customers, the monthly fixed component of rates was increased by $5.00.
(b)
For residential customers, the monthly fixed component of rates (Electric System Service Charge) was increased
by $2.75. For commercial customers, the monthly fixed component of rates was increased by $5.00.
(c)
For residential customers, the monthly fixed component of rates (Electric System Service Charge) was increased
by $2.25. For commercial customers, the monthly fixed component of rates was increased by $5.00.
(d)
For residential customers, the monthly fixed component of rates (Electric System Service Charge) was increased
by $1.50. For commercial customers, the monthly fixed component of rates was increased by $2.50.
(e)
For residential and commercial customers, the monthly fixed component of rates (Electric System Service Charge)
was increased by $1.00.
(f)
For residential customers only, the monthly fixed component of rates (Electric System Service Charge) was
increased by $1.00.
Electric System Customers
(Fiscal Years 2020/21 - 2024/25) (a)
Fiscal Year
Residential
Customers
Commercial
Customers
Other
Customers
Total
Customers
2024/25
15,669
2,575
226
18,470
2023/24
15,383
2,546
225
18,154
2022/23
15,082
2,546
223
17,851
2021/22
14,782
2,565
226
17,573
2020/21
14,778
2,517
224
17,519
(a)
Electric System customers as Fiscal Year end.
The following is a list of the ten largest Electric System customers in alphabetical order for Fiscal Year 2024/25.
Ten Largest Electric System Customers (a)
Arizona State University - East
Centurylink, Inc.
Ensemble Mesa Partners, LLC (Delta Marriott)
Epicurean Fine Food, Inc.
Mesa Arizona Temple
Mesa Cold Storage, Inc.
Mesa Public Schools
Rohrer Corporations
Valley Healing Group, Inc.
Valley Metro Rail
(a)
This represents an aggregation of all of the electric meters under each customer and so each entity may have
multiple meters and/or locations. The City receives electric services from the Electric System and records the
revenue as interdepartmental revenue.
The combined Fiscal Year 2024/25 Electric System fees/charges for the top ten Electric System customers set forth above
was $4.3 million, constituting approximately 8% of the total Fiscal Year 2024/25 Electric System operating revenue. No
individual Electric System customer above constitutes more than 2% of the total Fiscal Year 2024/25 Electric System
operating revenue. Additionally, while the list above is representative of the top ten Electric System customers as of
Fiscal Year 2024/25, customer consumption can fluctuate, among other things, with customer process changes, efficiency
enhancement, changes to business practices and locations, and the weather. This can result in yearly shifts in the rankings
of the specific customers. However, the City consistently uses budget forecasting methods to account for such variances.
C-5
The City also receives electric services from the Electric System and records the revenue as interdepartmental revenue.
For Fiscal Year 2024/25, Electric System interdepartmental revenues were $5.6 million. The City as a customer
constitutes approximately 10% of the total Fiscal Year 2024/25 Electric System operating revenue.
Natural Gas System
The City Energy Resources Department’s Natural Gas Utility System (“Natural Gas System”) has been in operation since
1917 and was ranked by the American Public Gas Association (“APGA”) as of Fiscal Year 2024/25, as the 11th largest
publicly-owned natural gas utility system in the United States in terms of customers served. The Natural Gas System’s
service territory is comprised of two major service areas: 1) the City Service Area (“CSA”) of approximately 90 square
miles within the City limits; and 2) the Magma Service Area (“MSA”), a 236 square mile system located southeast of the
City in Pinal County, Arizona. As of Fiscal Year 2024/25 year end, the City’s combined Natural Gas System operated
1,552 miles of distribution mains and served approximately 80,161 total customers comprised of 77,474 residential and
2,687 commercial and other customers.
The City’s Natural Gas System’s natural gas supplies and associated contracts have been structured to fulfill not only
existing system requirements but anticipate system growth and peak needs of that growth. During Fiscal Year 2024/25,
the Natural Gas System’s natural gas supplies were provided by BP Energy Company (“BP”), ConocoPhillips (“COP”),
and Tenaska (“TMV”). The natural gas supplies provided by BP, COP, and TMV came from both the San Juan Basin in
New Mexico and the Permian Basin in West Texas through five separate contracts.
The natural gas was transported via a major pipeline system owned and operated by El Paso Natural Gas Company LLC,
a Kinder Morgan company (“EPNG”). EPNG provided the transport service under the terms and conditions of
Transportation Service Agreements (“TSA”) No. FT2AF000 and No. FT2AE000 that were effective February 1, 2013.
During Fiscal Year 2013/14, TSA No. FT2AE000 was extended for 10 years effective July 1, 2014, given that it was due
to expire June 30, 2014; in 2018, TSA No. FT2AE000 was amended, and an additional year was added to the contract
term. In March 2025, Mesa further extended TSA No. FT2AE000 until June 30, 2075. TSA No. FT2AF000 continues
on an “evergreen” year-to-year basis. Additionally, in early 2025, the City executed TSA No. 62138-FT1EPNG. The
TSAs provide the City’s Natural Gas System with the ability to transport its total, daily natural gas supplies to the current
six (6) Natural Gas System-owned gate stations located in both the CSA and MSA. Additionally, the City is expanding
the Clausen Gate station to accommodate additional capacity from the newest TSA, with completion anticipated in the
third quarter of 2026. Although transmission is anticipated to be adequate to accommodate normal growth in the Natural
Gas System, constraints on interstate and regional transmission have been identified as potential limiting factors. In late
2025, to address future capacity needs, the City joined major electric and natural gas utilities in Arizona in subscribing to
capacity on Energy Transfer’s 516-mile pipeline expansion from Texas to Arizona, expected to be in service in the fourth
quarter of 2029.
For Fiscal Year 2024/25, the Natural Gas System experienced a total coincident hourly system peak demand of 1,048
dekatherms per hour (“DTh/hr”) on January 14, 2025 in the CSA and a peak demand of 696 DTh/hr on January 14, 2025
in the MSA. Total natural gas supply deliveries at the Natural Gas System’s gate stations during Fiscal Year 2024/25
were 3,956,694 dekatherms (“DTh”). Facilities and distribution infrastructure necessary to provide service to the majority
of the CSA has been completed with the exception of infill projects. Continued growth of the Natural Gas System,
especially in the MSA will require the extension of distribution mainlines and associated infrastructure in order to serve
developing residential and commercial areas.
The following tables provide information with respect to the City’s Natural Gas System.
Natural Gas System Fees and Charges (a)
Description of Natural Gas Services
Fee/Charge
Fiscal Year 2024/25
City Service Area Residential Gas Service = G1.1
May 1st through October 31st
Gas System Service Charge
$17.31
First 25 Therms
$0.7440 / therm
All Additional Therms
$0.3681 / therm
Natural Gas Supply Cost Adjustment (b)
November 1st through April 30th
Gas System Service Charge
$20.24
C-6
Description of Natural Gas Services
Fee/Charge
Fiscal Year 2024/25
First 25 Therms
$0.7440 / therm
All Additional Therms
$0.8072 / therm
Natural Gas Supply Cost Adjustment (b)
City Service Area General Gas Service = G3.1
May 1st through October 31st
Monthly Service Charge
$44.66
First 1500 Therms
$0.5929 / therm
All Additional Therms
$0.4366 / therm
Natural Gas Supply Cost Adjustment (b)
November 1st through April 30th
Monthly Service Charge
$54.34
First 1500 Therms
$0.6421 / therm
All Additional Therms
$0.6308 / therm
Natural Gas Supply Cost Adjustment (b)
Magma Service Area Residential Gas Service = GM1.1
May 1st through October 31st
Gas System Service Charge
$18.30
First 25 Therms
$0.8203 / therm
All Additional Therms
$0.4058 / therm
Natural Gas Supply Cost Adjustment (b)
November 1st through April 30th
Gas System Service Charge
$21.54
First 25 Therms
$0.8203 / therm
All Additional Therms
$0.8901 / therm
Natural Gas Supply Cost Adjustment (b)
Magma Service Area General Gas Service = GM3.1
May 1st through October 31st
Monthly Service Charge
$51.48
First 1500 Therms
$0.7324 / therm
All Additional Therms
$0.5393 / therm
Natural Gas Supply Cost Adjustment (b)
November 1st through April 30th
Monthly Service Charge
$63.41
First 1500 Therms
$0.7929 / therm
All Additional Therms
$0.7790 / therm
Natural Gas Supply Cost Adjustment (b)
(a)
The information in this table reflects only certain basic fees and charges of the City’s Natural Gas System and is
not a comprehensive statement of all such fees.
(b)
The Natural Gas Supply Cost Adjustment allows for the full recovery of the cost of natural gas. It is a monthly per
billed therm charge. The average factor for Fiscal Year 2024/25 for residential and general service was $0.35066
per therm.
Natural Gas System Rate Changes
(2020-2026)
Date
Rate Changes
January 1, 2026
$0.00 & $3.00
(a)
March 1, 2025
$0.00 & $3.00
(b)
February 1, 2024
$0.75 & $2.00
(c)
January 1, 2023
$0.75 & $2.00
(d)
February 1, 2022
$0.50
(e)
January 1, 2021
$0.25 & $2.00
(f)
August 1, 2020
$0.75 & $2.00
(g)
C-7
(a)
The increase in the monthly fixed component of rates (Service Charge) affected non-residential customers ($3.00).
(b)
The increase in the monthly fixed component of rates (Service Charge) affected non-residential customers ($3.00).
(c)
The increase in the monthly fixed component of rates (Service Charge) affected both residential ($0.75) and non-
residential customers ($2.00).
(d)
The increase in the monthly fixed component of rates (Service Charge) affected both residential ($0.75) and non-
residential customers ($2.00).
(e)
The increase in the monthly fixed component of rates (Service Charge) affected only residential customers.
(f)
The increase in the monthly fixed component of rates (Service Charge) affected both residential ($0.25) and non-
residential customers ($2.00).
(g)
The increase in the monthly fixed component of rates (Service Charge) affected both residential ($0.75) and non-
residential customers ($2.00).
Natural Gas System Customers
(Fiscal Years 2020/2021 - 2024/25) (a)
Fiscal Year
Residential
Customers
Commercial
Customers
Other
Customers
Total
Customers
2024/25
77,474
2,448
239
80,161
2023/24
74,382
2,431
237
77,050
2022/23
71,725
2,394
236
74,355
2021/22
69,595
2,353
234
72,182
2020/21
67,718
2,331
232
70,281
(a)
Natural Gas System customers as of Fiscal Year end.
The following is a list of the ten largest Natural Gas System customers in alphabetical order for Fiscal Year 2024/25.
Ten Largest Natural Gas System Customers (a)
Arizona Corrugated Container
Banner Corporate Center - Mesa
Commercial Metals Company
Dexcom, Inc.
Mesa Organic Baking Company, Inc.
Mesa Public Schools
Pacific Standard Specialties, Inc.
Regional Public Transit Authority
The Boeing Company
Waste Management of Arizona, Inc.
(a)
This represents an aggregation of all of the gas meters under each customer and so each entity may have multiple
meters and/or locations. The City receives gas services from the Natural Gas System and records the revenue as
interdepartmental revenue.
The combined Fiscal Year 2024/25 Natural Gas System fees/charges for the top ten Natural Gas System customers set
forth above was $6.1 million, constituting approximately 9% of the total Fiscal Year 2024/25 Natural Gas System
operating revenue. No individual Natural Gas System customer constitutes more than 2% of the total Fiscal Year 2024/25
Natural Gas System operating revenue. Additionally, while the list above is representative of the top ten Natural Gas
System customers as of Fiscal Year 2024/25, customer consumption can fluctuate, among other things, with customer
process changes, efficiency enhancement, changes to business practices and locations and the weather. This can result in
yearly shifts in the rankings of the specific customers. However, the City consistently uses conservative budget
forecasting methods to account for such variances.
C-8
The City receives gas services from the Natural Gas System and records the revenue as interdepartmental revenue. For
Fiscal Year 2024/25 Natural Gas System interdepartmental revenues for the City were $1.2 million.
Water System
The water utility system of the City (the “Water System”) serves a population of approximately 500,000 within a service
area of 128 square miles. The Water System currently consists of approximately 161,204 residential, commercial, and
other connections. The City is well positioned to provide reliable delivery of quality water to meet current and future
demands.
Water is provided from three general sources: the Salt and Verde River system, the Colorado River via the Central Arizona
Project (“CAP”) canal, and groundwater wells. In addition, the City has rights to stored groundwater in an amount equal
to approximately five times its annual demand to mitigate future drought. The City is currently designated with a 100-
Year Assured Water Supply by the Arizona Department of Water Resources. The City has adequate supplies for normal
growth and has worked hard to provide current and future availability of water supplies for normal and drought conditions.
The City has also adopted regulations which require new large water users to acquire additional supplies to accommodate
their consumption.
Surface water from the Salt and Verde Rivers is treated at the Val Vista Water Treatment Plant. The plant is jointly owned
by the City and the City of Phoenix, Arizona (“Phoenix”). Currently, the plant has a treatment capacity of 220 million
gallons per day (“mgd”), of which the City owns 90 mgd. The plant produces approximately 38% of the water delivered
by the City.
Colorado River water is delivered to the City via the CAP Canal. The water is treated at the Brown Road Water Treatment
Plant (“BRWTP”) and the Signal Butte Water Treatment Plant (“SBWTP”). Currently the BRWTP has a treatment
capacity of 72 mgd and produces approximately 36% of the City’s water. The SBWTP has a treatment capacity of 24
mgd and produces approximately 21% of the City’s water. The SBWTP Phase II Expansion project is currently underway,
and construction is expected to be completed by February 2027. This expansion project will increase treatment capacity
from 24 to 48 mgd and add 8 million gallons of storage.
Groundwater wells produce the remaining 5% of the water delivered by the City on an average day. The City currently
has 32 active groundwater wells with a pumping capacity of approximately 90 mgd. The continued development of new
wells provides water supplies for future growth, but more importantly, provides redundancy in case of drought, scheduled
maintenance of surface water canals, or operational issues within the surface water system.
The record peak demand day occurred in 2005 and amounted to approximately 138 million gallons of water delivered.
The average demand in calendar year 2025 was approximately 90 mgd, with a peak day of approximately 135 million
gallons. The total current production capacity of the Water System is approximately 276 mgd, increasing to 300 mgd
upon completion of the Signal Butte expansion project.
In addition to the plants and wells outlined above, the City has 19 reservoirs and other storage facilities in the Water
System service area capable of holding 109 million gallons of treated water. The City has over 2,000 miles of water
distribution mains. A backflow prevention program has been implemented to protect the quality of the drinking water
from possible sources of contamination.
The City’s new “Integrated Water/Wastewater Master Plan” was recently completed in April of 2025, updating individual,
citywide water and wastewater master plans completed in 2018.
The City is actively involved in promoting water conservation. As public education plays a large role in conservation,
the City makes available a variety of free publications, participates in community and business sponsored events,
maintains a speaker’s bureau, and sponsors a youth education program. The City has also instituted a rebate program for
low water use landscaping and has generally incorporated an inclining block rate structure to encourage water
conservation.
Notwithstanding the foregoing, while the multiple sources of supply available to the City along with the various plants,
wells, reservoirs and other facilities may help to mitigate risk, future water availability, drought, flooding, environmental
conditions and other climate related conditions in Arizona and the other Colorado River Basin states are unpredictable
and subject to change. For example, since January 2022, Arizona has operated under a drought contingency plan and has
received a reduction to its deliveries of Colorado River water as described above. Additional reductions may result from
the federal Colorado River Post 2026 Operations process, including the development of new operational guidelines for
C-9
Lake Powell and Lake Mead by the Bureau of Reclamation in coordination with the Colorado River Basin states. The
impacts associated with climate variability, natural disasters, and other “force majeure” events on the City cannot be
predicted, but could be significant.
The Lead and Copper Rule Revisions, announced by the EPA in November 2023, require water systems to prepare and
maintain an inventory of service line materials. Initial inventories were required to be submitted to state primacy agencies
by October 16, 2024.
Water System staff responsible for managing and implementing drinking water quality programs reviewed records and
performed field verifications along the customer service lines and the City (public) side to determine service line material.
Data for 170,966 service lines were uploaded into the 120Water database in compliance with the October 16, 2024, initial
inventory deadline.
As of February 2026, remaining inventory includes 433 unverified service lines (147 residential; 286 commercial). The
City has not identified any lead service line materials and records indicate that there is no lead in the Water System.
The Water System is in full compliance with the Lead and Copper Rule promulgated by the EPA that limits the
concentration of lead and copper allowed in the drinking water at the consumer’s tap. The rule also limits the permissible
amount of pipe corrosion occurring due to the water itself. The City completed required triennial monitoring in 2024.
The fifth Unregulated Contaminant Monitoring Rule (“UCMR5”) requires monitoring of the drinking water entry points
of public water systems for 29 selected per- and poly-fluoroalkyl substances (“PFAS”), which was completed by the City
in November 2025. Ongoing monitoring results to date comply with the final PFAS National Primary Drinking Water
Regulation (“NPDWR”) contaminant levels in the published rule. The City intends to utilize the UCMR5 monitoring
data to satisfy some of the initial monitoring requirements of the PFAS NPDWR rule.
The following tables provide information with respect to the City’s Water System.
Water System Fees and Charges (a)
Description of Water System Services
Fees/Charges
Fiscal Year 2024/25
Monthly Minimum Bill-Residential, All Zones(b)
¾ Inch
$32.17
1 Inch
$36.04
1 ½ Inch
$50.44
2 Inches
$66.17
3 Inches
$131.04
Monthly Volume Charge - Residential
4,000 through 6,000 Gallons of Water
$3.72/1,000 Gallons
Next 8,000 Gallons of Water
$5.67/1,000 Gallons
Next 10,000 Gallons of Water
$6.94/1,000 Gallons
All additional 1,000 Gallons of Water
$7.83/1,000 Gallons
(a)
The information in this table reflects only certain basic fees and charges of the City’s Water System and is not a
comprehensive statement of all such fees.
(b)
Includes the first 3,000 gallons of water as a minimum charge for capacity availability.
C-10
Water System Rate Changes - Residential
(2020-2026)
Date
Rate Change
January 1, 2026
2.50%
February 1, 2025
4.00
February 1, 2024
3.00
January 1, 2023
2.75
February 1, 2022
2.50
January 1, 2021
1.50
July 1, 2020
0.00
Water System Customers
(Fiscal Years 2019/20 – 2024/25) (a)
Fiscal Year
Residential
Customers
Commercial
Customers (b)
Multi-Unit
Customers
Total
Customers
2024/25
144,123
12,164
4,917
161,204
2023/24
142,956
11,927
4,863
159,746
2022/23
142,205
11,740
4,822
158,767
2021/22
140,908
11,572
4,796
157,276
2020/21
139,121
11,370
4,699
155,189
(a)
Average number of Water System customers for each Fiscal Year.
(b)
Including interdepartmental.
The following is a list of the ten largest Water System customers in alphabetical order for Fiscal Year 2024/25.
Ten Largest Water System Customers
Banner Corporate Center - Mesa
Cadence Homeowners Association
Cal-Am, Inc.
Commercial Metal Company
Eastmark Residential Association
Gilbert Public Schools
Mesa Public Schools
Niagara Bottling, LLC
Platypus Development, LLC
The Church of Jesus Christ of Latter-Day Saints
The combined Fiscal year 2024/25 Water System fees/charges for the top ten Water System customers set forth above
was $11.4 million constituting approximately 5% of the total Fiscal Year 2024/25 Water System operating revenue.
Additionally, while the list above is representative of the top ten Water System customers as of Fiscal Year 2024/25,
customer consumption can fluctuate, among other things, with customer process changes, efficiency enhancement,
changes to business practices and locations and the weather. This can result in yearly shifts in the rankings of the
specific customers. However, the City consistently uses budget forecasting methods to account for such variances.
The City also receives water services from the Water System and records the revenue as interdepartmental revenue.
For Fiscal Year 2024/25 Water System interdepartmental revenues for the City were $6.0 million.
Wastewater System
The wastewater utility system of the City (the “Wastewater System”) serves a population of approximately 500,000
within a service area of 128 square miles. The Wastewater System currently serves approximately 144,178
connections.
C-11
The Phoenix-operated 91st Avenue Wastewater Treatment Plant (“WWTP”), which is jointly owned by the City,
Phoenix, and three other nearby municipalities within the Sub-Regional Operating Group (“SROG”), currently has a
230 mgd capacity. The City’s share of that amount is 26.5 mgd.
The City’s Northwest Water Reclamation Plant (“NWWRP”) currently has a treatment capacity of 12 mgd. Reclaimed
water from the NWWRP is currently primarily delivered to the Granite Reef Underground Storage Project where it is
stored to meet future potable water demands. The NWWRP also has solids treatment processing capabilities.
The Southeast Water Reclamation Plant (“SEWRP”) serves the northeastern part of the City and has a plant liquids
handling capacity of 8 mgd. Bio-solids from the SEWRP are sent to the 91st Avenue WWTP for further processing.
Substantial components of this facility are nearing the end of useful service, and it is being carefully reviewed by the
City with respect to future operations.
The Greenfield Water Reclamation Plant (“GWRP”) is a regional plant operated by the City, and co-owned with the
Towns of Gilbert and Queen Creek. The GWRP serves the southeast portion of the City and a segment of the northeast
portion of the City. The GWRP liquids treatments capacity is currently 30 mgd of which the City owns 14 mgd and
has a bio-solids processing capacity of 30 mgd of which the City owns 14 mgd.
Reclaimed water from the SEWRP and the GWRP is delivered to the Gila River Indian Community (the
“Community”) for agricultural use as part of a contractual water exchange. Through this exchange, the City receives
four acre-feet of CAP water for delivery by its potable system for every five acre-feet of reclaimed water that is
delivered to the Community. The Central Mesa Reuse Pipeline (“CMRP”) project will allow reclaimed water from
the City’s NWWRP to be delivered to the Community. This project, completed February 2026, improves upon the
existing contractual water exchange and enhance the City’s CAP water portfolio. Moreover, this project provides for
additional redundancy in case of drought, and further support future customer demand and economic development in
the southeast portion of the City. With completion of the CMRP, the City anticipates the ability to deliver up to 12,000
additional acre-feet of effluent in return for CAP water.
The City’s Wastewater System and current agreements allow for a treatment capacity of 60.5 mgd. The average
during calendar year 2025 was 34.3 mgd, with a peak day of 41.9 million gallons.
In addition to the various treatment facilities outlined above, the City has approximately 1,750 miles of sewer mains,
14 lift stations, 21 odor control stations, 5 metering stations, and 31 diversion structures in its wastewater collection
system. In addition, the City is part owner in the Baseline/Southern Interceptors, and the Salt River Outfall interceptor
mains that convey wastewater to the 91st Avenue WWTP.
The City’s new “Integrated Water/Wastewater Master Plan” was recently completed in April of 2025, updating
individual, citywide water and wastewater master plans completed in 2018.
The Wastewater System is authorized to discharge treated domestic wastewater from the three reclamation plants.
Water System staff monitor discharges as specified in five Aquifer Protection Permits (“APP”), three Arizona
Pollutant Discharge Elimination System (“AZPDES”) Permits, and one National Pollutant Discharge Elimination
System (“NPDES”) Permit. Each month, 1,564 parameters are tested and reported to meet compliance for the APP,
AZPDES and NPDES permits. In addition, each water reclamation plant is monitored for compliance with air quality
permits. Regular evaluations and recommendations are performed to ensure continued compliance with applicable
environmental regulations.
C-12
The following tables provide information with respect to the City’s Wastewater System.
Wastewater System Fees and Charges (a)
Description of Wastewater System Services
Fees/Charges
Fiscal Year 2024/25
Residential Sewer Service - Inside City
Monthly Bill
Service Charge
$24.11
User Charge Component
(average winter water consumption)
$1.98/1,000 gallons
Capital Related Component
(average winter water consumption in excess of 5,000 gallons)
$3.58/1,000 gallons
General Commercial Sewer Service - Inside City
Monthly Bill
Service Charge
$26.62
User Charge Component (all water used)
$2.13/1,000 gallons
Capital Related Component
(all water used in excess of 5,000 gallons)
$3.83/1,000 gallons
Multi-Unit Dwelling Sewer Service - Inside City
Monthly Bill
Service Charge
$26.62
User Charge Component (all water used)
$2.13/1,000 gallons
Capital Related Component (all water used in excess of 5,000 gallons)
$3.83/1,000 gallons
(a)
The information in this table reflects only certain basic fees and charges of the City’s Wastewater System and
is not a comprehensive statement of all such fees.
Wastewater System Rate Changes - Residential
(2020-2026)
Date
Rate Change
January 1, 2026
7.50%
February 1, 2025
7.50
February 1, 2024
4.75
January 1, 2023
4.25
February 1, 2022
3.00
January 1, 2021
3.50
July 1, 2020
0.00
Wastewater System Customers
(Fiscal Years 2020/21 - 2024/25) (a)
Fiscal Year
Residential
Customers
Commercial
Customers (b)
Multi-Unit
Customers
Total
Customers
2024/25
133,356
6,157
4,665
144,178
2023/24
131,919
6,083
4,610
142,612
2022/23
130,160
6,004
4,550
140,714
2021/22
128,695
5,895
4,520
139,110
2020/21
126,102
5,810
4,473
136,385
(a)
Average number of Wastewater System customers for each Fiscal Year.
(b)
Including interdepartmental.
C-13
The following is a list of the ten largest Wastewater System customers in alphabetical order for Fiscal Year 2024/25.
Ten Largest Wastewater System Customers
Arizona State University - East
Banner Corporate Center - Mesa
Cal-Am Properties, Inc.
Fry’s Food Stores
International Rectifier EPI Services
Mesa Public Schools
MHC Viewpoint, LLC
Niagara Bottling, LLC
Norton S. Karno, APC ERT
Town of Gilbert
The combined Fiscal Year 2024/25 Wastewater System fees/charges for the top ten Wastewater System customers set
forth above was $5.5 million constituting approximately 5% of the total Fiscal Year 2024/25 Wastewater System
operating revenue. Additionally, while the list above is representative of the top ten Wastewater System customers
as of Fiscal Year 2024/25, customer consumption can fluctuate, among other things, with customer process changes,
efficiency enhancement and changes to business practices and locations. This can result in yearly shifts in the rankings
of the specific customers. However, the City consistently uses budget forecasting methods to account for such
variances.
The City receives wastewater services from the Wastewater System and records the revenue as interdepartmental
revenue. For Fiscal Year 2024/25 Wastewater System interdepartmental revenues for the City were $0.6 million.
Solid Waste System
The City’s solid waste system (the “Solid Waste System”) is the exclusive provider of solid waste collection services
to single family residences located within the City. Standard residential solid waste service includes once per week
collection of trash. The residential Solid Waste System currently consists of approximately 140,117 customers. The
City continues to operate a permanent Household Hazardous Materials (HHM) facility.
The City competes with private solid waste hauler and collection services for commercial customers within the City.
The City commercial program has approximately 2,288 customers. The City also provides roll off services to both
residential and commercial customers and serves approximately 950 customers.
The City has agreements with multiple vendors that operate landfills, transfer stations and recycling centers for the
disposal of solid waste and processing of recyclable materials. The City completes a procurement process in
connection with the agreements with such vendors to ensure contracted vendors have sufficient disposal capacity to
support City demand. The City additionally completes studies and forecasts to determine long-term planning
objectives with respect to safe, appropriately permitted, and reliable landfill capacity in future years. These additional
facilities allow the City to reduce its overall operating costs, and the facilities meet all Federal Subtitle D requirements.
The information in the following tables above reflects only certain basic fees and charges of the City’s Solid Waste
System and is not a comprehensive statement of all such fees.
C-14
Solid Waste System Fees and Charges
Residential Solid Waste System Monthly Billing (Fiscal Year 2024/25)
Rates Applicable Per Dwelling Unit (4 or Less Residential Units Per Structure)
R1.2, R1.2A, R1.2B, R1.21, R1.22, R1.23, R1.28
Rate R1.2*:
$33.17 per dwelling unit for once per week 90 gallon trash barrel and recycling barrel collection.
Rate R1.2A*:
Rate R1.2B*:
$29.60 per dwelling unit for once per week 60 gallon trash barrel and recycling barrel collection.
$27.89 per dwelling unit for once per week 35 gallon trash barrel and recycling barrel collection.
Rate R1.21:
$15.66 per additional 90 gallon trash barrel collected on the same day as the first trash barrel. Service
will be billed for a minimum of six months. This rate is only eligible for R1.2, R1.24 and R1.29
customers.
Rate R1.22:
$15.66 per additional 60 gallon trash barrel collected on the same day as the first trash barrel. Service
will be billed for a minimum of six months.
Rate R1.23:
$35.59 for the first 90 gallon trash barrel in addition to the R1.2 or R1.24 rate for twice per week trash
collection. A $15.81 service fee applies to each additional barrel that is serviced twice per week.
Rate R1.28:
$7.84 per 90 gallon green waste barrel collected once per week in conjunction with City trash service.
Service will be billed for a minimum of six months.
* An $1.00 per billing cycle Mesa Green and Clean fee will be assessed to each dwelling unit.
Rates Applicable Per Dwelling Unit (5 or More Residential Units Per Structure)
R1.21, R1.22, R1.23, R1.24, R1.25, R1.28
Rate R1.24*:
Rate R1.25*:
$29.60 per dwelling unit for a multi-unit structure with five or more residential units for once per week
90 gallon trash barrel and recycling barrel collection when the water account servicing the units is
active with one bill payee.
$29.60 per dwelling unit for a multi-unit structure with five or more residential units for once per week
60 gallon trash barrel and recycling barrel collection when the water account servicing the units is
active with one bill payee.
Rate R1.21:
$15.66 per additional 90 gallon trash barrel collected on the same day as the first trash barrel. Service
will be billed for a minimum of six months. This rate is only eligible for R1.2, R1.24 and R1.29
customers.
Rate R1.22:
$15.66 per additional 60 gallon trash barrel collected on the same day as the first trash barrel. Service
will be billed for a minimum of six months.
Rate R1.23:
$35.59 for the first 90 gallon trash barrel in addition to the R1.2 or R1.24 rate for twice per week trash
collection. A $15.81 service fee applies to each additional barrel that is serviced twice per week.
Rate R1.28:
$7.84 per 90 gallon green waste barrel collected once per week in conjunction with City trash service.
Service will be billed for a minimum of six months.
* An $1.00 per billing cycle Mesa Green and Clean fee will be assessed to each dwelling unit.
C-15
Rates Applicable Per Dwelling Unit (Every Other Week Recycling)
R1.28, R1.29, R2.9A, R2.9B
Rate R1.29*:
$32.09 per dwelling unit for once per week 90 gallon trash barrel collection and every other week
recycling barrel collection.**
Rate R2.9A*:
$28.51 per dwelling unit for once per week 60 gallon trash barrel collection and every other week
recycling barrel collection.**
Rate R2.9B*:
$26.83 per dwelling unit for once per week 35 gallon trash barrel collection and every other week
recycling barrel collection.**
Rate R1.28:
$7.84 per 90 gallon green waste barrel collected once per week in conjunction with City trash service.
Service will be billed for a minimum of six months.
*
A $1.00 per billing cycle Mesa Green and Clean fee will be assessed to each dwelling unit. Service will be
billed for a minimum of six months.
**
Applicability subject to approval of the Solid Waste Division of the City’s Environmental Management and
Sustainability Department.
Commercial Solid Waste System Monthly Billing
Rate R3.8, R6.2:
$33.17 for the first 90 gallon trash barrel and recycling barrel for once per week collection.
Rate R3.8A, R6.2A:
$29.60 for the first 60 gallon trash barrel and recycling barrel for once per week collection.
Rate R3.81, R6.21:
$15.66 per additional 90 gallon trash barrel for once per week collection on same geographic in-
zone day as the first barrel. This rate is only eligible for R3.8 and R6.2 customers. Service will
be billed for a minimum of six months.
Rate R3.83, R6.23:
$15.66 per additional 60 gallon trash barrel for once per week collection on same geographic in-
zone day as the first barrel. Service will be billed for a minimum of six months.
Rate R3.82, R6.22:
Rate 3.89, R6.29:
$35.59 for the first 90 gallon trash barrel in addition to the above R3.8, R6.2 rate for twice per
week collection. A $15.81 service fee applies to each additional barrel that is serviced twice per
week.
$10.00 per 90/60 gallon recycling barrel collected oncer per week in conjunction with City trash
service. Service will be billed for a minimum of six months.
Rate R3.88, R6.28:
$7.84 per 90 gallon green waste barrel collected once per week in conjunction with City trash
service. Service will be billed for a minimum of six months.
Solid Waste System Residential Rate Changes
(2020-2026)
Date
Rate Change
January 1, 2026
5.50%
February 1, 2025
5.50
February 1, 2024
3.00
February 1, 2023
2.00
February 1, 2022
2.00
January 1, 2021
0.00
March 1, 2020
0.00
Solid Waste System Customers
(Fiscal Years 2020/21 - 2024/25) (a)
Fiscal Year
Residential
Customers
Commercial
Customers
Roll Off
Customers
Total
Customers
2024/25
140,117
2,288
950
143,355
2023/24
139,477
2,215
1,079
142,771
2022/23
138,736
2,357
1,326
142,419
2021/22
138,502
2,482
1,632
142,616
2020/21
136,462
2,429
1,689
140,580
C-16
(a)
Solid Waste System customers as of Fiscal Year end.
The following is a list of the ten largest Solid Waste System customers in alphabetical order for Fiscal Year 2024/25.
Ten Largest Solid Waste System Customers
Cal-Am Properties, Inc.
Casa Fiesta Temple Limited Partnership
Equity Lifestyles Properties, Inc. DBA MHC Operating LP
Mesa Public Schools
MHC Monte Vista, LLC
MHC Viewpoint, LLC
MPS-Refuse Only Accounts
Norton S. Karno, APC ERT
Tesoro at Greenfield Condominium Association
Vista del Sol, LLC
The combined Fiscal Year 2024/25 Solid Waste System fees/charges for the top ten Solid Waste System customers set
forth above was $2.9 million constituting approximately 4% of the total Fiscal Year 2024/25 Solid Waste System
operating revenue. No individual Solid Waste System customer above constitutes more than 1% of the total Fiscal Year
2024/25 Solid Waste System operating revenue.
The City receives solid waste services from the Solid Waste System and records the revenue as interdepartmental revenue.
For Fiscal Year 2024/25 Solid Waste System interdepartmental revenues for the City were $0.7 million.
Billing and Collection Procedures
The City bills its utility customers in cycles throughout the month with each customer being billed at approximately the
same time every month. Electric, gas and water accounts are based on meter readings, wastewater charges are based on
water usage and solid waste disposal fees vary depending on the size of the containers and frequency of collections.
The City’s collection procedures for delinquent utility accounts involve a series of billings and notices with a
discontinuance of service at the end of 72 days. Due to the collection procedures, utility deposits required on various
accounts and the nature of the service being provided, the City has experienced write-offs at or below one-quarter of one
percent during the past three Fiscal Years.
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APPENDIX D
CITY OF MESA, ARIZONA
AUDITED GENERAL PURPOSE FINANCIAL STATEMENTS FOR
THE FISCAL YEAR ENDED JUNE 30, 2025
The following audited financial statements are the most recent available to the City. These audited financial statements
are not current and may not represent the current financial conditions of the City.
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APPENDIX E
BOOK-ENTRY-ONLY SYSTEM
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E-1
BOOK-ENTRY-ONLY SYSTEM
This information concerning DTC and DTC’s book-entry system has been obtained from DTC and the City takes
no responsibility for the accuracy thereof. The Beneficial Owners (defined below) should confirm this information
with DTC or the DTC participants.
DTC will act as securities depository for the Bonds. The Bonds will be executed and delivered 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 Bonds certificate will be executed and delivered 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 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 Direct Participants, “Participants”). DTC has a
rating of “AA+” from Standard & Poor’s. 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 Obligation (“Beneficial
Owner”) is in turn to be recorded on the 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 Participant 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 Participants 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 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 Participants 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 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 Bonds documents. For example,
Beneficial Owners of Bonds may wish to ascertain that the nominee holding the 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 Registrar 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 a maturity are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
E-2
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).
Redemption proceeds and principal and interest payments on the Bonds 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 Registrar, 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 City or the Registrar, subject to any statutory or regulatory requirements as may be in effect from
time to time. Payment of redemption proceeds and principal and interest payments to Cede & Co. (or such other nominee
as may be requested by an authorized representative of DTC) is the responsibility of the City or the Registrar,
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 Participants and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered through its Participant to the
Registrar, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant’s interests
in the Bonds, on DTC’s records, to the Registrar. The requirement for physical delivery of Bonds in connection with an
optional tender or mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred
by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Registrar’s DTC
account.
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 Registrar. Under such circumstances, in the event that a successor depository is not obtained,
Bond certificates are required to be printed and delivered.
The City may decide to discontinue the system of book-entry-only transfers through DTC (or a successor securities
depository). In that event, Bond certificates will be printed and delivered to DTC.
NONE OF THE CITY OR MUNICIPAL ADVISOR WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO
DTC, TO DIRECT PARTICIPANTS, OR TO INDIRECT PARTICIPANTS WITH RESPECT TO (1) THE
ACCURACY OF ANY RECORDS MAINTAINED BY DTC, ANY DIRECT PARTICIPANT OR ANY INDIRECT
PARTICIPANT; (2) ANY NOTICE THAT IS PERMITTED OR REQUIRED TO BE GIVEN TO THE OWNERS OF
THE BONDS UNDER THE BOND RESOLUTION; (3) THE PAYMENT BY DTC OR ANY DIRECT PARTICIPANT
OR INDIRECT PARTICIPANT OF ANY AMOUNT WITH RESPECT TO THE PRINCIPAL OR INTEREST OR
PAYMENT AMOUNT DUE WITH RESPECT TO THE PRINCIPAL OR INTEREST OR PAYMENT AMOUNT DUE
WITH RESPECT TO THE BONDS; (4) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS THE
OWNER OF THE BONDS; OR (5) ANY OTHER MATTERS.
APPENDIX F
FORM OF APPROVING LEGAL OPINION
F-1
[Closing Date]
Mayor and Council
City of Mesa, Arizona
Re: City of Mesa, Arizona General Obligation Bonds, Series 2026
We have examined copies of the proceedings of the Mayor and Council of the City of Mesa, Arizona (the “City”), and
other proofs submitted to us relative to the sale and issuance of the captioned 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, and the provisions of Title 35, Chapter 3,
Article 3, 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 or amount, to pay the
principal of and interest on the Bonds.
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. In the case of the alternative minimum tax
imposed by Section 55(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), on applicable corporations
(as defined in Section 59(k) of the Code), interest on the Bonds is not excluded from the determination of adjusted
financial statement income. We express no opinion regarding other tax consequences resulting from the ownership, receipt
or accrual of interest on, or disposition of, the Bonds. 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 the resolution authorizing issuance of the Bonds, adopted by the Mayor and Council of the City on April 6,
2026, 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 limitations in the penultimate paragraph hereof, 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,
APPENDIX G
FORM OF CONTINUING DISCLOSURE UNDERTAKING
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G-1
CITY OF MESA, ARIZONA
$56,275,000*
GENERAL OBLIGATION BONDS,
SERIES 2026
CONTINUING DISCLOSURE UNDERTAKING
This Continuing Disclosure Undertaking (this “Undertaking”) is executed and delivered by the City of Mesa,
Arizona (the “City”), in connection with the sale and issuance of $_______,000 principal amount of City of Mesa,
Arizona General Obligation Bonds, Series 2026 (the “Bonds”). The Bonds are being issued pursuant to Resolution
No. ____ adopted by the City Council of the City on April 6, 2026 (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 _______, 2026.
“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.
“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.
* Subject to change.
G-2
“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 590485)
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 Financial 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.
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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:
(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.
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14.
Governing Law. This Undertaking shall be governed by the laws of the State.
DATED: [Closing Date]
CITY OF MESA, ARIZONA
By ______________________________________________
Deputy City Manager/Chief Financial Officer
G-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 each case, actual results for the most recently completed fiscal year only):
a.
Security for and Sources of Payment of the Bonds – Sources of Payment of the Bonds and Other
City Bonds;
b.
Appendix B – City of Mesa, Arizona, Financial Data – Statements of Bonds Outstanding;
c.
Appendix B – City of Mesa, Arizona, Financial Data – Direct and Overlapping General Obligation
Bonded Debt to be Outstanding;
d.
Appendix B – City of Mesa, Arizona, Financial Data – Direct and Overlapping Assessed Values
and Total Tax Rates;
e.
Appendix B – City of Mesa, Arizona, Financial Data – Net Assessed Limited Property Value by
Property Classification;
f.
Appendix B – City of Mesa, Arizona, Financial Data – Net Assessed Limited Property Values of
Major Taxpayers; and
g.
Appendix B – City of Mesa, Arizona, Financial Data – Real and Secured Property Taxes Levied
and Collected.
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, 2027. 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 this Undertaking, the
City will disseminate a notice of such change as required by Section 4, including changes in fiscal year or GAAP.
G-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.
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