Chandler GO Bonds-Series 2021-Preliminary Official Statement-draft
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PRELIMINARY OFFICIAL STATEMENT DATED ______ __, 2021
NEW ISSUE – BOOK-ENTRY-ONLY
RATINGS: Fitch:
“___”
Moody’s:
“___”
S&P:
“___”
See “RATINGS” herein
In the opinion of Gust Rosenfeld P.L.C., Phoenix, Arizona, Bond Counsel, under existing laws, regulations, rulings and judicial decisions,
and assuming continuing compliance with certain restrictions, conditions and requirements by the City as mentioned un der “TAX
EXEMPTION” herein, interest income on the Bonds will be excluded from gross income for federal income tax purposes. Interest income
on the Bonds will not be an item of preference to be included in the alternative minimum tax. In the opinion of Bond Counsel, interest
income on the Bonds is exempt from Arizona income taxes. See “TAX EXEMPTION,” “ORIGINAL ISSUE PREMIUM” and “ORIGINAL
ISSUE DISCOUNT” herein.
$33,375,000*
CITY OF CHANDLER, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2021
Dated: Date of Initial Delivery
Due: July 1, as shown on the inside front cover page
The City of Chandler, Arizona (the “City”) will issue its $33,375,000* aggregate principal amount of General Obligation Bonds, Series
2021 (the “Bonds”) for the purpose of (i) acquiring and constructing improvements to parks and recreation facilities, streets, and storm
water management systems and (ii) paying the costs of issuance of the Bonds.
Purchases of beneficial ownership interests in the Bonds will be made in book-entry-only form through The Depository Trust Company
(“DTC”) participants only in amounts of $5,000 of principal due on specific maturity dates or integral multiples thereof. Purchasers will
not receive certificates representing their beneficial interests in the Bonds. See APPENDIX E – “BOOK-ENTRY-ONLY SYSTEM.” The
principal of, premium, if any, and interest on the Bonds will be paid by U.S. Bank National Association to Cede & Co., as long as Cede &
Co. is the registered 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 defined herein), as more fully described herein. The City and DTC each reserve the right to discontinue the
book-entry-only system at any time.
See Maturity Schedule on Inside Front Cover Page
The Bonds will mature on the dates and in the principal amounts set forth on the inside front cover page. Interest on the Bonds will be
payable semiannually on January 1 and July 1, commencing July 1, 2022*.
The Bonds will not be subject to redemption by the District prior to their stated maturity dates.
Upon their issuance, the Bonds will be direct, general obligations of the City, payable as to both principal and interest from ad valorem
taxes levied against all taxable property within the City without limit as to rate or amount. See “THE BONDS – 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., Mountain Standard Time (“MST”), on _______ __, 2021*. 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 opinion of Gust Rosenfeld P.L.C., Phoenix, Arizona,
Bond Counsel, as to validity and tax exemption on the Bonds. It is expected that the Bonds, in book-entry-only form, will be available for
delivery in book-entry-only form through the facilities of DTC on or about _______ ___, 2021*.
This cover page contains certain information for quick reference only. It is not a summary of this issue of which the Bonds are a part.
Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision with
respect to the Bonds.
* Preliminary, subject to change.
$33,375,000*
CITY OF CHANDLER, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2021
MATURITY SCHEDULE*
Maturity
Date
(July 1)
Principal
Amount
Interest
Rate
Price or
Yield
CUSIP® No.
158843(a)
2022
$12,670,000
%
%
2023
13,725,000
2024
3,750,000
2025
1,300,000
2026
650,000
2027
645,000
2028
635,000
________________________________
(a) CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (“CGS”) is
managed on behalf of the American Bankers Association by S&P Global Market Intelligence. Copyright© 2021
CGS. All rights reserved. CUSIP® data herein is provided by CGS. This data is not intended to create a database
and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience
of reference only. None of the City, Bond Counsel the Financial Advisor (each as defined herein) or their agents or
counsel assume responsibility for the accuracy of such numbers.
* Preliminary, subject to change.
i
CITY OF CHANDLER, ARIZONA
CITY COUNCIL
Kevin Hartke, Mayor
Mark Stewart, Vice Mayor
Christine Ellis, Councilmember
René Lopez, Councilmember
OD Harris, Councilmember
Matt Orlando, Councilmember
Terry Roe, Councilmember
CITY ADMINISTRATIVE OFFICERS
Joshua Wright, City Manager
Debra Stapleton, Assistant City Manager
Dawn Lang, Management Services Director
Kelly Schwab, City Attorney/Risk Manager
Dana DeLong, City Clerk
BOND COUNSEL
Gust Rosenfeld P.L.C.
Phoenix, Arizona
FINANCIAL ADVISOR
Piper Sandler & Co.
Phoenix, Arizona
BOND REGISTRAR AND PAYING AGENT
U.S. Bank National Association
Phoenix, Arizona
ii
REGARDING THIS OFFICIAL STATEMENT
This Official Statement does not constitute an offering of any security other than the City of Chandler, Arizona (the
“City”) General Obligation Bonds, Series 2021 (the “Bonds”), identified on the inside front cover page hereof. This
Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall be no sale of
the Bonds by any person in any jurisdiction in which it is unlawful to make such offer, solicitation or sale. No dealer,
broker, salesperson or other person has been authorized by the City to give any information or to make any representations
other than as contained in this Official Statement, and if given or made, such other information or representations must
not be relied upon as having been authorized by any of the foregoing.
The information set forth in this Official Statement has been provided by the City, Maricopa County, the State of Arizona
Department of Revenue and other sources which are considered to be reliable and customarily relied upon in the
preparation of similar official statements, but such information is not guaranteed as to accuracy or completeness and is
not to be construed as the promise or guarantee of the City or Piper Sandler & Co. (the “Financial Advisor”). The
presentation of information, including tables of receipts from taxes and other sources, is intended to show recent historical
information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City.
All estimates and assumptions contained herein have been based on the latest information available and are believed to
be reliable, but no representations are made that such estimates and assumptions are correct, will be realized or will be
repeated in the future. The information and any expressions of opinion contained herein are subject to change without
notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances,
create any implication that there has been no change in the affairs of the City or any other parties or matters described
herein since the date thereof.
The sale and issuance of the Bonds will not be registered under the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, or the Arizona Securities Act in reliance upon exemptions provided under such acts
for the sale and issuance of securities such as the Bonds. The Bonds will not be listed on any stock or other securities
exchange. Neither the Securities and Exchange Commission nor any other federal, State or other government entity or
agency will have passed upon the merits of the Bonds or the accuracy or adequacy of this Official Statement or approved
the Bonds for sale.
None of the City, the Financial Advisor and Bond Counsel (as defined herein) are actuaries, nor have any of them
performed any actuarial or other analysis of the City’s unfunded liabilities under the Arizona Public Safety Retirement
System, the Arizona State Retirement System or the Elected Officials’ Retirement Plan.
A wide variety of other information, including financial information, concerning the City is available from p ublications
and websites of the City and others. Any such information that is inconsistent with the information set forth in this Offici al
Statement should be disregarded. No such information is a part of, or incorporated into, this Official Statement, except
as expressly noted herein.
The information contained herein in APPENDIX E – “BOOK-ENTRY-ONLY SYSTEM” has been furnished by The
Depository Trust Company and no representation has been made by the City, the Financial Advisor or any of their counsel
or agents, as to the accuracy or completeness of such information.
The City will covenant to provide continuing disclosure as described in this Official Statement under “CONTINUING
SECONDARY MARKET DISCLOSURE” and in APPENDIX F – “FORM OF CONTINUING DISCLOSURE
CERTIFICATE,” pursuant to Rule 15c2-12 promulgated by the Securities and Exchange Commission.
iii
TABLE OF CONTENTS
Page
NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS......................................................................................... iv
INTRODUCTORY STATEMENT .............................................................................................................................................. 1
THE BONDS .................................................................................................................................................................................... 1
Authorization and Purpose – Bonds.......................................................................................................................................... 1
Authorized and Unissued Bonds ............................................................................................................................................... 2
General Provisions ....................................................................................................................................................................... 2
Bond Registrar and Paying Agent ............................................................................................................................................. 2
No Prior Redemption................................................................................................................................................................... 2
Mutilated, Lost or Destroyed Bonds ......................................................................................................................................... 2
Registration and Transfer............................................................................................................................................................ 2
Security For and Sources of Payment of the Bonds ............................................................................................................... 3
COVID-19 ......................................................................................................................................................................................... 3
SOURCES AND USES OF FUNDS............................................................................................................................................ 5
ESTIMATED DEBT SERVICE REQUIREMENTS (a) [To Be Modified] ......................................................................... 6
TAX EXEMPTION ......................................................................................................................................................................... 7
ORIGINAL ISSUE PREMIUM .................................................................................................................................................... 8
ORIGINAL ISSUE DISCOUNT .................................................................................................................................................. 8
LEGAL MATTERS......................................................................................................................................................................... 9
LITIGATION.................................................................................................................................................................................... 9
FINANCIAL STATEMENTS ....................................................................................................................................................... 9
CONTINUING SECONDARY MARKET DISCLOSURE .................................................................................................. 10
RATINGS........................................................................................................................................................................................ 10
POLITICAL DONATIONS ......................................................................................................................................................... 10
CERTIFICATION CONCERNING OFFICIAL STATEMENT .......................................................................................... 11
ADDITIONAL INFORMATION ............................................................................................................................................... 11
CONCLUDING STATEMENT .................................................................................................................................................. 11
APPENDIX A - CITY OF CHANDLER, ARIZONA — GENERAL ECONOMIC AND DEMOGRAPHIC
INFORMATION
APPENDIX B - CITY OF CHANDLER, ARIZONA — FINANCIAL DATA
APPENDIX C - FORM OF APPROVING LEGAL OPINION
APPENDIX D - CITY OF CHANDLER, ARIZONA — AUDITED FINANCIAL STATEMENTS FOR THE
YEAR ENDED JUNE 30, 2020
APPENDIX E - BOOK-ENTRY-ONLY SYSTEM
APPENDIX F - FORM OF CONTINUING DISCLOSURE CERTIFICATE
iv
$33,375,000*
CITY OF CHANDLER, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2021
NOTICE INVITING BIDS FOR THE PURCHASE OF BONDS
NOTICE IS HEREBY GIVEN that unconditional bids will be received to and including the hour of 8:00 a.m.,
Mountain Standard Time (“MST”), on ______ ___, 2021* by the City of Chandler, Arizona (the “City”), for the purchase
of all, but not less than all, of $33,375,000* aggregate principal amount of its General Obligation Bonds, Series 2021
(the “Bonds”). A bid may be submitted only through the facilities of PARITY® (“PARITY”). Submission of bids is
further discussed below. The Management Services Director will announce the bids received and will award the contract
for the purchase of bonds to the winning bidder at such time.
The City reserves the right to continue the date for receipt of bids. If the date for receipt of bids is continued,
the City will give notice of the continuance by PARITY at www.ipreo.com, prior to 11:00 a.m. MST on the business day
prior to ______ ___, 2021*.
The Bonds will be dated the date of initial issuance and delivery, and will bear interest from the date of the Bonds
to the maturity of each of the Bonds at a rate or rates per annum of not to exceed five percent (5.00%)*. Interest on the
Bonds shall be payable semiannually each year on January 1 and July 1 during the term of each of the Bonds, commencing
July 1, 2022*. The Bonds shall mature on July 1 in the years and in the principal amounts as follows:
Date
Principal
(July 1)
Amount*
2022
$ 12,670,000
2023
13,725,000
2024
3,750,000
2025
1,300,000
2026
650,000
2027
645,000
2028
635,000
ADJUSTMENT OF BONDS AFTER RECEIPT OF BIDS: The aggregate principal amount of the
Bonds is preliminary and subject to change. The City reserves the right to adjust the aggregate principal amount of
Bonds for which proposals are being solicited by an amount up to $3,300,000. The bid price paid by the winning bidder
will be adjusted to reflect any change in the aggregate principal amount of the Bonds. Such adjusted bid will reflect
changes in the dollar amount of the underwriting discount and original issue discount/premium, but will not change the
underwriting discount percentage based on the bid price in the winning bid and the initial reoffering prices. The interest
rates specified by the winning bidder for each maturity at the initial reoffering price will not change. Th e winning bidder
may not withdraw its bid as a result of any changes made within these limits. A representative of the City will notify the
winning bidder of the final principal maturity amounts and the resulting adjusted purchase price no later than 12:0 0 p.m.,
MST, on the date of award of the Bonds.
TIME FOR RECEIPT OF BIDS: Bids will be received to and including the hour of 8:00 a.m., MST,
on ________ __, 2021*, unless the sale is postponed. The time maintained by PARITY shall constitute the official time.
* Preliminary, subject to change.
v
ELECTRONIC BIDDING PROCEDURES : All bids must be submitted through the facilities of
PARITY in accordance with this Notice Inviting Bids for the Purchase of Bonds (this “Notice”) by 9:00 a.m., MST, on
___________, 2021*. The normal fee for the use of PARITY may be obtained from PARITY and such fee will be the
responsibility of each bidder. All bids must be submitted on the official bid form that resides on the PARITY system (the
“Official Bid Form”), without alteration or interlineation. Subscription to Ipreo’s BiDCOMP Competitive Bidding
System is required in order to submit a bid. The City will neither confirm any subscription nor be responsible for the
failure of any prospective bidder to subscribe. The City is using PARITY as a communication media, and not as the City's
agent, to conduct electronic bidding for the Bonds.
All bids made through the facilities of PARITY shall be deemed irrevocable offers to purchase the
Bonds on the terms provided in this Notice and shall be binding upon the entity making the bid as if made by a signed,
sealed bid delivered as stated above. The City and the Financial Advisor assume no responsibility or liability for bids
submitted through PARITY. Neither the City nor the Financial Advis or shall be responsible for any malfunction or
mistake made by, or as result of the use of the electronic bidding facilities provided and maintained by, PARITY. The
use of PARITY is at the sole risk of the prospective bidders.
If any provisions of this Notice conflict with information provided by PARITY, as the approved
provider of electronic bidding services, this Notice shall control. Further information about PARITY, including any fee
charged, may be obtained from BiDCOMP/PARITY, c/o Ipreo, at 1359 Broadway, 2nd Floor, New York, New York
10018, telephone number (212) 849-5021.
Bidders are requested to state in their bids the true interest cost to the City, as described under “AWARD
AND DELIVERY” herein. All bids shall be deemed to incorporate the provisions of this Notice in the Official Bid Form.
AWARD AND DELIVERY: Unless all bids are rejected, the Bonds will be awarded to the bidder
whose proposal results in the lowest true interest cost to the City. The true interest cost will be computed by dou bling the
semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from their
respective payment dates to the dated date of the Bonds and the price bid, including any premium or discount. In the
event that two or more bidders bid the same true interest cost, the award will be made by lot. Delivery of the Bonds will
be made to the winning bidder upon payment in federal or other immediately available funds at the offices of Gust
Rosenfeld P.L.C., Phoenix, Arizona, Bond Counsel to the City (“Bond Counsel”), or, at the winning bidder's request and
expense, at any other place mutually agreeable to the City and the winning bidder.
PURPOSE: The Bonds are being issued for the purpose of (i) acquiring and constructing improvements
to parks and recreation facilities, streets, and storm water management systems and (ii) paying the costs of issuance of the
Bonds.
INTEREST RATES: Bids for the purchase of the Bonds must state the rate or rates of interest to be
paid. No bid at a price less than the par value of the Bonds, together with all accrued interest thereon at the date of
delivery of the Bonds, will be considered. All Bonds of the same maturity must bear the same rate of interest. The highest
rate bid shall not exceed the lowest rate bid by more than two percent (2.00%) per annum. Bids must be expressed in
multiples of one-eighth (1/8) or one-twentieth (1/20) of one percent. Interest will be calculated on the basis of a year
comprised of three hundred sixty (360) days consisting of twelve (12) months of thirty (30) days each.
Any interest rate bid which would result in an interest payment amount having fractional cents will be
deemed a waiver of the right to payment of such fractional cents. No fractional cents will be paid or accumulated for
payment on any Bond.
ESTABLISHMENT OF ISSUE PRICE OF THE BONDS: The winning bidder shall assist the City
in establishing the issue price of the Bonds as more fully described herein. All actions to be taken by the City under this
Notice to establish the issue price of the Bonds may be taken on behalf of the City by the Financial Advisor and any notice
or report to be provided to the City may be provided to the Financial Advisor.
* Preliminary, subject to change.
vi
Anticipated Compliance with Competitive Sale Requirements. The City anticipates 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:
•
the City shall disseminate this Notice to potential underwriters in a manner that is reasonably designed
to reach potential underwriters;
•
all bidders shall have an equal opportunity to bid;
•
the City expects to receive bids from at least three underwriters of municipal bonds who have
established industry reputations for underwriting new issuances of municipal bonds; and
•
the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase
the Bonds at the lowest true interest cost, as set forth in this Notice. Any bid submitted pursuant to this
Notice shall be considered a firm offer for the purchase of the Bonds, as specified in the bid.
City Intention to Apply the Hold-the-Offering-Price Rule if Competitive Sale Requirements are Not Met.
In the event that the competitive sale requirements are not satisfied with respect to the Bonds, the City intends to treat th e
initial offering prices of the Bonds to the public as the issue price of such Bonds (the “hold-the-offering-price rule”), in
each case applied on a maturity-by-maturity basis.
Bidder Right to Cancel if the City Elects to Apply Hold-the-Offering-Price Rule. In the event the
competitive sale requirements are not satisfied, the prospective winning bid shall be cancelled and deemed withdrawn
UNLESS the prospective winning bidder affirmatively confirms its bid and agrees to comply with the hold -the-offering-
price rule, in the manner described below.
No award shall be made to the prospective winning bidder and the prospective winning bidder’s bid
shall be cancelled and deemed withdrawn unless and until the prospective winning bidder has affirmatively confirmed its
bid and agreed to comply with the hold-the-offering-price rule. The prospective winning bidder must provide written
confirmation to the City no later than sixty (60) minutes after receiving notification that the City has determined to apply
the hold-the-offering-price rule to the Bonds.
If the prospective winning bidder does not provide its confirmation within the required time period, the
prospective winning bidder’s bid shall be cancelled and deemed to be withdrawn. The City thereupon may award the
Bonds to another bidder, provided that the new prospective winning bidder confirms its bid and agrees to comply with
the hold-the-offering-price rule, or the City may reject all bids and cancel the sale of the Bonds, as set forth in this Notice.
Application of the Hold-the-Offering-Price Rule. If the competitive sale requirements are not satisfied,
then the successful bidder shall, on behalf of the underwriters participating in the purchase of the Bonds (i) confirm that
the underwriters have offered or will offer each maturity of 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 any person at a price that is higher than the initia l
offering price to the public during the period starting on the sale date and ending on the earlier of the following:
•
the close of the fifth (5th) business day after the sale date; or
•
the date on which the underwriters have sold at least ten percent (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 shall promptly advise the City when the underwriters have sold ten percent (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, if that
occurs prior to the close of the fifth (5th) business day after the sale date.
By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group
agreement and each retail 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 retail distribution agreement,
as applicable, to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until
it is notified by the winning bidder that either the ten percent (10%) test has been satisfied as to the Bonds of that maturity
or all Bonds of that maturity have been sold to the public and (B) comply with the hold-the-offering-price rule if and for
vii
so long as directed by the winning bidder and as set forth in the related pricing wires, and (ii) any agreement among
underwriters 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 that is a party to a retail 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 retail distribution
agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is
notified by the winning bidder or such underwriter that either the ten percent (10%) test has been satisfied as to the Bonds
of that maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold-the-offering-price
rule, in each case if and for so long as directed by the winning bidder or such underwriter and as set forth in the related
pricing wires.
The City acknowledges that, in making the agreements and representations set forth above, the winning
bidder will rely on (i) the agreement of each underwriter to comply with the hold-the-offering-price rule, 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 hold-the-offering-price rule, as set forth in a selling group agreement and the related pricing
wires, and (iii) in the event that an underwriter is a party to a retail 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 hold-the-offering-price rule, as set forth in the retail 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 hold-the-offering-price rule 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 retail distribution agreement
to comply with its corresponding agreement regarding the hold-the-offering-price rule as applicable to the Bonds.
Definitions. Sales of any Bonds to any person that is a related party to an underwriter shall not constitute
sales to the public for purposes of this Notice. Further, for purposes of this Notice and this section entitled
“ESTABLISHMENT OF ISSUE PRICE OF THE BONDS”:
•
“public” means any person other than an underwriter or a related party,
•
“underwriter” means (A) 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 (B) 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 retail distribution agreement participating in the initial sale of the Bonds
to the public),
•
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 fifty percent (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) more than fifty percent (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 fifty percent (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
•
“sale date” means the date that the Bonds are awarded by the City to the winning bidder.
viii
BOOK-ENTRY-ONLY SYSTEM: The Bonds will be initially issued to, and registered in the name
of, Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as the
securities depository of the Bonds for a book-entry-only system (the “Book-Entry-Only System”). Under the Book-Entry-
Only System, beneficial ownership interests in the Bonds will be available in book-entry form only through direct or
indirect DTC participants.
Ownership interests in the Bonds may be purchased in denominations of $5,000 of principal amount
due on a specific maturity date or integral multiples thereof.
Transfers of beneficial ownership interest in the Bonds will be accomplished by book entries made by
DTC and the DTC participants or indirect DTC participants who act on behalf of the beneficial owners (“Beneficial
Owners”). For every transfer and exchange of a beneficial interest in the Bonds, the Beneficial Owner may be charged a
sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto.
DTC may determine to discontinue providing its services with respect to the Bonds at any time by
giving notice to the Registrar (as defined herein), the paying agent and the City and discharging its responsibilities with
respect thereto under applicable law. Under such circumstances (if there is not a successor securities depository), physical
certificates representing the Bonds will be executed and delivered. In addition, the City may determine to discontinue the
Book-Entry-Only System transfers through DTC (or a successor securities depository). In such event, physical certificates
representing the Bonds will be registered in the names of the Beneficial Owners and executed and delivered. Upon
registration of Bonds in the Beneficial Owner's name, the Beneficial Owners will become the owners of the Bonds (the
“Owners”) for all purposes, including the receipt of principal and interest payments and notices with respect to the Bonds.
For a more detailed description of the Book-Entry-Only System, see the information in the Preliminary
Official Statement (as defined herein) relating to the Bonds entitled “Book-Entry-Only System.”
OPTIONAL REDEMPTION: The Bonds are not subject to call for redemption prior to maturity.
INFORMATION FROM WINNING BIDDER: The winning bidder for the Bonds will be required
to provide the City with a certificate in a form acceptable to Bond Counsel, which certificate shall state the issue price of
the Bonds consistent with the foregoing.
FORM OF BID AND GOOD FAITH DEPOSIT: The prescribed Official Bid Form for the Bonds
will be available on the PARITY system and all bids must be submitted on the Official Bid Form. The winning bidder
shall deliver a good faith deposit in the amount of $575,000.00 (the “Deposit”), in the form of either of the following: (i)
a certified or cashier's check payable to the City or (ii) a wire transfer to the City, delivered to the City within twenty-four
(24) hours of notification of the award. The winning bidder shall be solely responsible for the timely delivery of their
Deposit whether by check or wire transfer. Neither the City nor the Financial Advisor has any liability for delays in the
transmission of the Deposit.
The Deposit made by certified or cashier’s check should be made payable to the City and delivered to
City of Chandler, Arizona, Attn: Management Services Director, 175 S. Arizona Avenue, Chandler, Arizona 85225.
The Deposit sent via wire transfer should be sent to the City. The wire instructions will be provided to
the winning bidder upon award.
Contemporaneously with such wire transfer, the bidder shall send an e-mail to the Management Services
Director
(e-mail
address: dawn.lang@chandleraz.gov)
and to
the
Financial
Advisor (e-mail
address:
william.davis@psc.com), including the following information; (i) indication that a wire transfer has been made, (ii) the
amount of the wire transfer, (iii) the issue to which it applies, and (iv) federal reference number.
The Deposit received from the winning bidder, the amount of which will be deducted at settlement, will
be deposited by the City and no interest will accrue to the winning bidder. In the event the winning bidder fails to comply
with the accepted bid, said amount will be retained by the City as liquidated damages.
ix
REGISTRATION AND TRANSFER:
U.S. Bank National Association, will serve as bond
registrar and paying agent with respect to the Bonds (the “Registrar”). If the Book-Entry-Only System is discontinued,
the Registrar will administer registration and transfer of the Bonds and the Bonds will be transferable only upon the bond
register to be maintained by the successor Registrar upon surrender to the Registrar. The Registrar may be changed
without notice to any Owner or Beneficial Owner of the Bonds.
PAYMENT OF BONDS: So long as the Bonds are held under the Book-Entry-Only System, all
payments of principal, interest and premium, if any, shall be paid to DTC. If the Book-Entry-Only System is discontinued,
interest on the Bonds shall be payable by check (unless the Owner of the Bonds is eligible for payment by wire transfer)
mailed on or prior to the interest payment date to the registered Owners of such Bonds at the addresses of such Owners
as they appear on the books of the Registrar on the fifteenth (15th) day of the month preceding the date such interest
comes due. Principal of and premium, if any, on the Bonds shall be paid when due upon surrender of such Bonds at the
designated corporate trust office of the Registrar (unless the Owner of the Bonds is eligible for payment by wire transfer).
If the Book-Entry-Only System is discontinued, upon prior written request made at least twenty (20) days prior to an
interest payment date by a registered Owner of at least $1,000,000 in principal amount of Bonds outstanding, all payments
of interest and, and if adequate provision for surrender is made, principal and premium, if any, shall be paid by wire
transfer in immediately available funds to an account within the United States of America designated by such Owner.
Notwithstanding any other provision hereof, payment of principal of and interest on any Bond that is
held by a securities depository or Bonds subject to the Book-Entry-Only System may be paid by the Registrar by wire
transfer in “same day funds.”
RECORD DATE: So long as the Bonds are held under the Book-Entry-Only System, payments of
principal and interest shall be paid to DTC. If the Book-Entry-Only System is discontinued, the record date for
determination of ownership for payment of interest shall be the fifteenth (15th) day of the calendar month prior to an
interest payment date. The Registrar shall pay interest to the Owners of record on the record date notwithstanding that
transfers of ownership may occur on any Bond between the record date and the next interest payment date.
x
SECURITY: Principal of and interest on the Bonds are secured by a continuing, direct ad valorem tax
levied against all of the taxable property located within the boundaries of the City without limit as to rate or amount.
Arizona Revised Statutes Section 35-458 provides that general obligation bonds issued by a political subdivision of
Arizona, such as the Bonds, are secured by a statutory lien on the ad valorem taxes levied and collected to pay principal
of and interest on such bonds, including the Bonds, irrespective of whether the political subdivision's creditors and all
other parties asserting any rights in the ad valorem tax revenues have notice of the lien, without the need for any physical
delivery, recordation or filing. Such lien is binding from the time of issuance of the Bonds, and the revenues received
pursuant to the levy of property taxes are immediately subject to the lien.
RIGHT OF REJECTION: The City reserves the right, in its discretion, to reject any and all bids
received and to waive any irregularity or informality in the bids, except that the time for receiving bids shall be of the
essence.
CUSIP NUMBERS : CUSIP numbers will be placed on the Bonds, but neither the failure to print such
numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser
thereof to accept delivery of and pay for the Bonds in accordance with the terms of the sale. No CUSIP numbers will be
deemed to be a part of any Bond or of the contract evidenced thereby. All expenses of printing CUSIP numbers on the
Bonds will be paid by the City, but the CUSIP Service Bureau charge for the assignment of CUSIP numbers will be paid
by the winning bidder of the Bonds.
COST OF BOND FORMS: The City shall bear the cost of printing of the Bonds and will furnish fully
executed Bonds, registered in the name of the winning bidder or nominees, to the winning bidder upon payment therefor.
CANCELLATION: Bidders are to take notice that, pursuant to Arizona law, if, within three (3) years
from the award of the contract to purchase the Bonds, any person who was significantly involved in initiating, negotiating,
securing, drafting or creating the 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 contract without penalty or further obligation by the City. In addition to
such cancellation, the City may recoup any fees or commissions paid or due to any person who was significantly involved
in initiating, negotiating, securing, drafting or creating the contract for the purchase of the Bonds on behalf of the Cit y.
LEGAL OPINION: The Bonds are sold with the understanding that the City will furnish the winning
bidder with the approving opinion of Bond Counsel. An undated copy of such opinion is available for review in the
preliminary official statement (the “Preliminary Official Statement”) pertaining to the Bonds. Said attorneys have been
retained by the City as Bond Counsel and in such capacity are to render their 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 (see “TAX-EXEMPT STATUS” below). Fees of Bond Counsel for services rendered in connection with such
approving opinion are expected to be paid from Bond proceeds. 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 proposal for the
Bonds, each bidder agrees to the representation of the City by Bond Counsel.
TAX-EXEMPT STATUS: In the opinion of Bond Counsel, under existing laws, regulations, rulings
and judicial decisions, and assuming continuing compliance with certain restrictions, conditions and requirements by the
City, interest income on the Bonds is excluded from gross income for purposes of calculating federal income taxes and is
exempt from Arizona income taxes.
Should changes in the law cause Bond Counsel's opinion to change prior to delivery of the Bonds to the
winning bidder, the winning bidder will not be obligated to pick up and pay for the Bonds, and the winning bidder's
Deposit will be returned.
xi
BONDS NOT QUALIFIED TAX-EXEMPT OBLIGATIONS: The Bonds will not be “qualified
tax-exempt obligations” for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”).
PRELIMINARY
OFFICIAL
STATEMENT
DEEMED
FINAL;
DELIVERY
OF FINAL
OFFICIAL STATEMENT: The City will deem the Preliminary Official Statement provided in connection with the sale
of the Bonds to be final as of its date, as required by Section 240.15c2-12, General Rules and Regulations, Securities
Exchange Commission Act of 1934 (the “Rule”), except for the omission of offering prices, selling compensation, delivery
dates, terms to be specified in the winning bidder's proposal, ratings, other terms depending on such matters and the
identity of the winning bidder, all as may be necessary for the City to complete a final official statement (the “Official
Statement”).
Within twenty-four (24) hours after the award of the Bonds, the winning bidder must provide the City
with all necessary offering price information, selling compensation information, all other terms of the sale which depend
on such matters and any underwriter information, all as may be necessary to complete the Official Statement.
Within seven (7) business days after the award of the Bonds, the City will provide the winning bidder
with the Official Statement in an electronic format as prescribed by the MSRB at no cost. The Official Statement will be
in substantially the same form as the Preliminary Official Statement with such additions, deletions or revisions as the City
deems necessary.
The City will deliver at closing an executed certificate stating that as of the date of delivery the
information contained in the Official Statement, including any supplement, relating to the City and the Bonds is true and
correct in all material respects and that such Official Statement does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading.
CONTINUING DISCLOSURE: In connection with the issuance of the Bonds, the City will deliver
a continuing disclosure certificate for purposes of the Rule as hereinafter described and as described in the Official
Statement. The City will agree, as described in the Official Statement, to provide or cause to be provided (i) certain
annual financial information and operating data (the “Annual Information”) for the preceding fiscal year, (ii) the City's
audited financial statements, (iii) timely notice, not in excess of ten (10) business days after the occurrence of certain
listed events with respect to the Bonds, and (iv) timely notice of any failure by the City to provide its Annual Information
within the time specified in that certificate. See the more complete description of the certificate in the Official Statement.
The City has established procedures to ensure timely and proper filing of its Annual Information.
NO LITIGATION AND NON-ARBITRAGE: The City will deliver a certificate to the effect, except
as otherwise described in the Preliminary Official Statement or the Official Statement, that no litigation is pending
affecting the issuance and sale of the Bonds. The City will also deliver an arbitrage certificate covering its reasonable
expectations concerning the Bonds.
ADDITIONAL INFORMATION: Copies of the Official Bid Form and Notice Inviting Bids for the
Purchase of Bonds and the Official Statement will be furnished to any bidder upon request made to the Clerk of the City
of Chandler, Arizona; or to Piper Sandler & Co., 2525 E. Camelback Road, Suite 950, Phoenix, AZ 85016, telephone
(602) 808-5428, Financial Advisor to the City.
CITY OF CHANDLER, ARIZONA
1
OFFICIAL STATEMENT
$33,375,000*
CITY OF CHANDLER, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2021
INTRODUCTORY STATEMENT
The Official Statement, which includes the cover page, inside front cover page and the appendices hereto (the “Official
Statement”), has been prepared in connection with the original sale and issuance by the City of Chandler, Arizona (the
“City”) of its $33,375,000* aggregate principal amount of General Obligation Bonds, Series 2021 (the “Bonds”).
The City expects to offer $48,610,000* General Obligation Refunding, Taxable Series 2021 (the “Series 2021 GO
Refunding Bonds”), and $95,265,000* Excise Tax Revenue Refunding Obligations, Taxable Series 2021 (the “Series
2021 Excise Tax Refunding Obligations”), pursuant to separate official statements in November 2021.
The Bonds will be issued in the form of fully registered bonds, registered in the name Cede & Co., as nominee of The
Depository Trust Company, New York, New York (“DTC”). DTC will act as the securities depository for the Bonds.
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 revenues, taxes and other sources, is intended to show recent historic information and is not intended to indicate
future or continuing trends in the financial position or other affairs of the City. No representation is made th at past
experience, as is shown by that financial and other information, will necessarily continue or be repeated in the future.
Reference to provisions of Arizona law, whether codified in the Arizona Revised Statutes (the “Arizona Revised Statutes”
or “A.R.S.”), or uncodified, or of the Arizona constitution (the “Arizona Constitution”) or the Charter of the City (the
“Charter”) are references to those current provisions. Those provisions may be amended, repealed or supplemented.
As used in this Official Statement “debt service” means principal and interest on the obligations referred to, “County”
means Maricopa County, Arizona and “State” or “Arizona” means the State of Arizona. Initial capitals denote terms
defined herein.
THE BONDS
Authorization and Purpose – Bonds
The Bonds will be issued pursuant to the Arizona Constitution and laws of the State, and under the provisions of
Resolution No. ____ authorizing issuance of the Bonds adopted by the Mayor and City Council of the City on _________,
2021 (the “Bond Resolution”). The Bonds were authorized by the qualified electors of the City voting at special bond
elections held on May 20, 1997, May 15, 2007, and November 2, 2021.
The Bonds are being issued in order to provide funds for the purpose of (i) acquiring and constructing improvements to
parks and recreation facilities, streets, and storm water management systems and (ii) paying the costs of issuance of the
Bonds.
* Preliminary, subject to change.
2
Authorized and Unissued 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 levy of ad valorem taxes as the Bonds and
all other outstanding general obligation bonds of the City. Following the sale of the Bonds, the City will have
$150,180,000* aggregate principal amount of general obligation bonds authorized but unissued, pursuant to voter
approvals given at special bond elections held on May 16, 1989, May 18, 1993, May 20, 1997, May 18, 2004,
May 15, 2007 and November 2, 2021.
General Provisions
The Bonds will be dated as of the date of initial delivery. The Bonds will mature on the dates and in the principal amounts
set forth on the inside front cover page of this Official Statement. Interest on the Bonds will be payable semiannually on
January 1 and July 1 commencing July 1, 2022* (each, an “Interest Payment Date”) and thereafter until maturity or prior
redemption. See “THE BONDS – Redemption Provisions” herein.
The Bonds are issuable only in fully registered form in the name of Cede & Co., as nominee of DTC (see APPENDIX E
– “BOOK-ENTRY-ONLY SYSTEM”). Beneficial ownership interests in the Bonds may be purchased in book-entry-
only form through DTC Participants (as defined in APPENDIX E hereto) only in amounts of $5,000 of principal due on
specific maturity dates or integral multiples thereof. So long as DTC, or its nominee, Cede & Co., is the registered owner
of all of the Bonds, all payments on the Bonds will be made directly to DTC and all references herein to “Owners” or
registered owners of the Bonds (other than under the headings “TAX EXEMPTION,” “ORIGINAL ISSUE PREMIUM”
and “ORIGINAL ISSUE DISCOUNT”) shall mean Cede & Co., and shall not mean the owners of beneficial interests in
the Bonds. When notices are given, such notices shall be sent by the City or the Bond Registrar and Paying Agent (as
defined below) to DTC only.
Bond Registrar and Paying Agent*
U.S. Bank National Association, will serve as the initial bond registrar and paying agent (the “Bond Registrar and Paying
Agent”) for the Bonds. The City may change the Bond Registrar and Paying Agent without notice or consent of the
registered owners of the Bonds.
No Prior Redemption
The Bonds will not be subject to redemption prior to their stated maturity dates.
Mutilated, Lost or Destroyed Bonds
If the book-entry-only system described above is discontinued, and any Bond becomes mutilated, destroyed or lost, the
City will cause to be executed and delivered a new Bond, of like type, date, maturity and tenor in exchange and substitution
for and upon the cancellation of such mutilated Bond, or in lieu of and in series substitution for such Bond destroyed or
lost, upon the registered owner paying the reasonable expenses and charges of the City in connection therewith and, in
the case of a Bond destroyed or lost, filing with the Bond Registrar and Paying Agent by the registered owner evidence
satisfactory to the Bond Registrar and Paying Agent that such Bond was destroyed or lost and furnishing the Bond
Registrar and Paying Agent with a sufficient indemnity bond pursuant to A.R.S. Section 47-8405.
Registration and Transfer
So long as the book-entry-only system is in effect, the Bonds will not be transferred. If the book-entry-only system is
discontinued, the Bonds will be transferred only upon the bond register maintained by the Bond Registrar and Paying
Agent and one or more new Bonds, registered in the name of the transferee, of the same principal amount, maturity and
rate of interest as the surrendered Bonds will be authenticated, upon surrender to the Bond Registrar and Paying Agent of
the Bond or Bonds to be transferred, together with an appropriate instrument of transfer executed by the transferor if the
Bond Registrar and Paying Agent’s requirements for transfer are met. The City has chosen the 15th day of the month
preceding an Interest Payment Date. The Bond Registrar and Paying Agent may, but will not be required to, transfer or
exchange any Bonds during the period from the Record Date to and including the next respective Interest Payment Date.
The Bond Registrar and Paying Agent may, but will not be required to, transfer or exchange any Bonds which have been
3
selected for redemption. If the Bond Registrar and Paying Agent transfers or exchanges Bonds within the periods referred
to above, the interest payment on such Bonds will be made payable to and mailed to the owners shown on the bond register
maintained by the Bond Registrar and Paying Agent as of the close of business on the respective Record Date.
If the book-entry-only system is discontinued, the transferor will be responsible for all transfer fees, taxes, and any other
costs relating to the transfer of ownership of individual Bonds.
Security For and Sources of Payment of the Bonds
The Bonds are direct, general obligations of the City and are payable as to both principal and interest from an ad valorem
tax levied against all of the taxable property located within the boundaries of the City. The Bonds are payable from such
a tax without limit as to rate or amount. A record of property taxes levied and collected for the City for the most recent
five fiscal years may be found in APPENDIX B – “CITY OF CHANDLER, ARIZONA – FINANCIAL DATA,” attached
hereto. The proceeds of such taxes will be kept by the City in a debt service fund comprised of an interest fund and
redemption fund, and by law may be used only for payment of principal, interest, premium, if any, and costs of the Bonds.
Following collection and deposit of the proceeds of the taxes into the debt service fund, the City may invest such proceeds
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 or any
agency or instrumentality thereof; obligations of Arizona or any Arizona county, city (including the City), town or school
district; revenue bonds of any Arizona county, municipality or municipal utility or special district; obligations of any
Arizona local improvement district payable from property assessments; the local government investment pool established
by the State Treasurer pursuant to A.R.S. Section 35-326; and 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.
COVID-19
The outbreak and spread of the novel strain of coronavirus, Coronavirus Disease 2019 (“COVID-19”), which has been
designated a global pandemic by the World Health Organization, is negatively affecting local, state and global economies.
While economic activity is adversely impacted as governments, businesses and citizens react to, plan for, and try to
prevent or slow further transmission of the virus, this adverse economic impact is somewhat mitigated by federal stimulus
packages and state and local laws and programs to support business activity. Financial markets, including the stock
markets in the United States and globally, have seen significant volatility and declines attributed to COVID-19 concerns.
On March 11, 2020, as part of the State’s response to address the outbreak, Arizona Governor, Doug Ducey (the
“Governor”), declared a state of emergency. On March 13, 2020, President Donald Trump declared a national emergency,
freeing up funding for federal assistance to state and local governments. An initial State of Arizona stay home Executive
Order expired after six weeks on May 15, 2020. The Governor has since issued several executive orders in response to
then-current virus conditions. These orders cover topics including physical distancing, virus testing and reporting, contact
tracing, face coverings, closing and reopening of business operation, large gatherings , the start of the 2020/21 school year
and vaccine distribution.
On June 29, 2020, the Governor issued Executive Order 2020-43 (Slowing the Spread of COVID-19) originally pausing
until July 27, 2020 the operations of bars, gyms, movie theatres, water parks, and tubing rentals (to be reviewed every
two weeks); and delaying the start of in-person K-12 education until August 17, 2020. After further increases in COVID-
19 cases and hospitalizations in the State, the Governor announced and issued on July 9, 2020 Executive Order 2020 -47
(Limiting Indoor Dining), limiting indoor dining at restaurants to less than 50% occupancy. The order pausing operations
of the previously specified activities was extended on July 23, 2020. On August 6, for schools, and on August 10, for
paused businesses, the Arizona Department of Health Services released benchmarks for achieving phased, safe in -person
reopenings. The benchmarks, with minimal, moderate and substantial condition categories, address, by county for a two -
week period, weekly average cases per 100,000 population; diagnostic test percent positivity; and COVID-19-like-illness
as a percent of hospital visits. On March 5, 2021, the Governor issued Executive Order 2021-05 allowing specific business
occupancy percentage limitations to expire while leaving physical distancing and mask protocols in place. Additionally,
Executive Order 2021-05 allows for Major League Sports to operate with approval of safety precautions and physical
distancing.
4
Most recently, on March 25, 2021, the Governor issued an order (“Executive Order 2021-06”) that rescinded all prior
limits on organized public events and capacity and spacing requirements at restaurants. Executive Order 2021-06 also
prohibits counties, cities and towns from making or issuing any order, rule or regulation that conflicts with Executive
Order 2021-06 or any other executive order relating to COVID-19, including any county, city or town mandate on the use
of face coverings.
Vaccine distribution is underway in the State. Executive Order 2020-58 requires all insurers regulated by the State to
waive all cost sharing requirements for consumers.
The City has already received approximately $33,300,000 in various grants to support operations related to COVID-19
and is actively looking for and will apply for additional grant awards as they may become available. Additionally, the
City has already received $29,983,456 through the State from the Coronavirus Aid, Relief and Economic Security Act
passed by the U.S. Congress and enacted into law in March 2020. The funding is designed to cover public safety
expenditures which freed up resources in the General Fund.
The fiscal year 2021-22 adopted budget used conservative revenue projections and expenditure levels that reflect the
return to a more normal revenue year as the impacts of expected revenue decreases related to COVID-19 did not come to
fruition in FY 2020-21. It is possible that the full financial impact of COVID-19 on the City, its economy, and its financial
position could change significantly as circumstances evolve. The City will continue to monitor events as they occur,
especially those that may have a significant impact on the City’s budget and finances and take appropriate action where
necessary.
While the City does not currently anticipate a material effect on the collection of property taxes, which is a significant
revenue source for operating purposes and which may be available, but is not pledged or required as a source, for making
the Payments, should adverse economic conditions lead to an increase in unemployment rates for residents in the City,
property tax collection rates within the City could be adversely affected.
City sales tax collections and other collections dependent on local business activity or tourism, which are another
significant revenue source for operating purposes and a source for making the Payments, may be materially adversely
affected by the continued spread of COVID-19 and ongoing public health policy and State restrictions related to various
business operations. The City, however, cannot predict the effect the continued spread of COVID-19 will have on its
sales tax collections, which could have a negative impact on the City’s ability to pay operating expenses or the Payments.
The State’s finances are likely to be adversely affected by the continued spread of COVID-19, the various governmental
actions taken in response thereto and changes in the behavior of businesses and people, which all could affect the amount
of State Shared Revenues distributed to municipalities, including the City.
The City, however, cannot predict how the spread of COVID-19, the ongoing public health policy and State restrictions,
or the various governmental or private actions taken in response thereto will affect its finances or operations, including
the receipt of State Shared Revenues, City sales taxes and property tax collections.
5
SOURCES AND USES OF FUNDS
Sources of Funds
Principal Amount
$33,375,000.00*
[Net] Original Issue Premium (a)
Total Sources
Uses of Funds
Project Fund
$
Costs of Issuance (b)
Deposit to the Debt Service Fund
Total Uses
(a) [Net] Original Issue Premium is the original issue premium on the Bonds less the original issue discount on the
Bonds.
(b) Includes fees of Bond Counsel, Bond Registrar and Paying Agent, Official Statement preparation, Financial Advisor,
rating agencies and other costs related to the issuance and delivery of the Bonds.
[Remainder of page intentionally left blank.]
* Preliminary, subject to change.
6
ESTIMATED DEBT SERVICE REQUIREMENTS (a) [To Be Modified]
The following schedule sets forth (i) the annual debt service requirements of the outstanding general obligation bonds of the City, (ii) less the Series 2021 GO Refunding
Bonds being refunded, (iii) plus the estimated debt service requirements of the Bonds, (iv) the estimated debt service requirements of the Series 2021 GO Refunding
Bonds and, (v) the estimated combined total annual general obligation bond debt service requirements of the City after issuance of the Bonds.**
(a) Prepared by the Financial Advisor to the City. Columns may not add up due to rounding.
(b) Interest is estimated. The first interest payment on the Bonds will be due July 1, 2022*. Thereafter, interest payments will be made semiannually on January 1
and July 1 until the final maturity of the Bonds.
* Preliminary, subject to change.
Fiscal
Outstanding
Less:
Estimated
Year
General Obligation
Less:
Plus:
Plus:
Water & Wastewater
Net General Obligation
Ended
Bonded Debt
The Bonds Being Refunded
The Bonds*
Series 2021 GO Refunding
Revenue Supported
Bonded Debt Service
June 30
Debt Service
Principal
Interest (b)
Principal
Interest (b)
Principal
Interest (b)
GO Debt Service*(1)
To Be Outstanding*
2022
39,651,235
$
1,780,500
$
12,670,000
$
778,750
1,990,000
$
478,864
12,591,560
$
41,196,789
$
2023
39,167,835
1,780,500
13,725,000
828,200
1,375,000
734,344
12,110,560
41,939,319
2024
38,371,335
1,780,500
3,750,000
279,200
1,400,000
729,146
11,552,810
31,196,371
2025
35,896,085
1,780,500
1,300,000
129,200
18,880,000
720,326
10,894,060
44,251,051
2026
35,310,435
17,620,000
$
1,780,500
650,000
77,200
18,475,000
555,262
11,011,410
24,655,987
2027
33,048,635
899,500
645,000
51,200
175,000
356,102
9,468,760
23,907,677
2028
33,148,685
25,700,000
899,500
635,000
25,400
25,875,000
353,970
11,422,260
22,016,295
2029
6,664,235
-
6,664,235
2030
6,588,610
-
6,588,610
2031
6,531,560
-
6,531,560
2032
6,470,185
-
6,470,185
2033
2,199,125
-
2,199,125
2034
2,203,000
-
2,203,000
2035
2,178,125
-
2,178,125
287,429,085
$
43,320,000
$
10,701,500
$
33,375,000
$
2,169,150
$
68,170,000
$
3,928,014
$
79,051,420
$
261,998,329
$
(1) [Pre refunding debt service, will be updated prior to posting the POS.]
7
TAX EXEMPTION
In the opinion of Gust Rosenfeld P.L.C., Phoenix, Arizona (“Bond Counsel”) under existing laws, regulations, rulings
and judicial decisions, and assuming continuing compliance with certain restrictions, conditions and requirements by the
City as described below, interest income on the Bonds is excluded from gross income for federal income tax purposes.
In the opinion of Bond Counsel, interest income on the Bonds is exempt from State of Arizona income taxes. The opinion
of Bond Counsel will be dated the initial date of delivery of the Bonds. A form of such opinion is included herein in
APPENDIX C - “FORM OF APPROVING LEGAL OPINION.”
The Internal Revenue Code of 1986, as amended (the “Code”), imposes various restrictions, conditions and requirements
relating to the continued exclusion of interest income on the Bonds from gross income for federal income tax purposes,
including a requirement that the City rebate to the federal government certain of its investment earnings with respect to
the Bonds. The City has covenanted to comply with the provisions of the Code relating to such matters. Failure to comply
with such restrictions, conditions, and requirements could result in the interest income on the Bonds being included in
gross income for federal income tax purposes, under certain circumstances, from the date of issuance. The Bonds do not
provide for an adjustment in interest rate or yield in the event of taxability and an event of taxability does not cause an
acceleration of the principal on the Bonds. The opinion of Bond Counsel assumes continuing compliance with such
restrictions, conditions and requirements.
The Code also imposes an “alternative minimum tax” upon certain individuals. A taxpayer’s “alternative minimum
taxable income” (“AMTI”) is its taxable income with certain adjustments. Interest income on the Bonds is not an item of
tax preference to be included in AMTI.
Although Bond Counsel will render an opinion that, as of the delivery date of the Bonds, interest income on the Bonds is
excluded from gross income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise
affect a Beneficial Owner’s (as defined in Appendix E – “BOOK-ENTRY-ONLY SYSTEM”) federal tax liability. Certain
taxpayers may experience other tax consequences. Taxpayers who become Beneficial Owners of the Bonds, including
without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies,
certain subchapter S corporations, individuals who receive Social Security or Railroad Retirement benefits and taxpayers
who have or are deemed to have incurred indebtedness to purchase or carry tax-exempt obligations should consult their
tax consultants as to the applicability of such tax consequences to the respective Beneficial Owner. The nature and extent
of these other tax consequences will depend upon the respective Beneficial Owner’s particular tax status and the Beneficial
Owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax
consequences.
The Bonds will not be “private activity bonds,” within the meaning of Section 141 of the Code.
From time to time, there are legislative proposals in Congress which, if enacted could alter or amend the federal tax
matters referred to above or adversely affect the 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.
[Remainder of page intentionally left blank.]
8
ORIGINAL ISSUE PREMIUM
The initial public offering prices of the Bonds maturing on July 1, 20__ through and including July 1, 20__ (collectively,
the “Premium Bonds”) are greater than the amount payable on such Bonds at maturity. An amount equal to the difference
between the initial public offering price of a Premium Bond (assuming that a substantial amount of the Premium Bonds
of that maturity are sold to the public at such price) and the amount payable at maturity constitutes premium to the initial
Beneficial Owner of such Premium Bonds. The basis for federal income tax purposes of a Premium Bond in the hands of
such initial Beneficial Owner must be reduced each year by the amortizable bond premium, although no federal income
tax deduction is allowed as a result of such reduction in basis for amortizable bond premium. Such reduction in basis will
increase the amount of any gain (or decrease the amount of any loss) to be recognized for federal income tax purposes
upon a sale or other taxable disposition of a Premium Bond. The amount of premium which is amortizable each year by
an initial Beneficial Owner is determined by using such Beneficial Owner's yield to maturity. Beneficial Owners of the
Premium Bonds should consult with their own tax advisors with respect to the determination of amortizable bond premium
with respect to the Premium Bonds for federal income tax purposes and with respect to the state and local tax consequences
of owning Premium Bonds.
ORIGINAL ISSUE DISCOUNT
The initial offering prices of the Bonds maturing on July 1, 20__ through and including July 1, 20__ (collectively, the
“Discount Bonds”), are less than the respective amounts payable at maturity. As a result, the Discount Bonds will be
considered to be issued with original issue discount. The difference between the initial public offering price (assuming it
is the first price at which a substantial amount of that maturity of Discount Bonds was sold (the “OID Issue Price”)) of
the Discount Bonds, and the amount payable at maturity of the Discount Bonds will be treated as “original issue discount.”
With respect to a Beneficial Owner who purchases a Discount Bond in the initial public offering at the OID Issue Price
and who holds the Discount Bond to maturity, the full amount of original issue discount will constitute interest income
which is not includible in the gross income of the Beneficial Owner of the Discount Bond for federal income tax purposes
and Arizona income tax purposes and that Beneficial Owner will not, under present federal income tax law and present
Arizona income tax law, realize a taxable capital gain upon payment of the Discount Bond at maturity.
The original issue discount on each of the Discount Bonds is treated for federal income tax purposes and Arizona income
tax purposes as accreting daily over the term of such Discount Bond on the basis of a constant interest rate compounded
at the end of each six-month period (or shorter period from the date of original issue) ending on January 1 and July 1
(with straight-line interpolation between compounding dates).
The amount of original issue discount accruing each period will be added to the Beneficial Owner’s tax basis for the
Discount Bond. The adjusted tax basis will be used to determine taxable gain or loss upon disposition of the Discount
Bond. An initial Beneficial Owner of a Discount Bond who disposes of the Discount Bond prior to maturity should consult
his or her tax advisor as to the amount of the original issue discount accrued over the period held and the amount of
taxable gain or loss upon the sale or disposition of the Discount Bond prior to maturity.
The Code contains certain provisions relating to the accretion of original issue discount in the case of subsequent
Beneficial Owners of the Discount Bonds. Beneficial Owners who do not purchase the Discount Bonds in the initial
offering at the OID Issue Price should consult their own tax advisors with respect to the tax consequences of the ownership
of Discount Bonds.
A portion of the original issue discount that accretes in each year to a Beneficial Owner of a Discount Bond may result in
certain collateral federal income tax consequences as described in “TAX EXEMPTION” herein. Beneficial Owners of
Discount Bonds in states other than Arizona should consult their own tax advisors with respect to the state and local tax
consequences of owning Discount Bonds.
9
LEGAL MATTERS
Certain legal matters relating to the authorization, sale and execution and delivery of the Bonds and with regard to the
tax-exempt status of the interest on the Bonds are subject to the legal opinion of Bond Counsel. (See “TAX
EXEMPTION”). The signed legal opinion dated and premised on facts existing and law in effect as of the date of original
execution and delivery of the Bonds, will be delivered to the City at the time of original execution and delivery of the
Bonds.
The proposed form of the legal opinion is set forth as APPENDIX C – “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 expresses 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.
Such legal opinion expresses the professional judgment of Bond Counsel as to the legal issues explicitly addressed therein.
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 performance of parties to the transaction. The rendering of an opinion
also does not guarantee the outcome of any legal dispute that may arise out of the transaction.
LITIGATION
To the knowledge of the appropriate representatives of the City, no litigation or administrative action or proceeding is
pending or threatened restraining or enjoining, or seeking to restrain or enjoin, the execution or delivery of the Bonds or
contesting or questioning the proceedings and authority under which the Bonds have been authorized and are to be
executed, sold or delivered, or the validity of the sale of the Bonds.
[There are several claims and/or lawsuits pending against the City of Chandler. The City retains responsibility for
payment of the first one million seven hundred fifty thousand dollars ($1,750,000.00) of each loss, and has excess
insurance coverage for the next thirty million ($30,000,000.00) dollars. The City is adequately funded for its retention.
The largest lawsuit currently filed against the City alleges that a police officer participating in a regional task force
contributed to the death of an unarmed passenger when he participated in a vehicle containment maneuver that allegedly
led to the death of the suspect and passenger. The City received a notice of claim in the amount of five million dollars
($5,000,000). The City is a Co-defendant in the case and has filed a motion for summary judgement for the dismissal of
the case. Oral argument will be held on the motion for summary judgement in October, 2021.]
FINANCIAL STATEMENTS
The audited financial statements of the City as of June 30, 2020, and for its fiscal year then ended, which are included as
APPENDIX D – “CITY OF CHANDLER, ARIZONA – AUDITED FINANCIAL STATEMENTS FOR THE YEAR
ENDED JUNE 30, 2020” of this Official Statement, have been audited by Heinfeld, Meech & Co., P.C. These are the
most recent audited financial statements available to the City. These audited financial statements may not represent the
current financial conditions of the City. The City did not request the consent of Heinfeld, Meech & Co., P.C. to include
its report and Heinfeld, Meech & Co., P.C. has performed no procedures subsequent to rendering its opinion on the
financial statements.
10
CONTINUING SECONDARY MARKET DISCLOSURE
The City has agreed for the benefit of the beneficial owners of the Bonds, in accordance with Rule 15c2-12 of the
Commission (the “Rule”) to provide certain financial information and operating data relating to the City by not later than
February 1 in each year commencing February 1, 2022 (the “Annual Reports”), and to provide notices of the occurrence
of certain enumerated events (the “Notices”) as set forth in APPENDIX F – “FORM OF CONTINUING DISCLOSURE
CERTIFICATE”. The Annual Reports and the Notices and any other documentation or information required to be filed
by such covenants will be filed by the City with the Municipal Securities Rulemaking Board (the “MSRB”) in a format
prescribed by the MSRB. Currently, the MSRB requires filing through their Electronic Municipal Market Access system
(“EMMA”), each as described in APPENDIX F – “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” The
specific nature of the information to be contained in the Annual Report and the Notices and the method of their
dissemination is set forth in APPENDIX F. These covenants will be made in order to assist the original purchaser in
complying with the Rule. A failure by the City to comply with these covenants must be reported in accordance with the
Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or
sale of Bonds in the secondary market. 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 purpose, the City has covenanted to
provide notice of such failure. Absence of continuing disclosure, due to non-appropriation or otherwise, may adversely
affect the transferability and marketability of the Bonds.
The City’s Management Services Department has instituted written procedures to facilitate compliance with existing
continuing disclosure undertakings, the continuing disclosure undertaking related to the Bonds, and future undertakings
in all material respects.
The City believes it is currently in material compliance with all of its continuing disclosure requirements.
RATINGS
Fitch Ratings, Inc. (“Fitch”), Moody’s Investors Service, Inc. (“Moody’s”) and S&P Global Ratings, a division of
Standard & Poor’s Financial Services LLC (“S&P”), have assigned the ratings of “___”, “___” and “___,” respectively,
on the Bonds. Such ratings reflect only the views of Fitch, Moody’s and S&P. An explanation of the significance of the
Fitch rating may be obtained at One State Street Plaza, New York, New York 10040. An explanation of the significance
of a rating assigned by Moody’s may be obtained at 7 World Trade Center, 250 Greenwich Street, New York, New York
10007. An explanation of the significance of a rating assigned by S&P may be obtained at 55 Water Street, New York,
New York 10041. Such ratings may be revised downward or withdrawn entirely by Fitch, Moody’s, or S&P, if, in their
respective judgment, circumstances so warrant. Any downward revision or withdrawal of such ratings may have an
adverse effect on the market price of the Bonds. The City has covenanted in its continuing disclosure certificate (see
“CONTINUING SECONDARY MARKET DISCLOSURE” herein) that it will file notice of any formal change in any
such rating relating to the Bonds.
POLITICAL DONATIONS
To the best of their knowledge, none of the City, the Bond Registrar and Paying Agent, the Financial Advisor or their
counsel or agents are known to have made political contributions other than those, if any, permitted under applicable
securities regulations to any person who sought a seat on the City Council at its last election or any election prior to the
last election.
11
CERTIFICATION CONCERNING OFFICIAL STATEMENT
Documents delivered with respect to the Bonds will include a certificate to the effect that to the knowledge of the
Management Services Director of the City after appropriate review, this Official Statement is true, correct and complete
in all material respects and does not include any untrue statement of a material fact or omit to state any material fact
necessary to make such statements and information herein, in light of the circumstances under which they were made, not
misleading and that no event has occurred since date of this Official Statement that should be disclosed herein in order to
make the statements and information herein not misleading in any material respect.
ADDITIONAL INFORMATION
The Financial Advisor has been engaged by the City for the purpose of advising the City as to certain debt service
structuring matters specific to the Bonds, and on certain matters relative to the overall debt financing program of the City.
The Financial Advisor has assisted in the assemblage and preparation of this Official Statement at the direction and on
behalf of the City. No person is entitled to rely on the Financial Advisor’s participation as an assumption of responsibilit y
for, or an expression of opinion of any kind with regard to, the accuracy or completeness of the information contained
herein.
The information in this Official Statement has been provided by the City, the Maricopa County, Arizona, Assessor’s,
Treasurer’s and Finance offices, the Arizona Department of Revenue and other sources which are considered to be reliable
and are customarily relied upon in the preparation of similar official statements, but such information is not guaranteed
as to accuracy or completeness. All estimates and assumptions contained herein are believed to be reliable, but no
representations are made that such estimates and assumptions are correct or will be realized. Any information or
expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor
any sale hereunder shall under any circumstances create an implication that there has been no change as to the affairs of
the City. This Official Statement may be supplemented from time to time by the provision of supplemental or additional
documents.
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 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.
CONCLUDING STATEMENT
The summaries or descriptions of documents contained herein and all references to other materials not purporting to be
quoted in full are only brief outlines of certain provisions thereof and do not constitute complete statements of such
provisions and do not summarize all the pertinent provisions of such documents. For further information, reference should
be made to the complete documents, copies of which are available for inspection from the Financial Advisor.
To extent that any statements made in this Official Statement involve matters of opinion or estimates, whether or not
expressly stated to be such, they are made as such and not as representations of fact or certainty and no representation is
made that any of these opinions or estimates have been or will be realized. Information in this Official Statement has
been derived by the City from official records and other sources and is believed to be reliable. Information other than that
obtained from the official records of the City has not been independently confirmed or verified by the City and its accuracy
is not guaranteed. The presentation of information, including tables of receipts from taxes and other sources, is intended
to show recent historic information and is not intended to indicate future or continuing trends in the financial position or
other affairs of the City. No representation is made that past experience, as is shown by that financial or other informatio n,
will necessarily continue or be repeated in the future.
Neither this Official Statement nor any statement that may have been or that may be made orally or in writing is to be
construed as part of a contract or agreement between the City and the purchasers or holders of any Bonds.
12
The attached Appendices A through F are integral parts of this Official Statement and must be read together with all of
the foregoing statements.
This Official Statement has been prepared on direction of the City and has been approved by and executed for and on
behalf of the City by its authorized representative indicated below.
CITY OF CHANDLER, ARIZONA
By:
Kevin Hartke, Mayor
A-1
APPENDIX A
CITY OF CHANDLER, ARIZONA
GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION
General
The City is located in the southeastern portion of the County. The City encompasses approximately 65 square miles and
is one of several major cities comprising the greater Phoenix, Arizona metropolitan area, which is Arizona’s economic,
political and population center.
The City was founded in 1912 and incorporated in 1920. The following table sets forth a record of the population statistics
of the City since 1980, along with the population statistics for the County and the State.
POPULATION STATISTICS
Year
City of
Chandler
Maricopa
County
State of
Arizona
2020 Estimate (a)
272,011
4,439,220
7,294,587
2010 Census (Revised)
236,326
3,817,117
6,392,017
2005 Special Census
233,681
3,700,516
6,044,985
2000 Census
176,581
3,072,149
5,130,632
1990 Census
90,533
2,122,101
3,665,305
1980 Census
29,673
1,509,175
2,716,546
(a) Estimate as of July 1, 2020. (Published December, 2020).
Source: U.S. Census Bureau and the Office of Employment & Population Statistics, Arizona Department of
Administration.
The following table contains historic information in regard to the geographic incorporated size of the City as set forth in
square miles.
LAND AREA
City of Chandler, Arizona
Square
Year
Miles
2020
65.53
2019
65.33
2018
65.19
2017
65.07
2016
65.05
Source:
The City Management Services Department and City Planning Division.
A-2
Municipal Government and Organization
The City adopted the City Charter in 1965 which provides for a Council-Manager form of government. The seven-
member City Council is elected at-large on a staggered basis and consists of the Mayor and six councilmembers. The
current Mayor and councilmembers serve four-year terms.
The City Council appoints the City Manager who has full responsibility for carrying out City Council policies and
administering City operations. The City Manager is responsible for appointment of department heads. The City
employees are hired under procedures as specified in the City Charter. The government and operations of the City are
provided by a staff of 1,702 full-time employees.
Economy
The major industry clusters contributing to the economic base of the City include government, manufacturing, financial
services, commercial activities (including construction and commerce), high technology and healthcare. The City is home
to a wide variety of technology industries, with a heavy concentration in the semiconductor cluster. The continued
economic development of the City is driven by the educational attainment of Chandler residents. Approximately 76% of
adult residents have attended some college and 45% possess a bachelor’s or advanced degree. This educational attainment
level attracts employers in “knowledge based” industries, adding to the concentration of high-wage jobs.
The following table sets forth unemployment rate averages for the City, the County, the State and the United States.
UNEMPLOYMENT RATE AVERAGES
Calendar
Year
City of
Chandler
Maricopa
County
State of
Arizona
United
States
2021 (a)
5.5%
6.3%
6.7%
6.2%
2020
6.6
7.3
7.8
8.1
2019
3.5
4.0
4.7
3.7
2018
3.6
4.1
4.7
3.9
2017
3.7
4.2
4.9
4.4
(a) Data through May, 2021 and not seasonally adjusted.
Source:
The City Management Services Department and City Planning Division, Arizona Office of Economic
Opportunity, in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics.
[Remainder of page intentionally left blank.]
A-3
Below is the list of the industrial and business parks operating within the City.
INDUSTRIAL AND BUSINESS PARKS
City of Chandler, Arizona
Source:
The City’s Economic Development Division.
[Remainder of page intentionally left blank.]
10 Chandler
Chandler Hamilton Plaza
Park Place
Advanced Medical Plaza
Chandler Office Center
Parkside Professional Plaza
Airpark South Professional Village
Chandler Office Park
Presidio
Aquila Ocotillo
Chandler Technology Center
Price Road Industrial Park
Arizona Corporate Park North
Chandler Viridian
Price Warner Medical Office
Arizona Corporate Park South
Continuum Business Park
Promenade Commons
Ascend at Chandler Airport Center
Dobson Business Park
Regency Office Park
AZ202
Dobson Professional Plaza
San Tan Corporate Center I & II
Bogle Business Park
Eastpoint Business Plaza
San Tan Crossing Professional Plaza
Carmel Professional Plaza
Fairview Corporate Park
San Tan Technology Center
Chandler Airpark
First Chandler Business Park
Southgate Park
Chandler Airport Business Center
Focus Corporate Plaza
Southpark Business Center
Chandler Airport Commerce Center
Fountains at Ocotillo
Stellar Industrial Airpark
Chandler Center
Frye Road Industrial Park
The Park at Santan
Chandler Corporate Centers
Gila Springs Industrial Park
Tiburon
Chandler Crossroads
Kyrene 202 Business Park
Warner Commerce Park
Chandler Distribution Center
Lotus Project
Watermark
Chandler Echelon
Mach One
Westech Corporate Center
Chandler Freeway Business Park
Mammoth Professional Building
Williams Field Road Business Park
Chandler Freeway Crossings
McClintock Professional Plaza
Willis/AZ Ave Corporate
Chandler Gateway Medical Plaza
Paloma Kyrene Business Park
Chandler Gateway Office Park
Park Germann
A-4
Employment and Employers
Electronics plants located in the City include: Microchip Technologies, producer of electronic circuitry; Rogers
Corporation, manufacturer of materials for printed circuit boards and power electronic devices; Intel Corporation,
manufacturer of microcomputer components; and NXP, manufacturer of semiconductor and satellite systems.
A partial list of major manufacturing employers located within the City is set forth in the following table.
MAJOR MANUFACTURING EMPLOYERS (a)
City of Chandler, Arizona
___________________
(a) Some of the major manufacturing employers 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 (collectively, the “Filings”) with the Commission. Such Filings may be inspected and copies are
available at the public reference facilities maintained by the Commission at 100 F Street, N.E., Washington, D.C.
20549. In addition, the Filings may also be inspected at the offices of the New York Stock Exchange (“NYSE”) 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 http://www.sec.gov. Neither the City, nor the Financial Advisor or their
respective agents or consultants have examined the information set forth in the Filings for accuracy or completeness,
nor do they assume responsibility for the same.
Source: The City's Economic Development Division.
Employer
Description
Employees
Intel Corporation
Microprocessors
12,000
NXP
Semiconductors/Satellite Systems
1,700
Northrop Grumman
Aerospace Launch Systems
2,150
Microchip Technology
Microprocessors
1,500
Arizona Nutritional Supplements
Vitamin Manufacturing and R&D
700
Rogers Corp. (including Headquarters)
Microwave Substrates
460
Ultra Clean Technology
Frame and Sheet Metal Fabrication
320
TEL - Tokyo Electron
Semiconductors
250
Smurfit Kappa
Paper Based Packaging
220
Comfort Systems USA
HVAC and Building Systems
265
Garmin
Navagation Systems
165
Advanced Circuits
PCB Manufacturer
150
Air Products and Chemicals, Inc.
Industrial Gas Manufacturing
150
Z Modular
Modular Construction Systems
150
Infineon Technologies Americas Corp
Semiconductors
140
Marvell Technologies
Semiconductors
135
CoValence Laboratories
Contract Manufacturer
130
Armorworks
Defense and Security Manufacturer
125
South Bay Circuits
Circuit Boards
125
Isola
Circuit Board Materials
115
A-5
The City also serves as the location of a significant number of non-manufacturing employers. The following is a partial
list of major non-manufacturing employers in the City.
MAJOR NON-MANUFACTURING EMPLOYERS (a)
City of Chandler, Arizona
___________________
(a) Some of the major non-manufacturing employers are subject to the informational requirements of the Exchange Act,
and in accordance therewith file the Filings with the Commission. The Filings may be inspected and copies are
available at the public reference facilities maintained by the Commission. In addition, the Filings may also be
inspected at the offices of the NYSE or on the Commission’s EDGAR database. None of the City, the Financial
Advisor or their respective agents or consultants have examined the information set forth in the Filings for accuracy
or completeness, nor do they assume responsibility for the same.
Source: The City's Economic Development Division.
Agriculture
Agricultural production still is a contributor to the diversified economic base of the City. Principal products include
livestock, alfalfa, small grains, citrus and vegetables. As the residential, commercial and industrial development of the
City has occurred, the contribution of agricultural production to the economy of the City has decreased.
Commerce [To be updated.]
A 1.3 million square foot super-regional shopping mall known as Chandler Fashion Center opened for business in 2001.
This mall is home to four anchor department stores, including Dillard’s and Macy’s, a 20-screen Harkins theater complex
and outdoor urban village and more than 180 specialty retail shops. Additionally, the Downtown Chandler entertainment
and business district serves as a hub for commercial activities due to numerous retail, restaurant and entertainment venues.
Several community shopping centers serve residents of the City and surrounding areas, including Chandler Pavilions,
Casa Paloma, Chandler Festival, Chandler Gateway, Paseo Del Oro Shopping Center, North Park Plaza Shopping Center,
Fulton Ranch Towne Center and Crossroads Towne Center. A number of neighborhood shopping centers are also
dispersed throughout the City.
Approximate
Number of Full
Employer
Description
Time Employees
Wells Fargo Ocotillo Corporate Campus
Regional Corporate Headquarters
5,500
Chandler Unified School District
Public Education
4,900
Bank of America
Mortgage Processing Center
3,600
Chandler Regional Medical Center
Hospital
2,500
PayPal
E-Commerce Business
1,700
City of Chandler
Government
1,586
Verizon
Wireless Customer Support
1,400
Avnet
Computer Products Distribution
1,100
Basha's
Corporate HQ/Food Distribution
1,100
Liberty Mutual Insurance
Financial Services Center
1,000
GM IT Innovation Center
Software Development
890
GM Financial Services
Auto Financial Services
820
CVS Health
Retail Pharmaceutical Healthcare Products
700
Toyota Financial Services
Financial Services Center
700
Safelite Auto Glass
Auto Glass Repair and Replacement
700
Mr. Cooper
Mortgage Processing Center
600
Pearson Educational Institution
Educational Services
500
Allstate Insurance Co.
Financial Services Center
500
A-6
The following table sets forth a record of the excise tax collections of the City for the most recent five fiscal years and the
excise taxes expected for the current fiscal year, pursuant to the City’s 2020-21 and 2021-22 adopted budget.
City of Chandler
Excise Tax Collections
FY 2016-17 to FY 2021-22
2016-17 (a)
2017-18 (a)
2018-19 (a)
2019-20 (b)
Estimated
2020-21
Adopted
2021-22
City Transaction Privilege
(Sales) and Use Tax (c)
$120,189,651
$127,584,410
$138,888,825
$140,798,389
$145,018,200
$148,278,200
State-Shared Sales Tax
23,768,564
23,821,248
25,525,595
26,597,361
27,600,000
28,790,000
State-Shared Income Tax
31,910,426
30,652,381
30,693,731
33,255,159
37,000,000
33,500,000
Franchise Fees
3,272,104
3,560,770
3,556,211
3,432,995
3,342,100
2,980,000
Licenses and Permits
7,209,693
6,512,930
7,398,669
7,908,291
7,295,600
7,461,000
Fines and Forfeitures
2,560,255
3,368,445
3,196,843
2,714,065
2,643,200
3,745,500
Totals
$188,910,693
$195,500,184
$209,259,874
$214,706,260
$222,899,100
$224,754,700
___________________
(a) Amounts are actual collections provided by the City’s Budget Division (cash basis).
(b) Unaudited FY 2020-21 revenues.
(c) Includes City Transaction Privilege Sales Tax, Privilege Audit Assessments, Privilege License Fees and Privilege
Tax Interest. Excludes Excise Tax Refunds from GPLET program.
Source: City of Chandler Management Services Department.
Tourism
The direct, indirect and induced benefits derived from the activities surrounding tourism contribute greatly to the
economic health of the community. With 33 hotels representing more than 4,000 available rooms and three hotels under
construction which will provide an additional 510 rooms, the City’s tourism market continues to receive significant private
sector investment in new properties and the repositioning of older properties to meet the needs of leisure and business
travelers.
Leisure travel to the City is driven by proximity to various shopping, dining, recreational, sporting and scenic attractions
located within a short drive. However, business travel comprises most of the City’s visitors due to the high density of
employment. As home to a number of Fortune 500 companies with global, regional and local headquarters spanning
several industry clusters (autonomous vehicle, high-tech manufacturing, semiconductor manufacturing, aerospace,
aviation, healthcare and bioscience, advanced business and financial business services, etc.) business travelers drive the
City’s lodging market.
Transportation
Industry, business and residents benefit from the transportation network available in and near the City. Rail, bus, highway
and air facilities are developed throughout the area.
The City is served by the Union Pacific Railroad for long distance freight rail service and the Valley Metro Transit System
for local public transportation.
A-7
The City is served by a network of streets and highways. The Superstition Freeway (“U.S. Highway 60”) parallels the
northern border of the City. U.S. Highway 60 connects to cities in northern and eastern Arizona. The Superstition
Freeway also connects to Interstate Highway 10 which connects the cities of Tucson and Phoenix. State Highway 87 and
Arizona Loop 202 bisect the City. The Price Freeway (a north-south portion of Loop 101) and the San Tan Freeway (an
east-west portion of Loop 202) facilitate traffic flow to the City by connecting together the 101, 202 and I-10 freeways.
Residents of the area have ready access to Chandler Municipal Airport, Stellar Airpark, Phoenix-Mesa Gateway Airport
and Sky Harbor International Airport. The Chandler Municipal Airport, owned and operated by the City, is located
approximately three miles southeast of the central business district of the City and is designed to relieve private aircraft
activity at Sky Harbor International Airport. The Chandler Municipal Airport has approximately 430 based aircraft and
two parallel runways, 4,870 feet and 4,401 feet, respectively. The Chandler Municipal Airport offers various services
including full-service maintenance facilities, flight schools, and aircraft hangars. The Stellar Airpark is a private airport
that is open to public use and is located west of the central business district of the City. The Stellar Airpark has a 4,000
foot runway and provides various services. The Phoenix-Mesa Gateway Airport is owned and operated by the Phoenix-
Mesa Gateway Airport Authority that includes the City of Mesa, City of Phoenix, Town of Gilbert, Town of Queen Creek,
the Gila River Indian Community and the City of Apache Junction. The Phoenix-Mesa Gateway Airport has three
expansive runways (10,401 feet; 10,201 feet; and 9,300 feet), a passenger terminal, and convenient parking. Phoenix-
Mesa Gateway Airport is positioned to be a dynamic reliever airport to Phoenix’s Sky Harbor International Airport.
Phoenix Sky Harbor International Airport is located 15 miles to the northwest of the City.
Education
Arizona State University (“ASU”) is the largest public university in the Southwest by enrollment. ASU spans five
campuses in the metro Phoenix area and has an enrollment of approximately 119,951 students including ASU online
programs. ASU’s main campus remains in the bordering City of Tempe, Arizona and is home to the Ira A. Fulton Schools
of Engineering, a nationally recognized research and innovation institution designed to meet the growing needs of the
engineering and technology industries. Adjacent to Phoenix-Mesa Gateway Airport, the Polytechnic Campus serves
approximately 5,243 students. Chandler is home to the ASU Chandler Innovation Center where ASU provides
technology-based education and operates a community makerspace. The University of Arizona’s Chandler campus is
housed in the City’s community center, where it offers a number of tech-focused undergraduate and graduate level
degrees, a professional MBA, and graduate programs in education, school psychology, and legal studies. Located in the
City is the Chandler-Gilbert Community College, which offers a complete educational program and serves nearly 20,000
students. The Chandler Unified School District provides primary and secondary education to residents in the City area
through 31 elementary schools, 10 middle school programs, 6 high schools and 3 alternative schools. A number of private
and charter schools are also located in the City.
B-1
APPENDIX B
CITY OF CHANDLER, ARIZONA - FINANCIAL DATA
2021/22 Fiscal Year –Estimated Net Full Cash and Assessed Values
Estimated Net Full Cash Value (a)(b)
$40,751,143,934
Net Assessed Limited Property Value (b)
3,463,794,661
Net Assessed Full Cash Value (b)
4,682,558,944
(a) 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.
(b) See “PROPERTY TAXES” herein for an explanation of these values.
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue and Property Tax Rates
and Assessed Values, Arizona Tax Research Association and the City.
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B-2
STATEMENTS OF BONDS OUTSTANDING
General Obligation Bonds Outstanding and to be Outstanding (a)*
Issue
Series
Original
Amount
Maturity
Dates
Outstanding
Balance
Outstanding
2014REF
$214,540,000
7-1-22/26,28
$ 135,690,000
2016REF
39,050,000
7-1-25/27
39,050,000
2017
58,740,000
7-1-22/32
39,040,000
2019
30,400,000
7-1-22/35
29,400,000
Total General Obligation Bonds Outstanding
$ 243,180,000
Less: The Bonds Being Refunded by the Series 2021 GO Refunding Bonds
(43,320,000)*
Plus: The Series 2021 GO Refunding Bonds
48,610,000 *
Plus: The Series 2021 GO Bonds
33,375,000*
Less: Water and Wastewater Funds Supported General Obligation Bonds (a)
(67,855,000)*
Net General Obligation Bonds Outstanding and to be Outstanding
$ 213,990,000 *
__________________________
(a) Excludes the debt service requirements for the City’s refunded and defeased bonds currently outstanding which are
secured by obligations issued by the United States Government being held in their respective irrevocable trust
accounts.
(b) The City intends to pay the debt service requirements of the following general obligation bonds with funds provided
by the water and wastewater funds of the City: $53,861,000 aggregate principal amount of the City’s General
Obligation Refunding Bonds, Series 2014 and $13,550,000 aggregate principal amount of the City’s General
Obligation Refunding Bonds, Series 2016 and $18,730,000* aggregate principal amount of the City’s General
Obligation Refunding Bond, Taxable Series 2021. In the event that revenues available for payment of such annual
debt service requirements from the respective enterprise funds proves to be insufficient, or the City elects not to pay
debt service requirements on such general obligation bonds from the water and wastewater funds, the debt service
requirements of such bonds will become payable from the annual levy of an ad valorem tax upon all of the taxable
property located within the City.
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* Preliminary, subject to change.
B-3
Water and Wastewater Revenue Bonds Outstanding (a)
Balance
Outstanding
Total Water and Wastewater Revenue Bonds Outstanding
$ -
Plus: Water and Wastewater Funds Supported General Obligation Bonds (b)
49,125,000*
Plus: Water and Wastewater Funds Supported Excise Revenue Tax Obligations (c)
122,095,000
Plus: the Series 2021 Refunding Bonds
18,730,000*
Plus: the Series 2021 Refunding Obligations
95,265,000*
Total Water and Wastewater Supported Bonds Outstanding
$ 285,215,000*
(a) Excludes the debt service requirements for the City’s refunded and defeased bonds currently outstanding which are
secured by obligations issued by the United States Government being held in their respective irrevocable trust
accounts.
(b) The City intends to pay the debt service requirements of the Water and Wastewater Funds Supported General
Obligation Bonds with funds provided by the Water and Wastewater Funds of the City. In the event that revenues
available for payment of such annual debt service requirements from the respective enterprise funds proves to be
insufficient, or the City elects not to pay debt service requirements on such general obligation bonds from the Water
and Wastewater Funds, the debt service requirements of such bonds will become payable from the annual levy of an
ad valorem tax upon all of the taxable property located within the City.
(c) The City intends to pay the debt service requirements of the following obligations with funds provided by the Water
and Wastewater Funds of the City: $2,610,000 aggregate principal amount of the City’s Excise Tax Revenue
Obligations, Series 2011, $97,400,000 aggregate principal amount of the City’s Excise Tax Revenue Obligations,
Series 2013, $61,245,000 aggregate principal amount of the City’s Excise Tax Revenue Obligations, Series 2015,
$19,510,000 aggregate principal amount of the City’s Excise Tax Revenue Refunding Obligations, Series 2016 and
the $35,220,000 aggregate principal amount of the City’s Excise Tax Revenue Obligations, Series 2017 and the
$12,320,000 aggregate principal amount of the City’s Excise Tax Revenue Obligations, Series 2019 (together, the
“Water and Wastewater Funds Supported Excise Tax Revenue Obligations”).
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B-4
Excise Tax Revenue Obligations Outstanding and to be Outstanding*
Issue
Series
Purpose
Original
Principal
Amount
Original
Principal
Maturity
Dates
Principal
Balance
Outstanding
2011
Various Projects
$15,000,000
07-01-12/22
$ 905,000
2013
Various Projects
104,500,000
07-01-15/33
90,800,000
2015
Various Projects
66,660,000
07-01-17/35
55,835,000
2016
Refunding
19,510,000
07-01-20/28
17,140,000
2017
Various Projects
36,220,000
07-01-18/37
33,420,000
2019
Various Projects
13,000,000
07-01-20/28
11,050,000
Total Excise Tax Revenue Obligations Outstanding
$209,150,000
Less: Obligations Being Refunded
(87,055,000)*
Plus: The Series 2021 Refunding Obligations
95,265,000 *
Less: Water and Wastewater Funds Supported Excise Tax Revenue Obligations (b)
(217,360,000)*
Net Excise Tax Revenue Obligations Outstanding and to be Outstanding
$ -
(a) The City intends to issue $95,265,000* of 2021 Excise Tax Refunding Obligations concurrently with the issuance of
the Bonds under a separate official statement.
(b) The City intends to pay the debt service requirements of the Water and Wastewater Funds Supported Excise Tax
Revenue Obligations with funds provided by the Water and Wastewater Funds of the City.
Direct General Obligation Bonded Debt, Legal Limitation
and Available General Obligation Bonding Capacity
By statute, the Arizona Constitutional limit for general obligation bonded indebtedness of a city for general municipal
purposes may not exceed six percent (6%) of Net Full Cash Assessed Value in that city. In addition to the six percent
(6%) limitation for general purpose bonds, cities may issue general obligation bonds up to an additional twenty percent
(20%) of the Net Full Cash Assessed Value for such city for water, artificial light or sewers, for the acquisition and
development of land for open space preserves, parks, playgrounds and recreational facilities, for the acquisition and
development of public safety, law enforcement, fire and emergency facilities and streets and transportation facilities.
(a) Includes the Bonds.
(b) This amount reduces the City’s borrowing capacity pursuant to State statutes and the Arizona Constitution , and the
principal amount of bonds authorized at the elections. Such capacity (but not authorization) will be recaptured as
premium is amortized.
* Preliminary, subject to change.
General Municipal Purpose Bonds
Park, Street, and Transportation Bonds
Total 6% General Obligation
$ 280,953,537
Total 20% General Obligation
$ 936,511,789
Bonding Capacity
Bonding Capacity
Less: 6% General Obligation
Less: 20% General Obligation
Bonds Outstanding
(5,851,900) *(a)
Bonds Outstanding
(237,328,100) *(a)
Less: Original Issue Premium
*(b)
Less: Original Issue Premium
*(b)
Less: Unamortized Original Issue Premium
(239,656) (b)
Less: Unamortized Original Issue Premium
(11,493,592) (b)
Net 6% General Obligation
Net 20% General Obligation
Bonding Capacity
$ 274,861,981
Bonding Capacity
$ 687,690,097
Water, Light, Sewer, Open Space, Public Safety,
Law Enforcement, Fire and Emergency Services,
B-5
Direct and Overlapping General Obligation Bonded Debt Outstanding
__________________________
*
(a) Proportion applicable to the City is computed on the ratio of Net Assessed Limited Property Value as calculated for
fiscal year 2020-21 for the overlapping jurisdiction to the amount of such valuation which lies within the City.
Does not include the obligation of the Central Arizona Water Conservation District (“CAWCD”) to the United States
of America, Department of the Interior, for repayment of certain capital costs for construction of the Central Arizona
Project (“CAP”), a major reclamation project that has been substantially completed by the Department of the Interior.
The obligation is evidenced by a master contract between CAWCD and the Department of the Interior. In April 2003,
the United States and CAWCD agreed to settle litigation over the amount of the construction cost repayment
obligation, the amount of the respective obligations for payment of the operation, maintenance and replacement costs
and the application of certain revenues and credits against such obligations and costs. Under the agreement,
CAWCD’s obligation for substantially all of the CAP features that have been constructed so far will be set at $1.646
billion, which amount assumes (but does not mandate) that the United States will acquire a total of 667,724 acre feet
of CAP water for federal purposes. The United States will complete unfinished CAP construction work related to the
water supply system and regulatory storage stages of CAP at no additional cost to CAWCD. Of the $1.646 billion
repayment obligation, 73% will be interest bearing and the remaining 27% will be non-interest bearing. These
percentages 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
Maricopa, Pima and Pinal Counties. It was formed for the express purpose of paying administrative costs and
expenses of the CAP and to assist in the repayment to the United States of the CAP capital costs. Repayment will be
made from a combination of power revenues, subcontract revenues (i.e., agreements with municipal, industrial and
agricultural water users for delivery of CAP water) and a tax levy against all taxable property within CAWCD’s
boundaries. At the date of this Official Statement, the tax levy is limited to fourteen cents per $100 of Net Assessed
Limited Property Value, of which fourteen cents is being currently 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.
(b) Includes total general obligation bonds outstanding. Does not include authorized but unissued general obligation
bonds of the City or such other jurisdictions as follows or which may be authorized in the future:
*Preliminary, subject to change.
Overlapping
Proportion Applicable to
General
City of Chandler (a)
Obligation
Approximate
Net Debt
Overlapping Jurisdiction
Bonded Debt (b)
Percent
Amount
State of Arizona
None
4.668%
None
Maricopa County (c)
None
7.109%
None
Maricopa County Community College District (d)
250,065,000
$
7.109%
17,777,103
$
Maricopa County Special Health Care District
429,125,000
7.109%
30,506,465
Kyrene Elementary School District No. 28
182,955,000
28.962%
52,987,566
Mesa Unified School District No. 4
275,525,000
4.458%
12,283,607
Gilbert Unified School District No. 41
112,360,000
2.736%
3,074,527
Chandler Unified School District No. 80
385,946,000
75.352%
290,816,740
Tempe Union High School District No. 213
76,755,000
16.630%
12,764,727
East Valley Institute of Technology District No. 401
None
14.434%
None
City of Chandler (e)
344,725,000
100.000%
344,725,000
Total Direct and Overlapping General Obligation Bonded Debt to be Outstanding
764,935,736
$
*
*
*
B-6
General Obligation Bonds
Overlapping Jurisdiction
Authorized but Unissued
State of Arizona
None
Maricopa County
None
Maricopa County Community College District
$ 3,000
Maricopa County Special Health Care District
None
Chandler Unified School District No. 80
95,250,000
Tempe Union High School District No. 213
None
Kyrene Elementary School District No. 28
52,450,000
Mesa Unified School District No. 4
95,000,000
Gilbert Unified School District No. 41
108,000,000
East Valley Institute of Technology District No. 401
None
City of Chandler (e)
150,180,000
_________________
*
(c) This total does not include the City’s revenue bonds and excise tax revenue obligations currently outstanding as
follows:
Excise Tax Revenue Obligations
$ 217,360,000
Includes Water and Wastewater Funds Supported General Obligation Bonds. In the event that the net revenues would
prove to be insufficient or the City elects not to pay debt service requirements on the Water and Wastewater Funds
Supported General Obligation Bonds from revenues from these enterprises, this debt would become payable from ad
valorem taxes.
(d) Does not include $1,830,000 City improvement district bonds outstanding.
(e) On May 27,2021 the City Council adopted a resolution calling for a special bond election requesting voter
consideration of $272,685,000 in general obligation bonds.
Direct and Overlapping General Obligation Bonded Debt Ratios
Per Capita
Bonded Debt
Population
Estimated @
272,011
As % of
City’s Total
2020/21
Net Full
Cash Value
As % of
City’s
2020/21
Estimated Net
Full Cash Value
Net Direct General Obligation Bonded Debt
Outstanding and to be Outstanding* (a)
$1,267.32
7.36%
0.85%
Net Direct and Overlapping General Obligation Bonded
Debt Outstanding and to be Outstanding* (a)
$2,812.15
16.34%
1.88%
*
(a) Includes the Bonds
Source:
The Arizona Department of Economic Security, Research Administration Population and Statistical Unit and
U.S. Census Bureau, Arizona Department of Administration.
*Preliminary, subject to change.
B-7
Direct and Overlapping Tax Rates per $100 Assessed Value
Inside the City, East Valley Institute of Technology and:
Tax
Rate
Gilbert Unified School District No. 41
$11.2481
Mesa Unified School District No. 4
$12.3597
Tempe Union High School District No. 213 and Kyrene Elementary School District No. 28
$11.2712
Chandler Unified School District No. 28
$11.4012
Source:
Property Tax Rates and Assessed Values, Arizona Tax Research Association.
Expenditure Limitation; One-Year and Multi-Year Overrides
Since fiscal year 1982-83, all cities in Arizona have been subject to an annual expenditure limitation imposed by the
Arizona Constitution. This limitation is based upon the City’s actual 1979-80 expenditures adjusted annually for
subsequent growth in population and inflation. The Constitution exempts certain expenditures from the limitation. The
principal exemptions for the City are payments for debt service on bonds and other long-term obligations, as well as
expenditures of federal funds and certain state-shared revenues.
The Constitution provides four processes, all requiring voter approval, for cities to modify the expenditure limitation:
1. A four-year home rule option.
2. A permanent adjustment to the 1979-80 base.
3. A one-time override for the following fiscal year.
4. An accumulation for pay-as-you-go capital expenditures.
City voters have approved four-year home rule options on a regular basis since the implementation of the expenditure
limitation. To the extent that the home rule option is not approved by the voters, the City would be subject to the
expenditure limitations prescribed by the Constitution. On August 28, 2018, the City’s voters approved a four-year home
rule option to exceed the expenditure limitation by the City beginning in Fiscal Year 2019-20. This four-year home rule
option will be in effect through fiscal year 2022-23.
City Retirement Systems Update
All full-time employees of the City, the Mayor and City Council participate in one of the three pension plans administered
by the State described below. See Note 10 in APPENDIX D for further discussion of the retirement plans of the City.
The Government Accounting Standards Board adopted GASB Statement Number 68, Accounting and Financial
Reporting for Pensions (“GASB 68”), which, beginning with fiscal years starting after June 15, 2014, requires cost-
sharing employers to report their “proportionate share” of the plan’s net pension liability in their government-wide
financial statements. GASB 68 will also require that the cost-sharing employer’s pension expense component include its
proportionate share of the plan’s pension expense, the net effect of annual changes in the employer’s proportionate share
and the annual differences between the employer’s actual contributions and its proportionate share.
Arizona State Retirement System
All full-time City employees (except public safety personnel and elected officials) participate in the Arizona State
Retirement System (the “System”), a multiple-employer cost-sharing defined benefit pension plan. The System was
established in 1953 and became effective in 1971. The System provides for retirement, disability, health insurance
premium benefits, and death and survivor benefits. The System is administered in accordance with A.R.S. Title 38,
Chapter 5.
B-8
The actuarially determined contribution rates for the fiscal year 2020/21 were 12.22% (12.04% retirement and 0.18%
long-term disability) for both employees and employers. The City’s contribution to the System for the fiscal year 2020/21
was $9,762,864 equal to the required contributions, not including alternate contributions.
Effective July 1, 2021, the City’s annual contribution rates are 12.41% (12.22% retirement and 0.19% long-term
disability) for fiscal year 2021/22 for both employees and employers.
The System has reported increases in its unfunded liabilities as compared to both the smoothed value of plan assets and
the market value of plan assets. The most recent annual reports for the System may be accessed at:
https://www.azasrs.gov. The effect of the increase in the System’s unfunded liabilities on the City, or on the City’s and
its employees’ future annual contributions to the System, cannot be determined at this time.
Arizona Public Safety Personnel Retirement System (Full-Time Police and Firefighter Employees)
All full-time sworn police officers and firefighters are eligible to participate in the Public Safety Personnel Retirement
System (the “PSPRS”) in separate agent multiple-employer defined benefit retirement plans. The PSPRS is jointly
administered by the fund manager (a five-member board appointed by the Governor and the State Legislature) and 257
local boards. The PSPRS provides for retirement, health insurance premium benefits, and death and survivor benefits.
The PSPRS is administered in accordance with A.R.S. Title 38, Chapter 5, Article 4.
The actuarially determined contribution rates for the fiscal year ended June 30, 2021 were 49.12% of annual covered
payroll for police tiers 1 and 2, 44.22% for tier 3 defined benefit (DB) and 44.51% for tier 3 defined contribution (DC).
For firefighters the contribution rate was 43.84% for tiers 1 and 2, 41.25% for tier 3 DB and 37.90 for tier 3 DC. The
City’s employer contribution to the PSPRS for the fiscal year ended June 30, 2021 was $13,017,877 for police and
$7,993,728 for firefighters, equal to the required contributions, not including alternate contributions.
Effective July 1, 2021, the City’s annual contribution rates are 7.65% for both groups of employees in tier 1, 11.65% for
both groups in tier 2, 10.12% for Police tier 3 DB, 9.88% for Police DC, 13.76% for Fire DB and 10.41% for Fire DC.
The rates are as follows for employers:
Tier 1 Contribution Rate
Hired into a PSPRS position before January 1, 2012:
Police: 49.12%
Fire: 41.67%
Tier 2 Contribution Rate
Hired into a PSPRS position on/after January 1, 2012 and before July 1, 2017:
Police: 49.12%
Fire: 41.67%
Tier 3 Contribution Rate
Hired into a PSPRS position on/after July 1, 2017:
Defined Benefit:
Police: 45.46%
Fire: 39.78%
Defined Contribution:
Police: 45.22%
Fire: 35.90%
The PSPRS has reported overall increases in its unfunded liabilities as compared to both the smoothed value of plan assets
and the market value of plan assets. The City of Chandlers portions increased only slightly for Fire but decreased for
Police due to the increased overpayments which have been made. The most recent annual reports for the PSPRS may be
accessed at: http://www.psprs.com/investments--financials/annual-reports. The effect of the increase in the PSPRS’s
unfunded liabilities on the City, or on the City’s and its employees’ future annual contributions to the PSPRS, is
$56,672,244 for fire and $114,467,812 for police as of the June 30, 2020 Actuarial Reports prepared by Foster & Foster,
Actuaries and Consultants. City Council has approved a compressed pay down plan in order to pay off the unfunded
liability.
Elected Officials’ Retirement Plan (Mayor and City Council)
B-9
The Mayor and Council of the City participate in two different plans: The Elected Officials’ Retirement Plan (EORP) for
councilmembers elected prior to 2014 and the Elected Officials’ Defined Contribution Retirement System (EODCRS) for
Council members elected effective January 1, 2014, both multiple-employer cost-sharing defined benefit plans. The
administrator for the EORP and the EODCRS is also the fund manager of the PSPRS. The EORP and EODCRS provides
for retirement, health insurance premium benefits, and death and survivor benefits.
The actuarially determined contribution rate for the fiscal year ended June 30, 2021 was 61.43%. The City’s contribution
to the EORP and EODCRS for the fiscal year ended June 30, 2021 was $154,160, equal to the required contributions, not
including alternate contributions.
Effective July 1, 2021, the City’s annual contribution rate for EORP is 61.43% for employer and either 7% or 13% for
employees (depending on their membership date), and the City’s annual contribution rate for EODCRS is 61.555% for
employer and 8.125% for employees.
The EORP has reported increases in its unfunded liabilities as compared to both the smoothed value of plan assets and
the market value of plan assets. The most recent annual reports for the EORP may be accessed at:
http://www.psprs.com/investments--financials/annual-reports. The estimated effect of the increase in the EORP’s
unfunded liabilities on the City, or on the City’s and its employees’ future annual contributions to the EORP, is $2,047,312
as of the June 30, 2020 EORP schedule of pension amounts by employer.
Healthcare Benefits for Retired Employees
During the year ended June 30, 2018, the City implemented the provisions of GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions (“GASB 75”). The City is required to report the
actuarially accrued cost of post-employment benefits, other than pension benefits (“OPEB”), such as health and life
insurance for current and future retirees. GASB 75 addresses reporting by governments that provide OPEB by measuring
and recognizing net assets or liabilities, deferred outflows of resources, deferred inflows of resources, and
expenses/expenditures related to OPEB provided through defined benefit OPEB plans. See Note 1 in APPENDIX D –
“CITY OF CHANDLER, ARIZONA – AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,
2020” for further information.
The City’s employees, their spouses and survivors may be eligible for certain retiree healthcare benefits under healthcare
programs provided by the City. Employees on long-term disability and their spouses may also qualify for retiree
healthcare benefits through the City. It is expected that substantially all City employees that reach normal or early
retirement age while working for the City will become eligible for such benefits. Currently, such retirees may obtain the
healthcare benefits offered by the City by paying 100% of the applicable premium. Although the retirees pay 100% of
their premium, the retirees’ participation in the City’s healthcare program affects the City’s healthcare costs for its
employees and results in an implicit rate subsidy.
The City provides other post-employment benefits to its retirees that consist of an implicit subsidy for healthcare and a
retirement health savings (RHS) plan for reimbursement of eligible medical expenses. The City offers the RHS plan to
employees and contributes toward a savings plan for each employee that they are eligible to use for medical expense
reimbursement at separation from service. The City makes no contribution to the retirees' premiums other than allowing
them to participate through the City's pooled benefits. By providing retirees with access to the City's healthcare plans
based on the same rates it charges to active employees, the City is in effect providing an implicit subsidy to retirees. This
implicit subsidy exists because, on average, retiree healthcare costs are higher than active employee healthcare
costs. Because the City does not contribute anything toward this plan in advance, the City employs a pay -as-you-go
method through paying the higher rate for active employees each year.
The City’s net OPEB liability as of June 30, 2020 is $53,112,727 and is reflected on the Balance Sheet in the City's
Financial Statements. This is calculated based on the annual required contribution (ARC) of the employer, an amount
actuarially determined which represents a level of funding that is paid on an ongoing basis, and projected to cover normal
cost each year to amortize the unfunded actuarial liability over a period not to exceed thirty years.
PROPERTY TAXES
B-10
General
For tax purposes in Arizona, real property and improvements and personal property is either valued by the Maricopa
County Assessor (the “Assessor of the County”) or the Arizona 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 Arizona Department of Revenue is referred to as
“centrally valued” property and is generally large mine and utility entities.
Locally assessed property has two different values, Limited Property Value and Full Cash Value (both as defined below).
Limited Property Value is used as the basis for taxation. Full Cash Value is used as the ceiling for determining Limited
Property Value and for determining debt limits for certain local governmental entities including for school districts.
For centrally valued property and personal property (except mobile homes), Full Cash Value of the property is the basis
for taxation of such property and for determining constitutional and statutory debt limits for most local governmental
entities.
“Limited Property Value” means, for property in existence in the prior year, the lesser of (a) the Full Cash Value of the
property or (b) an amount 5% greater than the Limited Property Value of such property determined for th e prior year.
Limited Property Value is established at a level or percentage of Full Cash Value comparable to properties of the same or
similar use or classification for property erroneously totally or partially omitted from the property tax rolls in the prior
year; property for which a change in use occurred; property 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 15% of the Full Cash
Value; and property that has been split, subdivided or consolidated, with variations depending on when the change
occurred. There is no limit on the growth of Full Cash Value.
Primary Taxes
Taxes levied for the maintenance and operation of counties, cities, towns, school districts, community college districts
and the State are “primary taxes”. These taxes are levied against the Net Assessed Limited Property Value (as defined
below) of the taxing jurisdiction. “Net Assessed Limited Property Value” is determined by excluding the value of property
exempt from taxation from the Limited Property Value of locally assessed property and from Full Cash Value of centrally
valued property and combining the resulting two amounts.
The State does not currently levy ad valorem taxes but the State currently requires each county to levy a “State equalization
assistance property tax” to provide equalization assistance to school districts in each county, which is used to offset the
cost of State equalization to those school districts.
The primary taxes levied by a county, city, town and community college district are constitutionally limited to a maximu m
increase of 2% over the maximum allowable prior year’s levy limit plus any taxes on property not subject to tax 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.
Primary taxes on residential property only are constitutionally limited to 1% of the Limited Property Value of such
property. This constitutional limitation on residential primary tax levies is implemented by reducing the school districts’
taxes. To offset the effects of reduced school district property taxes, the State compensates the school districts by
providing additional state aid or, in some counties, county taxpayers are required to make payments to offset the effects
of reduced property taxes.
B-11
Secondary Taxes
Taxes levied for debt retirement (e.g., debt service on the City’s bonds), voter-approved budget overrides and maintenance
and operation of special service districts such as sanitary, water conservation, fire, road improvement and career technical
education districts are “secondary taxes”. Like primary taxes, secondary taxes also are levied against the Net Assessed
Limited Property Value of the taxing jurisdiction. There is no limitation on annual levies for voter-approved bond
indebtedness and certain special district assessments. Pursuant to a statutory change effective in 2018, school districts
subject to desegregation orders levy secondary property taxes in addition to secondary taxes levied for debt service or
budget overrides.
Assessment Ratios
All property, both real and personal, is assigned a classification to determine its assessed valuation for tax purposes. Each
legal classification is defined by property use and has an assessment ratio (a percentage factor) that is multiplied by the
taxable value of the property -- Limited Property Value or Full Cash Value, as applicable -- to obtain the “Assessed
Limited Property Value” or the “Full Cash Assessed Value,” respectively. The current assessment ratios for each class
of property are set forth by tax year in the following table.
PROPERTY TAX ASSESSMENT RATIOS
Tax Year 2017 through Tax Year 2021
Tax Year
Property Classification (a)
2017
2018
2019
2020
2021
Mining, utilities, commercial and industrial
18%
18%
18%
18%
18%
Agriculture and vacant land
15
15
15
15
15
Owner occupied residential
10
10
10
10
10
Leased or rented residential
10
10
10
10
10
Railroad, private car company and airline
flight property (b)
15
14
15
15
15
(a) Additional property classifications exist, but seldom amount to a significant portion of a municipal body’s total
valuation.
(b) This percentage is determined annually pursuant to Section 42-15005, Arizona Revised Statutes.
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
Tax Procedures
The Arizona tax year is defined as the calendar year, although tax procedures begin prior to January 1 of the prior fiscal
year and continue through May of such fiscal year, when payment of the second installment of property taxes for the tax
year becomes delinquent.
The first step in the tax process is the determination of the Full Cash Value of each parcel of real property within the State.
“Full Cash Value” is statutorily defined to mean “the value determined as prescribed by statute” or if a statutory method
is not prescribed it is “synonymous with market value.” “Market Value” means that estimate of value that is derived
annually by use of standard appraisal methods and techniques, which generally includes the market approach, the cost
approach and the income approach. As a general matter, the various county assessors use a cost approach for
commercial/industrial property and a market approach for residential property. Arizona law allows taxpayers to appeal
the county assessor’s valuations by providing evidence of a lower value, which may be based upon another valuation
approach.
In valuing centrally valued property, the Arizona Department of Revenue begins generally with information provided by
taxpayers and then applies procedures provided by State law. Appeals are also allowed for such valuations.
B-12
On or before the third Monday in August of each year, the Board of Supervisors of the County prepares th e tax roll that
sets forth the valuation by taxing district of all property in the County subject to taxation. The Assessor of the County is
required to complete the assessment roll by December 15th of the year prior to the levy. This tax roll also shows the
valuation and classification of each parcel of land located within the County for the tax year. The tax roll is then forward ed
to the Treasurer of the County. With the various budgetary procedures having been completed by the governmental
entities, the appropriate tax rate for each jurisdiction is then applied to the 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 as it existed on the date of
the levy due to appeals or other reasons would reduce the amount of taxes received by each jurisdiction.
The property tax lien on real property attaches on January 1 of the fiscal 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.
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.
Delinquent Tax Procedures
The property taxes due to the City are billed, along with State and other taxes, in September of the calendar tax year and
are due and payable in two installments on October 1 and March 1 and become delinquent on November 1 and May 1.
Delinquent taxes are subject to an interest penalty of 16% per annum prorated monthly as of the first day of the month.
(However, 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 Assessor of the County prepares a delinquent
property tax list and the property so listed is subject to a tax lien sale in February of the succeeding year. In the event
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.
Three years after the sale of the tax lien, the tax lien certificate holder may bring an action in a court of competent
jurisdiction to foreclose the right of redemption and, if the delinquent taxes plus accrued interest are not paid by the owner
of record or any entity having a right to redeem, a judgment is entered ordering the Treasurer of the County to deliver a
treasurer’s deed to the certificate holder as prescribed by law.
It should be noted that in the event of a taxpayer filing for relief pursuant to the United States Bankruptcy Code (the
“Bankruptcy Code”), the law is currently unsettled as to whether a lien can be attached against the taxpayer’s property
for property taxes levied during the pending 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 over secured,
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.
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 bonds issued by
the City. None of the City, the Financial Advisor or their respective attorneys, 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.
B-13
Real and Secured Property Taxes Levied and Collected (a)
__________________
(a) Taxes are certified and collected by the Treasurer of the County. Taxes in support of debt service are levied by the
Board of Supervisors of the County as required by Arizona Revised Statutes. Delinquent taxes are subject to an
interest and penalty charge of 16% per annum which is prorated at a monthly rate of 1.33%. Delinquent interest is
waived if a taxpayer, delinquent as to the November 1 payment pays the entire year’s tax bill by December 31.
Interest and penalty collections for delinquent taxes are not included in the collection figures above, but are deposited
in the County General Fund.
(b) The Tax Levy is adjusted downward in future years after the initial levy as a result of s uccessful taxpayer appeals.
The Tax Levy, net of resolutions (as presented in the Maricopa County Treasurer’s Office report), is noted in this
presentation.
(c) In the process of collection.
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 table or in any other valuation
information set forth in this Official Statement. Because of SRP’s quasi-governmental nature, property owned by SRP is
exempt from property taxation.
However, SRP may elect each year to make voluntary contributions in lieu of property taxes with respect to certain of its
electrical facilities (the “SRP Electric Plant”). If SRP elects to make the in lieu contribution for the year, the full cash
value of the 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 after electing to make the in lieu contribution, SRP then failed to make the in lieu contribution when due, the Treasurer
of the County and the City have no recourse against the property of SRP and the City.
Since 1964, when the in lieu contribution was originally authorized in State statute, SRP has never failed to make that
election. The fiscal year 2021-22 in lieu assessed valuation of SRP within the City is $43,273,000 which represents
approximately 1.25% of the combined Net Assessed Limited Property Value in the City. SRP’s total contribution
in lieu of property tax payments (primary & secondary) was $443,311 for fiscal year 2018-19 and $434,953
for 2019-20.
Source:
Treasurer of the County.
Collected to June 30 of
Cumulative Collection
Fiscal
Initial Fiscal Year
to June 30, 2021
Year
Tax Levy (b)
Amount
% of Levy
Amount
% of Levy
2020-21
36,379,535
$
36,041,018
$
99.07
36,041,018
$
99.07
2019-20
33,976,882
33,597,309
98.88
33,966,438
99.97
2018-19
32,097,385
31,714,236
98.81
31,891,123
99.36
2017-18
30,545,951
30,321,359
99.26
30,540,759
99.98
2016-17
29,471,064
27,952,666
94.85
29,466,097
99.98
%
B-14
Direct and Overlapping Assessed Valuations and Total Tax Rates
Per $100 Assessed Valuation
Overlapping Jurisdiction
2021-22
Net Assessed
Limited
Property Value
2021-22
Combined Primary
and Secondary Tax
Rates Per $100
Net Assessed Limited
Property Value
State of Arizona
$74,200,233,397
None
Maricopa County
48,724,126,672
$1.8435 (a)
Maricopa County Community College District
48,724,126,672
1.2881
Maricopa County Library District
48,724,126,672
0.0556
Maricopa County Flood Control District (b)
42,084,633,673
0.0090
Maricopa County Fire District Assistance Tax
48,724,126,672
0.1792
Maricopa County Special Health Care District
48,724,126,672
0.3046
Central Arizona Water Conservation District (c)
48,724,126,672
0.1400
East Valley Institute of Technology District No. 401(d)
23,998,252,082
0.0500
Chandler Unified School District No. 80
3,374,230,827
6.4111
Tempe Union High School District No. 213
4,201,600,213
2.4991
Kyrene Elementary School District No. 28
2,412,625,402
3.7820
Mesa Unified School District No. 4
3,544,450,333
7.3696
Gilbert Unified School District No. 41
2,356,761,360
6.2580
City of Chandler
3,463,794,661
1.1201
(a) Includes the State Equalization Assistance Property tax. This rate has been set at $0.4426 for fiscal year 2020-21 and
is adjusted annually pursuant to Arizona Revised Statues, Section 41-1276.
(b) The assessed value of the Maricopa County Flood Control District does not include the personal property assessed
value of the County.
(c) Value shown for the Central Arizona Water Conservation District covers only the County portion of such district.
(d) Includes Net Assessed Limited Property Value for the East Valley Institute of Technology District No. 401 within
Pinal County.
Source:
Property Tax Rates and Assessed Values, Arizona Tax Research Foundation.
[Remainder of page intentionally left blank.]
B-15
Property Value by Property Classification
Set forth below is a breakdown of the Net Full Cash Assessed Property Valuation of the City by property classification.
Class
2017-18
2018-19
2019-20
2020-21
2021-22
Commercial, industrial,
utilities and mines
$1,027,345,767
$ 1,102,515,089
$ 1,246,170,328
$ 1,412,928,374
$ 1,488,882,870
Agricultural and vacant
74,055,978
75,266,539
78,888,739
77,850,859
76,801,910
Residential (owner occupied)
1,472,336,279
1,574,405,659
1,681,112,768
1,837,472,779
1,990,237,285
Residential (rental)
574,699,601
646,538,541
738,411,405
847,104,454
946,787,996
Railroad
1,910,025
1,782,690
1,910,025
2,011,500
2,011,500
Historical property
156,435,042
88,612,464
124,084,500
130,572,188
177,317,246
Commercial historical property
-
-
-
-
-
Certain Government
property improvements
432,241
383,733
400,055
477,042
520,137
Totals (a)
$3,307,214,933
$3,489,504,715
$3,870,977,820
$4,308,417,196
$ 4,682,558,944
Source:
State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
[Remainder of page intentionally left blank.]
B-16
Net Assessed Limited Property Value of Major Taxpayers
Some of the major taxpayers, including Intel Corporation, NXP, Bank of America, NA, and Wells Fargo Bank NA are
subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
in accordance therewith file the Filings with the Commission. The Filings may be inspected and copies are available at
the public reference facilities maintained by the Commission. 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 http://www.sec.gov. Neither the City, nor the Financial
Advisor or their respective agents or consultants has examined the information set forth in the Filings for accuracy or
completeness, nor do they assume responsibility for the same.
Source:
County Assessor’s Office.
Property Values
The tables below list the various property values for the City for fiscal year 2015-16 through 2019-20. All values herein
are net of the estimated value of property exempt from taxation.
Property Values for Fiscal Year 2017-18 through 2021-22
Fiscal
Year
Net Assessed
Limited
Property Value
Net Full Cash
Assessed Value
Estimated Net
Full Cash Value (a)
2021-22
$ 3,463,794,661
$ 4,682,558,944
$ 40,751,143,934
2020-21
3,243,434,243
4,308,417,196
36,949,424,457
2019-20
3,011,152,689
3,870,977,820
33,312,389,044
2018-19
2,783,830,922
3,489,504,715
29,847,787,490
2017-18
2,675,480,112
3,307,214,933
28,994,678,811
_______________________
(a)
Estimated Net Full Cash Value is the total estimated “market value” of taxable property, which is calculated by
multiplying the Full Cash Value by the ratio of Net Assessed Full Cash Value divided by the Assessed Full Cash
Value. Each value as reported by the Assessor of the County in the State Abstract.
Source: Abstract by Tax Authority, Maricopa County Assessor’s Office.
City’s Total
2021-22
2021-22
Net Assessed Limited
Net Assessed Limited
Taxpayer (a)
Description
Property Value
Property Value
Intel Corporation
Manufacturing Plant
$168,730,977
4.87%
NXP USA Inc
Manufacturing Plant
10,177,870
0.29%
Oracle America Inc
Corporation Service Company
4,767,196
0.14%
Air Products & Chemicals Inc
Industrial Gas Manufacturing
4,591,588
0.13%
Dell Equipment Funding LP
Corporation Service Company
3,675,016
0.11%
Cox Communications Arizona LLC
Communications
3,047,562
0.09%
Microsoft Corporation
Corporate Sales Office
2,554,402
0.07%
Williams Scotsman Inc
Contracting
2,358,990
0.07%
Rogers Corporation
Microwave Substrates
2,329,784
0.07%
Wells Fargo Bank
Financial Services
2,104,110
0.06%
Total
$204,337,495
5.90%
Total City Net Assessed Limited Property Value
$3,463,794,661
B-17
Assessed Limited Property Value and Secondary Property Tax Assessed Value Comparisons and Trends
The tables below are shown to indicate for fiscal year 2017-18 through 2021-22, the (i) Net Assessed Limited Property
Values and (ii) Net Full Cash Values of the City, the County and the State of Arizona, each on a comparative basis.
Comparative Net Assessed Limited Property Value Histories
Fiscal
Year
City of
Chandler
Percent
Increase/
(Decrease)
Maricopa
County
Percent
Increase/
(Decrease)
State of
Arizona
Percent
Increase/
(Decrease)
2021-22
$3,463,794,661
6.79%
$48,724,126,672
6.61%
$74,200,233,397
6.13%
2020-21
3,243,434,243
7.71
45,704,969,813
5.81
69,914,763,468
5.68
2019-20
3,011,152,689
8.17
43,194,326,395
6.86
66,154,632,834
6.14
2018-19
2,783,830,922
4.05
40,423,232,421
5.72
62,328,357,186
4.92
2017-18
2,675,480,112
4.76
38,236,246,402
5.63
59,404,007,785
2.10
__________________
Source:
Property Tax Rates and Assessed Values, Arizona Tax Research Association and Abstract and Assessment
Roll, State of Arizona Department of Revenue.
Comparative Net Full Cash Value Histories
Fiscal
Year
City of
Chandler
Percent
Increase/
(Decrease)
Maricopa
County
Percent
Increase/
(Decrease)
State of
Arizona
Percent
Increase/
(Decrease)
2021-22
$4,682,558,944
8.68%
$67,535,008,138
9.24%
N/A
N/A
2020-21
4,308,417,196
11.30
61,824,712,434
9.25
N/A
N/A
2019-20
3,870,977,820
10.93
56,588,192,576
8.94
N/A
N/A
2018-19
3,489,504,715
5.51
51,944,549,119
7.45
N/A
N/A
2017-18
3,307,214,933
4.42
48,343,820,221
7.69
N/A
N/A
___________________
Source:
Abstract and Assessment Roll, State of Arizona Department of Revenue
C-1
APPENDIX C
FORM OF APPROVING LEGAL OPINION
_____, 2021
MAYOR AND COUNCIL
City of Chandler, Arizona
We have examined the transcript of proceedings relating to the issuance by the City of Chandler, Arizona (the
“City”), of its $______ of aggregate principal amount General Obligation Bonds, Series 2021 (the “Bonds”). The Bonds
are dated their date of initial delivery and bear interest payable January 1 and July 1 of each year to maturity, commencing
_____, 2022.
As to questions of fact material to our opinion, we have relied upon, and assumed due and continuing compliance
with the provisions of, the proceedings and other documents, and have relied upon certifications, covenants and
representations furnished to us without undertaking to verify the same by independent investigation, including, without
limitation, those with respect to causing interest on the Bonds to be and remain excluded from gross income for federal
income tax purposes.
Based upon the foregoing, we are of the opinion, as of this date, which is the date of initial delivery of the Bonds
against payment therefor, that:
1.
The Bonds are valid and binding general obligations of the City, enforceable against the City in
accordance with their terms.
2.
All taxable property within the City is subject to the levy of a direct, annual, ad valorem tax to
pay the principal of and interest on the Bonds without limit as to rate or amount. It is required by law that there be levied,
assessed and collected, in the same manner as other taxes of the City, an annual tax upon the taxable property in the City
sufficient to pay the principal of and interest on the Bonds when due.
3.
Under existing laws, regulations, rulings and judicial decisions, the interest income on the Bonds
is excluded from gross income for the purpose of calculating federal income taxes and is exempt from Arizona income
taxes. Interest income on the Bonds is not an item of tax preference to be included in computing the alternative minimum
tax. The Bonds are not private activity bonds within the meaning of Section 141 of the Internal Revenue Code of 1986,
as amended (the “Code”). We express no opinion regarding other federal tax consequences arising with respect to the
Bonds.
The Code imposes various restrictions, conditions and requirements relating to the continued exclusion
of interest income on the Bonds from gross income for federal income tax purposes, including a requirement that the City
rebate to the federal government certain of the investment earnings with respect to the Bonds. Failure to comply with
such restrictions, conditions and requirements could result in the interest income on the Bonds being included as gross
income for federal income tax purposes from their date of issuance. The City has covenanted to comply with the
restrictions, conditions and requirements of the Code necessary to preserve the tax-exempt status of the Bonds. For
purposes of this opinion we have assumed continuing compliance by the City with such restrictions, conditions and
requirements that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be , and
continue to be, excludable from gross income for federal income tax purpose.
C-2
The rights of the owners of the Bonds and the enforceability of those rights may be subject to
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors' rights and the enforcement of
those rights may be subject to the exercise of judicial discretion in accordance with general principles of equity.
GUST ROSENFELD P.L.C.
Timothy A. Stratton
D-1
APPENDIX D
CITY OF CHANDLER, ARIZONA
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2020
The following audited financial statements are for the fiscal year ended June 30, 2020. These are the most recent audited
financial statements available to the City. These audited financial statements may not represent the current financial
conditions of the City. The City did not request the consent of Heinfeld, Meech & Co., P.C. to include its report and
Heinfeld, Meech & Co., P.C. has performed no procedures subsequent to rendering its opinion on the audited financial
statements.
E-1
APPENDIX E
BOOK-ENTRY-ONLY SYSTEM
The description set forth below of the procedures and record-keeping with respect to beneficial ownership interests in the
Bonds, payment of principal of, premium, if any, and interest on, the Bonds to Direct Participants, Indirect Participants
and Beneficial Owners (each as hereinafter defined), and other information concerning DTC and the book -entry-only
system of registration and transfer of beneficial ownership interests in the Bonds is based solely on information furnished
by DTC to the City for inclusion in this Official Statement. Neither the City, the Bond Registrar and Paying Agent, the
Financial Advisor, nor their agents or counsel make any representations as to the accuracy or completeness thereof.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will
be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other
name as may be requested by an authorized representative of DTC. One fully-registered Bond will be issued for the
Bonds in the aggregate principal amount of such issue, 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”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules
applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can
be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit
for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”)
is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial owners will not receive written
confirmation from DTC of their purchaser. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial owners will not receive certificates representing their ownership interests in Bonds, except in the event that
use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of
DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of
DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do
not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds;
DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may
or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account
of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
E-2
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice
is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized
by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus
Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or v oting
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, distributions, and dividend 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 Issuer or Agent, on payable date in
accordance with their respective holdings shown on DTC’s records. Payments by participants to Beneficial owners will
be governed by standing instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC,
Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested
by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursements of such payments to the Beneficial Owners will be the
responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to Bond
Registrar and Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the
Participant’s interest in the Bonds, on DTC’s records, to Bond Registrar and Paying Agent. The requirement for physical
delivery of Bonds in connection with an optional tender or a 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 Bond Registrar and Paying Agent’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 Bond Registrar and Paying Agent. 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 use of 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.
The information in this section concerning DTC and DTC’s book-entry-only system has been obtained from sources that
the City believes to be reliable, but the City, the Financial Advisor or their counsel or agents takes no responsibility for
the accuracy thereof.
NEITHER THE CITY, THE BOND REGISTRAR AND PAYING AGENT, THE FINANCIAL ADVISOR, NOR THEIR
AGENTS OR COUNSEL HAVE ANY RESPONSIBILITY OR OBLIGATION TO ANY DIRECT PARTICIPANT,
INDIRECT PARTICIPANT OR TO ANY BENEFICIAL OWNER WITH RESPECT TO: (I) THE BONDS, (II) THE
ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANT OR INDIRECT
PARTICIPANT; (III) THE TIMELY OR ULTIMATE PAYMENT BY DTC OR ANY DIRECT PARTICIPANT OR
INDIRECT PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE
PRINCIPAL OR REDEMPTION PRICE OF OR OF INTEREST ON THE BONDS; (IV) THE TRANSMITTAL BY
DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF ANY NOTICE WHICH IS PERMITTED OR
REQUIRED TO BE GIVEN TO BONDHOLDERS; (V) ANY CONSENT GIVEN BY DTC OR OTHER ACTION
TAKEN BY DTC AS REGISTERED OWNER; OR (VI) THE SELECTION
BY DTC OR ANY DIRECT
PARTICIPANT OR INDIRECT PARTICIPANT OF ANY BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE
EVENT OF A PARTIAL REDEMPTION OF THE BONDS.
4185203.1
3
APPENDIX F
$33,375,000*
CITY OF CHANDLER, ARIZONA
GENERAL OBLIGATION BONDS,
SERIES 2021
CONTINUING DISCLOSURE CERTIFICATE
(CUSIP Base No. 158843)
This Continuing Disclosure Certificate (this “Disclosure Certificate”) is undertaken by the City of Chandler,
Arizona (the “City”) in connection with the issuance of its General Obligation Bonds, Series 2021 (the “Bonds”). In
consideration of the initial sale and delivery of the Bonds, the City covenants as follows:
Section 1.
Purpose of the Disclosure Certificate. This Disclosure Certificate is for the benefit of the
Bondholders (as defined herein) and in order to assist the Participating Underwriter (as defined herein) in complying
with the Rule (as defined herein).
Section 2.
Definitions. Any capitalized term used herein shall have the following meanings, unless
otherwise defined herein:
“Annual Report” shall mean the annual report provided by the City pursuant to, and as described in, Sections
3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” shall mean the City’s annual financial statements, which are currently
prepared in accordance with generally accepted accounting principles (GAAP) for governmental units as prescribed
by the Governmental Accounting Standards Board (GASB) and which the City intends to continue to prepare in
substantially the same form.
“Bond Counsel” shall mean Gust Rosenfeld P.L.C. or such other nationally recognized bond counsel as may
be selected by the City.
“Bondholder” shall mean any registered owner or beneficial owner of the Bonds.
“Dissemination Agent” shall mean the City or any person designated in writing by the City as the
Dissemination Agent.
“EMMA” shall mean the Electronic Municipal Market Access system of MSRB, or any successor thereto
approved by the United States Securities and Exchange Commission, as a repository for municipal continuin g
disclosure information pursuant to the Rule.
“Financial Obligation” shall mean (i) a debt obligation; (ii) a 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), except that “Financial Obligation” does not include municipal securities as to which a final official statement
has been provided to the MSRB consistent with the Rule.
“Listed Events” shall mean any of the events listed in Section 5 of this Disclosure Certificate.
“MSRB” shall mean the Municipal Securities Rulemaking Board, or any successor thereto.
“Official Statement” shall mean the final official statement dated [_________, 2021] relating to the Bonds.
* Preliminary, subject to change.
4185203.1
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“Participating Underwriter” shall mean any of the original underwriters of the Bonds required to comply
with the Rule in connection with the offering of the Bonds.
“Rule” shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as the same may be amended from time to time.
Section 3.
Provision of Annual Reports.
(a)
The City shall, or shall cause the Dissemination Agent to, not later than February 1 of each year (the
“Filing Date”), commencing February 1, 2022, provide electronically to MSRB, in a format prescribed by MSRB, an
Annual Report for the fiscal year ending on the preceding June 30 which is consistent with the requirements of
Section 4 of this Disclosure Certificate. Should the City’s fiscal year change to something other than July 1 to June
30, then the Annual Report will be provided not later than seven months after the end of such fiscal year. Currently,
filings are required to be made with EMMA. Notice of any such change in the City’s fiscal year will be filed with
EMMA. Not later than 15 business days prior to such Filing Date, the City shall provide the Annual Report to the
Dissemination Agent (if other than the City).
(b)
If the City is unable or for any reason fails to provide electronically to EMMA an Annual Report or
any part thereof by the Filing Date required in subsection (a) above, the City shall, in a timely manner, send a notice
to EMMA in substantially the form attached as Exhibit A not later than such Filing Date.
(c)
If the City’s Audited Financial Statements are not submitted with the Annual Report and the City fails
to provide to EMMA a copy of its Audited Financial Statements within 30 days of receipt thereof by the City, then
the City shall, in a timely manner, send a notice to EMMA in substantially the form attached as Exhibit B.
(d)
The Dissemination Agent shall:
(i)
Determine the proper electronic filing address of EMMA each year prior to the date(s) for
providing the Annual Report and Audited Financial Statements; and
(ii)
If the Dissemination Agent is other than the City, file a report or reports with the City certifying
that the Annual Report and Audited Financial Statements, if applicable, have been provided pursuant to this Disclosure
Certificate, stating the date such information was provided and listing where it was provided.
Section 4.
Content of Annual Reports.
(a)
The Annual Report may be submitted as a single document or as separate documents comprising an
electronic package, and may incorporate by reference other information as provided in this Section, including the
Audited Financial Statements of the City; provided, however, that if the Audited Financial Statements of the City are
not available at the time of the filing of the Annual Report, the City shall file unaudited financial statements of the
City with the Annual Report and, when the Audited Financial Statements of the City are available, the same shall be
submitted to EMMA within 30 days of receipt thereof by the City.
(b)
The City’s Annual Report shall contain or incorporate by reference the following:
(i)
Type of Financial and Operating Data to be Provided:
(A)
Subject to the provisions of Sections 3 and 4(a) hereof, Audited Financial Statements for
the City.
(B)
Annually updated financial information and operating data of the type contained in the
following subsections of the Official Statement:
(1)
Estimated Net Full Cash Value and Assessed Values;
(2)
Statements of Bonds Outstanding;
4185203.1
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(3)
Property Tax Assessment Ratios;
(4)
Real and Secured Property Taxes Levied and Collected;
(5)
Direct and Overlapping Tax Rates per $100 Assessed Valuation;
(6)
Property Value by Property Classification;
(7)
Net Limited Property Assessed Valuation of Major Taxpayers.
(C)
In the event of an amendment pursuant to Section 8 hereof not previously described in an
Annual Report, an explanation, in narrative form, of the reasons for the amendment and the impact of the
change in the type of operating data or financial information being provided and, if the amendment is made to
the accounting principles to be followed, a comparison between the financial statements or information
prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting
principles, including a qualitative discussion of the differences, and the impact on the presentation and, to the
extent feasible, a quantitative comparison.
(ii)
Accounting Principles Pursuant to Which Audited Financial Statements Shall Be Prepared: The
Audited Financial Statements shall be prepared in accordance with generally accepted accounting principles and state
law requirements as are in effect from time to time. A more complete description of the accounting principles currently
followed in the preparation of the City’s Audited Financial Statements is contained in Note 1 of the Audited Financial
Statements included within the Official Statement.
Notice of amendment to the accounting principles shall be sent within 30 days to EMMA.
(c)
Any or all of the items listed above may be incorporated by reference from other documents, including
official statements of debt issues of the City or related public entities, which have been submitted to EMMA or the
Securities and Exchange Commission. If the document incorporated by reference is a final official statement, it must
be available from EMMA. The City shall clearly identify each such other document so incorporated by reference.
Section 5.
Reporting of Listed Events.
(a)
This Section shall govern the giving of notices by the City, either directly or by directing the
Dissemination Agent to do so, of the occurrence of any of the following events with respect to the Bonds. The City
shall in a timely manner, not in excess of 10 business days after the occurrence of the event, provide notice of the
following events with EMMA:
(i)
Principal and interest payment delinquencies;
(ii)
Non-payment related defaults, if material;
(iii)
Unscheduled draws on debt service reserves reflecting financial difficulties;
(iv)
Unscheduled draws on credit enhancements reflecting financial difficulties;
(v)
Substitution of credit or liquidity providers, or their failure to perform;
(vi)
Adverse tax opinions, the issuance by the Internal Revenue Service (the “IRS”) of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or
other material notices or determinations with respect to the tax status of the Bonds, or other
material events affecting the tax status of the Bonds;
(vii)
Modifications to rights of Bondholders, if material;
(viii)
Bond calls, if material, and tender offers;
(ix)
Defeasances;
(x)
Release, substitution, or sale of property securing repayment of the Bonds, if material;
(xi)
Rating changes;
(xii)
Bankruptcy, insolvency, receivership or similar event of the City;
(xiii)
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;
4185203.1
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(xiv)
Appointment of a successor or additional trustee or the change of name of a trustee, if
material;
(xv)
The 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 Bondholders, if material; and
(xvi)
A 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.
“Materiality” will be determined in accordance with the applicable federal securities law.
Note to Section 5(a)(xii): For the purposes of the event identified in subsection (a)(xii) above, the event is
considered to occur when 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 autho rity having
supervision or jurisdiction over substantially all of the assets or business of the City.
Section 6.
Termination of Reporting Obligation. The City’s obligations under this Disclosure
Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. Such
termination shall not terminate the obligation of the City to give notice of such defeasance or prior redemption.
Section 7.
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 Disclosure Certificate, and may discharge any such
Dissemination Agent, with or without appointing a successor Dissemination Agent.
Section 8.
Amendment. Notwithstanding any other provision of this Disclosure Certificate, the City
may amend this Disclosure Certificate if:
(a)
The amendment is made in connection with a change in circumstances that arises from a change in
legal requirements, change in law, or change in identity, nature or status of the City, or the type of business conducted;
(b)
This Disclosure Certificate, as amended, would, in the opinion of Bond Counsel, have complied with
the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments
or interpretations of the Rule, as well as any change in circumstances; and
(c)
The amendment does not materially impair the interests of Bondholders, as determined by Bond
Counsel.
Section 9.
Filing with EMMA. The City shall, or shall cause the Dissemination Agent to, electronically
file all items required to be filed with EMMA.
Section 10.
Additional Information. The City may, at the City’s election, include any information in
any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this
Disclosure Certificate. If the City chooses to include such information, the City shall have no obligation under this
Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of
a Listed Event.
Section 11.
Default. In the event of a failure of the City to comply with any provision of this Disclosure
Certificate, any Bondholder may seek specific performance by court order to cause the City to comply with its
obligations under this Disclosure Certificate. The sole remedy under this Disclosure Certificate in the event of any
failure of the City to comply with this Disclosure Certificate shall be an action to compel performance and such failure
shall not constitute a default under the Bonds or the resolution authorizing the Bonds.
4185203.1
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Section 12.
Compliance by the City. The City hereby covenants to comply with the terms of this
Disclosure Certificate. The City expressly acknowledges and agrees that compliance with the undertaking contained
in this Disclosure Certificate is its sole responsibility and the responsibility of the Dissemination Agent, if any, and
that such compliance, or monitoring thereof, is not the responsibility of, and no duty is present with respect thereto
for, the Participating Underwriter, Bond Counsel or the City’s financial advisor.
Section 13.
Subject to Appropriation. Pursuant to Arizona law, the City’s undertaking to provide
information under this Disclosure Certificate is subject to appropriation to cover the costs of preparing and sending
the Annual Report and notices of Listed Events to EMMA. Should funds that would enable the City to provide the
information required to be disclosed hereunder not be appropriated, then notice of such fact shall, in a timely manner,
be sent to EMMA in substantially the form attached as Exhibit C.
Section 14.
Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the
Dissemination Agent, the Participating Underwriter and the Bondholders, and shall create no rights in any other person
or entity.
Section 15.
Governing Law and Interpretation of Terms. This Disclosure Certificate shall be governed
by the law of the State of Arizona and any action to enforce this Disclosure Certificate must be brought in an Arizona
state court. The terms and provisions of this Disclosure Certificate shall be interpreted in a manner consistent with
the interpretation of such terms and provisions under the Rule and the federal securities law.
[Signatures on following page]
4185203
Date: _________, 2021.
CITY OF CHANDLER, ARIZONA
By______________________________________
Its Management Services Director
[Signature page to Continuing Disclosure Certificate]
EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer:
City of Chandler, Arizona
Name of Bond Issue:
[$__________] General Obligation Bonds, Series 2021
Dated Date of Bonds:
[__________, 2021]
Base CUSIP 158843
NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the above-named
Bonds as required by Section 3(a) of the Continuing Disclosure Certificate dated [__________, 2021]. The City
anticipates that the Annual Report will be filed by ______________________.
Dated: ________________
City of Chandler, Arizona
By____________________________________________
Its ____________________________________________
----------------------------------------------------------------------------------------------------------------------------- ---------------
EXHIBIT B
NOTICE OF FAILURE TO FILE AUDITED FINANCIAL STATEMENTS
Name of Issuer:
City of Chandler, Arizona
Name of Bond Issue:
[$__________] General Obligation Bonds, Series 2021
Dated Date of Bonds:
[__________, 2021]
Base CUSIP 158843
NOTICE IS HEREBY GIVEN that the City failed to provide its Audited Financial Statements with its
Annual Report or, if not then available, within 30 days of receipt as required by Section 4(a) of the Continuing
Disclosure Certificate dated [__________, 2021], with respect to the above-named Bonds. The City anticipates that
the Audited Financial Statements for the fiscal year ended June 30, ____ will be filed by ______________________.
Dated: ________________
City of Chandler, Arizona
By___________________________________________
Its ___________________________________________
--------------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT C
NOTICE OF FAILURE TO APPROPRIATE FUNDS
Name of Issuer:
City of Chandler, Arizona
Name of Bond Issue:
[$__________] General Obligation Bonds, Series 2021
Dated Date of Bonds:
[__________, 2021]
Base CUSIP 158843
NOTICE IS HEREBY GIVEN that the City failed to appropriate funds necessary to perform the undertaking
required by the Continuing Disclosure Certificate dated [__________, 2021].
Dated: ________________
City of Chandler, Arizona
By___________________________________________
Its ___________________________________________