This is one part of ten (10) attachments in next week's Mesa City Council Meeting: Authorizing the issuance and sale of General Obligation bonds of the City of Mesa. (Citywide)
Please note this is reproduced and inserted from material in an earlier post - it's 6 pages of
CONTINUING DISCLOSURE CERTIFICATE (CUSIP NO. 590485)
Questions: Who is the Participating Underwriter ? Management fees and charges?
Who are the bondholders?
Who is the Dissemination Agent?
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| Title: | Authorizing the issuance and sale of General Obligation bonds of the City of Mesa. (Citywide) |
| Strategic initiatives: | Financial Stability |
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$______________ CITY OF MESA, ARIZONA GENERAL OBLIGATION BONDS, SERIES 2018
CONTINUING DISCLOSURE CERTIFICATE (CUSIP NO. 590485)
This Continuing Disclosure Certificate (the "Disclosure Certificate") is undertaken by the City of Mesa, Arizona (the "City"), in connection with the issuance of its General Obligation Bonds, Series 2018 (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 and in order to assist the Participating Underwriter in complying with the Rule (as hereinafter defined).
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.
"Bondholder" shall mean any registered owner or beneficial owner of the Bonds.
"Bond Counsel" shall mean Gust Rosenfeld P.L.C. or such other nationally recognized bond counsel as may be selected by the City.
"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, or any successor thereto approved by the United States Securities and Exchange Commission, as a repository for municipal continuing disclosure information pursuant to the Rule.
"Listed Events" shall mean any of the events listed in Section 5(a) 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 ___________, 2018 relating to the
Bonds.
"Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with 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, 2019, 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
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consistent with the requirements of Section 4 of this Disclosure Certificate. Currently, filings are required to be made with EMMA. Not later than fifteen (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 thirty (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 each year prior to the date(s) for providing the Annual Report and audited financial statements the proper address of EMMA; 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 thirty (30) days of receipt 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, annual 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:
- Security for and Sources of Payment of the Bonds - Sources of Payment of the Bonds and Other City Bonds; and - Appendix B – Financial Data – Statements of Bonds Outstanding.
(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
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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 annual 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 annual audited financial statements is contained in Note 1 of the audited financial statements included within the Official Statement.
(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 5 shall govern the giving of notices by the City of the occurrence of any of the following events with respect to the Bonds, and the City shall in a timely manner, not in excess of ten (10) business days after the occurrence of the event, provide notice of the following events with EMMA:
(1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service (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; (7) Modifications to rights of Bondholders, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership or similar event of the City; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
"Materiality" shall be determined in accordance with applicable federal securities laws.
Note to paragraph 5(a)(12) above: For the purposes of the event identified in paragraph 5(a)(12) 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
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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 or reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
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.
Notice of any amendment to the accounting principles shall be sent within thirty (30) days to EMMA.
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. If the City chooses to 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, 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.
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.
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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 will be made in a timely manner to EMMA in the form of Exhibit C attached hereto.
Section 14. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and Bondholders, and shall create no rights in any other person or entity.
Section 15. Governing Law. 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.
Date: _______________, 2018.
CITY OF MESA, ARIZONA
By______________________________________ Its Chief Financial Officer
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EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Mesa, Arizona Name of Bond Issue: $_______________ General Obligation Bonds, Series 2018 Dated Date of Bonds: ___________, 2018 CUSIP 590485
NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the abovenamed Bonds as required by Section 3(a) of the Continuing Disclosure Certificate dated __________, 2018. The City anticipates that the Annual Report will be filed by ______________________.
Dated: __________________ CITY OF MESA, ARIZONA
By Its
-------------------------------------------------------------------------------------------------------------------------------------------- EXHIBIT B
NOTICE OF FAILURE TO FILE AUDITED FINANCIAL STATEMENTS
Name of Issuer: City of Mesa, Arizona Name of Bond Issue: $_______________ General Obligation Bonds, Series 2018 Dated Date of Bonds: ___________, 2018 CUSIP 590485
NOTICE IS HEREBY GIVEN that the City failed to provide its audited financial statements with its Annual Report or, if not then available, within thirty (30) days of receipt as required by Section 4(a) of the Continuing Disclosure Certificate dated __________, 2018, 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 MESA, ARIZONA
By Its -------------------------------------------------------------------------------------------------------------------------------------------- EXHIBIT C
NOTICE OF FAILURE TO APPROPRIATE FUNDS
Name of Issuer: City of Mesa, Arizona Name of Bond Issue: $_______________ General Obligation Bonds, Series 2018 Dated Date of Bonds: ___________, 2018 CUSIP 590485
NOTICE IS HEREBY GIVEN that the City failed to appropriate funds necessary to perform the undertaking required by the Continuing Disclosure Certificate dated __________, 2018.
Dated: ________________
CITY OF MESA, ARIZONA
By Its
