5.2a ERMUSR 04-13-2021 - Laserfiche WebLink

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Potential Impacts Resulting from Coronavirus (COVID-19) On March 11, 2020, the World Health Organization proclaimed the Coronavirus (COVID-19) to be a pandemic. In an effort to lessen the risk of transmission of COVID-19, the United States government, state governments, local governments and private industrieshave taken measures to limit social interactions in an effort to limit the spread of COVID-19, affecting business activities and impacting global, state and local commerce and financial markets. The emergence of COVID-19 and the spread thereof is an emerging and evolving issue. As the federal, state, and local governments, including the City, continue efforts to contain and limit the spread COVID-19 disease, future tax and other revenue collections may deviate from historical or anticipated collections andmay have an adverse impact on the financial position and operations of the City and its ability to fund debt obligations, including the Series 2021A Bonds in accordance with its terms. The City is not able to predict and makes no representations as to the economic impact of the COVID-19 pandemic on the City or its financial position. CONCURRENT FINANCING By means of a separate Official Statement dated March 30, 2021, the Cityis offering for sale its $5,225,000* General Obligation Capital Improvement Plan and Equipment Bonds, Series 2021A (the “Series 2021A Bonds”) on April 19, 2021. The Series 2021A Bonds are being issued to finance (i) construction of various improvements identified in the City’s 2020-2025 Capital Improvement Plan adopted November 2, 2020, and (ii) the purchase of capital equipment. The Series 2021A Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes.Settlement of said bonds is expected to take place on or about May 20, 2021.The Series 2021A Bonds and the Series2021BBonds are collectively referred to herein as the “Bonds.” CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2-12 (the “Rule”), pursuant to the Award Resolutions and Continuing Disclosure Certificateto be executed on behalf of the City and the Commission on or before closing, the City and the Commission haveand will covenant (the “Undertaking”) for the benefit of holders or beneficial owners of the Series 2021B Bonds to provide certain financial information and operating data relating to the Cityand the Commissionto the Municipal Securities Rulemaking Board annually, and to provide notices of the occurrence of certain events enumerated in the Rule to the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertakings, as well as the information to be contained in the annual report or the notices of material events, is set forth in the Undertakings in substantially the form attached hereto as Appendix II, subject to such modifications thereof or additions thereto as: (i) consistent with requirements under the Rule, (ii)required by the purchaser of the Series 2021B Bonds from the City, and (iii)acceptable to the Mayor and City Clerk of the City, and the President and Secretary of the Commission. Except to the extent the following deficiencies are deemed to be material, the Cityand the Commission believe they havecomplied for the past five years in all material respects with the terms of its previous continuing disclosure undertakings entered into pursuant to the Rule. In reviewing its past disclosure practices, the City notes the following: Prior continuing disclosure undertakings entered into by the City included language stating that the City’s audited financial statements would be filed “as soon as available.” Although the City did not always file “as soon as available,” the audited financial statements were timely filed within the required twelve (12) month timeframe as provided for in each undertaking. * Preliminary; subject to change. - 2 - 267