City of Phoenix Civic Improvement Corporation Subordinated Excise - PowerPoint PPT Presentation

City of Phoenix Civic Improvement Corporation Subordinated Excise Subordinated Excise Tax Revenue Tax Revenue Refunding Bonds, Refunding Bonds, Series 2015A Series 2015B (Taxable) Investor Presentation April 10, 2015

Disclaimer This document and any other materials accompanying or cross ‐ referenced in this document (collectively, the “Materials”) are provided for your information. By accepting any Materials, the recipient acknowledges and agrees to the matters set forth below. The Materials are not part of the preliminary official statement or the final official statement as those terms are defined in SEC rule 15c2 ‐ 12, and are qualified in all respects by reference to the Preliminary Official Statement. Prospective purchasers of the City of Phoenix Civic Improvement Corporation Subordinated Excise Tax Revenue Refunding Bonds, Series 2015A (the “Tax ‐ Exempt Bonds”) and Subordinated Excise Tax Revenue Refunding Bonds, Series 2015B (Taxable) (the “Taxable Bonds” and together with the Tax ‐ Exempt Bonds, the “Bonds”) should rely only on the Preliminary Official Statement, and not the Materials, in making an investment decision. The Materials and statements contained in this presentation do not constitute an offer to sell or a solicitation of any offer to buy any securities of the City of Phoenix Civic Improvement Corporation or the City of Phoenix, Arizona (collectively, the “Issuer”) to any person in any jurisdiction, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. To the extent there are conflicts between statements made in the Preliminary Official Statement and this presentation, the information contained in the Preliminary Official Statement should be deemed more reliable. The Materials are not intended as investment advice or as a confirmation of any transaction. Externally sourced information contained in the Materials has been obtained or derived from sources believed to be reliable, but Wells Fargo Securities makes no representation or warranty, express or implied, with respect thereto, and does not represent or guarantee that such information is accurate or complete. Such information is subject to change without notice and Wells Fargo Securities accepts no responsibility to update or keep it current. Wells Fargo Securities does not assume or accept any liability for any loss which may result from reliance thereon. Wells Fargo Securities and/or one or more of its affiliates may provide advice or may from time to time have proprietary positions in, or trade as principal in, any securities or other financial products that may be mentioned in the Materials, or in derivatives related thereto. Any opinions or estimates contained in the Materials represent the judgment of Issuer at this time, and are subject to change without notice. Interested parties are advised to contact Wells Fargo Securities for more information. The Materials are not intended to provide, and must not be relied on for, accounting, legal, regulatory, tax, business, financial or related advice or investment recommendations and does not constitute advice within the meaning of Section 15B of the Securities Exchange Act of 1934. No person providing the Materials is acting as fiduciary or advisor with respect to any transaction described or contemplated therein unless expressly agreed to in a written financial advisory or similar agreement. You must consult with your own advisors as to the legal, regulatory, tax, business, financial, investment and other aspects of the Materials. This presentation may contain statements that, to the extent they are not recitations of historical fact, may constitute “forward ‐ looking statements.” In this respect, the words “estimate”, “project”, “anticipate,” “expect, “intend,” “believe” and similar expressions are intended to identify forward ‐ looking statements. Any forward ‐ looking statements made herein are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those that have been projected. Such risks and uncertainties which could affect the revenues and obligations of the Issuer include, among others, changes in economic conditions, mandates from other governments, reduced governmental allocations, and various other events, conditions and circumstances, many of which are beyond the control of the Issuer. Such forward ‐ looking statements speak only as of the date of the Preliminary Official Statement of April 10, 2015. The Issuer disclaims any obligation or undertaking to release publicly any updates or revisions to any forward ‐ looking statement contained herein to reflect any changes in the Issuer’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Given these uncertainties, readers are cautioned not to rely on forward ‐ looking statements. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in the Materials is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Wells Fargo Securities is the trade name for certain securities ‐ related capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, N.A. 2 Link to Preliminary Official Statement: https://www.sendd.com/r_netdistro_webpage.cfm?project_id=3194

Key Personnel City of Phoenix Neal Young , Chief Financial Officer Finance Kathleen Gitkin, Acting Deputy Finance Director Department Scot Obal, Accountant IV Financial Advisor: Steve Peyser, President Public Resources Barry Valentinsen, Senior Managing Director Advisory Group Underwriter: Bob Kinney, Managing Director Wells Fargo Securities Tye Burgess, Vice President 3

Agenda • Transaction Overview • City of Phoenix Economy and Economic Development • Excise Tax Revenues and Outstanding Debt • Plan of Finance • Financing Schedule • Investor Relations and Contact Information 4

Financing Summary • $330,325,000 * Subordinated Excise Tax Revenue Refunding Bonds, Series 2015A • $61,015,000 * Subordinated Excise Tax Revenue Refunding Bonds, Series 2015B (Taxable) The Bonds are being issued for the purpose of refunding a portion of certain issues of Purpose the Civic Improvement Corporation’s (the “Corporation”) outstanding excise tax revenue bonds and other obligations of the City 2015A (Tax ‐ Exempt): July 1, 2017 ‐ 2041 Amortization* 2015B (Taxable): July 1, 2016 – 2035 2015A: Tax ‐ Exempt 1 Tax Status 2015B: Taxable Optional Redemption Callable July 1, ____ at par* Subordinated lien on all excise, transaction, privilege, business and franchise taxes, Security state ‐ shared sales and income taxes, and receipts from licenses and permits not restricted to use for a contrary or inconsistent purpose Pricing Date April 21, 2015* Delivery Date May 12, 2015* Moody’s: Aa3 (Stable) Confirmed Ratings Standard & Poor’s: AA+ (Stable) Senior Manager Wells Fargo Securities Goldman, Sachs & Co. Jefferies BAIRD Co ‐ Managers Estrada Hinojosa & Company, Inc. Hutchinson, Shockey, Erley & Co. 5 *Preliminary, subject to change; when, as, and if issued. (1) Upon issuance of the bonds, Bond Counsel is expected to deliver an opinion that interest on the 2015A Bonds is excludable from gross income for Federal and Arizona state income tax purposes, and is not includable for purposes of computing the federal alternative minimum tax. The form of Bond Counsel’s opinion is available in the Preliminary Official Statement. Before purchasing bonds, you should consult with your tax advisor concerning your particular tax situation.

City of Phoenix Overview • The City of Phoenix operates under a Council ‐ Manager form of government o The Phoenix City Council consists of a Mayor and eight Council members and is responsible for setting policy o The City Manager is responsible for executing Council policies and administering City operations 6 th largest city in the U.S. based on population; population has • grown to over 1.5 million reflecting a 53% increase since 1990 • Top national and international tourism destination • The Phoenix MSA accounts for approximately 72% of Arizona’s employment • The Phoenix MSA unemployment rate is 6.0% 6 Source: City of Phoenix

Core Economic Strengths Drive Excise Tax Revenue Growth 1. Large, diverse and growing population and employment base 2. Residential and commercial sectors are growing 3. Biotech, healthcare and higher education are key growth sectors for jobs and investment 4. Downtown Phoenix is an engine of economic activity 7