CITY OF PHOENIX CIVIC IMPROVEMENT CORPORATION …

NEW ISSUES -- BOOK ENTRY-ONLY

See "RATINGS" herein

OFFICIAL STATEMENT DATED MAY 22, 2018

In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions and assuming continuing compliance with certain covenants, interest on the Bonds is excludable from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax. Bond Counsel is further of the opinion that assuming interest is so excludable for federal income tax purposes, the interest on the Bonds is exempt from income taxation under the laws of the State of Arizona. For a more complete description of such opinions of Bond Counsel, see "TAX EXEMPTION" herein.

CITY OF PHOENIX CIVIC IMPROVEMENT CORPORATION

$133,270,000

Junior Lien Wastewater System Revenue Bonds,

Series 2018A

$84,295,000

Senior Lien Wastewater System Revenue Refunding Bonds,

Series 2018B

Dated: Date of Delivery

Due: July 1, as shown on inside front cover

Principal of, and premium, if any, on the Junior Lien Wastewater System Revenue Bonds, Series 2018A (the "Series 2018A Bonds") and on the Senior Lien Wastewater System Revenue Refunding Bonds, Series 2018B (the "Series 2018B Bonds," and together with the Series 2018A Bonds, the "Bonds") are payable at the designated corporate trust office of U.S. Bank National Association, Phoenix, Arizona, as trustee (the "Trustee"). The Bonds will be issued as fully registered bonds in the denominations of $5,000 each or any integral multiple thereof. The Bonds, when issued, will be registered in the name of The Depository Trust Company ("DTC") or its nominee and will be available to purchasers initially only through the bookentry-only system maintained by DTC. So long as the book-entry-only system is maintained, no physical delivery of the Bonds will be made to the ultimate purchasers thereof and all payments of principal of and premium, if any, and interest on the Bonds will be made to such purchasers through DTC. Interest on the Bonds is payable semiannually on January 1 and July 1 of each year, commencing January 1, 2019, by the Trustee. The Series 2018A Bonds are being issued pursuant to a Junior Lien Bond Indenture dated as of June 1, 2018 (the "Junior Lien Indenture"), by and between the City of Phoenix Civic Improvement Corporation (the "Corporation") and the Trustee. The Series 2018B Bonds are being issued pursuant to a Senior Lien Bond Indenture dated as of June 1, 2018 (the "Senior Lien Indenture," and together with the Junior Lien Indenture, the "Indentures" and, individually, an "Indenture") by and between the Corporation and the Trustee.

The Series 2018A Bonds are subject to redemption prior to maturity as described herein. The Series 2018B Bonds are not subject to redemption prior to maturity.

The Series 2018B Bonds are special revenue obligations of the Corporation and are payable solely from payments required to be paid by the City of Phoenix, Arizona (the "City") to the Corporation pursuant to the Senior Lien City Purchase Agreement dated as of June 1, 2018 (the "Senior Lien City Purchase Agreement"), by and between the City and the Corporation. The obligations of the City to make payments of debt service on the Series 2018B Bonds and any other obligations of the City under the Senior Lien City Purchase Agreement are payable from the pledge of Net Operating Revenues (as defined herein) received from the City's wastewater system ("the System") and do not constitute a pledge of the full faith and credit of the ad valorem taxing power of the City. The Series 2018A Bonds are special revenue obligations of the Corporation and are payable solely from payments required to be paid by the City to the Corporation pursuant to the Junior Lien City Purchase Agreement dated as of June 1, 2018 (the "Junior Lien City Purchase Agreement," and together with the Senior Lien City Purchase Agreement, the "City Purchase Agreements" and, individually, a "City Purchase Agreement"). The obligations of the City to make the payments of debt service on the Series 2018A Bonds and any other obligations of the City under the Junior Lien City Purchase Agreement are payable from a pledge of Designated Revenues (as defined herein) received from the System and do not constitute a pledge of the full faith and credit of the ad valorem taxing power of the City. The Series 2018B Bonds are issued on a parity basis with certain other outstanding senior lien wastewater system revenue obligations of the City and the Corporation. The Series 2018A Bonds are issued on a parity basis with certain other outstanding junior lien wastewater system revenue obligations of the City and the Corporation and are junior in priority to current and any future outstanding senior lien wastewater system revenue obligations of the City and the Corporation, including the Series 2018B Bonds. (See "SECURITY AND SOURCE OF PAYMENT" herein.)

This cover page contains only a brief description of the Bonds and the security therefor, and is designed for quick reference only. The cover page is not a summary of all material information with respect to the Bonds, and investors are advised to read the entire Official Statement in order to obtain information essential to making an informed investment decision.

The Bonds are offered when, as and if issued and received by the Underwriters, and subject to the legal opinion of Kutak Rock LLP, Scottsdale, Arizona, Bond Counsel, as to validity and tax exemption. Certain legal matters will be passed upon for the Underwriters by Squire Patton Boggs (US) LLP, Phoenix, Arizona, Counsel to the Underwriters. It is expected that the Bonds will be available for delivery in book-entry-only form through the facilities of DTC on or about June 19, 2018.

Baird

HilltopSecurities

BofA Merrill Lynch

Hutchinson, Shockey, Erley & Co.

Wells Fargo Securities

US Bancorp

MATURITY SCHEDULES

$133,270,000 Junior Lien Wastewater System Revenue Bonds, Series 2018A

Maturity July 1

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2040 2041 2042 2043

Principal Amount

$ 4,390,000 4,610,000 4,840,000 5,080,000 5,335,000 5,600,000 5,880,000 6,175,000 6,485,000 6,810,000 7,150,000 7,505,000 7,885,000 8,275,000 8,690,000 7,040,000 2,000,000 9,365,000 9,835,000 10,320,000

Interest Rate

5.00% 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.00 3.50 4.00 5.00 5.00 3.50

Yield

2.38% 2.52 2.60 2.66 2.77* 2.84* 2.89* 2.93* 2.97* 3.02* 3.07* 3.10* 3.13* 3.15* 3.56* 3.74 3.57* 3.19* 3.20* 3.77

$84,295,000 Senior Lien Wastewater System Revenue Refunding Bonds, Series 2018B

Maturity July 1

2019 2020 2021 2022 2023 2024

Principal Amount

$10,515,000 11,145,000 11,655,000 12,190,000 18,945,000 19,845,000

Interest Rate

5.00% 5.00 5.00 5.00 5.00 5.00

Yield

1.72% 1.85 1.95 2.04 2.12 2.25

* Yield to July 1, 2028, the first optional redemption date.

CITY OF PHOENIX, ARIZONA

CITY OF PHOENIX CIVIC IMPROVEMENT CORPORATION

Bruce Covill Vice President and Director

Barbara Barone Director

Michael R. Davis President and Director

James H. Lundy Secretary-Treasurer and Director

Marian Yim Director

CITY OF PHOENIX, ARIZONA CITY COUNCIL

Thelda Williams, Interim Mayor(a)

District 1

Sal DiCiccio, Member District 6

Kate Gallego, Member(b) District 8

Michael Nowakowski, Member District 7

Laura Pastor, Member District 4

Debra Stark, Member District 3

Daniel Valenzuela, Member(c) District 5

Jim Waring, Member District 2

ADMINISTRATIVE OFFICIALS

Ed Zuercher

City Manager

Milton Dohoney, Jr. Assistant City Manager

Karen Peters Deputy City Manager

Denise M. Olson Chief Financial Officer

Kathryn Sorensen Water Services Director

Brad Holm City Attorney

Cris Meyer City Clerk

SPECIAL SERVICES

MONTAGUE DEROSE & ASSOCIATES Westlake Village, California Financial Advisor

KUTAK ROCK LLP Scottsdale, Arizona

Bond Counsel

U.S. BANK NATIONAL ASSOCIATION Phoenix, Arizona

Trustee, Bond Registrar and Paying Agent

(a) On October 5, 2017, Mayor Greg Stanton announced his intention to run for a U.S. Congressional seat. Arizona state law requires incumbents of a salaried elective office to resign that office upon the filing of formal nominating papers for a different office. On May 29, 2018, Mr. Stanton resigned as Mayor and Vice Mayor Thelda Williams became Interim Mayor, and will remain such until City Council appoints a Mayor Pro Tempore.

(b) On October 9, 2017, Councilmember Kate Gallego announced her intention to run for Mayor of the City of Phoenix.

(c) On October 5, 2017, Councilmember Valenzuela announced his intention to run for Mayor of the City of Phoenix.

As of the date of this Official Statement, neither Councilmember Valenzuela nor Councilmember Gallego have filed formal nominating papers.

This Official Statement does not constitute an offering of any security other than the original offering of the Bonds of the Corporation identified on the cover page hereof. No person has been authorized by the Corporation, the City, the Financial Advisor (as defined herein) or the Underwriters (as defined herein) to give any information or to make any representation other than as contained in this Official Statement, and if given or made, such other information or representation not so authorized should not be relied upon as having been given or authorized by the Corporation, the City, the Financial Advisor or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy, and there shall not be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful to make such offer, solicitation or sale.

The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the Corporation or the City since the date hereof. There is no obligation on the part of the City or the Corporation to provide any continuing secondary market disclosure other than as described herein under the heading "CONTINUING DISCLOSURE" and in "APPENDIX I -- Form of Continuing Disclosure Undertaking."

Upon issuance, the Bonds will not be registered by the Corporation, the City or the Underwriters under the Securities Act of 1933, as amended, or any state securities law, and will not be listed on any stock or other securities exchange. Neither the Securities and Exchange Commission nor any other federal, state or other governmental entity or agency will have passed upon the accuracy or adequacy of this Official Statement or approved the Bonds for sale.

IN CONNECTION WITH THE OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

The City currently maintains an investor relations website. However, unless specifically incorporated by reference herein, the information presented on the website is not part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds.

TABLE OF CONTENTS

PAGE

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

THE PROJECT AND PLAN OF REFUNDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

Series 2018A Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

Series 2018B Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

SOURCES AND APPLICATIONS OF FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

THE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Authorization and Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

General Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Book-Entry-Only System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Redemption Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

CITY OF PHOENIX WASTEWATER SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

The 23rd Avenue WWTP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

The 91st Avenue WWTP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

The Cave Creek WRP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Capacity of the System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

Environmental Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

SECURITY AND SOURCE OF PAYMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

The City Purchase Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Outstanding Senior Lien Revenue Obligations and Junior Lien Revenue Obligations . . . . . . . . . . . . . . . . . . . . . . . . . 11

Outstanding Junior Subordinate Lien Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Additional Senior Lien Revenue Obligations and Additional Junior Lien Revenue Obligations . . . . . . . . . . . . . . . . . 11

Senior Lien Rate Covenant; Other Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Junior Lien Rate Covenant; Other Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Wastewater System Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Wastewater System Financial Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

SCHEDULE OF ANNUALIZED PAYMENTS UNDER THE CITY PURCHASE AGREEMENTS WITH

RESPECT TO THE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

SCHEDULE OF FORECASTED NET OPERATING REVENUES, SENIOR AND JUNIOR LIEN DEBT SERVICE

REQUIREMENTS AND ESTIMATED SENIOR AND JUNIOR LIEN DEBT SERVICE COVERAGES . . . . . . . . 16

THE CITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

THE CORPORATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

TAX EXEMPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

General Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Original Issue Discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Original Issue Premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Backup Withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Changes in Federal and State Tax Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Recognition of Income Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

LEGAL MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

RATINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

FINANCIAL ADVISOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

UNDERWRITING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

CONTINUING DISCLOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

INDEPENDENT AUDITORS AND INCORPORATION BY REFERENCE OF CITY'S COMPREHENSIVE

ANNUAL FINANCIAL REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

APPENDIX A -- Summary Information of the City of Phoenix Wastewater System . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1

APPENDIX B -- City of Phoenix Wastewater System Financial Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1

APPENDIX C -- City of Phoenix, Arizona -- Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1

APPENDIX D -- State Expenditure Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1

APPENDIX E -- Retirement and Pension Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1

APPENDIX F -- Health Care Benefits for Retired Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1

APPENDIX G -- Summary of Certain Provisions of Legal Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-1

APPENDIX H -- Proposed Form of Legal Opinion of Bond Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H-1

APPENDIX I -- Form of Continuing Disclosure Undertaking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1

-i-

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