I-1 - Preliminary Official Statement Series 2021A Refunding

BONDHOLDERS’ RISKS An investment in the Bonds involves an element of risk. In order to identify risk factors and make an informed investment decision, potential investors should be thoroughly familiar with this entire Official Statement (including the appendices hereto) in order to make a judgment as to whether the Bonds are an appropriate investment. COVID-19 The Issuer has been monitoring developments and directives of federal, state and local officials as it determined what precautions and procedures to implement or revise in light of the spread of COVID-19. Some procedures and precautions resulting from the spread of COVID-19 with respect to operations, personnel and services may have been or will be mandated by federal and/or state entities. The continued spread of COVID-19 may affect the financial condition of the Issuer, either directly or indirectly in various ways, including: (i) limiting the ability of the Issuer to conduct its operations in an historically normal manner, (ii) increasing the cost of operations of the Issuer, (iii) impacting the ability of the Issuer to provide personnel to carry out the services routinely provided by the Issuer, (iv) impacting certain revenues received by the Issuer, (v) affecting the secondary market with respect to the Bonds, and (vi) affecting liquidity sources of the Issuer. The Issuer is monitoring both expenses and revenues of the City that might be impacted by COVID-19, including the road use tax fund receipts (statewide gas tax), hotel/motel tax receipts, and local option sales tax receipts. Further, from March 20, 2020 through July 31, 2020, Governor Reynolds issued an emergency declaration that temporarily suspended penalties and interest in connection with delays in property tax payments and the Issuer is assessing the impact, if any, of such suspension on the receipt of property tax revenues. The Issuer [did / did not] experience material reductions in revenue or material increases in expenses in fiscal year 2020 due to material COVID-19-related financial impacts and [does / does not] currently expect to amend its fiscal year 2021 budget due to material COVID- 19-related financial impacts. It is too soon, however, to fully predict what COVID-19-related financial impacts the Issuer may incur and whether any such financial impacts will be material. The Issuer’s cash on hand and unrestricted reserves as of November 30, 2020, is shown in table Estimated Cash/Investment Balances as of November 30, 2020 (unaudited) in Appendix A. The Issuer [does / does not] currently expect to request or receive support from federal or state COVID-19 related loan or grant programs. This information is based on current information available to the Issuer that may be incomplete and unknown. This information was derived using certain assumptions and methodologies, and includes unaudited financial information and projections. This information is forward-looking and subject to change. Annual Appropriation Required The Issuer’s obligation to pay the principal of and interest on the Bonds from Debt Service Tax Revenues or other available funds shall at all times be subject to the right of the City Council not to appropriate any such funds. The decision to pay the principal of and interest on the Bonds for any one fiscal year shall not constitute a mandatory charge or a requirement in any ensuing fiscal year beyond the then current fiscal year for which the Issuer has appropriated Debt Service Tax Revenues or other available funds for the payment thereof. The Issuer shall have no continuing obligation to appropriate Debt Service Tax Revenues, TIF Revenues or other available funds for the payment of the principal of and interest on the Bonds and no provision of the Resolution or the Bonds shall be construed or interpreted as creating a continuing obligation of the Issuer in any fiscal year beyond the fiscal year for which Debt Service Tax Revenues, TIF Revenues or other available funds have been appropriated by the City Council. The Issuer’s obligation to provide Debt Service Revenues or other available funds shall be subject at all times to nonappropriation by the then current City Council. The City Council may decline to make an appropriation from Debt Service Tax Revenues, TIF Revenues or from other available funds. The City Council may decline to make an appropriation for any reason or for no reason at all. Changes in Makeup of the City Council All of the Members of City Council are elected to staggered, four-year terms of office. It is likely that, over time, the composition of the City Council will change. Such a change could impact the City Council’s willingness to appropriate funds to pay the principal of and interest on the Bonds, particularly if the newly elected individuals are less supportive of the projects refinanced by the Bonds. Limited Obligations THE OBLIGATIONS OF THE ISSUER TO PAY PRINCIPAL OF AND INTEREST ON THE BONDS ARE GENERAL OBLIGATIONS OF THE ISSUER PAYABLE FROM DEBT SERVICE TAX REVENUES AND OTHER AMOUNTS LAWFULLY AVAILABLE, ALL TO THE EXTENT APPROPRIATED BY THE CITY COUNCIL IN A FISCAL YEAR AND SUBJECT TO THE RIGHT OF THE CITY COUNCIL NOT TO APPROPRIATE ANY DEBT SERVICE TAX REVENUES OR OTHER AMOUNTS LAWFULLY AVAILABLE IN ANY FISCAL YEAR. -4-