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NOTE 16 — OPERATING LEASE (CONTINUED) <br />Lease payments may increase each year based on the increase in the Consumer Price Index — U.S. City <br />Averages for ALL Urban Consumers as published by the Bureau of Labor Statistics of the United States <br />Department of Labor for Urban Wage Earners and Clerical Workers for All Items (CPI-W). <br />NOTE 17 — SUBSEQUENT EVENTS — INVESTMENT FAIR VALUES <br />The City generally reports its investments at fair value based on standards described earlier in these notes. <br />Subsequent to year end, the Novel Coronavirus (COVID — 19) pandemic has caused significant volatility <br />in economic conditions, including substantial reductions in the quoted active -market prices of some <br />investments. The City's portfolio consists primarily of shorter -win" investments, many with guaranteed <br />maturity values. The City does not expect any losses ultimately realized from this market decline to be <br />material. However, the potential negative impact could be heightened if increased demand on City resources <br />and/or a sustained economic downturn hampers the City's ability to hold such investments to maturity as <br />planned. The potential future impact of these conditions on the fair value of the City's investment portfolio <br />is not deteiniinable at this time. <br />94 <br />