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stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner or operator has any thing to do with creating or handling the hazardous substance. The effect, therefore, should any substantial amount of property within the City be affected by a hazardous substance, would be to reduce the marketability and value of the property by the costs of, and any liability incurred by, remedying the condition, since the purchaser, upon becoming an owner, will become obligated to remedy the condition just as is the seller. Reduction in the value of property in the City as a whole could reduce property tax revenues received by the City and deposited in the General Fund, which could significantly and adversely affect the ability of the City to make payments on the Bonds. Litigation The City may be or become a party to litigation which has an impact on the City's General Fund. Although the City maintains certain insurance policies which provide coverage under certain circumstances and with respect to certain types of incidents (see Appendix C for further information), the City cannot predict what types of liabilities may arise in the future. See also "CONCLUDING INFORMATION — Litigation ". Impact of State Budget on City Revenues The State's financial condition and budget policies affect communities and local public agencies throughout California. Through the State budget process, the State can enact legislation that significantly impacts the source, amount and timing of the receipt of revenues by local agencies, including the City, often to the detriment of such local agencies. Approximately 55% of the City's General Fund revenues for its Fiscal Year 2010 -11 consisted of sales tax and other payments collected by the State and passed through to local governments or property tax collected by the County and allocated to local governments pursuant to State law. Approximately _% of the budgeted General Fund revenues of the City for Fiscal Year 2011 -12 are expected to come from such sources. To the extent that the State budget process results in reduced revenues to the City in any fiscal year, the City will be required to make adjustments to its budget for that fiscal year. The State's Fiscal Year 2010 -11 and 2011 -12 budgets each contained a number of measures that impact the finances of local agencies adversely. Information on Current State Economic Difficulties and Budget. Certain information about the State budgeting processes, economic challenges faced by the State and the State Budget is available through several State of California sources. A convenient source of information is the State Treasurer's website, where recent reoffering circulars for State bonds are posted. The references to internet websites shown below are shown for reference and convenience only; the information contained within the websites has not been reviewed by the City and is not incorporated herein by reference. • The California State Treasurer Internet home page at www.treasurer.ca.gov, under the heading "Bond Information ", posts various State of California reoffering circulars, many of which contain a summary of the current State Budget, past State Budgets, and the impact of those budgets on local governments in the State. 18