Laserfiche WebLink
<br />66 <br />RISK FACTORS <br />The following describes certain special considerations and risk factors affecting the <br />payment of and security for the Bonds. The following discussion is not meant to be an <br />exhaustive list of the risks associated with the purchase of any Bonds and does not necessarily <br />reflect the relative importance of the various risks. Potential investors in the Bonds are advised <br />to consider the following special factors along with all other information in this Official Statement <br />in evaluating the Bonds. There can be no assurance that other considerations will not <br />materialize in the future. <br />Special Obligations of the Authority <br />The Bonds are special obligations of the Authority and are payable solely from, and <br />secured by, a pledge of Revenues and certain funds and accounts held under the Indenture. <br />Revenues consist primarily of Lease Payments payable by the City under the Lease. If, for any <br />reason, the Revenues collected under the Indenture are not sufficient to pay debt service on the <br />Bonds, the Authority will not be obligated to utilize any other of its funds, other than moneys on <br />deposit in the Bond Fund and certain other funds and accounts established under the Indenture, <br />to pay debt service on the Bonds. The Authority has no taxing power. <br /> <br />No Pledge of Taxes <br />General. The obligation of the City to pay the Lease Payments and Additional Rental <br />Payments does not constitute an obligation of the City for which the City is obligated to levy or <br />pledge any form of taxation or for which the City has levied or pledged any form of taxation, but <br />are payable from yearly appropriations of any funds lawfully available to the City. The obligation <br />of the City to pay Lease Payments and Additional Rental Payments does not constitute a debt <br />or indebtedness of the Authority, the City, the State or any of its political subdivisions within the <br />meaning of any constitutional or statutory debt limitation or restriction. <br /> Limitations on Taxes and Fees. Certain taxes, assessments, fees and charges <br />presently imposed by the City could be subject to the voter approval requirements of Article <br />XIIIC and Article XIIID of the State Constitution. Based upon the outcome of an election by the <br />voters, such fees, charges, assessments and taxes might no longer be permitted to be imposed, <br />or may be reduced or eliminated and new taxes, assessments fees and charges may not be <br />approved. The City has assessed the potential impact on its financial condition of the provisions <br />of Article XIIIC and Article XIIID of the State Constitution respecting the imposition and increase <br />of taxes, fees, charges and assessments and does not believe that an election by the voters to <br />reduce or eliminate the imposition of certain existing fees, charges, assessments and taxes <br />would substantially affect its financial condition. However, the City believes that if the initiative <br />power was exercised so that all local taxes, assessments, fees and charges that may be subject <br />to Article XIIIC and Article XIIID of the State Constitution are eliminated or substantially reduced, <br />the financial condition of the City, including its General Fund, could be materially adversely <br />affected. <br /> <br />Although the City does not currently anticipate that the provisions of Article XIIIC and <br />Article XIIID of the State Constitution would adversely affect its ability to pay Lease Payments <br />and its other obligations payable from its General Fund, no assurance can be given regarding <br />the ultimate interpretation or effect of Article XIIIC and Article XIIID of the State Constitution on <br />the City’s finances. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES <br />AND APPROPRIATIONS.”