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<br />64 <br />RISK FACTORS <br />The following describes certain special considerations and risk factors affecting the <br />payment of and security for the 2018 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 reflect the relative importance of the various risks. Potential investors in the 2018 Bonds are <br />advised to consider the following special factors along with all other information in this Official <br />Statement in evaluating the 2018 Bonds. There can be no assurance that other considerations will not materialize in the future. <br />Special Obligations of the Authority <br />The 2018 Bonds are special obligations of the Authority and are payable solely from, and secured by, a pledge of Revenues and certain funds and accounts held under the <br />Indenture. Revenues consist primarily of Lease Payments payable by the City under the Lease. If, for any reason, the Revenues collected under the Indenture are not sufficient to pay debt service on the 2018 Bonds, the Authority will not be obligated to utilize any other of its funds, <br />other than moneys on deposit in the Bond Fund and certain other funds and accounts established under the Indenture, to pay debt service on the 2018 Bonds. The Authority has no taxing power. <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 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 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 XIIIC and Article XIIID of the State Constitution. Based upon the outcome of an election by the 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 approved. The City has assessed the potential impact on its financial condition of the provisions 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 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 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 />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 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