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8.A. - Page 44 of 51 (Continued from previous page) Represents gross SBSA Bond Payments with respect to the SVCW 2009 Bonds, excluding Redwood City's proportionate share of any Refundable Credits that may be received as a result of receipt by the Authority of cash subsidy payments from the United States Treasury. ' Reflects the refunding of the 2014 Bonds and the 2015 Bonds from a portion of the proceeds of the 2020 Bonds. See the caption "REFUNDING PLAN" in the Official Statement. g> Assuming a four-year deferment on the WIFIA Loan, as amended on November 17, 2020, after substantial completion of the project, payment obligations of the City under the WIFIA Loan is not expected to begin until Fiscal Year 2027-28. 0 Represents Net Revenues divided by Total Financing Agreement Supported SVCW Debt. Represents Redwood City's share of other SVCW obligations which are junior and subordinate to the pledge of and lien upon the Net Revenues for the payment of SVCW Bond Payments on the Parity Debt and payments of principal of and interest on any Subordinate Debt. "> Represents Redwood City's payment obligations on the Subordinate Debt outstanding under the Redwood City Financing Agreement, which are junior to the pledge of and lien upon the Net Revenues for the payment of Parity Debt under the Redwood City Financing Agreement. Debt service is shown net of capitalized interest through Fiscal Year 2023-24. The principal of and interest on the 2019 Notes are expected to be paid with proceeds of the WIFIA Loan. (12) Reflects prior Fiscal Year projected ending current assets minus current liabilities. Source: City of Redwood City. Absence of Litigation The City is not aware of any action, suit, or proceeding known to be pending or threatened, that would affect the execution of the City's Financing Agreement with the Authority, or materially adversely impact the finances of the City's wastewater system. Financial Statements The City's audited financial statements and compliance letter for the fiscal year ending June 30, 2019 are attached hereto as Exhibit I. The City's financial statements were audited by Maze & Associates, independent auditors (the "Auditor"). The Auditor's letter concludes that the City's financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2019, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. The Auditor has not been asked to consent to the inclusion of the City's audited financial statements in this Official Statement. The Auditor has not been engaged to perform and has not performed, since the date of the financial statements and compliance letter for the fiscal year ending June 30, 2019, any procedures on the financial statements addressed therein. The Auditor has not performed any procedures relating to this Official Statement. Constitutional Limitations on Appropriations and Charges Articles XIIIA, XIIIB, XIIIC and XIIID of the California State Constitution were adopted as a measure that qualified for the ballot pursuant to California's initiative process. From time to time other initiatives could be proposed and adopted affecting the ability of the City to increase revenues sufficient to make payments to the Authority under the Joint Powers Agreement or the Redwood City Financing Agreement. The City is subject to the property tax limitations set forth in Article XIIIA of the California State Constitution. However, no property taxes levied or collected by the City are pledged to the payment of SBSA Bond Payments under the Redwood City Financing Agreement. See the captions "CONSTITUTIONAL LIMITATIONS ON APPROPRIATIONS AND CHARGES" and "PARTICIPATING MEMBERS—Articles XIIIC and XIIID and the Participating Members' Sewer Rates and Charges" in the forepart of this Official Statement. ATTY/AGR/2020.264/PRELIMINARY OFFICIAL STATEMENT— WASTEWATER REV: 11-18-2020 EI Page 22 of 29 710