AgdaPkt 2003-09-08 - Laserfiche WebLink

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Fiscal Consultant estimates that the Agency will reach the $11.9 million figure in fiscal year 2008 -09. See "Tax Sharing Agreements" above. The housi,tg set -aside has also been reduccd by 20% of the debt service on the Agency's 1997 Bonds, since a portion of the proceeds were re.-tricted to allowable housing uses. For more information on the Agency's housing set - aside, see 'APPENDIX F - FISCAL CONSULTANT'S REPORT." No Power to Tax The Agency has no power to levy and collect property taxes, and any property tax limitation, legislative measure, voter initiative or provisions of additional sources of income to taxing agencies having the effect of reducing the property tax torte, could reduce the amount of Tax Revenues that would otherwise be available to pay the principal of, and interest on, the Bonds. Likewise, broadened property tax exemptions could have a similar effect. See "BOND OWNERS' RISKS." The Bonds are not a debt of the City, the State of California or any of its political subdivisions other than the Agency, and neither the City, State, nor any of its political subdivisions other than the Agency is liable. The Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limit or restriction on the amount of debt Accordingly, no City resources are pledged toward the repayment of the Bonds. Parity Debt In addition to the 1997 Bonds and the Bonds, the Agency may issue or incur other obligations on a parity with the Bonds. In such event, the Agency must comply with the requirements of the Indenture relating to Parity Debt, including the requirement that the Tax Revenues estimated to be received for the then current fiscal year based on the most recent assessed valuation of property in the Project Area be at least equal to 135% of Maximum Annual Debt Service, including annual debt service on the proposed Parity Debt. For all the requirements that must be met for the issuance of Parity Debt, see "APPENDIX D - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE - Issuance of Parity Debt." Reserve Account The 1997 Bonds and the Bonds are additionally secured by the Reserve Account for the 1997 Bonds and the Series 2003A Reserve Account established pursuant to the Indenture. Such Reserve Accounts are to be maintained in an amount equal to the Reserve Requirement for each series of bonds. The "Reserve Requirement" is defined in the Indenture to be, as of any calculation date, an amount equal to Maximum Annual Debt Service: provided that with respect to any particular series of the Bonds or any Parity Bonds, the amount on deposit in the Reserve Account shall not exceed the lesser of (i) the amount necessary to be deposited in the Reserve Account to make the amount on deposit therein equal to Maximum Annual Debt Service, (ii) ten percent (10 %) of the proceeds derived from the sale of the Bonds or such Parity Bonds, and (iii) 1.25 times average Annual Debt Service due with respect to the Bonds or such Parity Bonds. All money in the Reserve Account shall be used and withdrawn by the Agency solely for the purpose of making transfers to the Interest Account and the Principal Account, in such order in the event of any deficiency, or for the retirement of all of the Bonds, except that so long as the Agency is not in default under the Indenture, the amount in excess of the Reserve Requirement will be transferred to the Interest Account or the Redevelopment Fund. On each -12-