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6.2.D. - Page 2 <br /> ALTERNATIVES <br /> The Council could elect not to levy these taxes. Doing so would jeopardize the district's <br /> ability to make principal and interest payments to bondholders and would likely cause a <br /> default on the outstanding bonds. <br /> The fiscal agent agreement, which provides all of the legal terms under which these <br /> bonds were issued, does not provide for any general fund contributions in the event that <br /> any of the district property owners default on their special tax payments. If the default, <br /> however, is the result of the Council failing to levy the special taxes then the <br /> bondholders might possibly bring legal action against the City which could result in legal <br /> costs charged to the general fund to provide a defense for the Council's action. <br /> FISCAL IMPACT <br /> No General Fund resources are involved in supporting the district. All of the district's <br /> expenditures will be paid by the property owners within the district. <br /> BRIAN PONTY <br /> FINANCE DIRECTOR <br /> ROBERT B. BELL <br /> CITY MANAGER <br /> ATTAC H M E N TS <br /> 1. Resolution Authorizing the Annual Levy of Special Tax for FY 2011-12 <br /> 2. Preliminary Annual Levy Report Fiscal Year 2011-12 <br /> RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br /> None <br />