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8.A. - Page 50 substantially lower (see, e.g., Table 6 under "THE DISTIZICT—Projected Debt Service Coverage" below). Value-to-Burden Ratio No Appraisal of Property in the District. The City has not commissioned an appraisal of the Taxable Parcels in the District in connection with the issuance of the Bonds. Therefore, the valuation of the Taxable Parcels in the District will be estimated for the purposes of the Act, and set forth in this Official Statement, based on the County Assessor's fiscal year 2011- 12 assessed values. Assessed Valuation. The valuation of real property in the City is established by the County Assessor. Assessed valuations are reported at 100% of the full cash value of the property, as defuled in Article XIIIA of the California Constitution. Article XIIIA of the California Constitution defines "full cash value" as the appraised value 1s of March 1, 1975, plus adjustments not to exceed 2% per year to reflect inflation, and requires assessment of °full cash value" upon change of ownership or new construction. Accordingly, the gross assessed valuation of any particular parcel presented in this Official Statement may not necessarily be representative of the actual mlrket value of that parcel. General Information Regarding Value-to-Burden Ratios. The value-to-burden ratio on bonds secured by special taxes will generally vary over the life of those bonds as a result of changes in the value of the property that is security for the specill taxes and the principal amount of the bonds. In comparing the aggregate assessed value of the Taxable Parcels within the District 1nd the principal amount of the Bonds, it should be noted that an individual parcel may only be foreclosed upon to pay delinquent installments of the Special Taxes attributable to that parcel. The principal amount of the Bonds is not allocated pro-rata among the Taxable Parcels within the District based on assessed value; rather, the principal amount of the Bonds has been 1lloclted based on the allocation of Special Taxes among the Taxable Plrcels, and the tot11 Special Taxes have been allocated among the Taxable Parcels within the District according to the Rate and Method. Economic and other factors beyond the property owners' control, such as economic recession, deflation of land values, financial difficulty or bankruptcy by one or more property owners, or the complete or partial destruction of Taxable Parcels caused by, among other possibilities, earthquake, flood, fire or other natural disaster, could cause a reduction u1 the lssessed values of the property within the District See "SPECIAL IZISK FACTORS—Property V11ue" and "Bankruptcy Delays." Value-to-Burden Ratio Dist�ibution. The following table sets forth the distribution of lssessed value-to-burden ratios among the Taxable Parcels based on fiscal year 2011-2012 assessed values and the estimated share of the principal of the Bonds. -26-