21 ATTACHMENT 3 - Laserfiche WebLink

5 Additional LAVWMA Obligations LAVWMA may issue or incur Parity Bonds, subject to the terms and conditions of the Indenture, as more fully described in this Official Statement. See “SECURITY FOR THE 2021 BONDS - Parity Bonds.” Other Obligations of the Members The Members may incur in the future Obligations that are payable from Member Net Revenues. The Sewer Service Contract and the Indenture do not limit the amount of such Obligations that the Members may incur. See the subsections entitled “- Outstanding Long-Term Obligations” in the sections entitled “DUBLIN SAN RAMON SERVICES DISTRICT,” “CITY OF PLEASANTON” and “CITY OF LIVERMORE.” The Members’ covenants in the Sewer Service Contract (see “SECURITY FOR THE 2021 Bonds - Rate Covenants”) are intended to ensure that the Members will have sufficient Member Net Revenues to satisfy their obligations under the Sewer Service Contract as well as their other Obligations. No Reserve Account LAVWMA will not fund or maintain a debt service reserve account for the 2021 Bonds. See “RISK FACTORS – No Debt Service Reserve Fund.” Rate Stabilization Fund A Rate Stabilization Fund is maintained by DSRSD. The amount on deposit in the Rate Stabilization Fund was $50,361,849 as of June 30, 2021. All Regional Capacity Reserve Fees, which are excluded from DSRSD and Pleasanton’s Member Net Revenues, are deposited into the Rate Stabilization Fund. Generally, in calculating annual debt service for purposes of the rate- related covenant for DSRSD/Pleasanton (see “SECURITY FOR THE 2021 BONDS – Rate Covenants”), a credit is given for transfers from the Rate Stabilization Fund to pay “Expansion Project Debt Service” (as defined in “SECURITY FOR THE 2021 BONDS – Rate Covenants”). Although the amounts in the Rate Stabilization Fund, if any, may be used to pay debt service on the 2021 Bonds, the Rate Stabilization Fund is not pledged to the 2021 Bonds and moneys in the Rate Stabilization Fund can be used for other purposes. Moreover, in general, the Rate Stabilization Fund is only funded from Regional Capacity Reserve Fees. Accordingly, there can be no assurance as to the future balances of the Rate Stabilization Fund. See “SECURITY FOR THE 2021 BONDS - Rate Stabilization Fund.” COVID-19 Statement The COVID-19 pandemic has resulted in a public health crisis that is fluid and unpredictable with financial and economic impacts that cannot be predicted. As such, investors are cautioned that LAVWMA cannot, at this time, predict the impacts that the COVID-19 pandemic might have on the Members or their ability to make the Payments. For more disclosure regarding the COVID-19 emergency, see “COVID-19 PANDEMIC.”