21 ATTACHMENT 3 - Laserfiche WebLink

85 These tests for the issuance of Parity Bonds involve, to some extent, projections of LAVWMA Net Revenues. If such indebtedness is issued, the debt service coverage for the 2021 Bonds will be diluted below what it otherwise would be if the Parity Bonds were not issued. Moreover, there is no assurance that the assumptions that form the basis of such projections, if any, will be actually realized subsequent to the date of such projections. If such assumptions are not realized, the amount of future LAVWMA Net Revenues may be less than projected, and the actual amount of LAVWMA Net Revenues may be insufficient to provide for the payment of debt service on the 2021 Bonds and such additional indebtedness. In addition, the Sewer Service Contract does not place any limits on the ability of the Members to incur additional indebtedness payable from Members’ Net Revenues. 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. Loss of Tax Exemption As discussed in the section entitled “TAX MATTERS,” interest on the 2021 Bonds could become includable in gross income for purposes of federal income taxation, retroactive to the date of issuance, as a result of acts or omissions of LAVWMA or the Members subsequent to issuance in violation of their covenants applicable to the 2021 Bonds. Should interest become includable in gross income, the 2021 Bonds are not subject to redemption by reason thereof and may remain outstanding. The 2021 Bonds are subject to redemption for other reasons as discussed in the section entitled “THE 2021 BONDS - Redemption.” THE MUNICIPAL ADVISOR The material contained in this Official Statement was prepared by LAVWMA with the assistance of the Municipal Advisor who advised LAVWMA as to the financial structure and certain other financial matters relating to the 2021 Bonds. The information set forth herein received from sources other than the Members has been obtained by LAVWMA from sources which are believed to be reliable, but such information is not guaranteed by Municipal Advisor as to accuracy or completeness, nor has it been independently verified. Fees payable to the Municipal Advisor are contingent upon the sale and delivery of the 2021 Bonds. CONTINUING DISCLOSURE LAVWMA and the Members have each covenanted for the benefit of the holders and beneficial owners of the 2021 Bonds to provide certain financial information and operating data by not later than the April 1 following the end of LAVWMA’s fiscal year (presently June 30) (the “Annual Reports”), commencing with the report for fiscal year 2020-21, and to provide notices of the occurrence of certain enumerated events. The Annual Reports and notices of enumerated events will be filed with the Municipal Securities Rulemaking Board (the “MSRB”). The specific nature of the information to be contained in the Annual Reports and the notice of enumerated events is set forth in APPENDIX E - “PROPOSED FORMS OF CONTINUING DISCLOSURE CERTIFICATES.” These covenants have been made in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5).