55B - RESO - WARNER ASSESSMENT DISTRICT

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that damage the groundcover. Such damage could reduce the value of the parcels securing the Bonds and, if Assessment Installments are not paid, could result in the default on timely payment of principal and interest when due. [DISCUSS] Seismic Activity. The Assessment District is also located in a seismically active area of Southern California and is subject to unpredictable seismic activity. There is no evidence that a ground surface rupture will occur in the event of an earthquake, but there is significant potential for destructive ground - shaking during the occurrence of a major seismic event. Known active faults that could cause significant ground shaking in the Assessment District include, but are not limited to, the San Andreas Fault and the Newport - Inglewood Fault. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such an event. In the event of a severe earthquake, there may be significant damage to both property and infrastructure in the Assessment District. As a result, a substantial portion of the property owners may be unable or unwilling to pay the Assessment Installments when due. In addition, the value of land in the Assessment District could be diminished in the aftermath of such an earthquake, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of Assessment Installments. The information in this section about topographic and seismic considerations affecting the Assessment District is summary in nature and was obtained from The information provided herein is qualified by reference to the full studies which are on file at the office of the Director of Public Works /City Engineer and open for public inspection. Other Events. The value of the assessed property in the Assessment District in the future can be adversely affected by a variety of additional factors, particularly those which may affect infrastructure and other public improvements and private improvements on the assessed parcels and the continued habitability and enjoyment of such private improvements. Such additional factors include, without limitation, wildfires and climatic conditions such as high winds, droughts and the possible reduction in water allocation or availability. The City of Santa Ana, including the District, is in an area that has been designated as a "Very High Fire Hazard Severity Zone" on the State (Cal Fire) maps. [DISCUSS/CONFIRK It is possible that one or more of the conditions referenced above may occur and may result in damage to improvements of varying seriousness, that the damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost or because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances, the value of the assessed property may well depreciate or disappear. Parity Taxes and Special Assessments The assessments and any penalties thereon will constitute liens against the lots and parcels of land on which they will be annually imposed until they are paid. Such lien is on a parity with all special taxes levied by the City and other agencies and is coequal to and independent of the lien for general property taxes regardless of when they are imposed upon the same property. The assessment has priority over all existing and future private liens and all future fixed special assessment liens imposed on the property. The City, however, has no control over the ability of other entities and districts to issue indebtedness secured by special taxes or assessments payable from all or a portion of the property within the Assessment District. In addition, the landowners within the Assessment District may, without the consent or knowledge of the Assessment District, petition other public agencies to issue public indebtedness secured by special taxes or assessments. Any such special taxes or assessments may have a lien on such property on a parity with the assessment. The City has no control over the amount of indebtedness that could be issued by other public agencies in the future; and the liens on the property within the Assessment District could greatly increase, without any corresponding increase in the value of the property within the Assessment District and thereby severely reduce the ratio that exists at the time the Bonds are issued between the value of the property and the debt secured by all taxes and assessments thereon. The imposition of such additional indebtedness could also reduce the willingness 30 55B -100