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10 <br />Financial Issues, continued <br />Investor suitability <br />Restriction that debt only be marketed to investors having financial <br />sophistication and resources appropriate for the level of risk <br />Typically a combination of minimum bond denomination and limiting <br />sales to institutional or accredited investors <br />Use of City disclaimer statement in all offering materials <br />Protection of taxpayers and tax base <br />Include a maximum mill levy <br />Typically subject to “Gallagher adjustment” <br />As adjusted, should not enhance or diminish actual tax revenues <br />Consider appropriateness of “mill levy roll-off” provision once the “debt <br />to assessed” ratio is less than 50% <br />Service Plan Amendments and <br />Material Modifications <br />Any action taken by the district outside the limits of the <br />service plan is considered a “material modification” <br />Sometimes requires service plan amendment <br />Other times can be cured, or at least addressed, by the 45-day <br />notice <br />Provisions in service plan of particular concern to the City <br />Council should provide that any deviation constitutes a <br />material modification <br />Amendment of service plan follows same process before City <br />Council as initial approval of service plan <br />24