I-1 - Finance Plan Tiffin 2021A Refunding

Attachment 3 – Risk Factors Property Taxes: Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Non-Appropriation: The Bonds do not constitute an obligation payable from a continuing annual levy of ad valorem taxes or a multiple fiscal year direct or indirect debt or other financial obligation of the City. The Bonds do not directly or indirectly obligate the City to make any payments thereon during a fiscal year beyond those for which funds have been appropriated by the City for such fiscal year for which the appropriation is made. The City has no payment obligations under the Bonds other than amounts appropriated for payments due in the current fiscal year. In the event that the City Council of the City does not budget and appropriate funds for any fiscal year in an amount sufficient to pay the principal of and interest due on the Bonds during such fiscal year, the City’s obligation under the Bonds shall terminate and become null and void on the last day of the fiscal year for which the necessary funds were appropriated. While not obligated beyond an annual basis, if the City does not budget and appropriate funds for any year in an amount sufficient to meet the payments of principal and interest on the Bonds, the City may find it difficult to finance future projects through the issuance of public debt. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to:  Failure to comply with covenants in bond resolution.  Failure to comply with Undertaking for continuing disclosure.  Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. Northland Securities, Inc. Page 6