1.   Because the contract had not been officially certified by the city controller, PUC staff said the city would not incur any liability for canceling it.

2.   But the city has incurred penalty fees on those contracts because it is using only about two-thirds as much natural gas as it agreed to buy.

3.   The city also will incur costs for extra police, fire and ambulance services, but city officials said any costs will be more than offset by revenues generated.

4.   The city has also incurred new debt for projects to build new fire stations, libraries and animal shelters, she said.

5.   Under the current circumstances, the city must incur short-term debt to cover expenses until additional taxes are collected.