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<br />IMPERIAL IRRIGATION DISTRICT
<br />Notes to Combined Financial Statements, Continued
<br />
<br />NOTE 7 Certificates of Participation
<br />
<br />1990 Issue
<br />
<br />In April 1990, the District issued
<br />$103,815,000 of 1990 Certificates of
<br />Participation (1990 COPs) to finance the
<br />retrofitting of a generating unit at the
<br />District's El Centro Steam Plant, the pur-
<br />chase of an existing steam-electric generat-
<br />ing unit and combustion turbine-electric
<br />generating unit, the construction of an
<br />office facility and additions and improve-
<br />ments to the District's transmission and
<br />distribution facilities, including normal
<br />additions and extensions,
<br />
<br />1990 COPs in the form of current interest
<br />certificates mature from 1990 through 2009,
<br />inclusive, with interest of 5,8% to 7,8%
<br />payable semiannually, 1990 COPs in the
<br />form of capital appreciation certificates
<br />
<br />Due Date
<br />
<br />November 1, 1995
<br />November 1, 1996
<br />November 1, 1997
<br />November 1, 1998
<br />November 1, 1999
<br />Thereafter
<br />
<br />1991 Issue
<br />
<br />In December 1991, the District issued
<br />$32,925,000 of 1991 Refunding Certificates
<br />of Participation (1983 Electric System
<br />Project) (1991 COPs) at an average interest
<br />rate of 5% to advance refund $30,010,000
<br />of outstanding 1983 COPs maturing on or
<br />after May 1, 1994, These 1983 COPs
<br />maturing on or after May 1, 1994 are con-
<br />sidered to be defeased and the liability for
<br />those COPs has been removed from the
<br />
<br />mature from 2000 through 2004, for which
<br />interest compounds semiannually but is
<br />not paid until maturity or earlier redemp-
<br />tion, These certificates were recorded net
<br />of original issue discount of $2,482,399,
<br />
<br />The terms of the 1990 COPs' obligation
<br />indenture require maintenance of certain
<br />financial ratios with which the District has
<br />complied for 1994 and 1993,
<br />
<br />On August 26, 1993, the District issued
<br />$44,295,000 of 1993 Refunding Certificates
<br />of Participation (1990 Electric System
<br />Project) (1993 COPs) to partially defease
<br />$39,380,000 of outstanding 1990 COPs
<br />(those serial current interest 1990 COPs
<br />maturing November 1, 2001 and 2003, and
<br />those term current interest 1990 COPs
<br />maturing November 1, 2005 and 2009).
<br />
<br />Principal
<br />Amount
<br />
<br />Interest
<br />
<br />These 1990 COPs are considered to be
<br />defeased and the liability for those COPs
<br />has been removed from the District's com-
<br />bined balance sheet (see 1993 Issue else-
<br />where in this note), The balance outstand-
<br />ing of 1990 COPs considered defeased was
<br />$39,380,000 at December 31, 1994 and 1993,
<br />
<br />The outstanding balance of 1990 COPs was
<br />$48,109,703 and $51,417,322, net of the
<br />unamortized original issue discount of
<br />$1,090,454 and $1,161,724 and cumulative
<br />accretion on capital appreciation certifi-
<br />cates of $1,825,157 and $1,374,046 at
<br />December 31,1994 and 1993, respectively,
<br />
<br />A summary of debt service for the
<br />District's outstanding 1990 COPs is as fol-
<br />lows (accretion on capital appreciation cer-
<br />tificates is included in interest in year
<br />paid):
<br />
<br />Total Dept
<br />Service
<br />
<br />6,903,123
<br />6,907,643
<br />6,905,868
<br />6,906,278
<br />6,901,638
<br />38,792,373
<br />73,316,923
<br />
<br />financial ratios with which the District has
<br />complied for 1994 and 1993,
<br />
<br />The outstanding balance of 1991 COPs was
<br />$26,106,998 and $31,837,452, net of
<br />unamortized original issue discount of
<br />$48,002 and $62,548, at December 31, 1994
<br />and 1993, respectively,
<br />
<br />A summary of debt service for the
<br />District's outstanding 1991 COPs is as fol-
<br />lows:
<br />
<br /> Principal Total Dept
<br />Due Date Amount Interest Service
<br />May 1, 1995 $ 6,030,000 1,291,219 7,321,219
<br />May 1, 1996 6,350,000 958,306 7,308,306
<br />May 1, 1997 6,705,000 595,103 7,300,103
<br />May 1, 1998 7,070,000 203,263 7,273,263
<br /> $ 26,155,000 3,047,891 29,202,891
<br />
<br />1993 Issue
<br />
<br />On August 26,1993, the District issued
<br />$44,295,000 of 1993 Refunding Certificates
<br />of Participation (1990 Electric System
<br />Project) (1993 COPs) at an average interest
<br />rate of 4,9% to advance refund $39,380,000
<br />of outstanding 1990 COPs which mature
<br />on November 1, 2001, 2003, 2005 and 2009
<br />
<br />$ 4,070,000
<br />4,335,000
<br />4,615,000
<br />4,920,000
<br />5,245,000
<br />24,190,000
<br />$ 47,375,000
<br />
<br />2,833,123
<br />2,572,643
<br />2,290,868
<br />1,986,278
<br />1,656,638
<br />14,602,373
<br />25,941,923
<br />
<br />District's combined balance sheet. The bal-
<br />ance of 1983 COPs considered defeased
<br />was repaid in 1993,
<br />
<br />The 1991 COPs are payable annually on
<br />May 1 in amounts from $630,000 to
<br />$7,070,000, Interest is payable semiannual-
<br />ly on November 1 and May 1 at rates rang-
<br />ing from 4.3% to 5,75%,
<br />
<br />The terms of the 1991 COPs' obligation
<br />indenture require maintenance of certain
<br />
<br />with an average interest rate of 6,8%. The
<br />net proceeds of $43,220,366 (after payment
<br />of $1,074,634 in underwriting fees and
<br />other issuance costs) plus an additional
<br />$1,197,061 of 1990 COPs reserve and other
<br />fund monies were used to purchase u.s,
<br />Government securities. Those securities
<br />were deposited in an irrevocable trust with
<br />
<br />an escrow agent to provide for all future
<br />debt service payments on the 1990 COPs
<br />being defeased, As a result, the 1990 COPs
<br />maturing on November 1,2001,2003,2005
<br />and 2009 are considered to be defeased
<br />and the liability for those COPs has been
<br />removed from the District's combined bal-
<br />ance sheet.
<br />
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