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Notes to Combined Financial Statements, Continued Although the advance refunding resulted in the recognition of an accounting loss of $5,132,205 for the year ended December 31, 1993, the District in effect reduced its aggregate debt service payments by $2,118,243 over the next seven years result- ing in an economic gain (difference between the present values of the old and new debt service) of $1,333,031. The 1993 COPs are payable annually on November 1 in amounts from $375,000 to $8,970,000, Interest is payable semiannual- ly on November 1 and May 1 at rates rang- ing from 2,7% to 5,2%, The terms of the 1993 COPs' obligation indenture require maintenance of certain financial ratios with which the District has complied for 1994 and 1993, The outstanding balance of 1993 COPs was $43,472,048 and $43,816,781, net of unamortized original issue discount of $447,952 and $478,219, at December 31, 1994 and 1993, respectively, A summary of debt service for the District's outstanding 1993 COPs is as fol- lows: Principal Total Dept Due Date Amount Interest Service November 1, 1995 $ 385,000 2,148,403 2,533,403 November 1, 1996 395,000 2,135,698 2,530,698 November 1, 1997 410,000 2,121,478 2,531,478 November 1, 1998 425,000 2,105,488 2,530,488 November 1, 1999 445,000 2,088,275 2,533,275 Thereafter 41,860,000 13,725,123 55,585,123 $ 43,920,000 24,324,465 68,244,465 1994 Issue On April 19, 1994, the District issued $59,805,000 of Certificates of Participation (1994 Electric System Project) (1994 COPs) to provide funds to finance a portion of the costs of the 1994 Electric System Project, consisting of major additions and improve- ments to the District's electric system, The 1994 COPs consist of $500,000 serial certificates at rates ranging from 3,00% to 4,50% maturing on November 1, 1994 through 1998 and $59,305,000 term certifi- cates maturing on November 1, 2004, 2011, 2015 and 2018 at 6.00%, 6,75%, 6,00% and 6,00%, respectively, The term certificates are subject to mandatory prepayment prior to their respective maturity dates, in part by lot beginning November 1, 1999, 2005, 2012 and 2016, respectively, The certifi- cates maturing on and after November 1, 2005 are subject to prepayment prior to their respective maturity dates at the option of the District as a whole or in part on any date on or after November 1, 2004, Any prepayments on November 1, 2004 through October 31, 2005 are subject to a prepayment premium of 2%; November 1, 2005 through October 31, 2006, 1%, and no prepayment premium thereafter, The 1994 COPs were issued with an origi- nal issue premium of $318,375 and costs of issuance of $1,046,806, which are amor- tized to interest expense over the life of the 1994 COPs. The balance of 1994 COPs out- standing was $60,014,403, including unamortized original issue premium of $309,396, at December 31,1994, The terms of the 1994 COPs Installment Purchase Contract require maintenance of certain financial ratios with which the District has complied for 1994, A summary of debt service for the District's outstanding 1994 COPs is as fol- lows: Principal Total Dept Due Date Amount Interest Service November 1,1995 $ 100,000 3,668,800 3,768,800 November 1, 1996 100,000 3,665,400 3,765,400 November 1, 1997 100,000 3,661,400 3,761,400 November 1, 1998 100,000 3,657,000 3,757,000 November 1, 1999 430,000 3,652,500 4,082,500 Thereafter 58,875,000 52,244,588 111,119,588 $ 59,705,000 70,549,688 130,254,688 NOTE 8 All-American Canal Contract Pursuant to the terms of the Boulder Canyon Project, the All-American Canal contract dated December 1, 1932 and the amendment and supplement to that con- tract dated March 4, 1952, the District assumed an initial obligation of $25,020,000 to the Federal Government, This amount represents the District's share of the All-American Canal system con- struction costs, This obligation has been allocated to the Water and Power Departments based on the relative cost of each department's respective utility plant located on the All-American Canal system, Except for the final combined payments of $613,075 made in 1994, no other amounts are due to the Federal Government for water supplied to the District. The con- tract contains no provision for the pay- ment of interest by the District, and no rate has been imputed, The unpaid balance at December 31, 1993 of $613,075 was paid in full in 1994, The District receives its entire water sup- ply for its irrigation system from the Federal Government under this contract. Deliveries of water and use of the All-American Canal are guaranteed, in perpetuity, to the District as long as the provisions of the contract are met. Under the All-American Canal contract and certain other agreements, the District has the right to avail itself of hydroelectric generation from the water flow through the Canal, subject to the sharing of certain derived revenues with another water dis- trict. The most significant of such sharing arrangements is with the Coachella Valley County Water District (Coachella), In 1934, Coachella leased its power rights on the Canal to the District for a period of 99 years, Expenses under this agreement are paid to the Federal Government for the credit of Coachella and are regarded as payments made under the District's nor- mal obligation under the All-American Canal contract,