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NOTES TO THE FINANCIAL STATEMENTS (Continued) Outstanding Balance June 30. 1993 CERTIFICATES OF PARTICIPATION Certificates ofparticioation !Parking Facilities Refundin Proiectl. On February Certificates of Participation Series 1993A amounting to $16,875,000 were issued by the Redevelopment Agency to advance refund the 1983 Certificates of Participation Series A. Certificates totaling$5,285,000 mature serially on June 1 beginning 1994 through 2008 in amounts ranging from $150,000 to $695,000 and pay interest at rates varying from 2.5 percent to 5.875 percent. Certificates maturing on or after June I, 2004 are subject to optional redemption at prices ranging from 102 percent to 100 percent of the principal amount. In addition, $11,590,000 of 6-1/2 percent term Certificates are due June 1, 2009 through June 1., 2016 (maturity date), in amounts ranging from $795,000 to $2,360,000. Under terms of the official statement, the City has agreed to lease the facilities from the Redevelopment Agency at specified amounts sufficient in time and amount to pay principal and interest due with respect to the Certificates. The obligation of the City to make lease payments does not constitute an obligation of the City to levy or pledge any form of taxation. Neither the Certificates nor the obligation of the City to make lease payments constitutes indebtedness of the City, the State of California, or any of its political subdivisions or the pledge of the faith and credit of the City. A reserve fiord equal to 125 percent of the average lease payments, as required under terms of the indenture, has been established. At June 30, 1993, $1,695,144 was held in the reserve fund. Payment of principal and interest represented by the Certificates is covered against non-payment, by a municipal bond insurance policy issued by AMBAC Indemnity Corporation. $ 16 625,000 SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT anent District 246 Bonds/Third Street Parkin P lily). To finance the construction of a parking structure in downtown Santa Ma, the City, in August 1981, issued improvement bonds in the amount of$3,150,000 under the provisions of the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915. The bonds bear interest at 10 percent and mature annually on July 2 in amounts ranging from$285,000 in 1993 to $385,000 in 1997. Under the provisions of the Improvement Bond Act of 1915,installments of principal and interest sufficient to meet annual debt service are to be included in the regular County tax bills sent to owners of the property against which there are unpaid assessments. These assessments are paid into a redemption ford held by the City Treasurer and used to pay principal and interest when due. At June.30, 1993, there were delinquent assessments of$117,568 outstanding. They are reported herein under the caption "Taxes receivable" in the Debt Service Fund. There is a mandatory duty on the part of the City to purchase property,upon which installments are delinquent and to pay into the redemption fiord the amount of any future delinquent assessments on the property pending redemption. As required by the bond indenture, 10 percent of the principal outstanding is held in a reserve fund. At June 30, 1993, there was a balance of$315,000.available in that fund. This reserve along with debt service transactions are recorded in the Debt Service Fund. $ 1.330.000