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COMMUNITY REDEVELOPMENT AGENCY
<br />OF THE CITY OF SANTA ANA
<br />Notes to the Basic Financial Statements (Continued)
<br />Year Ended June 30, 2011
<br />1989 Series E Refunding Bonds
<br />The 1989 Series E Refunding Bonds were issued in the amount of $21,000,000 to retire the 1985
<br />Series E Tax Allocation Refunding Bonds Redevelopment Project (Main Place Project). $4,880,000
<br />are term bonds which matured September 1, 2004; $3,445,000 are term bonds which matured
<br />September 1, 2009, in annual installments ranging from $585,000 to $800,000; $12,675,000 are term
<br />bonds maturing on September 1, 2019, in annual installments ranging from $865,000 to $1,805,000.
<br />Interest rates vary from 6.4% to 7.25 %. Bonds maturing on September 1 in the years 2009, and 2019
<br />are subject to mandatory redemption from sinking account payments. The Agency paid the outstanding
<br />principal balance of $12,675,000 during the fiscal year ended June 30, 2011.
<br />2003 Series A Tax Allocation Bonds
<br />The 2003 Series A Tax Allocation Bonds were issued in the amount of $20,945,000 to fund
<br />redevelopment activities in the Agency's South Main Street Redevelopment Project Area. Bonds
<br />totaling $13,295,000 mature serially beginning on September 1, 2004 through 2024 in amounts ranging
<br />from $475,000 to $910,000 and pay interest at rates varying from 1.1% to 4.5 %. Bonds totaling
<br />$4,075,000 mature on September 1, 2028, and pay interest at 4.50 %; bonds totaling $3,575,000 mature
<br />on September 1, 2031, and also pay interest at 4.50 %. The outstanding principal balance at June 30,
<br />2011, is $17,485,000.
<br />Payment of the principal and interest on the bonds is guaranteed by the municipal bond guarantee
<br />insurance policy issued by Financial Guaranty Insurance Company (FGIC) under a Municipal Bond
<br />New Issue Insurance Policy. As of March 25, 2009, Moody's withdrew its credit rating of FGIC.
<br />2003 Series B Tax Allocation Refunding Bonds
<br />The 2003 Series B Tax Allocation Refunding Bonds were issued in the amount of $34,145,000 to
<br />refund the 1993 South Main Tax Allocation Refunding Bonds. The proceeds were used to purchase
<br />U.S. Treasury securities that were deposited with an escrow agent to provide for the retirement of the
<br />1993 bonds on September 1, 2003. The bonds mature serially starting on September 1, 2003 through
<br />2019 in amounts ranging from $1,730,000 to $2,820,000 and pay interest at rates varying from 2% to
<br />5 %. The outstanding principal balance at June 30, 2011, is $20,960,000.
<br />Payment of the principal and interest on the bonds is guaranteed by the municipal bond guarantee
<br />insurance policy issued by Financial Guaranty Insurance Company (FGIC) under a Municipal Bond
<br />New Issue Insurance Policy. As of March 25, 2009, Moody's withdrew its credit rating of FGIC.
<br />The 2003 Tax Allocation Bonds are secured and to be serviced from tax increment revenues of the
<br />project area. All project tax increment revenues except dedicated housing tax increment allocation
<br />are the security for bonds. The revenues have been pledged until the year 2031 for the Series A
<br />bonds and 2019 for the Series B bonds. The total debt service amount outstanding for the Series A
<br />bonds is $26.7 million, and the total debt service amount outstanding for the Series B bonds is
<br />$26.0 million. Pledged tax increment revenue recognized during the year ended June 30, 2011, was
<br />$37.8 million against the total debt service payments of $4.2 million.
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