2014 Management Letter - Laserfiche WebLink

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Debt Service Funds Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than enterprise fund debt). Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. Tax increments - Pledged exclusively for tax increment/economic development districts. Capitalized interest portion of bond proceeds - After the sale of bonds, the project may not produce revenue (tax increments or special assessments) for a period of one to two years. Bonds are issued with this timing difference considered in the form of capitalized interest. Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: Residual project proceeds from the related capital projects fund Investment earnings State or federal grants Transfers from other funds A comparison of the assets of each fund and the remaining bonds outstanding at year end are as follows: Cash and TemporaryTotalBonds Fund InvestmentsAssetsOutstandingMaturity 309Joint Police Station 2005A$ 60,731$ 66,315$ 395,0002021 348G.O. Crossover Bonds of 2009B 474,829 512,682 1,770,0002018 349G.O. Improvement Bonds of 2011A 364,547 767,044 1,855,0002019 351G.O. Improvement Bonds of 2009A 843,290 1,484,880 3,190,0002025 352G.O. Improvement Bonds of 2013A 57,381 286,534 1,485,0002029 Total$ 1,800,778$ 3,117,455$ 8,695,000 The following graph shows the next five years of principal and interest payments from the debt service funds: $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 20152016201720182019 PrincipalInterest -10-