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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br /> <br />City of Centerville <br />May 29, 2008 <br />Page 13 <br /> <br />Debt Service Funds <br /> <br />Debt service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest <br />and principal on debt (other than enterprise fund debt). <br /> <br />Debt service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: <br /> <br />. Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes <br />may also be used to fund special assessment bonds which are not fully assessed. <br /> <br />. Tax increments - Pledged exclusively for tax increment/economic development districts. <br /> <br />. Capitalized interest portion of bond proceeds - After the sale of bonds, the project may not produce revenue (tax <br />increments or special assessments) for a period of one to two years. Bonds are issued with this timing difference <br />considered in the form of capitalized interest. <br /> <br />. Special assessments - Charges to benefited properties for various improvements. <br /> <br />In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: <br /> <br />. Residual project proceeds from the related capital projects fund <br />. Investment earnings <br />. State or federal grants <br />. Transfers from other funds <br /> <br />The table below summarizes the obligations outstanding. <br /> Cash and <br /> Temporary Total <br />Fund Investments Assets <br />21 st A venue Improvements $ 44,898 $ 49,889 <br />Joint Police Station 2005A 42,649 48,896 <br />G.O. Improvement Bonds of2004B 599,555 1,018,313 <br />Parkview Development 4,971 6,921 <br />G.O. Improvement Bonds of2000 74,358 74,358 <br />G.O. Improvement Bonds of2001 426,321 426,321 <br />G.O. Improvement Bonds of2002 761,871 761,871 <br />G.O. Temporary Improvement Bonds of2003 3,498 79,969 <br />G.O. Improvement Bonds of2004A (37,034) 79,338 <br />G.O. Improvement Bonds of2006A 273,798 775,741 <br />G.O. Improvement Bonds of2007A 199,014 449,305 <br />Total $ 2,393,899 $ 3,770,922 <br /> <br />Bonds <br />Outstanding <br /> <br />Maturity <br /> <br />$ <br /> <br />745,647 2021 <br />1,970,000 2020 <br /> <br />660,000 2013 <br />470,000 2014 <br /> <br />2,700,000 2022 <br />2,600,000 2016 <br /> <br />$ 9,145,647 <br /> <br />We recommend that the City close the bond funds that have no bonds outstanding. These funds can be used for whatever the <br />council deems appropriate. Also, the G.O. Improvement bonds of2002 have cash in excess of bonds outstanding. These <br />bonds can be prepaid when the call date is reached. <br /> <br />952.835.9090 . Fax 952.835.3261 <br /> <br />www.aemcpas.com <br />