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City of Centerville <br />June 3, 2009 <br />Page 12 <br />Debt Service Funds <br />Debt service funds are a type of goverrunental fund to account for the accumulation of resources for the payment of interest <br />and principal on debt (other than enterprise fund debt). <br />Debt service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: <br />• Prope 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 />• Tax increments -Pledged exclusively for tax increment/econoinic development districts. <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 dining difference <br />considered in the form of capitalized interest. <br />• Special assessments -Charges to benefited properties for various improvements. <br />In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: <br />• Residual project proceeds from the related capital projects fund <br />• Inveshnent earnings <br />• State or federal grants <br />• Transfers from other funds <br />The table below smnmarizes the obligations outstanding. <br />Cash and <br /> Temporary Total Bonds <br /> Fund Investments Assets Outstanding Maturity <br /> <br />308 21st Avenue Improvements $ 46,563 $ 50,863 $ - <br />309 Joint Police Station 2005A 47,350 53,470 701,897 2021 <br />312 G.O. Improvement Bonds of 2004B 589,217 966,982 1,850,000 2020 <br />324 Parkview Development 7,284 7,284 - <br />345 G.O. Temporary Improvement Bonds of 2003 14,125 85,673 - <br />346 G.O. Improvement Bonds of 2004A (20,204} 86,112 - <br />348 G.O. Improvement Bonds of 2006A 437,791 901,971 2,700,000 2022 <br />349 G.O. Improvement Bonds of 2007A 140,468 774,161 2,600,000 2016 <br /> <br /> Total $ 1,262,594 $ 2,926,516 $ 7,851,897 <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. <br />952.835.9090 Fax 952.835.3261 <br />www:aemcpas.cosn <br />