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City of Centerville <br />May 19, 2010 <br />Page 14 <br />Debt Service Funds <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 />Debt service fundsmay have one or a combination of the following revenue sources pledged to retire debt as follows: <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 />Tax increments - Pledged exclusively for tax increment/economic 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 timing 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 />Investment earnings <br />State or federal grants <br />Transfers from other funds <br />A comparison of the assets of each fund and the remaining bonds outstanding at year end are as follows: <br />Cash and <br />TemporaryTotalBonds <br />Fund <br />InvestmentsAssetsOutstandingMaturity <br />309Joint Police Station 2005A$51,978$58,116$656,5432021 <br />312G.O. Improvement Bonds of 2004B568,760895,7651,725,0002020 <br />346G.O. Improvement Bonds of 2004A(2,476)(2,476)-paid <br />348G.O. Improvement Bonds of 2006A414,5253,588,5504,995,000*2018 <br />349G.O. Improvement Bonds of 2007A366,236920,0862,600,0002023 <br />351G.O. Improvement Bonds of 2009A320,7281,373,3993,715,0002025 <br />Total$1,719,751$6,833,440$13,691,543 <br />* $2,430,000 will be prepaid in 2010 with proceeds from the refunding bonds issued in 2009. <br />We recommend that the City close the bond funds that have no bonds outstanding. <br />