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The diverse nature of the type of debt included in the same fund type requires careful analysis to
<br />determine the adequacy of the fund balance and projected fund balance. The following schedule
<br />extracts information from Exhibits 2 and 3 of the 2006 Annual Financial Report to assist in this analysis.
<br />The following schedule compares outstanding debt with assets pledged for debt retirement. This
<br />comparison provides a means to judge (at least on a preliminary basis) the financial position of each
<br />individual debt service fund.
<br />December 31, 2006
<br />Fund
<br />Fund Description Balance
<br />General Debt:
<br />Certificates of Indebtedness
<br />Lease Revenue Bonds of 1998A
<br />Public Project Revenue Bonds 1999C
<br />Tax Abatement Bonds 2006C
<br />Utility Revenue Bonds 2006D
<br />CIP Refunding Bonds 2006E
<br />Special Assessment Debt:
<br />Improvement Bonds of 2002A
<br />Improvement Bonds of 2002B
<br />Improvement Bonds of 2003A
<br />Improvement Bonds of 2003B
<br />Improvement Bonds of 2004A
<br />Improvement Bonds of 2005A
<br />Refunding Imp. Bonds of 2005B
<br />Deferred
<br />Revenue
<br />Total
<br />Deferred
<br />Tax
<br />Levies
<br />Total
<br />Resources
<br />Available
<br />Remaining
<br />Debt Service
<br />Scheduled
<br />$ 99,567 $ 4,681 $ 104,248 $ 552,798 $ 657,046 $ 526,474
<br />429,172 5,424 434,596 495,057 929,653 942,093
<br />342,770 2,062 344,832 334,079 678,911 422,689
<br />70,926 70,926 3,826,438 3,897,364 3,712,810
<br />51,608 141,334 192,942 192,942 716,286
<br />50,549 - 50,549 4,094,370 4,144,919 3,929,300
<br />$ 1,044,592 $ 153,501 $ 1,198,093 $ 9,302,742 $ 10,500,835 $ 10,249,652 $ 251,183
<br />Over
<br />(Under)
<br />Funded
<br />$ 130,572
<br />(12,440)
<br />256,222
<br />184,554
<br />(523,344)
<br />215,619
<br />$ 434,031 $
<br />1,162, 501
<br />29,734
<br />97,665
<br />303,496
<br />585,551
<br />335,382
<br />$ 2,948,360 $
<br />111,656 $ 545,687 $ 42,698 $ 588,385
<br />543,741 1,706,242 - 1,706,242
<br />241,834 271,568 - 271,568
<br />46,936 144,601 174,417 319,018
<br />374,909 678,405 1,766,686 2,445,091
<br />5,117,834 5,703,385 7,987,338 13,690,723
<br />385,560 720,942 4,253,617 4,974,559
<br />6,822,470 $ 9,770,830 $ 14.224,756 $ 23,995,586
<br />$ 387,334
<br />1,891,316
<br />1,439,384
<br />275,077
<br />1,633,469
<br />7,940,409
<br />4,514,408
<br />$ 18,081,397
<br />$ 201,051
<br />(185, 074)
<br />(1,167,816)
<br />43,941
<br />811,622
<br />5,750,314
<br />460,151
<br />$ 5,914,189
<br />Note: Deferred revenue in the above table does not include the future scheduled "interest portion" of the
<br />adopted assessment rolls. The 2OO4A Improvement Bonds also include a pledge from the Area and
<br />Unit Fund that has not been included above.
<br />The above table provides a means for the monitoring the status of the debt service funds. For the
<br />General Debt funded solely by property taxes, it appears that there are adequate planned levies to retire
<br />the debt when the future lease revenues scheduled to be received from the school district are included.
<br />While in total the City has a surplus of total resources available over remaining scheduled debt service
<br />based on the calculation above, certain individual funds are operating at a deficit. These deficits will
<br />need to be funded by future adopted assessment rolls, special assessment levies, investment earnings,
<br />transfers from other funds, property taxes or other available means.
<br />Factors to consider when analyzing debt service funds:
<br />• Are all the anticipated assessment rolls being adopted as soon as appropriate?
<br />• Have all the planned financing sources been identified, such as pledged amounts from the area and
<br />unit fund or future MSA funds?
<br />• Are there significant "prepayments" received from property owners? In the current investment
<br />environment, will the earnings the City will receive on these prepayments be lower than the interest
<br />rate that was being charged on the adopted assessment roll?
<br />The Area & Unit Fund is committed to the debt service of some special assessment bonds as well as
<br />toward the water revenue bonds. The City's five -year operating plan addresses the above issues and
<br />therefore, this comment is simply a reminder of the extent that repayment of certain debt is based on
<br />pledged sources from the Area and Unit fund.
<br />(10)
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