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The Water Revenue Bonds of 1999B and 1996B have future debt service requirements totaling
<br />$349,114 and $2,572,441 (principal and interest). The City annually transfers amounts from the Area
<br />and Unit Charge Fund to the Water Fund sufficient to help cover the debt services of these bonds.
<br />During 2005, a transfer of $304,195 was made to the Water Fund. It is the City's intention to repay the
<br />Water Revenue Bonds of 1999B and 1996B with revenues of the Water Fund. If revenues are not
<br />sufficient to meet the debt requirements, funds will be transferred from the Area and Unit Charge Fund.
<br />In addition to the transfers above, the Area and Unit Charge Fund transferred $444,785 to the
<br />Improvement Refunding Bonds of 2003A Fund for debt service requirements, $155,069 to Legacy
<br />Woods Edge Improvement Fund for the Legacy at Woods Edge project, and $205,500 to Municipal
<br />State Aid Fund for the Elm Street Reconstruction project.
<br />DEBT SERVICE FUNDS
<br />Debt service funds are a type of governmental fund used to account for the accumulation of resources
<br />for the payment of principal and interest on general obligation debt (other than enterprise fund debt).
<br />Debt service funds may have one or a combination of revenue sources pledged to retire debt including
<br />property taxes, tax increments, special assessments and area and unit charges.
<br />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 1, 2 and 3 of the 2005 Annual Financial Report to assist in this
<br />analysis. The following schedule compares outstanding debt with assets pledged for debt retirement.
<br />This comparison provides a means to judge (at least on a preliminary basis) the financial position of
<br />each individual debt service fund.
<br />December 31, 2005 Scheduled Total Remaining
<br />Fund Deferred Property Resources Debt Service
<br />Fund Description Balance Revenue Total Taxes Available Scheduled
<br />General Debt:
<br />Certificates of Indebtedness $ 95,399 $ 4,285 $ 99,684 $ 477,785 $ 477,785 $ 455,033
<br />Lease Revenue Bonds of 1998A 893,418 4,854 898,272 5,863,379 6,761,651 6,267,512
<br />Public Project Revenue Bonds 1999C 342,041 1,992 344,033 248,126 592,159 549,223
<br />$ 1,330,858 $ 11,131 $ 1,341,989 $ 6,589,290 $ 7,831,595 $ 7,271,768
<br />Special Assessment Debt:
<br />Improvement Bonds of 1998A $ 2,551,966 $ 190,541 $ 2,742,507 $ - $ 2,742,507 $ 3,534,475
<br />Improvement Bonds of 1998B 1,687,599 263,378 1,950,977 1,396,515 3,347,492 1,792,104
<br />Refunding Imp. Bonds of 1999A 3,702 818 4,520 290,270 294,790 363,342
<br />Improvement Bonds of 2002A 516,188 117,423 633,611 51,595 685,206 501,449
<br />Improvement Bonds of 2002B 513,443 1,336,776 1,850,219 - 1,850,219 2,161,041
<br />Improvement Bonds of 2003A 297,981 319,625 617,606 - 617,606 1,928,334
<br />Improvement Bonds of 2003B 102,848 49,278 152,126 198,105 350,231 311,530
<br />Improvement Bonds of 2004A 332,641 416,150 748,791 1,891,136 2,639,927 1,744,719
<br />Improvement Bonds of 2005A 37,712 5,090,691 5,128,403 8,555,411 13,683,814 8,148,010
<br />Refunding Imp. Bonds of 2005B 7,552 - 7,552 4,863,519 4,871,071 4,631,923
<br />$ 6,051,632 $ 7,784,680 $ 13,836,312 $ 17,246,551 $ 31,082,863 $ 25,116,927
<br />Note: Deferred revenue in the above table does not include the future scheduled "interest portion" of the
<br />adopted assessment rolls. The 1999A and 2004A Improvement Bonds also include a pledge from the
<br />Area and 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 />(9)
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