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During 2002, a transfer of $391,681 was made to the Improvement Refunding Bonds of 1999A debt
<br />service fund. A transfer was not made to the Improvement Bond of 1996A debt service fund, which
<br />ends the year with a deficit fund balance of $521,668.
<br />The Water Revenue Bonds of 1999B and 1996B have future debt service requirements totaling
<br />$684,726 and $3,481,099 (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 2002, a transfer of $304,075 was made to the Water Fund.
<br />It is the City's intention to repay the Water Revenue Bonds of 1999B and 1996B with revenues of the
<br />Water Fund. If revenues are not sufficient to meet the debt requirements, funds will be transferred from
<br />the Area and Unit Charge Fund.
<br />DEBT SERVICE FUNDS
<br />The combining financial statements for the debt service funds are presented in Statements 11 and 12
<br />of the 2002 Annual Financial Report. Debt service funds are a type of governmental fund used to
<br />account for the accumulation of resources for the payment of principal and interest on general
<br />obligation debt (other than enterprise fund debt). Debt service funds may have one or a combination of
<br />revenue sources pledged to retire debt including property taxes, tax increments, special assessments
<br />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 2002 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, 2002 Remaining Scheduled Final
<br />Fund Deferred Debt Service Property Maturity
<br />Fund Description Balance Revenue Total Scheduled Taxes Date
<br />General Debt:
<br />Certificates of Indebtedness $ 87,862 $ 4,095 $ 91,957 $ 519,417 $ 546,018 12/31/05
<br />Lease Revenue Bonds of 1998A 892,344 3,560 895,904 7,577,183 6,867,851 02/01/10
<br />99C Public Project Revenue Bonds 323,775 1,354 325,129 916,849 615,181 02/01/10
<br />$ 1,303,981 $ 9,009 $ 1,312,990 $ 9,013,449 $ 8,029,050
<br />Special Assessment Debt:
<br />Improvement Bonds of 1996A $ (521,668) $ 33,391 $ (488,277) $ 2,223,200 $ 02/01/07
<br />Improvement Bonds of 1998A (91,275) 259,536 168,261 4,862,125 02/01/15
<br />Improvement Bonds of 1998B 320,856 370,414 691,270 2,361,999 1,855,655 02/01/15
<br />Refunding Imp. Bonds of 1999A 108,610 23,343 131,953 1,536,326 1,227,856 02/01/06
<br />Improvement Bonds of 2002A 20,062 20,062 751,469 55,424
<br />Improvement Bonds of 20028 65,350 1,991,683 2,057,033 2,805,104 -
<br />$ (98,065) $ 2,678,367 $ 2,580,302 $ 14,540,223 $ 3,138,935
<br />Note: Deferred revenue in the above table does not include the future scheduled "interest portion" of
<br />the adopted assessment rolls. The 1996A and 1999A Improvement Bonds also include a pledge from
<br />the 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
<br />retire the debt when the future lease revenues scheduled to be received from the school district are
<br />included.
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