1994 CAFR - Laserfiche WebLink

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Debt Service Funds Debt Service Funds are used to account for the current year payment of matured principal and interest on long -term general obligation debt. Sources available for payment of the debt service are provided by special assessments, tax increments, and general property tax levies. In 1993, the City issued General Obligation Tax Increment Refunding Bonds totaling $2,225,000. The proceeds of this bond issue will be used to refund the 1997 through 2007 maturities totaling $2,150,000 of the City's $2,800,000 General Obligation Tax Increment Bonds Series 1987A. The refunding was accomplished by means of a "crossover" mechanism. At the time of settlement, all proceeds were placed in an escrow account from which the interest on the Series 1993A Bonds will be paid. The City will continue to pay debt service on the Series 1987A Bonds through February 1, 1996, on which date the remaining principal will be paid from the escrow account and the City will crossover and pay the debt service on the Series 1993A Bonds. This crossover refunding was undertaken to reduce total debt service and resulted in a present value savings at issuance of $257,330. The combined fund balance at December 31, 1994, was $3,904,797, compared to $3,838,922 on December 31, 1993. Capital Project Funds: Capital Project Funds are those funds established to account for the financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by Enterprise or Trust Funds. State Aid Construction Fund: JFJiNANC1IALI, glI1lw1IMAJ1:F7; (Continued) The State Aid Construction Fund was established to account for state -aid allotments used by the City for improvement projects to thoroughfare streets designated as municipal state aid streets within the City. The fund balance on December 31, 1994 showed a deficit of $219,827, which will be recovered through cost reimbursements from the annual MSA allotment to the City. Public Facilities Construction Fund: The Public Facilities Construction Fund is used to account for resources to be used in acquisition of land and construction of public facilities. On December 31, 1994, the fund balance was $302,656, compared to $294,203 on December 31, 1993.