Iowa Admin. Code r. 281-98.68 - Debt service fund
A debt service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. A school district or area education agency will have only one debt service fund.
(1)
Sources of
revenue in the debt service fund. Sources of revenue in the debt
service fund include the levy on taxable property authorized by the voters
pursuant to Iowa Code section
298.21 and necessary to service
bonds that mature in the current year, transfers from other funds for payments
of interest and principal when due that are required under a loan,
lease-purchase agreement, or other evidence of indebtedness authorized by the
Iowa Code, and earnings from temporary investment of moneys in the debt service
fund.
(2)
Appropriate uses
of the debt service fund. Appropriate expenditures in the debt service
fund include the following:
a. Payment of
principal and interest of the lawful bonded indebtedness maturing in the
current year as it becomes due. In determining how much is necessary to service
bonds that mature in the current year, the board of directors will consider the
amount of earnings from temporary investments of debt service funds and
beginning cash balances.
b. Payment
of costs of registration of public bonds or obligations.
c. Payment of additional amounts as the board
deems necessary to apply on the principal.
d. Payment of principal and interest when due
that are required under a loan agreement, lease-purchase agreement, or other
evidence of indebtedness authorized by the Iowa Code other than bonded
indebtedness paid from resources transferred for that purpose to the debt
service fund from other funds.
e.
Payment of transfers to the PPEL fund by board resolution when funds remain in
the debt service fund after payment of the entire balance of outstanding debt
in accordance with the original purpose of the bonded indebtedness and after
return of any excess amount transferred into the debt service fund from another
fund or other indebtedness. The voters in the district may authorize the
district to transfer the remaining balance to the general fund instead of the
PPEL fund pursuant to Iowa Code section
278.1(1)
"e."
(3)
Inappropriate uses of the debt
service fund. Inappropriate expenditures in the debt service fund
include payment of debt issued by one fund from resources transferred from a
different fund unless expressly authorized by the Iowa Code and any other
expenditure not listed in subrule 98.68(2).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.