May the district establish a sinking fund or a sinking account to accumulate money to retire revenue bonds, and if so, in what fund?
A district may not establish a separate sinking fund but it may establish a sinking account if the bonding agreement requires one. The sinking account would be accounted for as a reserved fund balance in the debt service fund. The money is transferred to the debt service fund from the SAVE/LOSST capital projects fund, generally on a monthly basis, to accumulate sufficient funds for the next principal and/or interest payments.