On 1/1/2019, the city of San Francisco issued at par $2,000,000 of 5% term bonds to renovate the Golden Gate Bridge. The bonds mature in five years on 1/1/2024 with semiannual interest payments on 6/30 and 12/31. A debt service fund is created to manage the payment of principals and interests of this bond.

As illustrated below, a sinking fund is to be established with equal semiannual additions made on 6/30 and 12/31. General fund transfers to the debt service fund the cash for sinking fund additions and semiannual interest payments a few days before the due dates.