1. Calculate the following ratios for Vero Beach or the indicated fund as of September 30, 2008, and comment briefly on what each ratio indicates. Most of the information needed can be found in the financial statements included in the text. The following additional information was obtained from the statistical section of the CAFR:

• City population: 17,895

• Total taxable assessed value of real property: $2,857,215,000

• Total property tax levy—City: $5,533,000

a. Fiscal effort (governmental funds)

b. Intergovernmental revenue/Total operating revenue (general fund)

c. Property tax revenue (governmental activities)/Total operating revenues (governmental funds)

d. Property tax collection rate (governmental activities)

e. Public safety expenses/Total expenses (governmental activities)

f. Unassigned fund balance/Total operating revenues (general fund)

g. Restricted revenues/Total operating revenues (governmental activities)

h. Liquidity of the Vero Beach Municipal Airport

2. What kinds of additional information should you seek before drawing conclusions from these ratios? Refer to the financial statements of the City of Vero Beach in Chapter 3.