a. The Debt Service Fund had a beginning fund balance of $95,231 thousand. The Debt Service...

Transcribed Image Text:

a. The Debt Service Fund had a beginning fund balance of $95,231 thousand. The Debt Service Fund statement of revenues, expenditures, and changes in fund balances for fiscal year 2016 shows $71,279 thousand of debt service expenditures, zero revenues, and $9,116 thousand of transfers in. It also shows significant inflows from refunding existing debt and the issuance of new debt. The same general pattern occurred in fiscal year 2015. Hence, it is reasonable to assume that most of the year's debt service expenditures was financed, not by tax revenues, but rather by "rolling over" existing debt issuing new debt or drawing down the fund balance. b. Hartford's outstanding general obligation debt increased from $502.6 million at the beginning of fiscal year 2016 to $696.9 million at the end of the year. The CAFR reports that the assessed value of taxable property was $3,550,610,560 and the actual value of taxable property was $6,531,615,720 (You can calculate Hartford's personal income by multiplying the population by the per capita income.) Calculate the following ratios: Quick Ratio Days' cash on hand Budgetary cushion % Operating margin % Debt burden (using value of property) % Debt burden (using personal income) % Round all ratios to one decimal place. a. The Debt Service Fund had a beginning fund balance of $95,231 thousand. The Debt Service Fund statement of revenues, expenditures, and changes in fund balances for fiscal year 2016 shows $71,279 thousand of debt service expenditures, zero revenues, and $9,116 thousand of transfers in. It also shows significant inflows from refunding existing debt and the issuance of new debt. The same general pattern occurred in fiscal year 2015. Hence, it is reasonable to assume that most of the year's debt service expenditures was financed, not by tax revenues, but rather by "rolling over" existing debt issuing new debt or drawing down the fund balance. b. Hartford's outstanding general obligation debt increased from $502.6 million at the beginning of fiscal year 2016 to $696.9 million at the end of the year. The CAFR reports that the assessed value of taxable property was $3,550,610,560 and the actual value of taxable property was $6,531,615,720 (You can calculate Hartford's personal income by multiplying the population by the per capita income.) Calculate the following ratios: Quick Ratio Days' cash on hand Budgetary cushion % Operating margin % Debt burden (using value of property) % Debt burden (using personal income) % Round all ratios to one decimal place.