The data that follow were drawn from the CAFR of the city of Boulder, Colorado. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a ten-year period. They include amounts only from the general fund, special revenue funds, and debt service funds.
1. As a consultant for a citizens’ association, you have been asked to determine whether there have been signiﬁcant changes in the way the city acquires and spends its resources. Prepare a schedule in which you compare the mix of revenues and of expenditures of 2014 with that of 2015. Note and comment on any items that might distort a straightforward comparison of revenues and expenditures. 2. Comment on any changes between the two years that you consider signiﬁcant. 3. Expenditures for debt service increased signiﬁcantly. What are the most likely reasons for the increase? Is it necessarily a sign of increased ﬁnancialstress?