The following information was taken from the CAFRs of two cities of approximately the same size in the same state.

1. Compare the financial condition of the two cities based on the following indicators:
a. Per capita operating expenditures
b. Per capita general obligation debt
c. Operating surplus (deficit)
d. Liquid assets/current liabilities
e. Unassigned general-fund balance/total operating revenues
f. Per capita number of employees
2. Compare the financial condition of the two cities based on the following additional measures:
a. Operating revenue/total appraised value of property
b. Property taxes/total appraised value of property
c. Per capita total appraised value of property
3. What conclusions can be drawn from the two sets of measures? Comment on the apparent discrepancy betweenthem.

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Riverside Lakeview (dollar amounts in thousands) Population 92,000 96,000) 1,420 120,00 $170,000 83,000 102,000 Total operating expenditures 112,000 174,000 Number of employees Property tax levy Cash, investments, 1,050 Total operating revenues and receivahles Current liabilities 27,000 15,000 9,000 2,000 Unassigned general-fund 7,000 21,000 1,000 32,000 balance General obligation debt Total appraised value of property 65,000 1,620,000