A headline in The New York Times on August $16,2017$ read: $$Hartford $($Connecticut$),$ With Finances in Disarray, Veers Toward Bankruptcy.$$ The article said, among other things: "Hartford, which has one of the highest property tax rates in the state, still cannot raise enough money to pay for basic government operations.$$

Assume the following economic, demographic, and financial data was taken from Census Bureau QuickFacts $($accessed August, $2017)$ and from Hartford$$s June $30,2016$ CAFR. $($The financial statements, expressed in thousands of dollars$),$ have been condensed.

Economic and demographic data

Hartford Connecticut United States

Population, $2010$ census $122,2803,502,615302,570,627$

Population, $2016$ estimate $120,7783,504,923316,664,963$

Percent, high school grad. or higher $69\mathrm{.}2\%88\mathrm{.}1\%85\mathrm{.}0\%$

Median household income $$30,017$ $$68,924$ $$52,811$

Per capita income $$16,965$ $$38,027$ $$28,351$

Individuals living below poverty line $3\mathrm{.}9\%10\mathrm{.}3\%13\mathrm{.}2\%$

$2016$ unemployment rate $($source: CAFR$)10\mathrm{.}1\%5\mathrm{.}4\%5\mathrm{.}2\%$

CITY OF HARTFORD

General Fund

Balance Sheet

June $30,2016$

Assets:

Cash and cash equivalents $$61,734$

Receivables $($mostly taxes$)102,848$

Total assets $$164,582$

Liabilities $$53,907$

Deferred inflows of resources $74,204$

Fund balance:

Assigned $$22,359$

Unassigned $14,112$

Total fund balance $36,471$

Total liabilities, deferred inflows

of resources, and fund balance $$164,582$

CITY OF HARTFORD

General Fund

Statement of Revenues, Expenditures,

and Changes in Fund Balance

For the Year Ended June $30,2016$

Total revenues $$576,892$

Total expenditures $554,439$

Excess $($deficiency$)$ of revenues over expenditures $22,453$

Other financing sources $($uses$)$:

Transfers in $$5,329$

Transfers out $-12,798$

Total other financing sources $($uses$)-7,469$

Net change in fund balance $14,984$

Fund balance, beginning of year $21,487$

Fund balance, end of year $$36,471$

Other comments

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\mathrm{.}6$ million at the beginning of fiscal year $2016$ to $$696\mathrm{.}9$ million at the end of the year. The CAFR reports that the assessed value of taxable property was $$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 Answer

Days' cash on hand Answer

Budgetary cushion Answer$\%$

Operating margin Answer$\%$

Debt burden $($using value of property$)$ Answer$\%$

Debt burden $($using personal income$)$ Answer$\%$

Round all ratios to one decimal place.