Chapter 3 Graded Case Study Go to your text book and complete the following case study questions. Make sure you complete the work in a word document. I will take points out of any work that is not cited. 3-13, & 3-14 3-13. Estimating and Setting the General Fund Property Tax Rate in a Challenging Economic and Political Environment. (LO3-4) Background: The city manager of University City is finalizing the budget proposal that must be submitted to the city council 60 days prior to the July 1 start of the next fiscal year, FY 20X2. An economic recession has significantly reduced the city's revenues over the past two years, particularly sales taxes and building permit fees. Despite strong political pressures on city council members to sustain current city services, the legal requirement to balance the budget has forced the council to cut certain services and staffing levels over the past two years. Federal financial assistance has prevented even deeper cuts, but will be sharply reduced at the end of FY 20X1. Even though the economy has gradually improved, reduced federal support will make achieving a balanced budget even more difficult in FY 20X2. Constraints and planning factors: The city council has mandated that there be no increase in fees and taxes in FY 20X2. Although retail sales and housing starts are projected to increase modestly in FY 20X2, the assessed valuation of taxable property is projected to decrease an additional 5 percent in FY 20X2, reflecting the continuing decline in property values. Moreover, General Fund operating costs, particularly employee health insurance and energy, are expected to outpace revenue growth. Consequently, the city manager is recommending a third consecutive year of no salary and wage increases for city employees. The following financial information is provided as of May 1 of FY