These descriptions of organizations relate to a city government.
1. The public school district is a legally separate entity responsible for the administration of city schools and has a separate board elected by the public. The city council approves the school district's budget, levies taxes and issues debt on behalf of the school district. The city is legally liable for school district debt. The city also provides significant funding to the school district.
2. The housing authority is a legally separate entity that manages public housing in the city. The authority issues its own debt, payment on which is financed by housing rents. The city has no financial liability for the housing authority's debt. The city has input in choosing the authority's board, but does not appoint the board or control its decisions.
3. The waste disposal authority is a legally separate entity that operates the city landfill; its board is appointed and landfill rates are approved by the city council.
4. The sewer district provides sewage treatment services to several surrounding local governments, including the city. The city appoints a minority of the sewer district's board members. The district sets service rates and makes all decisions regarding its operations. Its operations are funded by property tax levies and user charges, and by debt for which it is legally liable.
5. The building authority is a separate legal entity whose board is appointed by the city. The authority issues bonds to finance construction of city capital assets. The city is legally liable for the bonds.
Required
For each organization described above, indicate whether it should be reported as a component unit of the city. If it is a component unit, should its financial information be blended with that of the city, or discretely presented? Justify your answers.