Question: Ratios can help users assess fiscal condition.
The data that follow were taken from the CAFR of Chaseville, a mid-sized midwestern city with a population of 82,000. All dollar amounts are in thousands.
| Total assessed value of property |
$2,300,000 |
| Total property tax levy |
42,500 |
| General-fund cash and investments |
3,120 |
| General-fund total assets |
19,500 |
| General-fund total liabilities |
16,230 |
| General-fund reserved fund balance |
780 |
| General-fund unreserved fund balance |
5,789 |
| General-fund total tax revenues |
38,756 |
| General-fund total expenditures |
44,600 |
| General-fund debt service expenditures |
4,500 |
| General-fund revenue from own sources |
46,500 |
| General-fund total revenues |
48,865 |
| General-fund intergovernmental revenue |
2,003 |
| General-fund public safety expenditures |
9,321 |
| General-fund health and welfare expenditures |
4,567 |
| Direct debt |
70,000 |
| Overlapping debt |
46,486 |
Instructions:
Indicate and calculate the ratios that would best be used to compare Chaseville with similar cities as to whether
1. It is more dependent upon revenues from other governments.
2. It is directing a greater share of its expenditures toward public safety.
3. It has the necessary liquid resources to be better able to meet its short-term obligations as they come due.
4. It has a greater available general-fund balance relative to revenues to meet future needs.
5. Its citizens pay a higher tax rate.
6. Its citizens pay more in taxes per person.
7. It is a wealthier city, in that its citizens own relatively more property.
8. It exerts greater fiscal effort.