You’ll be moving to a nearby state after graduation and are focusing on two cities near your new job. After reading this chapter, you decide to look at the debt held by each of the governments. Disclosures of the legal debt margin for each city over the past few years are reproduced below. 

Five-year trend information: 

Five-year trend information: 

Required

Compare the legal debt margin of the two cities. What are your observations regarding the debt position of the two governments?

Transcribed Image Text:

City of Dreams Legal Debt Margin June 30, 2022 Assessed Property Values, per Property Assessors Office Legal Debt Margin: Debt limitation-5% of assessed value Debt applicable to limitation Legal Debt Margin $3,778,550,520 188,927,526 110,184,260 $ 78,743,266