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.

City of Dreams
Legal Debt Margin
June 30, 2019

Assessed Property Values,
per Property Assessors Office........................................................... $3,778,550,520
Legal Debt Margin:
Debt limitation€”5% of assessed value .................................................188,927,526
Debt applicable to limitation ..................................................................110,184,260
Legal Debt Margin ...................................................................................$ 78,743,266

Five-year trend information:

City of Hopes
Legal Debt Margin
June 30, 2019

Assessed Property Values,
per Property Assessors Office ...................................................$1,186,550,520
Legal Debt Margin:
Debt limitation€”10% of assessed value .......................................118,655,052
Debt applicable to limitation .............................................................39,911,786
Legal Debt Margin ............................................................................$ 78,743,266

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:

Year Legal Debt Margin Population 2018 80,698,755 39,698 90,463,527 2017 41,959 2016 89,755,124 45,679 48,932 2015 101,461,856 2014 107,625,842 51,627 Year Legal Debt Margin Population 2018 70,912,815 18,332 2017 60,618,712 17,845 2016 61,598,612 16,795 2015 58,584,765 16,259 2014 59,602,548 12,488