1 (5 points) The city of North Paragould has experienced severe economic stress over the last five years. With that severe economic stress, businesses and residents have fled the city and helped to accelerate revenue losses that have contributed to constant budget deficits. For this year, the budget deficit for the city is approximately $500,000. To help solve this problem, the city considers the following proposals to solve the deficit. Proposal A Privatizing the City's Police Department. Currently, the Police Department's expenditures are 44% of the City's Budget. By privatizing to Spartan Xe, private corporation providing police services to local governments, the city estimates that it will save $1.4 million annually. Such an amount would obviously end the deficit currently faced by the city. Additionally, as part of this proposal the private vendor would charge a $10 fee for every emergency call responded to in the city (i.e. if the police are called to your residence, you would be charged $10). The team estimates that each year, the police department responds to approximately 1500 emergencies. Thus, the team estimates that a $10 fee on each emergency response would yield $15,000 in new annual revenues). (Note: Spartan Xe uses police