• 65. Statement of Legal Debt Margin. In preparation for a proposed bond sale, the city manager of the City of Appleton requested that you prepare a statement of legal debt margin for the city as of December 31, 2010. You ascertain that the following bond issues are outstanding on that date: You obtain other information that includes the following items:
  • 1. Assessed valuation of real and taxable personal property in the city totaled $240,000,000.
  • 2. The rate of debt limitation applicable to the City of Appleton was 8 percent of total real and taxable personal property valuation.
  • 3. Electric utility, water utility, and transit authority bonds were all serviced by enterprise revenues, but each carries a full-faith-and-credit contingency provision. By law, such self-supporting debt is not subject to debt limitation.
  • 4. The convention center bonds and tax increment bonds are subject to debt limitation.
  • 5. The amount of assets segregated for debt retirement at December 31, 2010, is $1,800,000.