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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
- 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.
- 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.
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