A headline in The New York Times on August 16, 2017 read: Hartford (Connecticut), With Finances in Disarray, Veers Toward Bankruptcy. The article said, among other things: "Hartford, which has one of the highest property tax rates in the state, still cannot raise enough money to pay for basic government operations.

Assume the following economic, demographic, and financial data was taken from Census Bureau QuickFacts (accessed August, 2017) and from Hartfords June 30, 2016 CAFR. (The financial statements, expressed in thousands of dollars), have been condensed.

Other comments

a. The Debt Service Fund had a beginning fund balance of $102,033 thousand. The Debt Service Fund statement of revenues, expenditures, and changes in fund balances for fiscal year 2016 shows $76,371 thousand of debt service expenditures, zero revenues, and $9,767 thousand of transfers in. It also shows significant inflows from refunding existing debt and the issuance of new debt. The same general pattern occurred in fiscal year 2015. Hence, it is reasonable to assume that most of the years debt service expenditures was financed, not by tax revenues, but rather by rolling over existing debt issuing new debt or drawing down the fund balance.

b. Hartfords outstanding general obligation debt increased from $538.5 million at the beginning of fiscal year 2016 to $724.2 million at the end of the year. The CAFR reports that the assessed value of taxable property was $3,804,225,600 and the actual value of taxable property was $6,998,159,700 (You can calculate Hartfords personal income by multiplying the population by the per capita income.)

Thank you so much!

\begin{tabular}{|l|r|r|r|} \hline \multicolumn{4}{|c|}{ Economic and demographic data } \\ & Hartford & Connecticut & United States \\ \hline Population, 2010 census & 131,014 & 3,752,802 & 324,182,815 \\ \hline Population, 2016 estimate & 129,405 & 3,755,275 & 339,283,889 \\ \hline Percent, high school grad. or higher & 74.1% & 94.4% & 91.0% \\ \hline Median household income & $32,162 & $73,848 & $56,583 \\ \hline Per capita income & $18,177 & $40,743 & $30,377 \\ \hline Individuals living below poverty line & 4.2% & 11.0% & 14.2% \\ \hline 2016 unemployment rate (source: CAFR) & 10.8% & 5.8% & 5.6% \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{\begin{tabular}{c} CITY OF HARTFORD \\ General Fund \\ Balance Sheet \\ June 30, 2016 \end{tabular}} \\ \hline Assets: & \\ \hline Cash and cash equivalents & $64,155 \\ \hline Receivables (mostly taxes) & 93,599 \\ \hline Total assets & $157,754 \\ \hline Liabilities & $57,757 \\ \hline Deferred inflows of resources & 79,504 \\ \hline Fund balance: & \\ \hline Assigned & $12,563 \\ \hline Unassigned & 7,930 \\ \hline Total fund balance & 20,493 \\ \hline Total liabilities, deferred inflows & \\ \hline of resources, and fund balance & $157,754 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} CITY OF HARTFORD \\ General Fund \\ Statement of Revenues, Expenditures, \\ and Changes in Fund Balance \\ For the Year Ended June 30,2016 \end{tabular}} \\ \hline Total revenues & & $599,515 \\ \hline Total expenditures & & 594,042 \\ \hline Excess (deficiency) of revenues ov & & 5,473 \\ \hline \multicolumn{3}{|l|}{ Other financing sources (uses): } \\ \hline Transfers in & $5,710 & \\ \hline Transfers out & 13,712 & \\ \hline Total other financing sources (uses) & & 8,002 \\ \hline Net change in fund balance & & 2,529 \\ \hline Fund balance, beginning of year & & 23,022 \\ \hline Fund balance, end of year & & $20,493 \\ \hline \end{tabular} alculate the following ratios: Quick Ratio Days' cash on hand \begin{tabular}{l|l} \hline Budgetary cushion & % \\ \hline Operating margin & % \end{tabular} Debt burden (using value of property) % Debt burden (using personal income) % Round all ratios to one decimal place