Calculate debt service burden and rate of debt payback Assume the following information was derived from the fund financial statements prepared by the city of Tallahassee, Florida for the fiscal year ended September 30, 2019: City of Tallahassee General Fund Balance Sheet (in thousands) Assets: Cash and cash equivalents $8,680 Due from other governments 0 All other assets -13,482 Total assets $-4,802 Liabilities: Total current liabilities $39,505 Fund balance: Nonspendable -49.701 Committed 0 Assigned 0 Unassigned 5,394 Total fund balance -44,307 Total liabilities and fund balance $-4.802 City of Tallahassee General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance (in thousands) Total revenues $329,703 Total expenditures 575,656 Excess of revenues over (under) expenditures -245,953 Other financing sources (uses): Transfers in 173,590 Transfers out -75,327 Proceeds from sale of capital assets 1,505 Total other financing sources (uses) 99,768 Net change in fund balance -146,185 Fund balance, October 1, 2019 101,878 Fund balance, September 30, 2019 $-44,307 Assume the city of Tallahassee's total tax-supported debt service expenditures in fiscal year 2019 were $27,790 thousand. The schedule of debt service requirements in the notes to the 2019 financial statements showed that Tallahassee's total governmental activity debt was $346,050 thousand, of which $131,303 thousand was scheduled to be paid off between 2020 and 2024, $61,163 thousand was scheduled to be paid off between 2025 and 2029, and the remainder was scheduled to be paid off between 2030 and 2039. Calculate the following for the city of Tallahassee: Round all percentages to one decimal. a) debt service burden 0 % b) percentage of debt principal payback in the next five years o % c) percentage of debt principal payback in the next ten years o % d) How does the city of Tallahassee's debt principal payback over the next ten years compare to the credit agency norms described in the textbook? Calculate debt service burden and rate of debt payback Assume the following information was derived from the fund financial statements prepared by the city of Tallahassee, Florida for the fiscal year ended September 30, 2019: City of Tallahassee General Fund Balance Sheet (in thousands) Assets: Cash and cash equivalents $8,680 Due from other governments 0 All other assets -13,482 Total assets $-4,802 Liabilities: Total current liabilities $39,505 Fund balance: Nonspendable -49.701 Committed 0 Assigned 0 Unassigned 5,394 Total fund balance -44,307 Total liabilities and fund balance $-4.802 City of Tallahassee General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance (in thousands) Total revenues $329,703 Total expenditures 575,656 Excess of revenues over (under) expenditures -245,953 Other financing sources (uses): Transfers in 173,590 Transfers out -75,327 Proceeds from sale of capital assets 1,505 Total other financing sources (uses) 99,768 Net change in fund balance -146,185 Fund balance, October 1, 2019 101,878 Fund balance, September 30, 2019 $-44,307 Assume the city of Tallahassee's total tax-supported debt service expenditures in fiscal year 2019 were $27,790 thousand. The schedule of debt service requirements in the notes to the 2019 financial statements showed that Tallahassee's total governmental activity debt was $346,050 thousand, of which $131,303 thousand was scheduled to be paid off between 2020 and 2024, $61,163 thousand was scheduled to be paid off between 2025 and 2029, and the remainder was scheduled to be paid off between 2030 and 2039. Calculate the following for the city of Tallahassee: Round all percentages to one decimal. a) debt service burden 0 % b) percentage of debt principal payback in the next five years o % c) percentage of debt principal payback in the next ten years o % d) How does the city of Tallahassee's debt principal payback over the next ten years compare to the credit agency norms described in the textbook
