Calculate, insofar as possible, the financial ratios for the city of Fort Lauderdale in Illustrations 103 attached. Evaluate the ratios in terms of the red flags, information provided in Illustration 103, and benchmarks provided in Illustrations 105 and 106, and long-term trend data for each ratio, if available. List any assumptions you made.

Locate any additional data that you think may be useful in assessing the financial condition of this city; for example, see the U.S. Census Bureaus Web site at www.census.gov and the Web sites of cities you consider comparable in size or other attributes to this city.

Prepare a report on the results of your analysis. The report should have an appendix providing a few graphs and/or tables to support your analysis. In particular, graphs showing revenues, expenditures, and key debt ratios for the past 10 years and selected demographic and socioeconomic trends are helpful. You may want to include some of the ratios calculated in part b in an appendix. Be succinct and include only data relevant to your analysis.

STRATION 10-3 Selected Financial Ratios Based on CAFR Governmental Funds Information This ratio should be evaluated for a trend. As a benchmark, an average of 1.05 or greater is considered very strong, with 1.0 considered average and 0.95 or less weak. Abnormally large deficits ( 5 percent or more) or two or more years of consecutive deficits are warning signs. Declining fund balances as a percentage of ne can affect a government's ability to withstand f An adequate fund balance is generally consid and 25 percent. If this measure of a government's cash positior determine if this is a temporary situation or whe receivables, may persist, leading to long-term warning is a ratio between 1 and 2 in the most Screenshot copied to clipboard and saved recelvables, may persist, leading to long-term solvency concerns. A warning is a ratio between 1 and 2 in the most current years. A value of 5 percent or greater or an increasing trend is considered a warning sign. An increasing percent reduces expenditure flexibility. A warning sign would include a value greater than 20 percent. Values below 10 percent are considered acceptable. If a decline in the relationship between expenc capital assets to operating expenditures persis General Fund Operating (Deficits) Surpluses Operating Revenues ** 2015 through 2018 reflect ACS (American Community Survey) five year estimate, and 2019 is an estimate based on the growth between 2017 and 2018. ILLUSTRATION 10-6 General Fund Indicators \begin{tabular}{|c|c|c|} \hline Indicators & \multirow[t]{3}{*}{20182019} & Comments \\ \hline General Fund & & Revenues per capita in constant dollars decreased 11.41% over the past five years due to \\ \hline Revenues Per & & growth in online sales (which do not collect local sales taxes), lower telephone gross receipt taxes \\ \hline Capita (Constant & & (due to fewer land line users), lower grant revenues (due to several large grants to fund public \\ \hline \multirow[t]{2}{*}{ Dollars) } & & safety positions ending), lower Municipal Court fees (due to the passage of Senate Bill 5), and \\ \hline & & lower Building Permit fees (due to lower number of building permits being issued). \\ \hline Total Tax Revenues & & Total tax revenues per capita in constant dollars decreased 12.09% over the past five years. Sales \\ \hline Per Capita & & tax is the largest portion of tax revenues and the increase in online sales which do not collect local \\ \hline \multirow[t]{3}{*}{ (Constant Dollars) } & & sales tax has lowered the growth in this revenue and will continue to lower the growth in future \\ \hline & & years. Gross receipt taxes on telephones decreased $1.1 million over the past five years due to a \\ \hline & & lower number of land line users. \\ \hline Estimated Loss in & & The estimated percent of sales that are conducted online has grown from 7.3% to 10.8% over the \\ \hline Sales Tax Revenue & & past five years. Since online sales do not collect local sales tax, it has been estimated the City lost \\ \hline \multirow[t]{3}{*}{ Due to Online Sales } & & over $11.6 million in the General Fund over the past ten years. The FY 2019 estimated loss is over \\ \hline & & $2.8 million. Public safety receives about 68% of the total general source funding, so this loss to \\ \hline & & public safety for FY 2019 is estimated to be $1.9 million which could have been used to support at \\ \hline \end{tabular} Revenue Surpluses (Shortfalls) Estimated Budget vs. Actual Total Expenditures Per Capita (in Constant Dollars) LAGERS Pension Unfunded Accrued Liability and Pension Funding Ratio General Fund Employees Per Revenue estimates have been well within a 1.5% tolerance range of actual revenues for the General Fund for all of the past ten years. This illustrates that the current forecasting techniques are producing revenue projections that are substantially better than 98.5% of actual revenues. In FY 2019 actual revenues were 1.20\% higher than estimated revenues. For the past five years, expenditures per capita (constant dollars) decreased 9.32\% while inflation increased 7.86% and population increased 5.64\%. A negative trend is observed because the City has not been able to add positions and other funding to critical areas such as public safety and transportation to keep up with growing population and service demands. A n when operating expenditures (constant dollars) per capita are decreasing du growth because inflation, population, and demand for services increase but enough funding to increase expenditures such as additional staff to meet the demands. A warning trend exists if the LAGERS pension unfunded accrued liability is in pension funding ratio is below 80%. For the past five years the unfunded acc decreased and the pension funding ratio remained above the 80% GASB rec ratio. For the past five years, employees per thousand population decreased 0.80 Screenshot copied to clipboard and saved Select here to mark up and share the image increased 5.64%. Due to low revenue growth, the City has not been able to aud pustuvis u keep Liquidity Ratio General Fund Ending Unassigned Cash Reserve The City's general fund liquidity ratio has been significantly above the 1.0 credit industry benchmark for all years shown. There is no warning trend observed for this indicator. The FY 2019 liquidity ratio is 7.46 . Cash reserves have been above the cash reserve target for all years shown. There is no warning trend observed. FY 2019 ending unassigned cash reserves are \$21,252,305 above the cash reserve target. The significant increase in cash reserves in FY 2019 was due to all unspent general fund savings amounts that had been allocated to general fund departments were moved to Unassigned Fund Balance and are now included in the cash reserves. Snipping Tool Screenshot copied to clipboard and saved Select here to mark up and share the image