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Calculate operating margin Assume the following information was derived from the fund financial statements prepared by the city of Tallahassee, Florida for the fiscal year

Calculate operating margin

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 $2,480
Due from other governments 0
All other assets 11,848
Total assets $14,328
Liabilities:
Total current liabilities $11,287
Fund balance:
Nonspendable 1,500
Committed 0
Assigned 0
Unassigned 1,541
Total fund balance 3,041
Total liabilities and fund balance $14,328

City of Tallahassee
General Fund
Statement of Revenues, Expenditures,
and Changes in Fund Balance
(in thousands)
Total revenues $109,901
Total expenditures 164,473
Excess of revenues over (under) expenditures -54,572
Other financing sources (uses):
Transfers in 49,597
Transfers out -21,522
Proceeds from sale of capital assets 430
Total other financing sources (uses) 28,505
Net change in fund balance -26,067
Fund balance, October 1, 2019 29,108
Fund balance, September 30, 2019 $3,041

a) Calculate the city of Tallahassees operating margin ratio. Answer

% Assume all transfers in are recurring. Round percentage to two decimals. b) Included in expenditures is $28 million in costs related to Hurricane Michael. Calculate the operating margin ratio assuming those costs were not incurred. Answer

% Assume all transfers in are recurring. Round percentage to two decimals.

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