Changes in mix of revenues and expenditures must be interpreted with care. The data that follow were drawn from the CAFR of the city of Boulder, Colorado. Dates have been changed. They are from two statistical-section schedules showing the mix of revenue and expenditures for a ten-year period. They include amounts only from the general fund, special revenue funds, and debt service funds.

1. As a consultant for a citizens association, you have been asked to determine whether there have been significant changes in the way the city acquires and spends its resources. Prepare a schedule in which you compare the mix of revenues and of expenditures of 2014 with that of 2015. Note and comment on any items that might distort a straightforward comparison of revenues and expenditures. 2. Comment on any changes between the two years that you consider significant. 3. Expenditures for debt service increased significantly. What are the most likely reasons for the increase? Is it necessarily a sign of increased financial stress?

2014 2015 9 (amounts in thousands) Revenues Sales and use taxes General property taxes Other taxes Charges for services Intergovernmental Proceeds from bonds $41,941 9,501 9,673 5,004 10,114 $18,750 4,900 3,756 2,524 6,840 and notes Other Total revenues 8,246 $84,479 16,330 5,692 $58,792 Expenditures General government and administration Public safety $10,222 17,466 16,472 $ 3,975 10,786 7,499 Public works Housing and human Culture and recreation Acquisition of real estate 6,195 16,764 4,093 9,016 services 11,706 2,886 and open spaces Debt service Other Total expenditures 11,315 10,816 2,323 $91,573 $49,961