For each of the following item related to the debt of Marfa City, indicated whether and how the dead would be reported on the balance sheet of one of the cities governmental funds. If it would not be reported on the balance sheet of one of the cities governmental funds, then state whether it would be reported instead on the government-wide statement of net position or it notes to the financial statements. Insofar as you would need additional information determine how the debt she reported, specify such information and tell how that would affect the determination. Briefly justify your response.

1.) The city issues $10 million in 30 years, 6% revenue bonds to able local nursing home to construct new facilities. The facilities will be issued to the home for the term of the bonds, and the issued payments will be extracted equally to the debt service on the bonds. At the expiration of the lease, the property will revert to the home. The bonds are backed excuse to leave by lease payments from the nursing home.

2.) This city issue $20 million in 8% BANs, which it expects to refund a proximally nine months after year-end, when, eight hopes, the long-term interest rate will drop. Its part of an Annexation Agreement, the city contracts road to an adjacent use a municipal utility district. The city funds the road by issuing $15 million in bonds. The bonds are back to exclusively by assessments on the district property owners. Although the city will collect the assessments and transmit the required payments to the bonds trustee, the city is barred by both the state constitution and its own charter from assuming responsibility for the debt in the event of property owner default.

3.) 10 years ago, the city issued, eight par, $15 million at 6%, 20 years GO bonds. After the bonds have been outstanding for six years from the date of issue, they are redeemable at the option of the bondholders. The bonds are rated AAA and are fully insured by a reputable Bond insurance company. Interest rates on comparable bonds are currently 5%.

4.) A school district, the boundaries of which are the same as the cities, as outstanding $120 million of GO bonds. The school district, which is governed by an independently elected board, is not a component unit of the city. However, both revive the revenue mainly from taxes on the same property, and the city serves as a district property tax collection agent.