Question
In preparation for a proposed bond sale, the city manager requested that you prepare a statement of direct and overlapping debt for the city as
In preparation for a proposed bond sale, the city manager requested that you prepare a statement of direct and overlapping debt for the city as of December 31, 2014. You determine that the following city bond issues are outstanding on that date:
Convention center bonds $8,800,000
Electric utility bonds 3,400,000
General obligation serial bonds 9,000,000
Tax increment bonds 2,400,000
Water utility bonds 3,300,000
Transit authority bonds 2,600,000
Other information is as follows:
a. Electric utility, water utility, and transit authority bonds were all serviced by enterprise revenues.
b. Assets segregated for debt retirement total $1,200,000.
c. Another bond issue to be paid from general tax revenues has been approved by city tax payers in the amount of $2,000,000.
g. The citys residents are also responsible for 25% of the countys bonded debt of $30,000,000 and 30% of the school districts bonded debt of $12,000,000.
Required: prepare a statement of direct and overlapping debt
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