Question 1.

The following data were drawn from the CAFRs of two Northeast Cities approximately of the same size and same state. (All dollar amounts are in thousands)

	Wonderland (dollar amounts in thousands)	Dreamland (dollar amounts in thousands)
Population	92,000	96,000
Number of employees	1,050	1,420
Total operating revenues	$120,000	$170,000
Property Tax levy	$ 83,000	$102,000
Total Operating Expenditures	$112,000	$174,000
Cash, Investments, and receivables	$ 27,000	$ 15,000
Current Liabilities	$ 9,000	$ 12,000
Unassigned general fund balance	$ 7,000	$ 1,000
General obligation debt	$ 21,000	$ 12,000
Total appraised value of property	$965,000	$1,620,000

Required:

1. Compare the economic conditions of the two cities based on the following indicators:

a. Per capita operating expenditures.

b. Per capita general obligation debt.

c. Operating surplus (deficit).

d. Liquid assets/current liabilities.

e. Unassigned general fund balance/total operating revenues.

f. Number of employees per capita.

2. Compare the economic condition of the two cities based on the following additional measures:

a. Operating revenues/total appraised value of the property.

b. Property taxes/total appraised value of property.

c. Total appraised value of property per capita.

3. What conclusions can be drawn from the two sets of measures? Comment on the apparent discrepancy between them