Questions:

1. Using the data provided above, please specify if the City has a surplus or a deficiency in 2011; what is the surplus/deficiency in 2011?

i. If the City has a deficiency in funds, specify the percent rate increase needed to meet 2011 costs.

2. Using the CPI data provided, what would be an appropriate future inflation escalation factor for 2012-2015 expressed in percent per year?

3. Using the Customer data, what would be an appropriate future growth rate for 2012-2015 expressed in percent per year?

4. Using your calculated growth rate from question 3, project the City's 2011 Rate Revenue through 2015, keep Other Revenue unchanged.

5. Using your calculated inflation escalation factor from question 2, project the 2011 expenses through 2015

6. The City needs to construct a major project in 2014 and has to issue debt. What would be the annual debt service (principal and interest)
under the following assumptions?
i. Loan Amount - $100,000
ii. Term - 20 - years
iii. Interest Rate - 5.0%

7. Add a line to your sample data table under City Expenses and label it "New Debt". Starting in 2014, project the annual new debt service calculated in question 6.

8. Assuming no rate increases, what would be the annual dollar surplus/deficiency from 2011 through 2015?

9. What percent increase is required to meet expenses on an annual basis? Please provide both annual and cumulative percentages by year.

10. Create a graphical comparison for the following:
i. Revenue before increases 2011 - 2015
ii. Expenses 2011 - 2015
iii. Revenue after increases 2011 - 2015