The government-wide financial statements for the City of Arborland for a three-year period are presented.

Additional information follows: Population: Year 2023: 30,490, Year 2022: 28,361, Year 2021: 26,444. Debt limit remained at $20,350,000 for each of the three years. Net cash from operations is generally 80 percent of total revenues each year.

Required

a. Select X for the financial performance measures in Illustration 104 that can be calculated for the City of Arborland based on the information provided.

Performance Measures
1.	Unrestricted net position
2.	Debt ratio
3.	Current ratio
4.	Change in net position
5.	Interperiod equity
6.	Business-type activities self-sufficiency
7.	Capital asset condition

b. Calculate those ratios identified in part a for FY 2023. Show your computations.

CITY OF ARBORLAND Statements of Net Position As of December 31 (in thousands) 2023 Business -type Governmental Activities Activities Governmental Activities 2022 Business -type Activities 2021 Business -type Activities Governmental Activities Total Total Total Assets Current assets: Cash Investments Receivables (net) Prepaid expenses Inventories Total current assets Capital assets: $ 27,059 746 3,397 266 39 31,507 $ 1,930 304 1,822 21 71 4,148 $ 28,989 1,050 5,219 287 110 35,655 $ 7,781 1,678 5,547 1,551 1,076 17,633 $ 12,427 194 1,621 19 61 14,322 $ 20,208 1,872 | 7,168 1,570 L 1,137 31,955 $ 22,704 925 2,515 184 180 26,508 $ 11,640 192 1,485 18 62 13,397 $ 34,344 1,117 4,000 202 242 39,905 Land 1,817 2,310 38,250 (21,539) 19,021 50,528 | 3,401 26,420 (6,281) 23, 540 27,688 5,711 64,670 (27,820 42,561 78,216 3,370 44,849 (18,532) 29,687 17,840 (13,026) 6,631 20,953 5,187 62,689 (31,558) 36,318 68,273 1,984 32,847 (22,280) 12,551 39,059 1,617 16, 101 (11,302) 6,416 19,813 3,601 48,948 (33,582) 18,967 58,872 47,320 1,117 389 360 Depreciable assets Accumulated depreciation Total capital assets (net) Total assets Liabilities Accounts payable Deferred revenue Other, current Total current liabilities Bonds payable Total liabilities Net Position Net investment in capital assets Restricted for: Capital projects Debt service Unrestricted (deficit) Total net position 1,930 45 1,767 3,742 17,200 20,942 330 1,447 9, 100 10,547 3,047 45 2,097 5,189 26,300 31,489 1,669 720 2,053 4,442 24,200 28, 642 203 592 7,630 8,222 2,058 720 2,256 5,034 31,830 36,864 2,023 211 2,269 4,503 22,400 26,903 235 595 7,800 8,395 2,383 211 2,504 5,098 30, 200 35,298 23,861 12,055 35,916 14,017 8,603 1 22,620 7,069 4.680 11,749 270 946 4,509 $ 29,586 5,086 $17,141 270 946 9,595 $ 46,727 164 1,046 3,451 $ 18,678 4,128 $ 12,731 164 1,046 7,579 $ 31,409 143 831 4,113 $ 12,156 6,738 $ 11,418 143 831 10,851 $ 23,574 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2023 (in thousands) Net (Expense) Revenue and Program Revenues Changes in Net Position Charges Operating Capital Business- for Grants and Grants and Governmental type Expenses Services Contributions Contributions Activities Activities Total $ 112 818 Functions/Programs Governmental Activities: General government Judicial Public safety Health and sanitation Culture and recreation Road maintenance Interest on long-term debt Total governmental activities Business-type activities Total government $ 5,730 1,939 7,971 2,869 2,816 2,540 961 24,826 3,545 $28, 371 $ 661 1,366 2,180 654 567 135 $ 1,145 $ (5,069) (461) (4,973) (2,215) (1,104) (136) (961) (14,919) 2,269 $ (5,069) (461) (4,973) (2,215) (1,104) (136) (961) (14,919) 4,410 $(10,509) 3,199 5,563 7,818 $13,381 1,145 137 $ 4,410 $ 4,410 $ 3,199 $ 1,282 $(14,919) 19,246 19,246 General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 3,815 2,016 750 25,827 10,908 18,678 $ 29,586 3,815 2,016 750 25,827 15,318 31,409 $ 46,727 4,410 12,731 $17, 141 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2022 (in thousands) Charges for Services Program Revenues Operating Capital Grants and Grants and Contributions Contributions Net (Expense) Revenue and Changes in Net Position Business- Governmental type Activities Activities Total Expenses $ 161 222 $ 407 290 1,956 160 Functions/Programs Governmental Activities: General government Judicial Public safety Health and sanitation Culture and recreation Road maintenance Interest on long-term debt Total governmental activities Business-type activities Total government $ (4,037) (1,121) (3,006) (2,229) (4,351) (879) (1,779) (17,402) 348 $ 4,198 1,750 5,252 2,389 5,062 1,705 1,779 22,135 4,300 $26,435 $ 363 826 $ (4,037) (1,121) (3,006) (2,229) (4,351) (879) (1,779) (17,402) 1,313 $(16,089) 1,523 2,847 5,590 $8,437 363 23 $ 1,313 $ 1,313 $ 1,523 $ 386 $(17,402) 16,219 16,219 General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 4,639 1,566 1,500 23,924 4,639 1,566 1,500 23,924 7,835 23, 574 $ 31,409 6,522 12,156 $ 18,678 1,313 11,418 $12,731 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2021 (in thousands) Charges for Services Program Revenues Operating Capital Grants and Grants and Contributions Contributions Net (Expense) Revenue and Changes in Net Position Business- Governmental type Activities Activities Total Expenses $ Functions/Programs Governmental Activities: General government Judicial Public safety Health and sanitation Culture and recreation Road maintenance Interest on long-term debt Total governmental activities Business-type activities Total government $ 122 224 1,736 866 819 70 23 $ 1,100 $ 4,247 2,641 4,763 3,721 4,069 1,893 1,598 22,932 3,287 $26,219 $ (4,125) (2,347) (3,004) (2,855) (2,150) (1,407) (1,598) (17,486) 486 $ (4,125) (2,347) (3, 004) (2,855) (2,150) (1,407) (1,598) (17,486) 779 $(16,707) 579 3,767 4,033 $7,800 1,100 33 $ 1,133 $ 779 779 $ 579 $(17,486) $ 14,400 14,400 General Revenues : Property taxes Grants and contributions not estricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 3,120 876 1,125 19,521 2,035 10,121 $ 12,156 3,120 876 1,125 19,521 2,814 20,760 $ 23,574 779 10,639 $11,418 ILLUSTRATION 10-4 Financial Indicators Using the CAFR Performance Measures Description Ratio Financial Position: 1. Unrestricted net position A measure of the adequacy of the amount of the government's total unrestricted net position or level of deficit at the measurement date. Unrestricted net position Total revenue 2. Debt ratio A measure of the degree to which the government's total assets have been funded with debt as of the measurement date. Total liabilities Total assets 3. Current ratio A measure of the government's ability to pay its short-term obligations as they become due. A commonly used benchmark is a ratio of 1.0. Current assets Current liabilities Financial Performance: 4. Change in net position A measure of the change in the overall financial condition of the government that includes governmental and business-type activities (BTA) but not fiduciary activities or discretely presented component units Total ending net position (governmental and BTA) - Total beginning net position Total beginning net position 5. Interperiod equity A measure of whether the government has lived within its means for the year. A ratio less than one would indicate current revenues were insufficient to cover current expenses. Net revenues (gross revenues plus/minus the effect of internal transfers, special ow items and/or extraordinary items) Total expenses ings to activ, 6. BTA self-sufficiency BTA service charge revenues BTA total expenses A measure of the extent to which the government's business-type activities (BTA) are funded with current-year service charge revenues, rather than prior-year resources or subsidies from other funds. Financial Capability and Efficiency: 7. Long-term debt Long-term debt - Self-supporting debt** Assessed valuation (or population or personal income) An increase in this ratio may be an indication that the government's ability to repay the debt is diminishing. Warning signs would include debt that exceeds 10 percent of assessed value, an increase of 20 percent over the previous year, or an increase of 50 percent over the prior four years. 8. Pension funded ratio Level of funding is an indicator of future financial condition. A widely used benchmark for adequacy of funding is 70-80 percent Net position Total pension liability 9. Bonded debt per capita A measure of the government's bonded debt burden on its taxpayers. General bonded debt Population 10. Available legal debt limit A measure of the government's capacity to issue general bonded debt. General bonded debt Legal debt limit 11. Property taxes per capita A measure of the government's property tax burden on its taxpayers. Property tax levy Population Accumulated depreciation indow Average cost of depreciable capital assets 12. Capital asset condition A measure of the extent to which the government's total depreciable capital assets, on average are reaching the end of their useful lives, and therefore, may need replacement The long-term debt indicator provided is a simplification of the ICMA measure. Self-supporting debt would include revenue bonds that have been issued. "Calculate for governmental activities and business-type activities separately and then for the total. Choose Numerator Unrestricted Net Position Unrestricted Net Position Choose Denominator Total Revenue Governmental Activities : = Unrestricted Net Position 2023 2022 2021 11 NaN% NaN% NaN % 11 Business-Type Activities II 2023 2022 2021 NaN% NaN% NaN% 11 Choose Numerator Total Liabilities Debt ratio Choose Denominator Total Assets Governmental Activities = Debt to Assets . 2023 2022 2021 11 NaN% NaN % NaN% 11 Business-Type Activities 2023 : 11 11 2022 2021 NaN% NaN% NaN% Choose Numerator Current Assets Current Ratio Choose Denominator Current Liabilities Governmental Activities = Current Ratio 2023 11 2022 2021 NaN times NaN times NaN times 11 Business-Type Activities . 2023 2022 2021 NaN times NaN times NaN times 11 Change in Net Position Ratio Choose Denominator Total Beginning Net Position Choose Numerator Change in Net Position 2023 2022 2021 = Change in Net Position Ratio NaN % NaN% NaN% = Interperiod Equity Choose Denominator Total Expenses II Interperiod Equity Choose Numerator Net Revenues 2023 2022 2021 11 NaN times NaN times NaN times 11 BTA Self-Sufficiency Choose Denominator - BTA Total Expenses = BTA self-sufficiency Choose Numerator BTA Service Charge Revenues 2023 2022 2021 11 11 NaN times NaN times NaN times .. Capital Asset Condition Choose Denominator Choose Numerator Accumulated Depreciation Average Cost of Depreciable Capital Assets Capital Asset Condition Governmental Activities 2023 2022 2021 NaN% NaN% NaN% Business-Type Activities 2023 2022 2021 NaN% NaN% NaN% Bonded Debt per Capita Choose Denominator Population = Bonded Debt per Capita Choose Numerator General Bonded Debt 2023 2022 2021 = Il NaN NaN NaN = Available Legal Debt Limit Choose Denominator Legal Debt Limit Available Legal Debt Limit Choose Numerator General Bonded Debt 2023 2022 2021 = NaN% NaN% NaN% . Choose Numerator Property Tax Levy 2023 Property Taxes per Capita Choose Denominator - Population = Property Taxes per Capita = 2022 NaN NaN NaN 2021 CITY OF ARBORLAND Statements of Net Position As of December 31 (in thousands) 2023 Business -type Governmental Activities Activities Governmental Activities 2022 Business -type Activities 2021 Business -type Activities Governmental Activities Total Total Total Assets Current assets: Cash Investments Receivables (net) Prepaid expenses Inventories Total current assets Capital assets: $ 27,059 746 3,397 266 39 31,507 $ 1,930 304 1,822 21 71 4,148 $ 28,989 1,050 5,219 287 110 35,655 $ 7,781 1,678 5,547 1,551 1,076 17,633 $ 12,427 194 1,621 19 61 14,322 $ 20,208 1,872 | 7,168 1,570 L 1,137 31,955 $ 22,704 925 2,515 184 180 26,508 $ 11,640 192 1,485 18 62 13,397 $ 34,344 1,117 4,000 202 242 39,905 Land 1,817 2,310 38,250 (21,539) 19,021 50,528 | 3,401 26,420 (6,281) 23, 540 27,688 5,711 64,670 (27,820 42,561 78,216 3,370 44,849 (18,532) 29,687 17,840 (13,026) 6,631 20,953 5,187 62,689 (31,558) 36,318 68,273 1,984 32,847 (22,280) 12,551 39,059 1,617 16, 101 (11,302) 6,416 19,813 3,601 48,948 (33,582) 18,967 58,872 47,320 1,117 389 360 Depreciable assets Accumulated depreciation Total capital assets (net) Total assets Liabilities Accounts payable Deferred revenue Other, current Total current liabilities Bonds payable Total liabilities Net Position Net investment in capital assets Restricted for: Capital projects Debt service Unrestricted (deficit) Total net position 1,930 45 1,767 3,742 17,200 20,942 330 1,447 9, 100 10,547 3,047 45 2,097 5,189 26,300 31,489 1,669 720 2,053 4,442 24,200 28, 642 203 592 7,630 8,222 2,058 720 2,256 5,034 31,830 36,864 2,023 211 2,269 4,503 22,400 26,903 235 595 7,800 8,395 2,383 211 2,504 5,098 30, 200 35,298 23,861 12,055 35,916 14,017 8,603 1 22,620 7,069 4.680 11,749 270 946 4,509 $ 29,586 5,086 $17,141 270 946 9,595 $ 46,727 164 1,046 3,451 $ 18,678 4,128 $ 12,731 164 1,046 7,579 $ 31,409 143 831 4,113 $ 12,156 6,738 $ 11,418 143 831 10,851 $ 23,574 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2023 (in thousands) Net (Expense) Revenue and Program Revenues Changes in Net Position Charges Operating Capital Business- for Grants and Grants and Governmental type Expenses Services Contributions Contributions Activities Activities Total $ 112 818 Functions/Programs Governmental Activities: General government Judicial Public safety Health and sanitation Culture and recreation Road maintenance Interest on long-term debt Total governmental activities Business-type activities Total government $ 5,730 1,939 7,971 2,869 2,816 2,540 961 24,826 3,545 $28, 371 $ 661 1,366 2,180 654 567 135 $ 1,145 $ (5,069) (461) (4,973) (2,215) (1,104) (136) (961) (14,919) 2,269 $ (5,069) (461) (4,973) (2,215) (1,104) (136) (961) (14,919) 4,410 $(10,509) 3,199 5,563 7,818 $13,381 1,145 137 $ 4,410 $ 4,410 $ 3,199 $ 1,282 $(14,919) 19,246 19,246 General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 3,815 2,016 750 25,827 10,908 18,678 $ 29,586 3,815 2,016 750 25,827 15,318 31,409 $ 46,727 4,410 12,731 $17, 141 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2022 (in thousands) Charges for Services Program Revenues Operating Capital Grants and Grants and Contributions Contributions Net (Expense) Revenue and Changes in Net Position Business- Governmental type Activities Activities Total Expenses $ 161 222 $ 407 290 1,956 160 Functions/Programs Governmental Activities: General government Judicial Public safety Health and sanitation Culture and recreation Road maintenance Interest on long-term debt Total governmental activities Business-type activities Total government $ (4,037) (1,121) (3,006) (2,229) (4,351) (879) (1,779) (17,402) 348 $ 4,198 1,750 5,252 2,389 5,062 1,705 1,779 22,135 4,300 $26,435 $ 363 826 $ (4,037) (1,121) (3,006) (2,229) (4,351) (879) (1,779) (17,402) 1,313 $(16,089) 1,523 2,847 5,590 $8,437 363 23 $ 1,313 $ 1,313 $ 1,523 $ 386 $(17,402) 16,219 16,219 General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 4,639 1,566 1,500 23,924 4,639 1,566 1,500 23,924 7,835 23, 574 $ 31,409 6,522 12,156 $ 18,678 1,313 11,418 $12,731 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2021 (in thousands) Charges for Services Program Revenues Operating Capital Grants and Grants and Contributions Contributions Net (Expense) Revenue and Changes in Net Position Business- Governmental type Activities Activities Total Expenses $ Functions/Programs Governmental Activities: General government Judicial Public safety Health and sanitation Culture and recreation Road maintenance Interest on long-term debt Total governmental activities Business-type activities Total government $ 122 224 1,736 866 819 70 23 $ 1,100 $ 4,247 2,641 4,763 3,721 4,069 1,893 1,598 22,932 3,287 $26,219 $ (4,125) (2,347) (3,004) (2,855) (2,150) (1,407) (1,598) (17,486) 486 $ (4,125) (2,347) (3, 004) (2,855) (2,150) (1,407) (1,598) (17,486) 779 $(16,707) 579 3,767 4,033 $7,800 1,100 33 $ 1,133 $ 779 779 $ 579 $(17,486) $ 14,400 14,400 General Revenues : Property taxes Grants and contributions not estricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 3,120 876 1,125 19,521 2,035 10,121 $ 12,156 3,120 876 1,125 19,521 2,814 20,760 $ 23,574 779 10,639 $11,418 ILLUSTRATION 10-4 Financial Indicators Using the CAFR Performance Measures Description Ratio Financial Position: 1. Unrestricted net position A measure of the adequacy of the amount of the government's total unrestricted net position or level of deficit at the measurement date. Unrestricted net position Total revenue 2. Debt ratio A measure of the degree to which the government's total assets have been funded with debt as of the measurement date. Total liabilities Total assets 3. Current ratio A measure of the government's ability to pay its short-term obligations as they become due. A commonly used benchmark is a ratio of 1.0. Current assets Current liabilities Financial Performance: 4. Change in net position A measure of the change in the overall financial condition of the government that includes governmental and business-type activities (BTA) but not fiduciary activities or discretely presented component units Total ending net position (governmental and BTA) - Total beginning net position Total beginning net position 5. Interperiod equity A measure of whether the government has lived within its means for the year. A ratio less than one would indicate current revenues were insufficient to cover current expenses. Net revenues (gross revenues plus/minus the effect of internal transfers, special ow items and/or extraordinary items) Total expenses ings to activ, 6. BTA self-sufficiency BTA service charge revenues BTA total expenses A measure of the extent to which the government's business-type activities (BTA) are funded with current-year service charge revenues, rather than prior-year resources or subsidies from other funds. Financial Capability and Efficiency: 7. Long-term debt Long-term debt - Self-supporting debt** Assessed valuation (or population or personal income) An increase in this ratio may be an indication that the government's ability to repay the debt is diminishing. Warning signs would include debt that exceeds 10 percent of assessed value, an increase of 20 percent over the previous year, or an increase of 50 percent over the prior four years. 8. Pension funded ratio Level of funding is an indicator of future financial condition. A widely used benchmark for adequacy of funding is 70-80 percent Net position Total pension liability 9. Bonded debt per capita A measure of the government's bonded debt burden on its taxpayers. General bonded debt Population 10. Available legal debt limit A measure of the government's capacity to issue general bonded debt. General bonded debt Legal debt limit 11. Property taxes per capita A measure of the government's property tax burden on its taxpayers. Property tax levy Population Accumulated depreciation indow Average cost of depreciable capital assets 12. Capital asset condition A measure of the extent to which the government's total depreciable capital assets, on average are reaching the end of their useful lives, and therefore, may need replacement The long-term debt indicator provided is a simplification of the ICMA measure. Self-supporting debt would include revenue bonds that have been issued. "Calculate for governmental activities and business-type activities separately and then for the total. Choose Numerator Unrestricted Net Position Unrestricted Net Position Choose Denominator Total Revenue Governmental Activities : = Unrestricted Net Position 2023 2022 2021 11 NaN% NaN% NaN % 11 Business-Type Activities II 2023 2022 2021 NaN% NaN% NaN% 11 Choose Numerator Total Liabilities Debt ratio Choose Denominator Total Assets Governmental Activities = Debt to Assets . 2023 2022 2021 11 NaN% NaN % NaN% 11 Business-Type Activities 2023 : 11 11 2022 2021 NaN% NaN% NaN% Choose Numerator Current Assets Current Ratio Choose Denominator Current Liabilities Governmental Activities = Current Ratio 2023 11 2022 2021 NaN times NaN times NaN times 11 Business-Type Activities . 2023 2022 2021 NaN times NaN times NaN times 11 Change in Net Position Ratio Choose Denominator Total Beginning Net Position Choose Numerator Change in Net Position 2023 2022 2021 = Change in Net Position Ratio NaN % NaN% NaN% = Interperiod Equity Choose Denominator Total Expenses II Interperiod Equity Choose Numerator Net Revenues 2023 2022 2021 11 NaN times NaN times NaN times 11 BTA Self-Sufficiency Choose Denominator - BTA Total Expenses = BTA self-sufficiency Choose Numerator BTA Service Charge Revenues 2023 2022 2021 11 11 NaN times NaN times NaN times .. Capital Asset Condition Choose Denominator Choose Numerator Accumulated Depreciation Average Cost of Depreciable Capital Assets Capital Asset Condition Governmental Activities 2023 2022 2021 NaN% NaN% NaN% Business-Type Activities 2023 2022 2021 NaN% NaN% NaN% Bonded Debt per Capita Choose Denominator Population = Bonded Debt per Capita Choose Numerator General Bonded Debt 2023 2022 2021 = Il NaN NaN NaN = Available Legal Debt Limit Choose Denominator Legal Debt Limit Available Legal Debt Limit Choose Numerator General Bonded Debt 2023 2022 2021 = NaN% NaN% NaN% . Choose Numerator Property Tax Levy 2023 Property Taxes per Capita Choose Denominator - Population = Property Taxes per Capita = 2022 NaN NaN NaN 2021