Using Exhibit 13-14 Town of Millbridges Statement of Revenue, Expenditures, and Changes in Fund Balance-Governmental Fund. calculate the following numbers and interpret them.

(1) Debt service burden for total governmental fund

(2) Risk exposure factor for total governmental fund

using this formula:

Debt service burden = Total debt service / Total revenueDebt service: Principal and interest payments (and other charges) Risk exposure factor= [Intergovernmental revenue (e.g. grant) + transfer In + investment revenue] / Own revenue sources.

EXHIBIT 13-14 Millbridge Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Town of Millbridge Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds December 31, 2018 General Fund Debt Service Fund Capital Projects Fund Total Governmental Funds 611,000 $611,000 Property Taxes Fees Permits Intergovernmental state aid Charges for services Investment earnings 150,000 150,000 $ 761,000 Total Revenues $ 761,000 Current General government Public safety Sanitation $340,000 215,000 105,000 340,000 215,000 105,000 Debt service: 50,000 15,000 270,000 $995,000 Principal Interest and other charges 50,000 15,000 270,000 Capital outlay $ 660,000 65,000 270,000 Total Expenditures Excess/(Deficiency) of Revenues $101,000 $(65,000) $(270 234 Over Expenditures Other Financing Sources/(Uses) Proceeds from long-term capital $ 200,000 $200,000 related debt Transfers in Transfers out 100,000 100 100,000 $(100,000) 1,000 15,000 $ 16.000 $100,000 35,000 28,000 S 63,000 $200,000 (70,000) 90,000 $ 20,000 200,000 $(34,000) 133,000 $ 99,000 Total Other Financing Sources and Uses Net Change in Fund Balances Fund balances-beginning Fund balances-beginning