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6-5 Statement of Legal Debt Margin.

6–5 Statement of Legal Debt Margin. In preparation for a proposed bond sale, the city manager of the City of Appleton requested that you prepare a statement of legal debt margin for the city as of December 31, 2010. You ascertain that the following bond issues are outstanding on that date:

You obtain other information that includes the following items:1.Assessed valuation of real and taxable personal property in the city totaled $240,000,000.
2.The rate of debt limitation applicable to the City of Appleton was 8 percent of total real and taxable personal property valuation.
3.Electric utility, water utility, and transit authority bonds were all serviced by enterprise revenues, but each carries a full-faith-and-credit contingency provision. By law, such self-supporting debt is not subject to debt limitation.
4.The convention center bonds and tax increment bonds are subject to debt limitation.
5.The amount of assets segregated for debt retirement at December 31, 2010, is $1,800,000.
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CITY OF APPLETON answer.docx

CITY OF APPLETON
STATEMENT OF LEGAL DEBT MARGIN
DECEMBER 31, 2010
ASSESSED VALUE OF PROPERTY $ 240,000,000 RATE OF DEBT LIMITATION _____ 8% __ AMOUNT OF DEBT LIMITATION $ 19,200,000 OUTSTANDING...

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