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<br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br /> <br />City of Centerville <br />May 29, 2008 <br />Page 18 <br /> <br />Ratio Analysis <br /> <br />The following captures a few ratios from the City's financial statements that give some additional infonnation for trend and peer <br />group analysis. The peer group average consists of the average of Abdo, Eick & Meyers' client base of approximately 100 cities. <br />The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government-wide <br />level. A combination of liquidity (ability to pay its most immediate obligations), solvency (ability to pay its long-tenn <br />obligations), funding (comparison offmancial amounts and economic indicators to measure changes in financial capacity over <br />time) and common-size (comparison of financial data with other cities regardless of size) ratios are shown below. <br /> <br />Ratio Calculation Source 2004 2005 2006 2007 <br />Debt to assets T otalliabilities/total assets Government-wide 27% 27% 29% 33% <br /> 34% 34% 33% N/A <br />Debt per capita Bonded debt/population Government-wide $ 1,677 $ 1,573 $ 1,942 $ 2,394 <br /> $ 2,192 $ 2,291 $ 1,995 N/A <br />Taxes per capita Tax revenues/population Government-wide $ 424 $ 422 $ 450 $ 485 <br /> $ 342 $ 367 $ 406 N/A <br />Capital assets % left to Net capital assets/ Government-wide 84% 79% 82% 82% <br />depreciate - Governmental gross capital assets 68% 67% 76% N/A <br />Capital assets % left to Net capital assets/ Government-wide 83% 82% 82% 78% <br />depreciate - Business-type gross capital assets 66% 67% 73% N/A <br />Represents the City of Centerville <br />Peer Group ratio <br />Debt-to-Assets Leverage Ratio (Solvency Ratio) <br /> <br />The debt-to-assets leverage ratio is a comparison of a city's total liabilities to its total assets or the percentage of total assets that <br />are provided by creditors. It indicates the degree to which the City's assets are fmanced through borrowings and other long-tenn <br />obligations (Le. a ratio of 50 percent would indicate half of the assets are financing with outstanding debt). <br /> <br />36% <br />34% <br />32% Yo 34% <br />30% 33% <br />28% 29% <br />26% <br />24% 27% 27% <br />22% <br />20% <br /> 2004 2005 2006 2007 <br /> I~City ratio -Peer group average I <br /> <br /> <br />952.835.9090 . Fax 952.835.3261 <br /> <br />www.aemcpas.com <br />