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There are several warning signs that a municipality is in financial trouble. One is unfunded pension obligations. If the municipality is not putting enough money into its pension fund, it may be having difficulty covering regular operating expenses. Likewise, if the municipality has a sinking fund that it is no longer contributing to, this could be a sign of distress. If the municipality's debt rating is reduced, this is another sign. It means that the municipality's balance sheet is believed to have deteriorated.
There are other signs of distress as well. Certain types of debt issues signal distress more than others. For example, revenue bonds may indicate that the government needs to issue debt that is not subordinated, in other words nobody will lend them money without having first dibs on the municipality's revenue streams. Likewise, if the municipality is using accounts payable as a form of debt for the raising of capital, this indicates that they have run out of other capital-raising options. Thus, they are forced to stretch their payables in order to conserve their cash flow.
Question 3. Capital budgets represent the...
These are typically for large projects, often for infrastructure, and are not generally for ongoing expenses. Major capital projects could include new roads, major sewer upgrades or any such substantial one-time expense. Each budget session sees a portion of the budget funds placed into a capital account to be used on such major projects. Many capital projects, upon completion, will then have ongoing operating expenses. Many capital projects are depreciated, rather than expensed.
The operating budget is used for expenses relating to the ongoing, everyday business of government. These expenditures tend to be ongoing, such as staff costs, pension costs, real estate costs, supplies and utilities. The operating budget also includes ongoing expenses such as maintaining a current fleet of vehicles. Even though an individual expense in the operating budget may be one-time (such as a vehicle purchase) the ongoing nature of the category of expenditures places such expenditures in the operating budget. While some categories are depreciated, most of the items of the operating budget are expensed.
In terms of similarities, each of these budgets contains roughly the same basic format. While the specific charts may differ, each budget separates revenue sources and attempts to break those down. The budgets also explain the expenditures, and typically break these down to each individual program within the department. A similarity between three of the budgets (Federal, Florida and Newark) is that they rely heavily on tables and written explanations.
Question 3. The qualitative approach to forecasting is based on the assumption that the human brain has a better understanding of the future than do mathematical models. Humans are able to digest large quantities of information and are better capable of dealing with ambiguity, something that is a primary feature of the forecasting activity. This approach relies on the expertise of the person or people involved, however. As such, it
public budgeting comparisons of the federal, state and local budget distributions. This thesis will be focused on whether or not the increased budget allocations for transportation in the federal, state and local government will enhance travel security, efficiency, performance measures and R&D development in the domain. The thesis will start off with a proposal for an agency that works across and is allocated budget in all the federal, state
Public Administrators in Work First Family Assistance Program The Role of Public Administrators in Work First Family Assistance Program Competency 1: Summarize the Findings of the Analytical Framework Designing an analytical framework is possible and is seen because the Act was passed into law in 1975 by the federal government. The aim of implementing the child support policy in all states was to reduce the expenditure of the public on social welfare. The
A great coalition of smaller firms aimed to defeat patronage and create an acceptable, predictable, regulatory environment; in other words, a credible commitment mechanism was needed, and politicians could supply this. This confluence of monitoring problem, change in political parties, and demand for security led to demand for a merit system that would offer legal security via impartial public agents, and that was less vulnerable to political manipulation (Shepherd,
Public Administration The ultimate aim of a public administrator is the provision of best facilities to the public and to make decisions in a way that have a positive influence on interest of the public. It is important for a public administrator to identify the problems that are being faced by the local people and then to devise strategies that are helpful in solving that problem. In this paper we will