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1 <br />1 <br />1 <br />1 <br />u <br />1 <br />n <br />11 <br />Instructions for Indicators 5-9 -- Debt Caoacitv <br />This section of the worksheet organizes information on the community's <br />outstanding debt in order to calculate several important indicators covering the <br />debt capacity of the community. In supplying information about a community's <br />debt history, the analyst should include any new debt for the proposed <br />facilities. <br />Line 616 For Indicator 5, divide total overall net debt (507) by the full <br />market value of real property (614) then multiply by 100. (For an <br />example of the calculation of overlapping debt, see Chapter II.) Indicator <br />5 compares the amount of tax -supported debt owed by a community with <br />the full market value of real property in the community, which is a <br />gauge of the community's ability to support additional borrowing. <br />Lines 617 and 618 Another measure of a community's wealth is personal <br />income which can also be used as a yardstick to judge the community's <br />ability to repay debt. If total personal income is not known, find the per <br />capita income in the community and multiply it by population (617 x <br />601). If personal income is not available for the current year, update the <br />most recent number using the following formula: <br />.41 <br />a. Obtain the consumer price index <br />(CPI) for the year for which income <br />information is available. 13/ 246.8 (1980) <br />b. Obtain the CPI for the most recent <br />year. 322.1 (1985) <br />c. Divide "b" by "a" to calculate a <br />CPI ratio. 1.305 <br />d. Inflate the per capita income $9,917 (1980 ) <br />figure by multiplying that amount <br />by the CPI ratio found in "c." $ 12,942 <br />13/ Consumer Price Index <br />YEAR <br />CPI <br />YEAR <br />CPI <br />YEAR <br />CPI <br />1969 <br />109.8 <br />1974 <br />147.7 <br />1979 <br />217.4 <br />1970 <br />116.3 <br />1975 <br />161.2 <br />1980 <br />246.8 <br />1971 <br />121.3 <br />1976 <br />170.5 <br />1981 <br />272.4 <br />1972 <br />123.3 <br />1977 <br />181.5 <br />1982 <br />289.1 <br />1973 <br />133.1 <br />1978 <br />195.4 <br />1983 <br />298.4 <br />C_l <br />