THE CITY OF SEATTLE, WASHINGTON

FINANCIAL CONDITION ANALYSIS

By: Anthony Bah & Christabel Ghansah

BACKGROUND: DEMOGRAPHIC FACTORS (SEATTLE VS PORTLAND)

Population: 662,400 vs. 601,510

Age of population: 25-34 (>120K) (vs 110,373)

Unemployment rate: 4.9% vs. 5.4% (4.9% nationwide)

Income level: $68,588 vs $54,808 ($54,236 nationwide)

Educational/skill level (persons of age 25+)Bachelor or higher - 57% vs 44.4%High school graduate or higher – 93.1% vs 90.9%

BACKGROUND: ECONOMIC FACTORS Healthy employment growth Strong technology sector Powerful industry

AmazonBoeing

Other industries – health services, professional and technical services Some facts:

147% increase in construction activities3% increase in employment growthpersonal income growth between 4.6% and 4.8%

RATIO ANALYSISLiquidity

Current ratio Quick ratios

Leverage and Coverage Ratios

Debt to asset Times interest earned

Gov't Business Total3.11294 1.461941 2.1867473.096514 1.429866 2.127615

Gov't Business Total0.402022 0.733703 0.5881037.212975 13.33027

CONT’D – RATIO ANALYSISProfitability Ratios

Total Margin

RONP

Solvency

Long term debt burden Debt service

Gov't Business Total0.115506 0.109646 0.1125220.061511 0.109813 0.078681

Gov't Business Total1.773836 6.232896 8.0067320.006567

CONT’D – RATIO ANALYSISRevenues and Expenditures Indicators

Revenue per capita Expenses per capita

Gov't Business Total2.654861 2.753699 5.408562.334724 2.457742 4.792465

TRENDS IN REVENUES AND EXPENSES

CONT’D – TREND IN REVENUES AND EXPENSES

WEAKNESSES VS STRENGTHS Weaknesses Bad governmental expenses management High dependency on the industry sector High employment concentration in only two companies: Amazon and

Boeing Overall performance and management of assets not really good High cost of servicing debt Strengths Abundance of cash on hand Good economy

RECOMMENDATIONS Debt to asset ratio reduce amount of debt used to finance debt

How? Change in net position

Create incentives for other industries

Diversify revenue-generating sectors

REFERENCES http://www.census.gov/quickfacts/table/EDU635214/5363000 http://www.census.gov/quickfacts/table/AGE135215/4159000 http://www.bls.gov/regions/west/summary/blssummary_seattle.pdf http://www.bls.gov/regions/west/summary/blssummary_portland_or_wa.

pdf http://www.seattle.gov/dpd/cityplanning/populationdemographics/abouts

eattle/population/default.htm