Sun City is located in Hailey County.Sun Valley School District encompasses all of Sun City and some of Hailey County.Property in Sun City is assessed at $400 million; property in Hailey County is assessed at $800 million; property in Sun Valley School District is assessed at $600 million.The total debt outstanding for Sun City is $30 million; Hailey County is $50 million; Sun Valley School District is $45 million.Compute the amount of direct and overlapping debt for Sun City.

Question

Quizplus · Accepted Answer

Direct debt for Sun City is $30 million. Overlapping debt would be the portion of Hailey County's outstanding debt that applies to Sun City (which is the entire county) and the portion of Sun Valley School District's outstanding debt that applies to Sun City. Therefore, Sun City's portion of overlapping debt for Hailey County would be $50 million, and Sun City's portion of overlapping debt for Sun Valley School District would be $15 million. Therefore, the total debt for Sun City would be $30 million (direct debt) + $50 million (Sun City's portion of overlapping debt for Hailey County) + $15 million (Sun City's portion of overlapping debt for Sun Valley School District) = $85 million.

Sun City Is Located in Hailey County