Advance Governmental and Fundamental Accounting in Finance
Advance, Governmental, Fundamental, Accounting, Finance
Financial Performance City of Doral
Two real estate developers called Doris and Alfred Kaskel who bought 2400 acres of land in late 1950s established City of Doral in the state of Florida. The land was swampy between NW 36 and 74 streets and from NW 79 to NW 117 avenues; they bought the land for $ 49,000 with the aim of building a hotel and a golf course. The Kaskel’s constructed the Carillon Hotel and Doral Beach Hotel on Miami Beach.
On the bought land, they constructed a country club and established a hotel, which they named as Doral, which is a combination of their names. So guests at the Miami Beach would be transported to the country club, which featured blue, red and par 3 golf courses. Among the events that were hosted at the country club was Florida’s major PGA event, which was the first Doral Open Invitational (City of Doral, 2020). Subsequently, guests frequented the hotels and the country club.
Between 1980 and 2000, Doral’s grandson called Bill built Doral estates and engaged in a joint venture to build the Doral park. Because of building the estate, younger families flooded the area for shopping sprees because the area had not parks, stores, or schools.
The tenants and buyers of the Doral estate came together as a community; whereas there were no traffic problems the rapid construction of the estate and the attraction of many buyers and tenants due to the low cost led the county to impose a building moratorium (City of Doral, 2020).
The high population and lack of amenities led to increase in the cost of services. The community in the area established a West Dade Federation of Homeowner Associations in 1989 to safeguard the welfare of the community. As a result of the federations’ effort, there was establishment of police station, lighting, landscaping and roads in the area.
Over time, the ownership of Doral country club and hotel changes when Donald Trump bought the club in 2012 for $150 million. Due to change in ownership, the name of the club changed to Trump National Doral Gold Club. The reputation of the club for its golf courses continued and expanded internationally; for example, the Blue Monster continued to host PGA Tour Tournament until 2016.
Apparently, the City of Doral attracts many companies, families, businesses and retires (City of Doral, 2020). Between 2010 and 2016, the population of City of Dorol increased by 26.1% by 12,000 people to 58,000 residents. When the city incorporated in 2003, the population was 22,709, which is half its current population (Madan, 2017).
Financial Developments since 2014
During the last four years, the City of Doral experienced increased construction of buildings and growth of investments that increased the city’s tax base. In 2018, the corporation raised $12.081 billion; the expansion in the tax base arose due to diversification of investments in areas such as retail and wholesale trade, light manufacturing, construction and tourism (City of Doral, 2018).
Generally, the corporation’s assets exceeded its deferred inflows of resources and liabilities. The table below shows the a summary of the net position of City of Doral
Based on the summary of the net position, the corporation’s liabilities reduced during the last two years; namely 2018 and 2017. However, its total assets increased leading to increase in its net position. Based on the positive financial performance of the corporation, it can meet its budget estimates and effectively plan for future development activities.
Notably, during the budget making process, the city of Doral engages the public through public participation policy in order prioritize development areas and ways of expanding or maintaining its revenue base. Among the corporation’s assets that are, the highest are transport, energy and buildings.
Financial ratios of the City
Among the financial ratios that would be considered in this section are total-debt-to-total-assets ratio, debt-to-net assets ratio, and ratio of general bonded debt outstanding. It is important to consider the ratio because it shows the financial leverage of the corporation.
Specifically, it considers all the total assets of the corporation including tangible and intangible assets. The ratio measures how much of the corporation’s assets are financed by debt. The ratio indicates how the corporation has grown its assets over time. It helps planners to determine if the corporation has enough assets to meet its debt obligations.
The above overview gives a brief history of City of Doral, how it incorporated and its current financial performance. The city makes its annual budgets by involving its resident who priorities which projects and programs should be funded based on the projected revenue.
Based on the comprehensive financial reports, the corporation continues to register increase in assets; however, during the last two years, it registered a reduction in its liabilities. Such trend is beneficial for the financial stability of the corporation.
City of Doral, (2020). Doral History. Web. Accessed on 14/3/2020.
City of Doral, (2018). 2018 Comprehensive Annual Financial Report. Web. Accessed on 14/3/2020.
Madan, M. O (2017). Why is Everyone Moving to Doral? Census says it’s the Fastest Growing City in Florida. Web. Accessed on 14/3/2020.