The County Transit Authority (CTA) was established by the County to construct, operate, and maintain the County’s mass-transit train system. The CTA was created by the County as a separate legal entity, with powers to issue revenue bonds payable from railway fees and other revenues. The 9-member governing body of the CTA consists of six members appointed by the mayor for fixed 10-year terms, and three County officials serving ex officio – the elected County treasurer, the elected County comptroller, and the appointed superintendent of transportation. The CTA is financially self-sufficient, and it sets its own rates and approves its own budget. The County cannot access its assets or surpluses, nor is it obligated to subsidize deficits of the CTA. The CTA has issued bonds to help fund recent construction and renovation projects. The related bond agreement states that the debt of the CTA is not an obligation of the County. However, County statutes authorize the County’s budget director to include in the budget submitted to the County Board of Supervisors an amount sufficient to make the principal and interest payments on the CTA bonds, in the event CTA revenues are insufficient to meet debt se\rvice requirements. Is the CTA a component unit of the County?If so, how should the County present the financial activities of the CTA in its Comprehensive Annual Financial Report (CAFR)? Specifically address both the government-wide and the fund basis financial statement presentation considerations.

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of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.