I. IntroductionLocated in the heart of North Carolina, the City of Chapel Hill is located in Orange County (and part of Durham County) and is nicknamed the "Southern Part of Heaven" (City of Chapel Hill, 2014). Home to the University of North Carolina at Chapel Hill, as well as UNC Health Care and UNC Children's Hospital, it is the 16th largest municipality in North Carolina, with a diverse population of more than 58,424 ( Chapel Hill Community Overview, 2014). The city of Chapel Hill is a vibrant mix of college-aged students and young families in the area. The city's demographics contribute to the city's financial health, as well as the region's fiscal economy. With a large hospital and one of the best public schools in the state and nation, much of the city's growth can be attributed to job opportunities, medical research, and the diversity of students attracted to the university. The city has experienced strong population growth over the past 20 years, growing by more than 40%, including 25% between 1990 and 2000 and 12.4% between 2000 and 2010 (Chapel Hill Community Overview, 2014). The following report is an analysis of the financial situation. state of the city of Chapel Hill and focuses primarily on the general fund. The analysis is based on information provided by the 2010-2011, 2011-2012 and 2012-2013 budget documents, as well as the comprehensive annual financial reports (CAFR) 2008-2009, 2009-2010, 2011-2012, 2012- 2013. . This document provides an overview of the governance structure and organizations responsible for budgetary oversight. Also covered are cash flow solvency, budget solvency and long-term financial position. The conclusion will discuss the implications of the end of Chapel Hill...... middle of article ......chapelhill.org/Modules/ShowDocument.aspx?documentid=21487BudgetBudget 2013-2014. http://www.townofchapelhill.org/Modules/ShowDocument.aspx?documentid=20969Chapel Hill Community Overview, 2014. City of Chapel Hill – Residential Market Study. Retrieved from: http://www.ci.chapel-hill.nc.us/Modules/ShowDocument.aspx?documentid=9018Mayor Comments for the Council Committee on Economic Development (2011). Economic Development- City of Chapel Hill. Retrieved from ; http://www.ci.chapel-hill.nc.us/Modules/ShowDocument.aspx?documentid=9796Financial Statements (2014). City of Chapel Hill. Retrieved from: http://www.townofchapelhill.org/index.aspx?page=163Mayor K. http://www.townofchapelhill.org/index.aspx?page=97Business Management (2014). Department of Finance – City of Chapel Hill. Retrieved from: http://www.townofchapelhill.org/index.aspx?page=69