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The five major trends and ex^ple Indicators measured by this program are: <br />A. Economic Vitality ,1. Population: Is there an increase or decrease In population? <br />2. Real estate: Is the taxable valuation of real estate growing too <br />slowly?3. Retail sales: Does the growth or decline In the number of <br />businesses and retail sales reflect an overall economic recession <br />or an erosion of local economic vitality? <br />4. Social welfare: Is unemployment placing greater demands on health, <br />welfare, and social service programs? <br />B. <br />C. <br />D. <br />E. <br />Revenue Trends ^ ^1. Levy limit: Is the actual current levy rate at or approaching the <br />legal levy limit? ^ ^2. Earnings on Investments; Is the percent of revenues derived from <br />earnings on Investments changing? <br />3, Tax collection rate: Is the trend In property tax collection rates <br />declining? . . ^ i... r4, Revenue/expenditure comparisons: Is there a consistent pattern of <br />revenue shortfalls? <br />Expenditure Trends .1. Expenditures: Are the overall expenditures or expenditures by <br />function In line with the current rate of Inflation? <br />Per capita expenditures: Are the municipal expenditures per capita <br />growing at a faster rate than the change 1n population? <br />Interest and fiscal charges: Is the cost for Interest and fiscal <br />charges escalating as a percent of total expenditures? <br />2. <br />3. <br />Future Solvency1. Debt: Is future financial flexibility being lost due to a growing <br />debt burden?2. Bond rating: Is there a change In the bond rating? <br />3. Debt service payments; Are debt service payments becoming a larger <br />percentage of*total revenues? <br />4. Fund balance: Is 'here a decline in the general fund balance? <br />Hanagement Practices . , wi. 41. Auditor's opinion: Is there a consistent failure to obtain an <br />unqualified opinion on financial statements from Independent <br />auditors? . . ,2. Municipal employees: Is the number of municipal employees <br />consistent with current population trends? <br />3 Fringe benefits: Will growth in fringe benefits and employer-paid <br />contributions place undue demands on future revenues? <br />4. Municipal enterprises; Are the municipal enterprises Incurring <br />unplanned for losses or gains? <br />The MFHP was developed as an Index of economic Indicators to help elected <br />munlcloal officials determine fiscal trends. Identifying a negative trend does <br />not automatically spell fiscal decay. Rather, the answers to these and other <br />questions tell municipalities whether or not a sound fiscal course lies ahead. <br />2/8B