1. What have been the trends in demographic and economic indicators, such as real estate values, building permits, retail sales, population, income per capita, percent of population below the poverty level, average age, average educational level, employment level, and business licenses? (Note: Many of these items and other potentially useful information can be obtained from the Census Bureaus website www.census.gov.)
2. Do any expenditures and expense growth dramatically?
3. How flexible are expenditures?
4. How does the growth pattern of operating expenditures and expense over the past 10 years compare with that of revenue?
5. Find the Potential red flags
A. Decline in the revenues
B. Decline in property tax collection rate. Is it less than 92 percent of current levy collected?
C. Expenditures increasing more rapidly than revenues.
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