The Importance of Fiscal Health
A strong financial position enables a municipality to implement effective and affordable services. It also indicates if a municipality has sufficient financial capacity to adjust to change and the flexibility to take advantage of growth opportunities.
To enable municipalities to respond to the challenges of growth they need an understanding of their:
- Ability to meet public demand and local priorities through existing operating revenues (Revenues, Arrears);
- Diversity and growth of the tax base to assess how well they cope with growth through property taxes;
- Ability to provide direct municipal services to tax payers (Expenditures);
- Ability to accommodate the municipal infrastructure demands of growth (Debt); and
- Financial flexibility to deal with changing and growing service demands, while still preserving the opportunities for future growth (Reserves).
Fiscal Heath Resources