Financial Condition. Write the letters a through o on a sheet of paper. Beside each letter, put a plus (+) if a high or increasing value of the item is generally associated with stronger financial condition, a minus (–) if a high or increasing value of the item is generally associated with a weaker financial condition, and NE if the item generally has no effect on the financial condition or the direction of the effect cannot be predicted.
a. Unfunded pension liability.
b. Level of overlapping debt.
c. Reserves for self-insurance.
d. Potential for natural disasters.
e. Level of business activity.
f. Median age of citizens.
g. Unemployment rate.
h. Restrictions on revenues.
i. Personal income per capita.
j. Inflation rate.
k. Percentage of households below the poverty level.
l. Bank deposits.
m. Property values.
n. Population growth.
o. Political party of the mayor.