Fiscal Score (City of Benton Harbor's 2025 fiscal score is: 1)

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Indicator	Description	Year	Category	Values	Score
Population	Population loss can result in a general weakening of a local economy. Local governments are often unable to reduce costs quickly enough to match a decline in revenue caused by a loss of tax base. If a community loses more than a trivial percent of population from the previous year, it scores a 1; otherwise a 0. The baseline is the 2010 Census and mid-Census data is provided from estimates or the community's own assumptions.	2025 2010	Population Population	9,806 9,741	0
Taxable Value Growth	There is a relationship between declining taxable values and a communitys fiscal health. Since most local governments rely heavily upon property taxes to generate revenue, substantive decreases in taxable value will require adjustments in expenditures. A community scores 1 if they demonstrate negative growth and 0 if they exhibit positive growth or stay flat.	2025 2023	Taxable Value Taxable Value	$181,732,425 $132,944,522	0
General Fund Expenditures as a Percent of Taxable Value	Since declining taxable will lower the amount of tax revenue generated for operations, it becomes important to scale back expenditures or fiscal stress could become apparent, assuming no additional revenue can be generated. Cities, Villages, Townships and Counties all have their own trigger. If a local unit is above the trigger they score a 1. Less than the trigger, they are assigned a 0.	2025 2025	General Fund Expenditures Taxable Value	$10,571,280 $181,732,425	1
Operating Results	This indicator measures non-trivial budget shortfalls and allow transfers from Special Revenue sources. The variable is computed by subtracting General Fund Expenditures from General Fund Revenues and dividing that sum by General Fund Revenues. If a resulting shortfall is greater than the trigger, and if Fund Balance is not large enough, they score of 1. If the unit does not have a shortfall, or if the shortfall is trivial, the unit scores a 0.	2025 2025	General Fund Revenues General Fund Expenditures	$11,970,684 $10,571,280	0
Prior 1 Year Operating Results	This variable is computed by using the same philosophy as Current Operating Results but begins to look for chronic problems. A one year operating shortfall, trivial or not, may not be problematic. But repeated operating shortfalls could be a sign that structural problems may exist. This factor measures the one year preceding current operating results and the local unit receives a score of 1 or 0 based on their performance.	2024 2024	General Fund Revenues General Fund Expenditures	$15,430,497 $16,385,437	0
Prior 2 Year Operating Results	Three data points begins a trend, and a third year of operating deficits is a serious warning that chronic structural issues likely persist. This indicator is calculated the same way as Current and Prior 1 year, and if a local unit is assigned a point in this category, they could in effect get 3 points for non-trivial chronic operating shortfalls.	2023 2023	General Fund Revenues General Fund Expenditures	$10,950,324 $11,772,643	0
Size of Available Fund Balance	This factor uses General Fund Balance as a measure of sustainability and considers when the local unit receives their tax revenue compared to their Fiscal Year End (FYE). It looks at available reserves from a cash needs perspective, since some locals will have to manage for a longer period of time with limited funds. If the units Unrestricted Fund Balance is above the threshold they score a 0; below the threshold, a 1.	2025 2025	General Fund Balance General Fund Expenditures	$3,467,870 $10,571,280	0
Fund Balance Trends	Three years establishes a trend and a one year metric may not tell the entire story, a three year look at available reserves will identify if a chronic cash-needs concern exists using the same formula as the one year measure. If a unit falls under the thresholds set for three consecutive years, they are assigned a 1, otherwise a 0.	2025 2024 2023	General Fund Balance General Fund Balance General Fund Balance	$3,467,870 $2,535,846 $3,151,566	0
Major Fund Deficit	Fund deficits are indicators of fiscal distress, particularly if they are large and increasing. This variable recognizes if a unit has a negative fund balance in the current or previous year in any major governmental fund. If there are any unrestricted/unreserved fund deficits the unit scores a 1, otherwise a 0.	2025 2024	Major Fund Deficit Major Fund Deficit	$0 $0	0
Debt as a Percent of Taxable Value	Ability to pay may become a concern if the unit carries a large debt load. This variable is constructed by taking long-term debt and dividing it by taxable valuation. Any unit with a debt to taxable value ratio greater than the threshold scores a 1, those beneath it a 0.	2025 2025	General Long-Term Debt Taxable Value	$5,495,016 $181,732,425	0
Fiscal Score					1

Fiscal Score Explanation

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Background

The fiscal indicator score is a high level, single digital metric designed to give a quick look at how a community is faring fiscally considering changing economic climates. The lower the score the more fiscally stable; as the score increases, the probability for fiscal stress increases. 

The system is digital in nature, a pass-fail with ten categories. If a community “passes” a given metric, or beats the trigger, they score a zero in that metric. If they fail, they are assigned a one.  Add up the ones in all ten categories and that is the fiscal score for that unit of government. It’s that simple.

Authors

Originally developed by the Michigan Department of Treasury and Michigan State University in 1992 as part of Public Act 72⁽¹⁾ the scoring system has evolved over time.  First updated in 2002, the scoring measures were again improved in 2013 based on a professional association of public officials and finance professionals work and recommendation following several requests to the Michigan Department of Treasury.  This work has been incorporated into Munetrix and is what drives the current algorithms.   

Schools

In an effort to offer a consistent look and feel, the core elements of the State of Michigan’s municipal Fiscal Indicator Scoring system were adapted to local school finance in 2012 with a partnership between the Michigan School Business Officials, and a team of 12 school finance and business management professionals.  Now both measures are set up to look for chronic fiscal problems while not penalizing the entities for managing fund balances effectively. 

Intuitiveness

Besides building the algorithms and embedding them into the database, Munetrix added the color scheme to the score as a means to make it easier for the average citizen to understand. Green = good. Red = bad.  Citizen’s and Policy Makers get that – since they are really one in the same anyway.

The scoring is not all encompassing by its nature and is not intended to be the end-all fiscal health or stress determination for a community or school district.  We liken the fiscal score to a trip to your doctor for a check-up. If your vitals are good and your overall appearance is fine, you get a low score. If your blood pressure is up, you’re running a fever and look pale, you get a higher score and your doctor may want to run more tests.  If your vitals are off the charts, you’re hospitalized.  If used effectively, Munetrix’s can help local governments avoid Hospice. 

But the real benefit is not with historical information. Who cares how sick you were two years ago? Instead, Munetrix promotes current and predictive aspects of finance. How healthy are you today, and how healthy are you likely to be in the future based on your lifestyle or budget assumptions.  Testing future assumptions against the algorithm allows local governments and schools the ability to quickly build financial plans using real data while basing decisions on desired levels of service against available resources.

Daniel Howes from the Detroit News labeled Munetrix as the equivalent of a “Fiscal Radar” for local governments in April of 2011.  We like to refer to it as night vision for Finance Directors and Policy Makers.  Whatever you call it, Munetrix promotes the concepts of: Seeing is believing; Using data to make decisions; and No surprises. 

References

(1) Fiscal Distress Indicators: An assessment of current Michigan law and development of a new “early-warning” scale for Michigan communities.  Institute for Public Policy and Social Research at Michigan State University.  Authors:  Robert Kleine, Philip Kloha and Carol Weissert.