potential red flags or warning signs- pick any 3 items from the following list for your comments decline in revenues expenditures increasing more rapidly than revenues declining balances of liquid resources in fund balance general fund assigned and unassigned fund balance deficit in two or more of the past five years general fund assigned and unassigned fund balance less than 5% of general fund revenues and other financial resources Reliance on nonrecurring, special item revenues to support current Operations growing debt burden: short-term debt more than 5% of operating revenues two-year trend of increasing short-term debt short-term interest in current year debt service on general obligation debt more than 20% of operating revenues debt per capita ratio 50% higher than four years ago growth of unfunded pension and other employees related benefits such as compensated absences and postemployment healthcare benefits decreasing revenue support from federal (or state) government increasing unemployment ineffective management or dysfunctional political circumstances