Which of the following is a direct result of maintaining financial sustainability?

Maintaining financial sustainability leads to improved long-term financial health because it ensures that an organization, such as a municipality, can continue to operate without experiencing financial distress. This sustainable approach involves effectively managing resources, optimizing revenues, and controlling expenditures, all of which contribute to a stable economic environment.

When a municipality focuses on financial sustainability, it can build a solid financial foundation that supports long-term planning and investment in community services. This proactive management helps avoid short-term fixes that might compromise future financial stability. Moreover, a municipality with strong financial health is better positioned to withstand economic fluctuations, maintain public services, and invest in critical infrastructure.

In contrast, increased tax rates, higher unemployment rates, and decreased public services are often symptoms of financial mismanagement or stress rather than indicators of sustainability. These consequences can arise when a municipality fails to maintain its financial health, leading to a cycle of declining revenue and increased demand for services, thereby exacerbating financial challenges. Therefore, improved long-term financial health is the direct and positive outcome of maintaining financial sustainability.