Financial health indicators are metrics used to assess municipal fiscal condition and sustainability. Key indicators include: debt levels (total debt, debt per capita, debt servicing as percentage of revenue), reserve adequacy (reserve balances relative to targets and operating budgets), liquidity (ability to pay bills as they come due), revenue diversity (reliance on property taxes versus other sources), operating position (surplus or deficit trends), tax room (local rates compared to statutory limits), and asset condition (infrastructure deficit, deferred maintenance). These indicators help councils, staff, auditors, credit rating agencies, and residents evaluate whether a municipality is financially sustainable or heading toward problems. Provincial oversight often tracks these indicators across municipalities to identify those needing attention. No single indicator tells the whole story—comprehensive assessment considers multiple measures together, trend directions, and underlying causes.