Because of wholesale rate changes the county should expect this tax base to decrease. The primary tax bases, property and sales, appear to be fairly constant during the period. This is a positive indicator. The county has been relying on net proceeds of mines as a tax base. There are indications that this tax base will be shrinking.
Local governments receive revenues from various sources.
Some sources are relatively stable while the business cycle and growth of the community affect others. The community needs to have sufficient revenues to provide the necessary services while having a mix of revenue sources that will not be too sensitive to any downturn in the local economy. The elastic revenue sources are those that are sensitive to the business cycle. If the share of revenues coming from elastic sources is rising, this may forebode problems in the event of an economic downturn. A community's tax rates are an indicator of whether the tax base is keeping pace with growth or whether higher rates are needed to finance necessary services for growth.