Which of the following is NOT evidence of fiscal dependence?

Fiscal dependence refers to a situation where a governmental entity relies on the primary government for financial support or oversight. In this context, the first option describes a potential component unit that is restricted from issuing long-term debt. While this restriction might suggest a degree of oversight, it does not directly indicate fiscal dependence in the same manner as the other options do.

The second, third, and fourth options all explicitly state scenarios where a component unit relies on the primary government for essential financial actions, such as budget approval, tax increases, or rate adjustments. Each of these situations illustrates a clear reliance on the primary government for fiscal decisions, thereby confirming the unit's dependence on the primary government.

In contrast, the ability to issue long-term debt is a financial autonomy indicator, and if the potential component unit is limited in this area alone, it does not sufficiently imply that it is fiscally dependent. Therefore, this choice stands out as it does not encompass the broader implications of fiscal dependence reflected in the other scenarios.