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Budget revenue

a. Determine which revenues are used in which funds: governmental, proprietary, and fiduciary.
b. Describe any restrictions that are (or could be) placed on those revenues.
c. How public policy decisions affect the receipt of revenues.
d. How go the economic conditions that affect revenue projections.
e. How to develop a revenue policy that aligns with community values.

Solution Preview

a. Determine which revenues are used in which funds: governmental, proprietary, and fiduciary.

Governmental: Taxes are the main sources of government funds. In addition, borrowing is an important source of governmental funds. There are some revenues whose use is restricted to that of specified purposes or revenues collected for use in capital projects.

Proprietary: The source of revenues for proprietary funds is the seal of goods and services to the public on continued bases. User charges are also important sources of revenue. A cost reimbursement received from other departments is also an important source of revenue.

Fiduciary: the Source of revenues for these funds are the property or other effects kept in trust by the government from private parties, agency funds kept in fiduciary capacity and income from the external portion of the investment trust fund.

b. Describe any restrictions that are (or could be) placed on those revenues.

Governmental, In case of special revenue funds, transactions are made when there are restrictions on revenue sources. For instance street and road funds may not be used for other purposes. Similarly, capital project funds that are set aside for construction of buildings and infrastructure may not be used for any other purpose. Debt service funds are to be used to make payments for long term loans and obligations. The unrestricted part of revenues is placed under ...

Solution Summary

Budget revenue is discussed very comprehensively in this explanation..

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