When must the obligation to make payment occur to anticipate revenue from a land sale in the municipal budget?

When must the obligation to make payment occur to anticipate revenue from a land sale in the municipal budget?

• A. After the adoption of the budget
• B. During the fiscal year
• C. Prior to the adoption of the budget
• D. At the end of the fiscal year

Answer: (C)

The obligation to make payment must occur prior to the adoption of the budget to anticipate revenue from a land sale in the municipal budget. This requirement ensures that all projected revenues, particularly from specific actions like land sales, are incorporated into the financial planning process before formal budget approval. By recognizing this revenue stream in advance, municipalities can properly plan for their expenditures and ensure that their budget reflects all available resources, thereby maintaining financial integrity and compliance with state regulations. This approach allows for better fiscal management, as it guarantees that anticipated revenues are secured and accounted for prior to committing to expenditures within the budget.

The obligation to make payment must occur prior to the adoption of the budget to anticipate revenue from a land sale in the municipal budget. This requirement ensures that all projected revenues, particularly from specific actions like land sales, are incorporated into the financial planning process before formal budget approval. By recognizing this revenue stream in advance, municipalities can properly plan for their expenditures and ensure that their budget reflects all available resources, thereby maintaining financial integrity and compliance with state regulations. This approach allows for better fiscal management, as it guarantees that anticipated revenues are secured and accounted for prior to committing to expenditures within the budget.