Services provided by the City of Charlottesville are funded by a variety of revenue sources: local, state, federal, and other intergovernmental revenue. When preparing revenue estimates for the budget, a team of staff reviewed prior year revenue activity, current year to date activity, and future factors that will affect the City’s economic vitality. City staff uses a variety of revenue projection techniques to ensure the accuracy of the revenue projections.
- Informed/Expert Judgment (e.g., the advice of a department head)
- Deterministic Techniques (e.g., formulaic revenues)
- Time Series Techniques (e.g., moving averages and predictive statistics)
- Estimates from the Commonwealth of Virginia (e.g., transfer payments)
- Long Term Forecasting (e.g., looking five years out at the start of the budget process to better plan for future revenue conditions and expenditure needs)
In practice, most revenue projections combine two or more of these techniques. Generally, the amount of revenue available to the City depends on current and future economic activity. Below is a listing of the major revenue sources for the City of Charlottesville, which collectively make up approximately 90% of the total General Fund revenue collected by the City of Charlottesville.