Agenda - Council - 09/13/2022 - Laserfiche WebLink

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believes revenue from government -owned liquor stores is better classified as general revenue than it is as tax revenue, so the final rule includes it as part of general revenue. In response to requests that the definition of general revenue exclude revenue from special assessments, settlements that make the recipient whole for past expenditures, and one- time revenues such as revenue from the sale of property, Treasury is maintaining its position in the final rule that such revenue is included in general revenue. While such revenues may be less predictable than other sources of revenue (e.g., property taxes), these are not uncommon sources of revenue for recipients, and their inclusion provides a more complete view of the financial health of a recipient government and is consistent with the Census Bureau methodology. Treasury is also maintaining the exclusion of all payments from the federal government (including payments for services) from general revenue in order to avoid substantial dilution of the definition of revenue, particularly in light of extraordinary fiscal support provided during the pandemic. Treasury is maintaining the inclusion of intergovernmental transfers other than from the federal government for the reasons provided in the Supplemental Information to the interim final rule; to do otherwise would be to significantly distort the revenue calculations for local governments that regularly receive revenue sharing payments, for example, from their state governments. Treasury is also maintaining the approach that "general revenue" includes revenue from Tribal enterprises. This approach recognizes that these enterprises often form the revenue base for Tribal governments' budgets. To ease the burden on recipients and account for anomalous variations in revenue, as mentioned above, Treasury has incorporated a "standard allowance" option into the final rule. A recipient may choose to use the standard allowance, which under the final rule is set at $10 million, as an alternative to calculating revenue loss according to the formula described above. 246