Utility revenue is income municipalities receive from utility services including water supply, wastewater treatment, and waste collection. Utility revenue funds utility operations, maintenance, and capital investments, typically operating as self-sustaining enterprises separate from general municipal budgets. Rate structures determine how revenue is generated—consumption-based rates tie revenue to water usage while flat rates provide predictable revenue regardless of consumption. Utility revenue must cover all system costs including operations, debt service, and capital reserves. Revenue forecasting considers usage trends, conservation programs, weather effects, and economic conditions. Some municipalities transfer utility surpluses to general revenue while others keep utility finances entirely separate. Utility revenue stability differs from tax revenue—consumption can vary with weather and economic conditions.