Revenue is money flowing into a municipality from all sources. Major revenue sources include property taxes (typically 40-60% of total revenue), user fees for services like water, recreation, and transit, grants from provincial and federal governments, development charges from new construction, investment income, and permits and licences. Revenue projections are central to budget planning—municipalities must estimate how much money they'll receive to plan spending. Unlike senior governments, municipalities generally cannot run deficits, so revenue must cover expenditures. Revenue growth is limited because municipalities lack access to taxes that grow with the economy, creating ongoing fiscal challenges.