The tax levy is the total amount of property tax a municipality authorizes to collect for a fiscal year, representing the primary funding source for municipal operations. The levy is determined through the budget process: total expenditure requirements minus non-tax revenues (grants, fees, investment income) equals the required tax levy. The levy is then distributed across the tax base—dividing levy by total taxable assessment determines the tax rate needed to raise required revenue. Tax levy increases result from expenditure increases, revenue decreases, or both. Annual tax levy decisions are among councils' most significant choices, balancing service needs against tax burden on property owners. Levy increases are often expressed as percentages for year-over-year comparison.