What must happen before a municipality can establish revenue from upcoming land sales in its budget?

For a municipality to establish revenue from upcoming land sales in its budget, there must be a definitive agreement in place prior to the adoption of the budget. This is crucial because having a legally binding agreement ensures that the projected revenue is based on actual transactions that are expected to occur, rather than speculative or hypothetical possibilities. This process provides a level of assurance for sound financial planning and accountability within the municipality.

Establishing a definitive agreement means that terms related to the sale, including price and conditions, are firmly settled. It creates a reliable framework to incorporate that anticipated revenue into the budget, which is essential for maintaining fiscal integrity and ensuring that the municipality can meet its financial obligations based on the expected income from land sales.

In contrast, conducting a marketing campaign, completing a feasibility study, or issuing bonds may contribute to the process of land sales or revenue generation but do not provide the same level of assurance and legality as having a definitive agreement in place. A marketing campaign would primarily raise awareness and interest but not secure the revenue itself, while a feasibility study evaluates potential scenarios rather than confirming a sale. The issuance of bonds is a financial tool used to raise money but does not relate directly to the confirmation of revenue from land sales.