What does a multi-year debt budget forecast?

A multi-year debt budget primarily focuses on forecasting the revenues that will support existing debt obligations. This is crucial for municipalities to ensure they have a clear understanding of their financial commitments over the years and can strategically plan for the generation of revenues needed to meet those needs.

By accurately forecasting revenues that will support debt obligations, municipalities can identify any potential shortfalls and take proactive measures, such as adjusting tax rates, reallocating resources, or identifying alternative revenue sources. This approach helps in maintaining fiscal stability and ensuring that the municipality can honor its debt commitments without facing financial distress.

While future capital expenditures (related to option A) are important for planning infrastructure projects, they do not directly pertain to the existing debt servicing requirements being forecasted in a multi-year debt budget. Options C and D also focus on operational expenses and specific types of revenue, which, although relevant to the overall financial picture of a municipality, do not specifically capture the essence of a multi-year debt budget focused on existing debt management.