A municipality is allowed to anticipate the proceeds from the sale of municipal property if the property will not be sold during the budget year.

In the context of municipal budgeting, it is generally understood that a municipality cannot include anticipated proceeds from the sale of municipal property in its budget unless there is a reasonable expectation that the sale will occur within the budget year. This principle is grounded in the need for fiscal prudence and accurate financial reporting. Budgets should reflect realistic revenue projections, and anticipating income from sales that will not happen can lead to fiscal mismanagement.

Planning for a sale that will not occur poses risks, as it might create budget imbalances and misinformed fiscal decisions. Therefore, unless the sale is confirmed to take place, it remains inappropriate to project those proceeds within the fiscal year budget. This ensures that the municipality remains accountable and operates within its means, ultimately fostering sound financial management practices.