True or False: Municipal revenues may be anticipated above the amount collected in the previous year.

In municipal finance, revenues are typically based on historical data, including the amounts collected in previous years. This is mainly to ensure that budget forecasts are realistic and grounded in reliable data. Anticipating revenues above the prior year's collection can lead to budgetary shortfalls if the expected increases do not materialize, which can negatively impact municipal services and financial stability.

Moreover, municipalities are often subject to legal constraints and fiscal policies that dictate budgeting practices, reinforcing caution in revenue projections. By adhering to the previous year's revenue as a baseline, municipalities strive to maintain a conservative approach to budgeting, helping to safeguard against unforeseen economic downturns or fluctuations in revenue sources.

Since the assertion suggests that revenues may be anticipated above the amount collected in the previous year, it does not align with the typical practices of conservative municipal budgeting. Thus, indicating that the answer is false provides clarity on the importance of using past revenue collection as a reliable measure for future projections.