Assume that a city is preparing its municipal budget for 2024. It is now September or 2023. The city needs to have some idea on how much money it will have to spend of January 1, 2024, when the year begins. How is this determined? By assuming that the amount of income will be exactly the same as 2023 By adding up all the requests it receives for 2024 from different city departments such as police, fire, health, parks etc. and using the "grand total" and the income amount. By forming a "blue ribbon" committee of prominent businessmen on make an estimate By "projecting" the closest possible amount based on a variety of factors including previous years income, changes in the local economy, new employers in the area and the cost of personnel and "debt retirement

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