What is meant by the amount to be raised by taxes?

The correct understanding of the term "amount to be raised by taxes" refers specifically to the difference between total appropriations (the total amount that a municipality plans to spend in a given fiscal year) and revenue (the income that the municipality anticipates receiving from various sources, such as state aid, fees, and grants).

When a municipality prepares its budget, it first estimates its total expenditures and then accounts for all expected revenues. The shortfall, or difference, represents the amount that must be specifically raised through taxation in order to fund the budget. This calculation is crucial for determining how much money needs to be collected from taxpayers to ensure that the municipality can meet its financial obligations and provide services to the community.

In contrast, the total amount of all expenses does not account for incoming revenue, so it cannot accurately reflect the amount needed from taxes. Likewise, while the sum of all department budgets provides insight into expenditures, it doesn’t consider the necessary funding from revenue sources. Lastly, the average tax rate multiplied by property value is a method for determining an individual property's tax bill, but does not adequately define the overall amount the municipality needs to raise through taxes.