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Chapter Six talks about Revenue Forecasting. Forecasting methods range from rel

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Chapter Six talks about Revenue Forecasting. Forecasting methods range from relatively informal qualitative techniques to highly sophisticated quantitative techniques. In revenue forecasting, more sophisticated does not necessarily mean more accurate. In determining what method of forecasting is best for a particular local government, there are two broad categories to choose from; qualitative and quantitative. qualitative methods revolve around expert judgment, do not rely on data and do not clearly lay out the final forecast numbers and how they were estimated. Quantitative methods rely on quantifiable data.
It would be easy for local government to forecast their property taxes using the formula-based projections, this would most likely produce the most accurate results. But be mindful of the collection rates in North Carolina, and any changes in the previous year’s collection rate.
Given that not 100% of property taxes are collected, how can this short fall affect the total Revenue forecasting for a community?

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