The assumption regarding uncollected taxes directly impacts which aspect of the municipal budget?

The assumption regarding uncollected taxes is crucial in determining projected revenue estimates for a municipality. When creating a budget, local governments need to forecast how much revenue they will be able to collect from various sources, including property taxes. If there is an assumption that a significant portion of taxes will go uncollected, this will directly reduce the estimated revenue for the budget.

By accurately forecasting these losses, municipalities can create a more realistic budget that reflects the actual funds they can expect to have available for spending. An overestimation of collectible taxes could lead to budget shortfalls, impacting public services and financial planning. Therefore, revenue estimates are directly influenced by how well the municipality evaluates its efficiency in tax collection and the financial capabilities of its residents, making this option the most relevant in the context of the municipal budget.