Intergovernmental revenue includes which of the following sources?

• A. Property taxes collected by city
• B. Interest income from investments
• C. State allocations, federal grants, shared revenues, entitlements
• D. Fees for service charged to residents

Answer: (C)

Intergovernmental revenue consists of funds received from other governments to support local programs and services. The best option lists exactly those sources: state allocations, federal grants, shared revenues, and entitlements. These are distributions or grants provided by higher levels of government and passed down to local entities, often based on formulas or specific programs. This differs from property taxes collected by the city, which are local, own-source revenue; from interest income, which is investment income; and from fees for services charged to residents, which are charges for services rather than funds from another government.