COVID-19 Federal Assistance e311


Community Engagement & Local Partnerships, Lost Revenue & Revenue Replacement

When calculating revenue, how should a municipality account for losses related to individual third-party management agreements with entities such as stadiums, convention centers, and golf courses?

Many third-party management agreements may qualify as revenue in municipality calculations. The U.S. Department of Treasury (“Treasury”) has stated in its issued Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Frequently Asked Questions (“FAQs”), that “[r]ecipients should classify revenue sources as they would if responding to the U.S. Census Bureau’s Annual Survey,” and explicitly noted that the following will be considered eligible:

  • gross revenue of facilities operated by a government (swimming pools, recreational marinas and piers, golf courses, skating rinks, museums, zoos, etc.);
  • auxiliary facilities in public recreation areas (camping areas, refreshment stands, gift shops, etc.);
  • lease or use fees from stadiums, auditoriums, and community and convention centers; and
  • rentals from concessions at such facilities.[1]

When calculating revenue loss, a municipality may consider including actual revenue loss from third-party management agreements with their other general government revenues. Under Treasury’s Interim Final Rule (“the Rule”) on the CSLFRF, “general revenue” includes revenues collected by a recipient and generated from its underlying economy. This definition captures a range of tax revenues, and other types of revenue that are available to support government services.[2] The Rule intends to focus calculations of revenue replacement on sources that generate economic activity, a criterion that many third-party management arrangements would likely meet.[3]

In addition, Treasury explicitly states that recipients should use their own data sources to calculate general revenue, and do not need to rely on published revenue data from the Census Bureau. Treasury acknowledges that recipients’ self-reported general revenue figures may differ from those published by the Census Bureau [4] because of differences in timing, data sources and definitions.

Treasury also states in their FAQs that, if municipalities are unsure if a certain type of revenue should be counted for the purpose of computing revenue loss, recipients should rely on the classifications in the Census Bureau’s Annual Survey. Notably, Treasury will define “General Revenue” to include all Current Charges included in the Annual Survey. [5]

 The Rule also lists several types of revenue to exclude from calculations, such as revenue from correcting transactions, proceeds from the issuance of debt or the sale of investments, agency or private transactions, liquor stores, utilities, and insurance trust revenue as sources of revenue.[6] 

Last Updated: June 9, 2021


[1] U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds: Frequently Asked Questions (updated June 9, 2021), Q3.3 at 9-10,

[3] Id. at 55.

[4] U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds: Frequently Asked Questions (updated June 9, 2021), Q3.11. at 12,

[5] Id., Q3.9. at 11.