The correct answer is A) budget the revenue effectively.
What a municipality must do with its revenue is to budget the revenue effectively.
One of the best things a municipality can do to show that is an honest and effective government is to have clear finances and transparent operations. It is money paid by the citizens through taxes, so the way the municipality handles it has to be very clear and people have to see that money invested in public infrastructures such as better roads, bridges, hospitals, or schools.