Public revenue is concerned with the identification, generation, collectionrnand administration of revenues. However, revenue generation andrncollection efforts are constrained by many challenges and problems. Thernobjective of this research is to analyses the recent performance of AddisrnAbaba city administration in its revenue generation and collection effortsrnand to devise ways for the maximum utilization of the revenue potentialrnof the city. This study is based on descriptive analysis and thernmethodology combines both qualitative and quantitative types of datarnand information. It has employed both primary and secondary sources ofrndata. The data collection methods include document review, opinionrnsurvey and interview.rnThe study has revealed that, Addis Ababa city administration enjoysrnwider sources of revenue. Thus, it generates and collects revenue fromrntax, non-tax, capital, municipal and external sources. It is observed thatrntax revenue on average contributed nearly half of the city's total incomernin the period under study. However, despite the good performance of therncity administration in generating and collecting of revenues, there arernmany problems and challenges which hindered the maximum utilizationrnon the revenue potential of the city. The major challenges include poorrnrevenue collection performance, non-utilization of alternative revenuernsources, the problems of revenue fluctuations and others. The study hasrncome up with recommendations that should be taken both at the federalrngovernment and the city administration level. To this end, properrnutilization of alternative sources of revenue, empowering the city tornadminister it own sources of revenue and designing a revenue sharingrnsystem are some of the policy implication of the paper.