City Finances, City Futures.

• Author: Andreyko, John L.

This publication is Volume 2 of The Challenge of a New Century: The Future of America's Cities, a joint effort of the Ohio Municipal League and the National League of Cities. The publication includes the primary author's work and comments related to the author's theme provided by three urban practitioners and observers: Roy Bahl, professor of economics and director of the Policy Research Center, College of Business Administration, Georgia State University; Peter A. Harkness, editor and publisher of Governing magazine; and John Petersen, president of Government Finance Group, Inc. and former staff member of GFOA. The underlying purpose of this book is to stimulate the reader to envision how the future cities will be financed. The author's introduction of the theme starts with a presentation of urban area statistics related to the country's largest cities. Per capita data by region of the country and by largest city in each state conclude that most wealth exists in the urban area surrounding a city. This is not a new revelation to those in large, mature cities.

Additional opinions on future federal or state assistance, the current composition of revenues with suggestions for the future, the expected fate of tax-exempt bonds and potential financial consequences of fiscal failure all lead into the author's conclusions concerning positioning for the future. He introduces eight elements that may help establish a sound fiscal strategy for the future city; these elements include tapping the full urban economic base, preserving infrastructure maintenance and development, improving property tax structures and administration, using broad sales and individual income taxes, and nonreliance on increases in federal assistance.

Undoubtedly, the author has not provided all of the answers, and the commentary...