For better or worse, geographical boundaries separate local jurisdictions and define parameters within which local governments can operate. The land and its value dictate tax revenueland thats rich in natural resources, or that close to important destinations, demands more value than that which is remote.
Itsa finite resource that must be thoughtfully managed. As localities densify and the world spins further into the digital era, outdated land management strategies are becoming strikingly obvious. Oftentimes, land use plans dont account for the monetary impact certain features will have over the long term, according to the latest paper published in the Rethinking Revenue project, a joint venture of the Government Finance Officers Association and the International City/County Management Association withsupport from the American Planning Association, the National Academy of Public Administration, the National League of Cities, the Government Finance Research Center and The University of Chicagos Harris School of Public Policy.
The project is focused on rethinking the way local governments fund themselves through novel revenue ideas and alternative taxation norms that are more in-line with modern business practices. Previous publications have outlined the problem with current revenue systems and developed a criterion for evaluating the effectiveness of proposed changes.
Historical land use decisions did not provide for sufficient taxable activities to pay the cost of maintaining the infrastructure that was built to serve the development, reads the report, The root of local government revenues, which outlines the importance of land use, and unpacks the relationship between land and revenue. At least in part, this lack of forethought explains why many local governments face difficulties funding infrastructure maintenance and replacement.
As an example, the report describes the expansion of South Bend, Ind.s sewer system. In 1960, the system served a population of 132,000 people, and expanded over the years by adding more lift stations and water mains. Today, however, the population has shrunken to a little over 100,000, and the city is facing a challenge like that faced by many cities across the United Sates: Land use development patterns that are incompatible with long-term financial realities. Sprawling, lower-density development patterns cause infrastructure to grow beyond the citys ability to generate revenue to maintain it.
In this modern era, the onus is on local governments to think beyond the immediate expenditure of a given project, the report argues. They must seek a long-term, dependable solution to their structural revenue and expenditure imbalances, and become more intentional about making financially savvy land use decisions.
A major hurdle local governments face in expanding current land use practices centers around precedence: Is it appropriate for governments to change the way they bring in revenue? Traditionally, public services are perceived by constituents as entirely altruistic and for the broader good. But while this perspective might be accurate in theory, it fails to consider the mechanics of responsible management practices.
Another sticking point, as noted in the paper, is that higher revenues per acre will usually require denser, more intensive development per acre than many communities tend to support. This historical aversion to denser development may lead to objections to local government using its regulatory power to encourage higher revenue per acre.
On its own, the private market might not evolve in a way that supports local government, and constituents dont understand the complexities of municipal managementeven when its in their best interest, or in the best interest of their children.
In many communities, there isnt enough revenue per acre in the community to fund the upkeep of infrastructure that has been built to serve less dense areas, the report says. These areas require more lane miles, linear feet of water pipe, etc., to serve the same number of people. Insufficient revenue per acre means that the maintenance and replacement costs are deferred to future generations. Hence, current consumption is subsidized by future taxpayers.
Density is dictated by zoning, and the researchers argue thatits within local administrators purview to leverage regulatory power in ways that promote a public policy goal of financially sustainable local government. A financially healthy local government a better maintain transit, public safety, and other public services.
To that end, the report outlines concrete steps local governments can take to improve revenue-per-acre: Make financially savvy development the easier choice by changing it so that conventional development patterns arent the default; calculate revenue per acre for all areas to develop a baseline; encourage infill development and build up as opposed to out; require a cost-benefit evaluation for potential new development; understand the fiscal impact of building and zoning regulation, then adjust accordingly; identify areas where cross-subsidization is happening and consider charging for it.
Cross-subsidization occurs where the cost to develop in one area is subsidized by revenues generated in another area of the community, the report unpacks. Sometimes cross-subsidization is intentional and acceptable. Other times it is unintentional and unrecognized. In the latter case, it may be savvy to remove the subsidy, especially where the subsidy encourages unsustainable development patterns.
These methods have proven successes. South Bend, for example, tweaked its regulations to encourage density and reuse existing buildings, in-filling unused areas within the sewer system. And Lancaster, Calif., identified low-density development (the city had more infrastructure than its tax base was able to support) and was able to encourage denser development to even the gap over the long-term.
Regardless of policy changes, local governments need to rethink how their approach to land use planning considers the financial impacts of development choices, the report concludes. Land uses underpin a local governments revenue system because the property tax (and sometimes the sales tax) is an important source of local revenue. If the land within a governments boundaries is not productive at generating revenues, then local government will find it difficult, if not impossible, to keep up with the costs of providing services and maintaining infrastructure.
See the original post:
- How alternative communities have evolved from pacifist communes to a solution to the ageing population - The Conversation - March 12th, 2024 [March 12th, 2024]
- Georgia Power Announced T. Dallas Smith named to Georgia ... - All On Georgia - November 18th, 2023 [November 18th, 2023]
- CSRWire - Thought Leaders Gather for Critical Community ... - CSRwire.com - November 18th, 2023 [November 18th, 2023]
- EPA centers diversity with first-ever environmental youth advisory council - Yahoo News - November 18th, 2023 [November 18th, 2023]
- Rigor, Relevance, & Reality: Education Collaboratory at Yale ... - Yale School of Medicine - November 18th, 2023 [November 18th, 2023]
- Gaza: UN experts call on international community to prevent ... - ReliefWeb - November 18th, 2023 [November 18th, 2023]
- Fathering Together Announces Acquisition of City Dads Group - PR Web - November 18th, 2023 [November 18th, 2023]
- Company to pay over $50 million in largest environmental lawsuit settlement in D.C. history: Health risks to the public - Yahoo News - November 18th, 2023 [November 18th, 2023]
- Student death is now part of the routine at Middlebury - The Middlebury Campus - November 18th, 2023 [November 18th, 2023]
- We welcomed an abandoned dog into our family. But dog dumping ... - Kansas Reflector - November 18th, 2023 [November 18th, 2023]
- The National Climate Assessment Goes Woke - Dallasweekly - November 18th, 2023 [November 18th, 2023]
- A Conversation about History, Race and the Meaning of True ... - Philanthropy Roundtable - November 18th, 2023 [November 18th, 2023]
- The color of community | WORLD - WORLD News Group - November 18th, 2023 [November 18th, 2023]
- Kindness has good benefits | News, Sports, Jobs - The Review - November 18th, 2023 [November 18th, 2023]
- Georgia Power Foundation awards grant for BIG Edge ... - Georgia Southern University Newsroom - November 18th, 2023 [November 18th, 2023]
- "Chilling": Maryland lawmakers threaten to cut aid to immigrants ... - Salon - November 18th, 2023 [November 18th, 2023]
- Three water options come with high cost | News, Sports, Jobs - Evening Observer - November 18th, 2023 [November 18th, 2023]
- Welcome to the Team, Kintan! | Office of Immigrant Affairs - Philadelphia Water Department - July 11th, 2023 [July 11th, 2023]
- Fannie Mae Recognized for Its DEI Efforts - DSNews.com - July 11th, 2023 [July 11th, 2023]
- Fannie Mae Named 'Best Place to Work for Disability Inclusion' and ... - Fannie Mae - July 11th, 2023 [July 11th, 2023]
- Focused on progress - Weekly Challenger - July 11th, 2023 [July 11th, 2023]
- Good Ancestors and Messengers of Hope - Digital Journal - July 11th, 2023 [July 11th, 2023]
- 'Make it intentional': 3-N-1 Trinity Services helps young ... - Longview News-Journal - July 11th, 2023 [July 11th, 2023]
- 'Latinistas' is the World's First All-Latina Fashion Doll Line - hiplatina.com - July 11th, 2023 [July 11th, 2023]
- CSU Releases Findings of Three-Year Research Study on NAVA'S ... - InvestorsObserver - July 11th, 2023 [July 11th, 2023]
- Press Ganey's Physician of the Year on a cardiology 'game changer ... - Becker's Hospital Review - July 11th, 2023 [July 11th, 2023]
- City Officials Join Summer Campers and Local Artists to Kick Off ... - Philadelphia Water Department - July 11th, 2023 [July 11th, 2023]
- Merrill and Linda Hutchinson on Communication for a Summer of ... - Digital Journal - July 11th, 2023 [July 11th, 2023]
- Feathers installed as Rotary District Governor | News, Sports, Jobs - The Inter-Mountain - July 11th, 2023 [July 11th, 2023]
- Theatre at St. Luke's: All Shook Up to The Little Mermaid - Orlando Sentinel - July 11th, 2023 [July 11th, 2023]
- Culture wars rage on, forcing marketers to decide whether to ... - Marketing Dive - July 11th, 2023 [July 11th, 2023]
- Some thoughts on governance of the local variety - Resilience - July 6th, 2023 [July 6th, 2023]
- 988 is saving lives, but more awareness and support needed - Alton Telegraph - July 6th, 2023 [July 6th, 2023]
- The Limitations of Eco-Anxiety | Atmos - Atmos Magazine - July 6th, 2023 [July 6th, 2023]
- Welcome Back: How JAPER Becomes Real for the People in Brazil ... - Just Security - July 6th, 2023 [July 6th, 2023]
- Now Is the Time to Go All In on Heat Pumps - Rocky Mountain Institute - July 6th, 2023 [July 6th, 2023]
- Tennessee Department of Transportation (TDOT) celebrates 40th ... - Elizabethton.com - July 6th, 2023 [July 6th, 2023]
- Discrimination or bureaucracy? A Jewish community in Germany ... - The Jerusalem Post - July 6th, 2023 [July 6th, 2023]
- AAP Rules And Guidelines For How To Keep Kids Safe From Cars - Fatherly - July 6th, 2023 [July 6th, 2023]
- Pine County Sheriff's Report and Jail Roster | Communities ... - Pine City Pioneer - July 6th, 2023 [July 6th, 2023]
- Is a Hanan Ben Ari concert the solution for Jewish divisions? - opinion - The Jerusalem Post - July 6th, 2023 [July 6th, 2023]
- What the LGBT wedding website Supreme Court ruling means for ... - The Atlanta Journal Constitution - July 6th, 2023 [July 6th, 2023]
- Out at CHM hosts its first 2023 event - Windy City Times - July 6th, 2023 [July 6th, 2023]
- 'The time is now': Longtime friends launch support organization for ... - The Lawrence Times - July 6th, 2023 [July 6th, 2023]
- La Vergne Receives Municipal League Award for Excellence in Fire ... - rutherfordsource.com - July 6th, 2023 [July 6th, 2023]
- UW System offers status update on its five-year strategic plan (day 1 ... - University of Wisconsin System - July 6th, 2023 [July 6th, 2023]
- Hawaii Native Krystal Ka'ai Tackles Equity And Anti-Asian Hate For ... - Honolulu Civil Beat - July 6th, 2023 [July 6th, 2023]
- News & events / News - Diocese of York - July 6th, 2023 [July 6th, 2023]
- Businesses that address social or environmental problems often ... - The Conversation - July 6th, 2023 [July 6th, 2023]
- EFOC: Is This Happening To Me Because I'm Black? Combating ... - Essence - July 6th, 2023 [July 6th, 2023]
- Stations Telling Diverse Stories With Sponsored Segments from ... - Next TV - July 6th, 2023 [July 6th, 2023]
- Ex-Prisoners Face Headwinds as Job Seekers, Even as Openings ... - The New York Times - July 6th, 2023 [July 6th, 2023]
- Bungie weighs in on the current argument raging through the ... - PC Gamer - July 6th, 2023 [July 6th, 2023]
- Myanmar: Dire humanitarian and human rights situation ... - OHCHR - June 30th, 2023 [June 30th, 2023]
- Invest in our public schools - EdNC - June 30th, 2023 [June 30th, 2023]
- N.Y. stands up for LGBTQ equality: Having Pride 12 months a year - New York Daily News - June 30th, 2023 [June 30th, 2023]
- NASCAR, Bubba Wallace bring 'Bubba's Block Party' to Chicago - Daytona Times - June 30th, 2023 [June 30th, 2023]
- Fifth Third's 2022 Sustainability Report Shares Progress on Priorities ... - InvestorsObserver - June 30th, 2023 [June 30th, 2023]
- Top LGBTQ+ Financial Influencers to Learn from in 2023 - Investopedia - June 30th, 2023 [June 30th, 2023]
- 'Retirement is so traditional,' try periodic retirement to figure out ... - Morningstar - June 30th, 2023 [June 30th, 2023]
- Crisis of missing and murdered Indigenous people brings federal ... - New Mexico In Depth - June 30th, 2023 [June 30th, 2023]
- The Astounding Power of Intentional Productivity (And How You Can ... - The Good Men Project - June 30th, 2023 [June 30th, 2023]
- What SCOTUS ruling on affirmative action means for UL schools - Louisiana Radio Network - June 30th, 2023 [June 30th, 2023]
- Community managers find the path for developers and players to ... - VentureBeat - June 30th, 2023 [June 30th, 2023]
- The EPA was ready to clean up 'Cancer Alley.' Then it backed off. - Grist - June 30th, 2023 [June 30th, 2023]
- What Bidenomics Means for Workers and Families - UpNorthNews - June 30th, 2023 [June 30th, 2023]
- The vital link between a healthy press and our republic - The Fulcrum - June 30th, 2023 [June 30th, 2023]
- Death, Drag, and Decadence shows off the queer joy of DnD - Wargamer - June 30th, 2023 [June 30th, 2023]
- Israeli Expats in the U.S.: 'I Speak English, but I Don't Speak American' - Tablet Magazine - June 30th, 2023 [June 30th, 2023]
- NTSB hearings end with talks on tanker conditions, fire's aftermath - Marietta Times - June 30th, 2023 [June 30th, 2023]
- Can 'Friendship Clubs' Cure the Loneliness Created by Remote Work? - The San Francisco Standard - June 4th, 2023 [June 4th, 2023]
- 'Men in Blazers' Podcast Comes to Higher Ground to Talk Vermont ... - Seven Days - June 4th, 2023 [June 4th, 2023]
- Mindfulness, breathwork expert preaches value of slow living to Black and brown communities - Yahoo News - June 4th, 2023 [June 4th, 2023]
- Idaho's physician shortage is here. Here's what we can do about it. - Idaho Capital Sun - June 4th, 2023 [June 4th, 2023]
- Awards Ceremony Shines Spotlight on Caltech's Trailblazers in ... - Caltech - June 4th, 2023 [June 4th, 2023]
- The African American Museum of Iowa Announces Juneteenth ... - River Cities Reader - June 4th, 2023 [June 4th, 2023]
- US Supreme Court Rules Against Striking Drivers Who Abandoned ... - Engineering News-Record - June 4th, 2023 [June 4th, 2023]
- The Future of the Thomaston Green is Green (or should be) - PenBayPilot.com - June 4th, 2023 [June 4th, 2023]
- The Elephant in the Ethernet Port - City Journal - June 4th, 2023 [June 4th, 2023]
- (Opinion) Nurturing diversity is good for kids, schools and NH - New Hampshire Business Review - June 4th, 2023 [June 4th, 2023]