Relation between city size and trade area
“Replacement rate”
Immigration & natural increase as factors in 19th
century
“Railroad flat”
Typical urban density—200 people on 2500 square foot lot
Key issues:
a. conditions of housing for the poor
b. public transportation
c. parks, playgrounds, urban design
Western cities founded as commercial ventures by Easterners
Frederick Jackson Turner’s “frontier hypothesis”
“Dispersing forces” by end of 19th Century:
a. commuting
b. electric trolley
c. bedroom communities
d. suburban retail strips
Decentralizing forces:
a. Automobile & trucking
b. Growth in personal income
c. Decrease in length of work work
d. Communication technology
e. Entertainment technology
f. Freeways
Problem with public transportation:
a. collection problem
b. distribution problem
Victor Gruen designed the first shopping center at Northland (Detroit) in 1951 (the first enclosed shopping center—mall—was Southdale around 1954).
Models of metropolitan physical form:
a. concentric zone (Burgess)—based on invasion & succession
b. sectoral model (Hoyt)
c. multiple nuclei (Harris & Ullman)
d. edge city (Garreau)
Central city’s economic and demographic trends are linked to the region in which it is located:
a. auto created shift to lower densities
b. loss of manufacturing in central city
c. suburbanization of income
i. Growth of political machines
i. Commission
ii. Manager/Council
i. Lower labor costs
ii. Economies of scale
iii. No efficiency without competition
i. Port authorities
ii. Intergovernmental cooperation (RDCs, COGs)
iii. Consolidation (vs. “Tiebout hypothesis”)
1. Community Power
a. Pluralism (“political stratum” vs. constituency; stratum is neither homogeneous nor hard to enter)
b. Elites
c. Regimes & “Growth Machine”
2. Political Economy of Cities
a. City limits (openness to national & other external factors)
b. Public Choice theory
c. “Political economy” theory
i. government largely serves interests of capital
ii. pervasiveness of class conflict
iv. cities are nodes in global capitalist system
v. consumer demand manipulated by producers
Much of the revenue collected by the Federal government is transferred to other units; substate (local) government provides the largest share of public service.
Public education takes the largest share of local government funding. Public welfare is the largest county expense. Utilities is the largest municipal expense.
Sources of local government revenue:
a. transfers & grants (24%)
b. fees & licenses (21%)
c. property tax (16%)
d. sales tax (9%)
e. local income tax (7%)
f. investments (4%)
Property tax:
a. 40% goes to schools (rest divided between city & county)
b. government and nonprofit property does not pay property tax
c. property tax not directly tied to ability to pay—so “homestead exemptions” and “circuit breakers”
d. “fiscal zoning”—using land-use controls to generate mix of uses that will hold down property tax
Borrowing (“municipal bond”)
a. capital expenditures tend to be “lumpy”
b. “user benefit equity”—those who benefit should pay the cost
c. municipal
debt is limited by statute (6.67% of total assessed value, in
d. bonds can be used only to finance capital expenditures
e. types of bonds:
1. general obligation (GO)—many states require ballot measure
2. revenue—no debt limits
f. bond rating (Moody’s or Standard & Poor’s)
Budget—two parts, operating (must balance each year) and capital. Generally prepared by mayor/administrator, and adopted by council
“Fiscal disparity” problem—communities that need the most help have lowest capacity to provide it (“Minnesota Miracle”—Fiscal Disparities Act—shared the property tax base among the Twin Cities metropolitan communities).
© 1996 A.J.Filipovitch
Revised 15 September 2003