Finance for city leaders handbook : improving municipal finance to deliver better services

Cities are a driving force of the 21st century. Through bringing large numbers of people into close proximity, they spark economic growth, foster innovation, and generate prosperity. But they face the pressing challenges of creating a livable environment for their residents, enabling economic activity that benefits all citizens, and fostering urban development that is environmentally sustainable, equitable, and resilient to disruptive forces. Particularly urgent is the need to finance this development: To achieve the Sustainable Development Goals, an estimated $3 trillion to $4 trillion is needed annually. In an increasingly urban world, cities play a pivotal role in closing this financial gap. The publication includes three sections on principles of municipal finance; designing financial products; and cross-cutting issues. The first section highlights: tools for raising local revenues; challenges local governments face such as insufficient and unreliable transfers from central government, poor tax collection and weak fiscal management; mechanisms on how to improve outdated governance systems, enhance revenues and build better local financial asset management systems; and fiscal decentralization as an important part of sustainable and autonomous municipal finance. Edited by Marco Kamiya (UN-Habitat) and Le Yin-Zhang (University College London) Foreword About the Authors PART 1: PRINCIPLES OF MUNICIPAL FINANCE CHAPTER 1: Principles of Municipal Finance CHAPTER 2: Expanding Municipal Revenues CHAPTER 3: Sustainable Municipal Finance for Development CHAPTER 4: Decentralization and Local Government Financing PART 2: DESIGNING FINANCIAL PRODUCTS CHAPTER 5: Non-Tax Own-Source Municipal Revenues CHAPTER 6: Creditworthiness CHAPTER 7: Green Municipal Bonds CHAPTER 8: Municipal Pooled Financing Mechanisms CHAPTER 9: Public-Private Partnerships CHAPTER 10: Financing Planned City Extension CHAPTER 11: Islamic Municipal Finance CHAPTER 12: Sharing the Wealth: Private Land Value and Public Benefit CHAPTER 13: The Role of Real Estate Development in Urbanizing Cities CHAPTER 14: Improving Capital Markets for Municipal Finance in the Least Developed Countries CHAPTER 15: Developing and Managing Municipal Infrastructure Development Plans PART 3: CROSSCUTTING ISSUES CHAPTER 16: Financing Investments in Slums and Informal Settlements CHAPTER 17: The Cross-Cutting Issues of Human Rights, Gender Equality, and Youth CHAPTER 18: Local Governments and Local Economic Development, Productive Capacity, and Spatial Analysis Cities are a driving force of the 21st century. Through bringing large numbers of people into close proximity, they spark economic growth, foster innovation, and generate prosperity. But they face the pressing challenges of creating a livable environment for their residents, enabling economic activity that benefits all citizens, and fostering urban development that is environmentally sustainable, equitable, and resilient to disruptive forces. Finance for City Leaders presents an up-to-date, comprehensive, and in-depth analysis of the challenges posed by rapid urbanization and the various financing tools municipalities have at their disposal. By providing city leaders with a wide array of financing solutions that emphasize sustainability, inclusion, and financial autonomy, this publication contributes to the growing conversation on how cities can look inward to finance major capital expenditures, infrastructure maintenance and operation, and public services