KB 4_Lecture 7_City Governments

Micro-lesson Overview

Focus: Understanding City, Municipality, and GovernanceInstitution: Breda University of Applied Sciences

Learning Objectives

  • Recognize the role of municipalities

  • Describe public goods related to service delivery

  • Differentiate between municipal capital and operating budgets

Key Topics

  • Provincial Government dynamics

  • Economics and role of municipalities

  • Asset management

  • Service delivery methods

Political Structure of Municipality

  • Defined as a political entity with three branches: Legislative, Executive, and Judiciary.

  • Separation of powers prevents any branch from holding too much authority.

Municipality Characteristics

  • Interests of voters: Represents political entity

  • Public Services: Provides services to tax-payers

  • Legal Entity: Functions under law

  • Landowner: Manages land and transactions

Local Governance in the Netherlands

  • 400 municipalities, largest is Amsterdam (918,000 population)

  • Managed by an elected council every four years.

  • Mayor is council chairperson and serves a six-year term.

  • Council has representatives from different political parties.

Council Structure

  • Creates committees for policy areas (e.g., housing, environment).

  • Each district managed by an Alderman (e.g., Breda has 10 districts).

Municipal Financial Structure

Economic Role:

  • Municipalities provide public goods that are non-rivalrous and non-excludable.

  • Funding sources: own revenue, intergovernmental transfers, borrowing.

Case Study: Netherlands

  • Income: One-third each from own resources, municipalities fund, and specific contributions.

  • 78% of municipal tax revenue from property tax.

Budgeting in Municipalities

  • Capital Budget: Plans significant infrastructure investments.

  • Operating Budget: Covers operational costs.

  • Capital Budget Process: Starts in August, includes submissions and reviews for projects.

Conclusion: Importance of Asset Management

  • Essential for maintaining public infrastructure's value from planning to disposal.