The Impact of Municipal Finance and Governance on Urban Sprawl

This paper assesses the impact of municipal financial tools and governance on the pattern of urban growth. The first part considers how financing tools can affect urban growth patterns and analyzes the impact of four specific financing tools: development charges, property taxes, user fees, and tax increment financing. The second part considers the role played by local governance on urban growth patterns. The third part provides some concluding comments on approaches to finance and governance that could improve the prospects for compact development.