Financial Management Perspective

Financial Management Perspective

Comparative research of sources and financing methods of Tehran Municipality with other cities in the world

Document Type : Original Article

Authors
Saeid Eslami Bidgoli 1
Hossein Abdoh Tabrizi 2
Hamed Monajem 3
1 Assistant Prof, Department of Insurance, Allameh Tabataba'i University, Tehran, Iran.
2 Lecturer, Department of Management and Economics, Sharif University of Technology, Tehran, Iran.
3 Ph.D. Candidate in Financial Management, Allameh Tabataba'i University, Tehran, Iran.
10.52547/JFMP.12.37.37
Abstract
The aim of this study is to identify and introduce financial and revenue sources with indicators of sustainability and feasibility for the municipality of Tehran by studying the sources of other municipalities in the world. In the present era with the increase of urban population, one of the important issues of municipalities around the world is to create sufficient sources to provide costs related to urban services and also the creation, development and maintenance of urban infrastructure. the challenge which Tehran Municipality Has been faced over the past few decades. According to limited experience of using the capacity of markets, institutions and financial instruments and the novelty of the literature about privatization and partnership with the private sector in municipalities, studying of the experiences of municipalities in other countries can be helpful.Therefore, the present article examines the major financial and revenue sources of the ten selected cities and the ways of useing finance models and partnerships with the private sector. After an overview of the financial and revenue sources of Tehran Municipality during recent years (2015-2019), in the next step of the present study,with using fuzzy method and based on the opinion of experts, identified financial and revenue sources in terms of sustainability and feasibility indicators has been studied. The results show that among the twelve main sources, respectively, sources from public-private partnerships, operating revenues and financing through the issuance of bonds and sukuk with their related sub-sources are in a better position in terms of sustainability and feasibility indicators.
Keywords
municipality
financial and revenue sources
method of financing
sustainability indicators
feasibility indicators
  1. Abghoon, O.(2010). A Comparative Study of Financing Methods and Private Sector Participation (Case Study of Different Cities). Third Municipal Finance Conference, Problems and Solutions.(In Persian)
  2. Abolhassani Hastiani, A., & Banar, S. (2015), Comparison of effective indicators in the category of urban projects of Tehran Municipality with other selected cities. Quarterly Journal of Urban Economics and Management, 4(13). (In Persian)
  3. Akbari, N,.& Moazen Jamshidi, H.(2013). VAT is a sustainable source of income for city management (Case study of Isfahan metropolis). Fifth Conference on Urban Planning and Management, Mashhad. (In Persian)
  4. Akhundi, A., & Hadiuznour, B. (2005). Structural review of the revenue management system of Tehran metropolis. Iranian Services Company, at the suggestion of Tehran Municipality Studies and Planning Center. (In Persian)
  5. Al-Ishaq, P.,& Hadavand, M.(2013). Investigating the new sources of income of municipalities. Iranian and International Journal of Comparative Legal Research. quarterly.7:1-28. (In Persian)
  6. Berlin Adopted Budget Fiscal (2019). Retrieved from https://www.berlinnh.gov/sites/g/files/vyhlif 2811/f/uploads/2018_budget_final_adopted_on_06_19_17.pdf
  7. Bojadziev, G. & Bojadziev, M. (2007). Fuzzy logic for business, finance, and management (23). World Scientific.
  8. Brundtland, G. H., Khalid, M., Agnelli, S., Al-Athel, S., & Chidzero, B. J. N. Y. (1987). Our common future. New York, 8.
  9. Chicago2019 budget Overview. Retrieved from https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2019Budget/2019BudgetOverview.pdf
  10. Chicago2019 Capital Improvement Program. Retrieved from. https://www.chicago.gov/city/en/depts/obm/provdrs/cap_improve.html
  11. City of Los Angeles Budget for the Fiscal (2019). Retrieved from. https://cao.lacity.org/budget19-20/2019-20Proposed_Budget.pdf
  12. Danesh Jafari, D., Babajani, J., Karimi Esbouei, S. (2014). Assessing the sustainability of financial resources and revenue of Tehran Municipality. Journal of Economics and Urban Management. quarterly.7:15-34. (In Persian)
  13. Danesh Jafari, Davood., Karimi, S. (2011). A Comparative Study of Revenue Sources and Financing of Tehran Municipality with a Number of Important Cities in the World. Journal of Urban Economy. quarterly.11:22-45. (In Persian)
  14. Fitch rating report state of berlin (2016). Retrieved from.https://www.fitchratings.com/entity/berlin-state-of-80442312
  15. Fitch rating report state of Istanbul (2019). Retrieved from https://www.fitchratings.com/research/international-public-finance/fitch-affirms-istanbul-lt-fc-idr-at-bb-outlook-negative-31-05-2019
  16. Ghorbani, R., & Azimi, Mitra. (2014). Investigating the effect of municipal revenue structure on urban development process using correlation coefficient tactics and factor analysis; Case study of Mashhad. Journal of Urban Research and Planning. quarterly.18:115-132. (In Persian)
  17. GLA Group Budget Proposals and Precepts )2019(. Retrieved from https://www.london.gov.uk/sites/default/files/mayors_consultation_budget_2019-20.pdf
  18. Hadiznoor, B., & Mehrazin, S. (2013). Financial relations between government and municipalities in Iran. Fifth Municipal Finance Conference; Problems and solutions. (In Persian)
  19. Khmel, V., & Zhao, S. (2016). Arrangement of financing for highway infrastructure projects under the conditions of Public–Private Partnership. IATSS research, 39(2), 138-145.
  20. Lohri, C. R., Camenzind, E. J., & Zurbrügg, C. (2014). Financial sustainability in municipal solid waste management–Costs and revenues in Bahir Dar, Ethiopia. Waste management, 34(2), 542-552.
  21. Maclaren, V. W. (1996). Urban sustainability reporting. Journal of the American planning association, 62(2), 184-202.
  22. Naghavi., M., & Haidarpour, F. (2018). The effect of stabilizing the revenue system on the financing of municipalities. Journal of Science and Engineering Elite Bimonthly. quarterly.3:29-50. (In Persian)
  23. Nasresfahani, R. (2016). Critique of the current method of financing municipalities Presenting a financing model for urban development based on the principles of resistance economics. Critical Research Journal of Humanities Texts and Programs. quarterly.16:145-168. (In Persian)
  24. Nayak, B. K. (2010). Understanding the relevance of sample size calculation. Indian journal of ophthalmology, 58(6), 469.
  25. Ottawa 2018 Operating & Capital budget. Retrieved from: https://ottawa.ca/en/city-hall/budget/previous-budgets/budget-2018#approved-2018-budget
  26. Paris Adopted Budget Fiscal Year (2018-2019) . Retrieved from https://www.paristexas.gov/DocumentCenter/View/3762/2018-19-Adopted-Budgets?bidId
  27. Reviw of Istanbul Metropolitan Municipality Budget Fiscal (2019). Retrieved from https://www.ibb.istanbul/en/News/Detail/1224
  28. Reviw of Kuala Lumpur Budget Fiscal Year - 2020 . Retrieved from https://www.nst.com.my/news/nation/2019/12/548427/city-hall-allocates-rm29-billion-2020-budget
  29. Sepahvand, R,. Arefnejad, M. (2013). Prioritization of sustainable urban development indicators with a hierarchical analysis approach (case study in Isfahan). Journal of Urban Structure and Function Studies. quarterly.1:43-59. (In Persian)
  30. Sharzeh, G., Majed, V. (2011). Sustainable city financing; How to finance the city sustainably; How to finance sustainable urban development. Journal of Urban Management. quarterly.9:299-315. (In Persian)
  31. Statistics and Budgets Approved by Tehran Municipality Years (2014-2019) - Global Experiences, Tehran Municipality Information and Communication Technology Organization. (In Persian)
  32. The City of New York Executive Budget Fiscal (2019). Retrieved from https://www.budget.ny.gov/pubs/archive/fy19/exec/index.html
  33. The budget for the London 2012 Olympic and Paralympic Games : fourteenth report of session 2007-08 . Retrieved from https://publications.parliament.uk/pa/cm200708/cmselect/cmpubacc/85/85.pdf
  34. Top Ranked Programme- IEB Master in. International Finance. Top Ranked Programme: Madrid - Hong Kong - Philadelphia -. New York . Retrieved from https://www.ieb.es/estudios/masters,presenciales/international-finance/
  35. Topfer, K. (2000). The triple bottom line: economic, social, natural capital. UN Chronicle, 37(2), 39.38. Toronto2018 Operating & Capital budget. Retrieved from https://www.toronto.ca/legdocs/mmis/2017/bu/bgrd/backgroundfile-109625.pdf
  36. Ultsch, A., & Behnisch, M. (2017). Effects of the payout system of income taxes to municipalities in Germany. Applied geography, 81, 21-31.
  37. Vosoughi, F., Mozaffari, G., Papli Yazdi, M., & Hatami Nejad, H.(2015). Presenting a model for stabilizing the revenue system and financing of municipalities (Case study: Tehran Municipality). Journal of Geographical Research. quarterly.7,24-44. (In Persian)
  38. Yeganegi, B. (2015). Explaining the patterns of financing in the sustainable development of Tehran metropolis with emphasis on Bank Shahr. PhD Thesis. Field of Future Research. Isfahan Index Research Institute. (In Persian)
  39. Zarei, Mahla (2014). An analysis of the physical development of Mashhad with a sustainable development approach. Master Thesis. Department of Geography and Urban Planning. Faculty of Geography. University of Tehran. (In Persian)
  40. Ziari, K., Nikpey, Vahid., & Hosseini, A. (2012). Measuring the level of citizens' participation in urban management based on the model of good urban governance (Case study: Yasuj city). Journal of Housing and Rural. quarterly.141:69-86. (In Persian)

 

Financial Management Perspective
Volume 12, Issue 37
Spring 2022
Pages 37-68