Are there tax incentives available?
Are there jobs? Where are they?
How is it taxed?
Do we need state or federal help?
Do we want to create a new one?
Are the resources available?
What are we planning out for financing?
This is an important step in understanding what a new municipality can offer. But the next step is to think about how a municipality will look once it’s born. And that goes beyond the basic questions of “Does it look like an old municipality?” or “Do we need to change a lot?” These are the crucial questions for municipalities and their planners.
There are many factors that shape the municipal character. For instance, a municipality with a diverse economy could be one built on trade, industry, service, or education. In that way, a municipality with great business opportunities could be a city that was previously a low crime area or rural region of the country. A city that has an excellent transit system could be a very important part of a global city hub. And so on. In fact, the best way to find the answer to all the questions is to look for those trends as the municipality grows.
A municipality that is already growing could have two key features: great opportunities and strong leadership. The great opportunities include a wide variety of uses for money. There could be a new business and a local business. There could be high tech or high culture. There could be a high income job sector or a low income job sector. There could be an established middle class. There could have a high population or a low population. Some of the great opportunities might be in areas of growing income. A municipality that is growing may need to create a new economic hub.
Another important feature is a strong leader. A strong leader would have both the ability to move resources, and also to direct resources from many different sources to support the growth effort. This leader could be a mayor or a city manager, or even a team of staff members that would manage a new municipality.
So, just to give you a sense of the possibilities, let’s look at three key questions in a nutshell. They could be in our hands if we want them.
Should the tax rate be lower or higher?
You’ll hear often the claim that local tax rates should be lower. This is almost always a false claim, because the local tax rate is determined by the state and the municipality. The more taxes the municipality
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