Question

what are the greatest challenge to municipal finances in the next 5 years and how would you address it?

Answer 1

As at the present time, the spread of COVID 19 has imposed a lot of burden on the financial stability of both the local and federal government, thus the main area of concern for the municipal finances in the next 5 years can be seen as the availability of the funds for the various operations. The main sources of municipal funding are taxes, property taxes, utility tax, and other types of services. As the purchasing power of the citizens is also reduced then the chances are more than most of the house and property taxes are going to be unpaid and this will put a lot of restrain on the funds' availability to the local authorities. Apart from this, increased health expenses, local unemployment can also be resulting in some sort of financial problems.

In order to overcome this problem, it is advised that the local authorities must provide the impetus for the businesses and shops to open more new ventures as this will help in generating revenues. Apart from this, the authorities can provide more advertising space to generate more revenue from the advertisements. The authorities can also think of increasing taxes on the various utilities