Significant changes are taking place in local communities at the various jurisdictional levels of government. And, a majority of the changes are related to revenue generation efforts by public officials. That’s because public funding, although stretched to the limit in most regions, no longer covers many critical government requirements.
The emerging changes are significant, and they should be noted. If nothing changes, the way governmental entities are funded in the future will have a different twist.
Because public budgets in many localities no longer cover critical funding needs, new revenue sources must be found. Some government leaders are embracing alternative funding—which means they will accept private-sector investment in large public projects and initiatives. Many others are repurposing public assets innovatively in order to generate revenue. A few governmental entities are using real estate development to develop new funding sources.
State legislators also are dealing with inadequate funding. Federal funding that once flowed to the states is much less today. Funding that states historically sent to cities and counties also has been curtailed. Public officials at the local levels of government are the ones being forced to be more innovative.
Changes in technology, security, education, and workforce development, as well as the requirements of global competitiveness, simply require more funding today. Aging infrastructure conditions are straining limited resources, and climate-related disasters have created even greater needs in many regions of the country. In many cases, public health and safety are at risk.
Citizens do not want higher taxes or more fees. Voters loudly proclaim that elected officials must not raise costs for them. But, the same citizens want to know that cybersecurity is not a threat to government data, that their drinking water is safe, and that funding for school safety is increased. They also want roadways and bridges to be maintained, expanded, repaired, and made safe, but without toll roads or any other revenue-generating expenses.
Not to be a bearer of bad tidings, but the funding issues, the changes and the critical needs that can no longer be addressed have created huge problems, and that’s why change is occurring. The changes are not all bad, but they are creating a continually evolving environment for taxpayers, government contractors, and public officials.
Here are a few examples of what is happening:
In an effort to generate revenue, the city of Indianapolis has announced plans to close 13 city-owned golf courses for repurposing. The courses selected to be closed are privately operated, but they need capital investment. A recent study noted that the city could generate more revenue by repurposing these public assets. Alternative options included amphitheaters, sports fields, motocross facilities, and horseback riding fields.
Additionally, the study suggested solar farms, wetland preserves, switchgrass farming, and other revenue-generating alternatives. Other options under consideration include a new aquatic center and several multi-use sports facility possibilities.
These types of decisions that public officials must make are a result of the need to yield income. This is commonly called ‘recycling of public assets’ to generate revenue.
In Tulsa, Oklahoma, a commission has recommended that a pedestrian bridge and event space be repurposed. The Cyrus Avery Bridge once had a rail line and two single lanes for autos that led into a venue for tourism and events. The space could be a source of new and increased revenue for the city, but the bridge will require a complete rebuild.
City leaders believe the project will cost approximately $26.6 million, but the potential new revenue source is attractive. Funding that will be required includes rehab costs, design work, and a new engineering study just to get started. The question now is whether to contract for this work or authorize another study to suggest repurposing options.
The New Jersey Economic Development Authority (NJEDA) recently announced that it will open its 21st Century Redevelopment Program to more types of projects. Initially launched in 2018, the grant funding program helps communities redevelop, repurpose, or revitalize greenspace or underutilized properties. In the future, the NJEDA wants to allow municipalities more flexibility in repurposing public assets so regional officials have an opportunity to launch projects that could potentially bring in new proceeds.
The city of La Crosse, Wisconsin, is discussing the purchase of a U.S. Postal Service facility with the hope of repurposing the building into a community market, a public safety facility, or a combination of the two. An offer has been extended by the city to purchase the property. Plans are on hold temporarily until an agreement is reached. The postal operations could be moved or merged, but it appears that there is a significant effort to do some major repurposing of public assets that will benefit the city.
After years of debate related to relocating the Baton Rouge Zoo, the Recreation and Park Commission for the Parish of East Baton Rouge, Louisiana (BREC), recently announced its plan. A repurposing of the 18-hole Dumas Memorial Golf Course will be launched as part of a large-scale 600 acre-plus renovation project. That will include the zoo property and the adjoining Greenwood Community Park.
One high priority is to regain the zoo accreditation that was lost in 2018. Additional plans include a new $2 million giraffe exhibit, an underwater exhibit for pygmy hippos, and the expenditure of million dollars for a new parking lot and road improvements. BREC plans to retrofit the park for activities that will attract more people. Options include adding an outdoor musical venue, improving sports fields, and possibly increasing the size of the lake for kayakers. Initial estimates place these projects in the $25 million-$45 million range.
These types of repurposing projects are common throughout the country. They hold great promise for private-sector firms interested in finding innovative ways to partner with governmental agencies. Watch for similar initiatives in a nearby community in the very near future.
(Featured image by DepositPhotos)
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
Why is the stock market up?
A global pandemic. The President impeached. Raging wildfires across the west coast. Riots throughout major cities. The Olympics cancelled. The...
The biotech sector in Bavaria has strongly developed over the last years
Bavaria has been able to establish itself as a location for biotechnology and innovation in recent decades. However, at an...
How the coronavirus pandemic impacted the German Fintech sector
The coronavirus pandemic has clearly affected the Fintech sector in Germany. However, some of the companies that are currently struggling,...
What’s the problem with the Dow Jones? Maybe it’s overvalued
So far, the Dow Jones has yet to exceed the high of its current advance on August 3rd. Who knows...
Fruitbox Africa: Frankfurt investor and Siemens to create jobs in Ethiopia
The Frankfurt investor Lutz Hartmann and the technology giant Siemens want to invest in Ethiopia. Creating jobs, training young people,...
Featured6 days ago
Qonto registered over €900 million value of transactions on Italian current accounts
Cannabis7 days ago
Cannabis light company to sponsor Italian soccer league teams
Crypto7 days ago
Why are Ethereum fees higher than Bitcoin ones?
Business7 days ago
XRApplied sitting pretty on the precipice of the XR boom