Running Head: Public Administration and Organizational Interactions
Over the years, the city of Townscape has experienced rapid growth and popularity that has attracted many settlers. This has demanded for major improvements and long-term strategies that will accommodate the increasing needs of the people. As a council-manager form of government, it is within the city’s jurisdiction to make decisions regarding its economic management. Therefore, putting into consideration its finances earned through taxes and the annual budget, real property investment will go a long way towards improving the earnings of both the residents and the council government. However, to achieve this, they must be willing to take measures that will be attractive to the potential investors and property developers.
For the city council to improve its revenue, more income generating activities have to be generated. Different types of taxes also have to be introduced and this can be done by diversifying their activities. Awarding a contract to a builder to construct a mall in the city will enable them achieve the objective of increasing revenue sources. This decision has to be accompanied by concessions from the city management because the builders need motivation and the government is the long-term beneficiary. This decision is justified because; the existence of the mall will attract property tax from the mall owner. Businesses that will be run there will also pay tax as well as on the income of the business owners, thus more revenue. Aside from motivation to the builders, the concessions will yield better infrastructure, working conditions and essential service provision to the residents (Sinha, 2005).
The economic and political empowerment work hand-in-hand. Research has proven that economic power leads to political power and vice versa (Sinha, 2005). Where the Townscape city will provide sufficient finances to the American government at large, they will have influence that is more political. The attraction of the land builders and investment in the real estate will give them economic security, thus political influence.
With the new venture, the people of Townscape will be economically empowered. The Townscape city council will also be in a better position to provide for its residents the basic public services such as transport and proper medical care.
The investors may have extreme demands, which can be overburdening to the government. It is however advisable to prepare for concessions in advance before the invitation is made for the builders. According to Cohen, (2002), “Concessions that are planned ahead of time are far less painful than concessions you yield under pressure” (Pg 164). These measures may be frustrated when the builders expect much more compromise than they are already granted. It may cause an economic crisis as well for the state.
Townscape city council may need to adjust their governing system to suit the new changes and intended economic boost. The organizational structure should be able to handle the increased investment to avoid frauds, tax evasion and illegal trading. Procedures, rules and regulations should be more comprehensive to allow settlers to cope with the legal requirements and avoid confusion since an economically stable city will attract many investors.
A compulsory change in organizational structure is necessary for flexibility in revenue collection and management. This is due to the increase in tax sources, which are of different types and will need proper evaluation to avoid evasion. Real estate investment is likely to benefit Townscape because the risks are minimal and are overweighed by the advantages. Flexible governance will also ensure open-mindedness to business opportunities, thus more long-term investment projects. Similarly, where concessions are considered as a long-term investment, the government is likely to gain more than where they are denied.
Cohen, S. (2002). Negotiating Skills for Managers. Briefcase book. New York: McGraw-Hill.
Sinha, A. (2005). The Regional Roots of Developmental Politics in India: A Divided Leviathan. Bloomington, Ind: Indiana university press.