31 Jul '14 07:31>
Originally posted by normbenignI do not know how the finances are managed in the US, but it seems to me that if cities are failing and suburbs are booming then it is possible that cities are currently subsidizing the suburbs and this explains the problems.
That may reflect reality in Zambia, but here in the US cities generally seem to be having the financial problems, not suburbs. And where there is cost shifting, it is the cities benefiting and the suburbs paying.
It is a fact that cities are significantly more efficient. So either the people in the cities are a lot poorer, or they are subsidizing the suburbs. Possibly both.
I currently live in a block of flats. We have approximately 8 households for the same amount of land as a single household across the road. So all the utility companies have approximately 8 times lower infrastructure and maintenance costs for our block. We do not, as far as I know, pay significantly less for our utilities. Our road taxes are based on the car we drive and doesn't take into account our high density living. We pay the same school fees regardless of where we live etc.
I do not know what is paid in rates as I am renting and do not own the flat. I am guessing rates are based on property value which does not, in any way reflect the density of housing.