Mesa = UnSustainable In A Growth Ponzi Scheme

 
 

We need new thinking inside City Hall - Who???????????
We often forget that the American pattern of suburban development is an experiment. We assume it is the natural order because it is what we see all around us.
What we have found is that the underlying financing mechanisms of the suburban era — our post-World War II pattern of development — operates like a classic Ponzi scheme, with ever-increasing rates of growth necessary to sustain long-term liabilities.
We've simply built in a way that is not financially productive.
Our problem is 60 years of unproductive growth — growth that has buried us in financial liabilities.
Background in 5 parts from this resource:
https://www.strongtowns.org/the-growth-ponzi-scheme/

Why might Phoenix and Mesa's suburban expansion and sprawl not actually be financially sustainable in spite of using some of the ten strategies and conclusions from Strong Towns?
For Capital Improvement Plans - CIPs - maintenance of infrastructure is the elephant in the room that cities simply can’t ignore any longer. In our current system, few if any cities have any clue of the scale of their commitments for infrastructure maintenance, when they will come due, what funding sources are relied on, etc… For any responsible budgeting effort, and if the long-term budget is to be sound, this information has to be
known ...at the same time what everyone admits is missing here in Mesa is a Public Engagement Platform – The American population is engaged online in nearly every aspect of their lives. Cities need to meet their people there and harness the collective intellect, energy and commitment people have for their own city.

Growth Ponzi Scheme

 

The critical assumptions to this strategy:

 

1. Either growth continues at ever accelerating rates   

 

or

 

2. The pattern of development ultimately generates more revenue than it costs to maintain.

 

Since the end of World War II, our cities and towns have experienced growth using three primary mechanisms:

 

Take a look at the Budget Pie Chart shown to see all the available resources for the current Fiscal Year 2016/17 Budget for Mesa to see how the pieces fit in three categories outlined below

 

 

Transfer payments between governments: where the federal, state and city government makes a direct investment in growth at the local level, such as funding a water or sewer system expansion - most of this goes to new master-planned communities and their real estate developers in East Mesa funded by taxpayer-financed municipal bond debt service 

Transportation spending: where transportation infrastructure is used to improve access to a site that can then be developed - residential and industrial/tech
Public and private-sector debt: where cities, developers, companies, and individuals take on debt as part of the development process

Maricopa County is currently the fastest 'growing' population area in the whole country - just like in a Ponzi scheme where a new influx is constantly needed to fund liabilities and obligations coming due.
Long-term liabilities are coming due now.



Dead Ideas• Our local financial problems can be solved by bringing in more growth.        
Dead Ideas• A large employer, particularly a manufacturer, will solve our financial problems.    
Dead Ideas• Property owners have a right to develop their property and the public then has an obligation to maintain the infrastructure.

STEP 1: Building an environment that captures a positive ROI

STEP 2: Leveraging Public Infrastructure

STEP 3: ReGeneration is Incremental Urbanism

STEP 4: Connect

BIG Concepts.
1. The current path cities are on is not financially stable.
2. The future for most cities is not going to resemble the recent past.
3. The main determinant of future prosperity for cities will be the ability of local leaders to transform their communities.