Only for Expert in Public Administration (Texas), (comprehinsive exam) Assignment - 1

Only for Expert in Public Administration (Texas), (comprehinsive exam) II part - Assignment Example The local governments on both secured and unsecured property on the other hand levy property taxes. Other taxes for local governments come from franchise fees, business license tax, parimutual taxes and many others. The third main source is from licenses, permits, fees, and receipts. These rates are charged from all manner of contractors within the locality (Aronson & Schwartz, 2007). Local governments also source their finances from both external and internal loans to finance projects. The external loans are sourced from banks or financial institutions while the internal loans are sourced from their own internal savings such as the capital development funds or the Consolidated Loan Fund that form part of the internal loans for a local government. While the internal loans are quite cheap hence can be afforded to finance the budgets, the external loans are expensive since they attract high interest rates hence not a wise way of financing a capital budget. The local governments also get fund from the contributions from revenues which results as a result of purchasing a capital item, it pays from the operating income from the year of purchase and it is used to pay for small capital items in most localities given that it does not attract any interest payments (Aronson & Schwartz, 2007). National governments may also extend grants to local governments on application w hich if combined with donor funds form a substantial source of revenue to help in incurring developmental and capital expenditure. The sources of funding a local government can therefore be categorized into two major categories namely, government transfers and the revenue instruments that the government controls hence its empowered to raise its own revenue as discussed above. As indicated above some municipal services are paid for by the individuals or the public who use them. The charges by the municipalities on the services are called† tariffs† and the tariffs should be affordable both