Public Financing of Urban Development

Urban Planning

Spring 2013

Richard Froehlich, instructor, with Nannan Xu

Public Financing of Urban Development was an introduction to how public entities finance urban development on a pay as you go budget basis and by issuing public securities. We examined how public entities leverage limited capital resources through the issuance of debt, including a review of limitations put on such debt. We discussed current economic conditions, debates about Federal programs, debt and current issues in funding governmental activities We explored the limitations of tax exempt financing. By examining different financial tools we reviewed how investment is made in mass transit, health care facilities, schools, public utilities and housing. The class also delved into rating agency requirements, security disclosure rules, current market dynamics and the mechanics of offering bonds for public sale. Students had an opportunity to discuss criticism of public financing as well as failures and bond defaults. Students were expected to review financial information for actual finance transactions being marketed in the public markets. The course consisted of a mix of lectures, class discussion and group presentations. Students were evaluated on a short paper delivered prior to mid-term, a group presentation to the class on a topic that relates to public finance, a final paper and class participation.