Financial Strategies for Urban Development in Parramatta, NSW

This report assesses the feasibility of investments and the utilization of their value in Parramatta CBD, a suburb of Sydney, Australia. It identifies potential funding activities beyond traditional government initiatives, emphasizing the need for investments in infrastructure like wider roads and bicycle lanes, as well as schools and security services. The report distinguishes between activities and flows that should be encouraged, such as public and private investments in infrastructure and recreational spaces, and those that should be discouraged, like heavy vehicle traffic and unlicensed activities. It proposes a tax structure to maximize urban outcomes and minimize negative externalities, including property, retail sales, parking, and development taxes. The ultimate goal is to enhance the value of Parramatta CBD's assets, attract foreign direct investment, and increase future returns on present investments, all while promoting sustainable urban development. Desklib is a platform where students can find similar solved assignments and study tools.

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Running head: FINANCING CITIES IN THE GLOBAL ECONOMY
FINANCING CITIES IN THE GLOBAL ECONOMY
Name of the Student
Name of the University
Author’s Note

1FINANCING CITIES IN THE GLOBAL ECONOMY
Table of Contents
Introduction......................................................................................................................................2
Potential Funding Activities............................................................................................................2
Activities and Flows that should be encouraged.............................................................................4
Activities && Flows that should be discouraged............................................................................5
Feasible Tax leverage to achieve enhancement of urban outcomes in Parramatta CBD................7
Revenue Stream...............................................................................................................................9
References......................................................................................................................................12

2FINANCING CITIES IN THE GLOBAL ECONOMY
Introduction
It is important to assess the feasibility of the investments that are being made and to
utilize their value in the most effective manner so that the future earnings that gets generated
from the investment should be equal to or more than the present valuation of the investment.
Financial effectiveness in the context of globalization and market expansion requisites such sort
of perspective to ensure sustainability of investments made coupled with addition of value by
those investments. One of the prominent suburb of Sydney is Parramatta in the province of New
South Wales, Australia that is located beside the Parramatta River and is considered as the
second CBD in Sydney which was founded in 1788 by the British (Castellas, Ormiston and
Findlay, 2018). It is regarded also as the economic capital of Sydney as it possess opportunities
for businesses, possess the oldest public building of Australia and have the ninth largest
shopping center of the country. The city is in the process of rejuvenating its transport system.
Specifically empowering the service distribution system for buses, trains, light rails, ferry wharfs
and metros. It is also in the process of implementing its operational plan for channelizing the
tourist’s pool in the suburb of Parramatta and smoothing the flow of people in the crowded
points of the suburb in the rush hours. Delving into the issue it can be put forth that the objective
of the study is to understand the existing scope of funding in activities that will ensure that the
development of the city of Parramatta (Godfrey and Zhao, 2016).
Potential Funding Activities
Apart from the traditional activities that are undertaken by the government to ensure
development of the Parramatta CBD area there exists other activities to channelize the flow that
will circumscribe the betterment of the area as a whole. The funding of the activities should be
incorporated in the budget and appropriate funds should be allocated accordingly so that the

3FINANCING CITIES IN THE GLOBAL ECONOMY
utilization of the funds ensures significant better off of the area without worsening off other
parametric factors that influences the flow and activities of the area (Floater et al., 2017).
Notably, investments are necessary to be made to generate passageway by the street and broader
roads. Since, this will not only improve the pathways for better movement by pedestrians but
also will enhance the comfort level and walking speed of them. Along with that, older people
travelling in wheel chairs will be able to comfortably travel with ease. Moreover, increasing the
width of the passageway will ensure movement of a greater volume of people at a point of time
who are specifically non-car road users (Brodnik, Brown and Cocklin, 2017). These flows should
be encouraged though flow of heavy vehicles should be discouraged by implementing tools in
the CBD roads. Average speeds of traffic should be set to a limit and pick traffic noise should be
estimated so that it would not asked a permissible level. Much more environment friendly
bicycles should be encouraged and the north-south and east – west should be connected with
bicycle’s friendly lanes. These will provide a structural framework to the process of urban
development in the areas of Parramatta encouraging a favorable outcome.
It will be beneficial for the people of Parramatta to invest in building schools at equal
distance based on the aspect that not a single people should miss the opportunity to study from
their early age. Pupil whose family haven’t the ability to fund their study should be sponsored
and encouraged to increase their flow in schooling and lessen the number of dropouts (Hsu,
2016).
Security services should be funded in order to render emergency response to the people
of Parramatta whenever required. Cybercrime departments should be boosted at a larger scale
followed by online alerts system to ensure that the reflex of the emergency service system should
get effectively maintained.

4FINANCING CITIES IN THE GLOBAL ECONOMY
Activities and Flows that should be encouraged
Encouraging the flow requires implementation of activities that should attract both public
and private investments (Jillella et al., 2016). The process of public investment is oriented with
fulfilment of generating growth in the market by smoothening the flow of the mass through
optimizing the network connections while the process of private investment will be concerned
with ensuring growth in overall production which will support in falling of average cost of
production through specialization and implementation of the Adam Smith’s notion of division of
labor (Lin and Zhang, 2015). To channelize the flow it is required that appropriate structural
framework should be incorporated followed by sequencing and coordinating within the networks
that needs to arrange in an ordered manner. Funding this infrastructure may enhance the public
expenditure though the cost incurred will due to this public welfare investment and development
initiatives should render value in the long run (McIntosh, Trubk and Newman, 2015). The
activities that should be encouraged will provide free flow of people and will be able to regulate
the volume of flow through the passageway rendering positive externalities. Monopolistic market
will get decentralized and economic value of public goods and services will be in exclusive use
in terms of production, consumption and exchange throughout the suburb of Parramatta. Ditto is
the type of infrastructure for goods and in case of transport funded activities that should be
encouraged comprises of the pathways, roads, airports and railways. The network structure will
provide a free and fast flow of the population throughout the city as well as generation of
awareness will raise the socio-cultural value extensively (O’Neill, 2017). Encouraging
investments in parks, recreational places, grounds for sports activities, etc. will not only improve
the cultural ambience of the city but also will boost the environmental flow drastically. Other
than that personal needs of people should also get attention for investment regarding providence

5FINANCING CITIES IN THE GLOBAL ECONOMY
of health related gym and other facilities, religious places, etc. The non-capitalist flow will thus
get channelized through a proper distributional network system apart from the government
administrative places and corporate areas within the urban hierarchies (Paolucci and García-
Goñi, 2015). The urban infrastructure if thus be distributed through these network structure will
help in setting credible supply chain and logistic services in processing the raw materials that are
used as inputs in the production of goods and services (Peng and Chen, 2016). All these
aforementioned flows along with flow of energy that relates to water flows, irrigation system,
telecommunication flows, etc. are complex but to ensure that they are simplified and their
difficulty levels are lowered requires implementation of proper infrastructural platforms and
operational effectiveness.
Activities && Flows that should be discouraged

6FINANCING CITIES IN THE GLOBAL ECONOMY
The number of heavy trucks have been reduced which is a good thing but bicycles are
reduced by 67 units which is not appropriate. The use of bicycles usage should be increased
followed by reduction in Trucks, Wagons, Lorries and other heavy vehicles by incorporating toll
taxes. People who are no able to reach offices due to congestion and jams and due to distant
homes preferred not to work which has enhanced by 314 units. Notably, it is been seen from the
table that there exists lots of resources within the city of Parramatta (Pojani and Stead, 2017).
However, proper channelization and optimal distribution of the resources is not maintained.
Allocation of reasonable funds is necessary to optimize the distribution system and systematize
the flow of vehicles through the passageways. It is been seen that in comparison to 2006 and
2011 the number of trains have increased by 4, 751 units. While the number of buses in
Parramatta have also risen by 1558 units. Only one ferry or tram has increased while 57 units of
taxis are reduced. Personalized cars have increased by 4916 units having sole ownership of the
cars to the citizens of Parramatta.
It is important to streamline the flows and hence besides encouraging certain flows and
activities it is also required to discourage some flows and activities that works as constraint in the
process of urban development. As an instance, tolls should be taken in order to reduce the flow
of heavy vehicles and limit its flow up to a controlled level (Regan, Smith and Love, 2017).
Discouraging unlicensed activities and removing negative externalities are important.
Specifically, dust from construction works and from excessive traffics should be reduced as it
will improve public health as well as will add value in the process of environmental
conservation. Wastage of resources, foods, etc. should be discouraged and channelization of
them in rightful manner is important followed by enhancing the security of food preservation
which ensures that good quality foods are being consumed within Parramatta CBD. Congestions

7FINANCING CITIES IN THE GLOBAL ECONOMY
should be discouraged which will be possible by effective monitoring of traffic movements. It
will also take care of the movement of non-human species through the passageways. Installation
of cameras will support the process of regulating traffic flows within the main roads that
connects multiple routes (Shoory, 2016). This will improve the flow of traffic volume at a point
of time and will accelerate the reduction in traffic jams.
Feasible Tax leverage to achieve enhancement of urban outcomes in Parramatta CBD
The tax that would be incorporated in order to maximize the urban outcome in all kind of
public services along with minimizing the negative externalities (Tomlinson, 2017). Moreover,
creation of value and capturing the value will hugely increase the surrounding values of the lands
of Parramatta CBD (Sassen, 2016). The value capture mechanism will encourage foreign direct
investments and will enhance the probability of rise in the valuation of the assets that Parramatta
possess or create. Possibility of greater revenue generation and increasing the returns of present
investment in terms of future returns will greatly rise. The tabular formulation of the tax system
can be incorporated as follows:
Structure Property
Development
Tax rate 15
%
Retail sales
Tax 10 %
Parking
Levies 12 %
Capital Gain
Tax 30 %
Toll tax rate
20 %
Fixed Assets $ 10 less 15
% tax = $ 8.5
$ 10 less 10
% tax = $ 9
$ 10 less 12
% = $ 8.8
$ 10 less
30% = $ 7
$ 10 less 20
% = $ 8
Heavy
Vehicles
$ 8.5+ $ 1.5
= $ 10 less
$ 9+ $ 1 = $
10 less 10 %
$ 8.8+ $ 1.2
= $ 10 less
$ 7+ $ 3 = $
10 less 30%
$ 8+ $ 2 = $
10 less 20 %

8FINANCING CITIES IN THE GLOBAL ECONOMY
15 % = $8.5 = $9 12 % = $ 8.8 = $ 7 = $ 8
Parks,
Swimming
Pools
$ 10 less 15
% tax = $ 8.5
$ 10 less 10
% tax = $ 7
$ 10 less 12
% = $ 8.8
$ 10 less 30
% tax = $ 7
$ 10 less 20
% tax = $ 8
Hotels $ 10 less 15
% tax = $ 8.5
$ 10 less 10
% tax = $ 9
$ 10 less 12
% = $ 8.8
$ 10 less 30
% tax = $ 7
$ 10 less 20
% tax = $ 8
Wastage of
foods and
Environment
$ 10 less 15
% tax = $ 8.5
$ 10 less 10
% tax = $ 9
$ 10 less 12
% = $ 8.8
$ 10 less 30
% tax = $ 7
$ 10 less 20
% tax = $ 8
The amount of taxation considering an arbitrary amount of $ 10 is being shown in the
table while based on the aforementioned data of Parramatta, 2011 report, the following
accumulated amount can be gather as shown below which can again be reinvested based on its
future earnings and financial return for ensuring the development of the city (Turnbull, 2017).
Structure based
on 2011 data
Number of entities in the
city
Toll Tax 20
%
Property
Developmen
t Tax 15 %
Sales Tax
25 %
Fixed Asset 68990 1034850000 172475000
0
Parks 47 705000 1175000
Heavy Vehicles 54656 1093120000 819840000 136640000
0
Swimming
Pools 113 1695000 2825000
Hotel 38 570000 950000
Wastage of
Foods &
Environment
1340 20100000 33500000
Total 6100480000 1093120000 1877760000 312960000

9FINANCING CITIES IN THE GLOBAL ECONOMY
0
Revenue Stream
The stream of income acquired through taxations and fees charges are accumulated and
reinvested to channelize the revenue stream in the city of Parramatta and ensure that
development the city is implemented by allocation of funds and optimized utilization of them
with managerial effectiveness. The calculations can be shown as follows:
C
on
st
an
ts
2012 201
3
201
4
201
5
201
6 2017 2018 201
9
202
0
202
1
202
2
Initial
investme
nt
6 ,100 ,4
80 ,000
Revenue
Total
Asset
fees
100
,00
0
200
,00
0
250
,000
300
,00
0
350 ,
000
350 ,
000
400
,000
420
,000
440
,000
480
,00
0
Taxable
Income
750
,00
0
Total
income
850
,00
0
200
,00
0
250
,000
300
,00
0
350 ,
000
350 ,
000
400
,000
420
,000
440
,000
480
,00
0
Total
income
inflation
adjusted
825
,24
3
190
,36
7
231
,028
271
,79
8
313 ,
958
310 ,
850
350
,007
363
,868
376
,675
402
,86
1
Expendi
ture
cost of
capital 549 549 549 549 549 , 549 , 549 549 549 549

10FINANCING CITIES IN THE GLOBAL ECONOMY
,04
3 ,2
00
,04
3 ,2
00
,043
,200
,04
3 ,2
00
043 ,
200
043 ,
200
,043
,200
,043
,200
,043
,200
,04
3 ,2
00
maintena
nce and
depreciat
ion
91 ,
507
,20
0
183
,01
4 ,4
00
183
,014
,400
183
,01
4 ,4
00
183 ,
014 ,
400
20 ,0
00
20 ,
000
20 ,
000
20 ,
000
20 ,
000
operating
costs
650
,00
0
663
,00
0
682
,890
696
,54
8
703 ,
513
710 ,
548
721
,207
728
,419
737
,160
751
,90
3
Total
expendit
ure
641
,20
0 ,4
00
732
,72
0 ,6
00
732
,740
,490
732
,75
4 ,1
48
732 ,
761 ,
113
549 ,
773 ,
748
549
,784
,407
549
,791
,619
549
,800
,360
549
,81
5 ,1
03
Total
expendit
ure
inflation
adjusted
622
,52
4 ,6
60
697
,43
0 ,6
11
677
,135
,479
663
,87
0 ,6
86
657 ,
303 ,
957
488 ,
277 ,
214
481
,070
,621
476
,313
,794
470
,673
,287
461
,45
6 ,7
73
cost of
capital
(fixed i)
0.
09
inflation
0.0
3
0.0
2 0.03
0.0
2 0.01 0.01
0.01
5 0.01
0.01
2
0.0
2
Price
index
number 100
103
.0
105
.1
108.
2
110
.4
111.
5
112.
6
114.
3
115.
4
116.
8
119
.1
maintena
nce and
depreciat
ion rate
0.
01
2
Income -
Expendi
ture
621
,69
9 ,4
17
697
,24
0 ,2
44
676
,904
,450
663
,59
8 ,8
88
656 ,
989 ,
999
487 ,
966 ,
364
480
,720
,614
475
,949
,925
470
,296
,612
461
,05
3 ,9
12
Net
present
value
5 ,692 ,4
20 ,426

11FINANCING CITIES IN THE GLOBAL ECONOMY
The diagrams and the computation showed that the investments made to develop the city
of Parramatta if gets optimally utilized and the investments gets channelized in the appropriate
way then the future value of present investment will provide a valuation for the city. Thee yearly
investments after the initial investment will be accompanied by yearly earning considering all the
income and expenditures necessary to ensure development of the city through appropriate
financial initiatives.