In Part 1 of “The Flow of Money, Explained” (Sep/Oct 2009), we learned “what” the flow of money is and how it functions (like a bucket) in a local economy specifically Leander. In Part 2 of our three part series, we address in greater detail “why” the flow of money is important; to you, your family and neighbors, and how it impacts our quality of life in Leander.
This depends on the amount and rate of money flowing into the community’s bucket of wealth. It begins with the quality of businesses retained, expanded and relocated to the community. Quality jobs and capital investment that
diversifies the tax base are critical. They form the foundation of a sustainable community.
This economic base fosters an environment whereservices can be maintained and enhanced. There are four revenue sources a municipal entity receives: property and sales tax, permits and fees and transfer payments. This revenue is used to fund public safety (emergency medical services, fire and police), infrastructure (streets, water and wastewater), parks and recreation, administrative support and other support services, or expenses of a community. These municipal services are in place to ensure the safety and welfare of residents.
The better quality and more diverse the business community, the more diverse and thorough the services provided. A broad base of businesses enables the community to weather the cyclical nature of the economy. This is due in large part to supply-and-demand, raw material availability and consumer’s ‘fickle’ nature. The diversity of the business community ‘flattens the curves’ of the up-and-down rises in the economy. This revenue consistency ensures continuity of community service delivery.
In addition to diversity of the business base, another question pondered by civic and business leaders is the quality of the money that flows through a community. Does a community pursue job creation and capital investment with
no regard for salary, benefits and quality land use? Or, does a community pursue job creation and capital investment that fosters a sense of place, diversity and the highest-and-best use of property? Part of the equation with sustainable, long-term economic development is to measure the cost of
doing business for a City with the return on investment.
Why the ‘flow of money’ is important to a community has to do with the quality and diversity of community services delivered to residents and visitors. It is based upon sound economic development practices that pursue a diverse economic base. This in turn provides a foundation for quality community service delivery that fosters a sustainable community where residents and visitors can live, work and play. | 
