Investigating Solutions for Sustainable Financing in Municipalities Case Study: Sari Municipality

Mohsen Monfared Hemmatabadi¹ Ali Gorji Karsami²

1) M.A. in Business Management, Finance Concentration, Islamic Azad University, Babol Branch
2) M.A. in Accounting, Islamic Azad University, Science and Research Branch, Tehran ?

IOI Code : ABFK-ABFDGC
Publication : The third international conference on new researches in management, law, humanities and entrepreneurship(icmlhe.ir)
Abstract :
    The present study aims to evaluate and explain efficient methods for providing sustainable financial resources in Sari Municipality to present a localized model for achieving financial sustainability in urban management. This study is applied in terms of its purpose and descriptive-survey in terms of implementation methodology. The statistical population consists of 518 personnel and managers working in Sari Municipality. Using Morgan’s table, a sample of 217 individuals was selected through random sampling. Data were collected using a researcher-made questionnaire, the reliability of which was confirmed by calculating Cronbach’s alpha for the main components, yielding values between 0.79 and 0.83. To analyze the collected data, the Pearson correlation test and Structural Equation Modeling (SEM) technique were employed. The findings revealed that the financial sustainability of the municipality has a positive and significant relationship with factors such as diversifying revenue sources and private sector participation, along with reforming the municipal tax collection system and improving financial transparency. Furthermore, the coefficient of determination in the structural model was reported as R^2 = 0.64, indicating that the research variables are capable of explaining a significant portion of the variance related to urban financial sustainability. The obtained results emphasize that traditional methods relying on unsustainable revenues from the construction sector are no longer effective and must be replaced by sustainable sources such as local taxes and participation bonds, alongside joint private sector investments. Based on these achievements, it is suggested that a comprehensive system of sustainable urban revenue be developed and, while reforming regulatory mechanisms, actions should be taken to expand modern financial instruments. The focus of this research on Sari Municipality can provide a suitable framework for achieving sustainable urban financial management for other cities in Iran.

Keywords : financial sustainability revenue diversification public private partnership financial transparency