Changes in the financing of municipalities and local governments of selected cities: possible effects on disintegration processes and municipal policy

Abstract

There was significant reduction in number of municipalities in the Czech Republic in the era of 
\nsocialism. This is a consequence of the application of the central system of settlement, which 
\nwas based on Christaller’s theory of central places. In connection with the changes after 1989, 
\nthere was disintegration of such integrated communities and the situation has stabilized. Number of 
\nsmall villages were renewed but cities with hundred thousand inhabitants (population of these cities 
\noscillates around hundred thousand inhabitants) did not experience such process. Due to this fact 
\nthe big cities in the Czech Republic are typical for their larger size because they also administrate 
\nsmaller residential units of rural character, often many kilometers from the city centers. These 
\nadministrative parts of the cities are managed in different ways. In connection with the manifestations 
\nof suburbanization during the past twenty years, the transformation of the social structure of the 
\ninhabitants in these “suburbs” and changes in rules of municipal budgetary allocation of taxes 
\n(hereinafter BAT) there is the question of sustainability and stability of thus de
\nfi
\n ned borders of 
\nmunicipalities. The paper presents opinions on the development of 
\nfi
\n nancing system and attempts 
\nto analyze the motives of the peripheral parts of selected cities with hundred thousand inhabitants 
\nto remain part or separate from these cities. In connection with changes in the BAT made on 1st 
\nJanuary 2013, the 
\nfi
\n nancial motive can have an important role. The main aim of the paper will be 
\na comparison of the current 
\nfi
\n nancial income of these municipalities with previous periods in relation 
\nto changes in the BAT and assess the impact of these changes on the potential disintegration 
\nprocesses and municipal politics. Process of urban disintegration and creation of a new municipality 
\nis not easy and is provided for in the legal system of the Czech Republic. The paper also gives an 
\noverview of this legislation. Authors focus on the cities of Olomouc and Pardubice.