The relationship between the quality of urban services and the willingness of citizens to pay renovation and urban development fees (a case study of Astana Ashrafieh)

Number of pages: 141 File Format: word File Code: 31178
Year: 2013 University Degree: Master's degree Category: Management
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  • Summary of The relationship between the quality of urban services and the willingness of citizens to pay renovation and urban development fees (a case study of Astana Ashrafieh)

    Academic Thesis for Master's Degree

    Financial Orientation Business Management

    Abstract

    Renovation and urban development is considered one of the most stable and healthy sources of income for municipalities, which is received from citizens according to the Urban Renovation and Development Law (1347). However, an important and significant part of the renovation and urban development fees are not paid by the citizens, and for various reasons, the citizens do not want to pay such fees and legal funds. The low quality of urban services from the eyes of citizens can be one of the reasons for this reluctance. The main purpose of this research is to study the relationship between the quality of urban services and the willingness of citizens to pay for renovation and urban development in Astana Ashrafieh. This research is a descriptive research with 6 hypotheses regarding the relationship under discussion.

    To collect data about the quality of urban services, a Serqual questionnaire was used, and a researcher-made questionnaire was used to measure citizens' willingness. The statistical population of this research was 384 citizens of Astana Ashrafieh, who own at least one residential or commercial unit or a plot of land with residential use, within the city limits and have visited the municipality at least once. The findings show that according to the citizens, the quality of urban services as well as their willingness to pay urban renovation and development fees is below average. An increase or decrease in the quality of urban services will not affect the increase or decrease in the willingness of citizens to pay urban development and renovation fees, and vice versa.

    Some different reasons help, and in this situation, more research is needed. However, according to the analysis of citizens' willingness to pay tolls as well as the results of previous studies, it can be concluded that the willingness to pay tolls is primarily dependent on a mental preparation influenced by the atmosphere governing relations between citizens and local authorities, the atmosphere governing social norms through group relationships and organizational networks, as well as the personal norms and beliefs of citizens. Therefore, the first step of urban management should be in order to increase citizens' awareness of the functions of urban renewal and urban development law and the constructive role of timely payment of these costs in urban development and development. Keywords: urban renewal and development costs, quality of urban services, willingness to pay, SERVQUAL model, urban management. Chapter 1. Research overview.

    1-1- Introduction

    After the formation of life and with the passage of time, the mutual relationship of humans in the social, economic, political and other fields. . .  It became more complicated. (Barimani, 2013, p. 126) Economic developments, the expansion of commercial industrial centers and the phenomena caused by the advancement of technology in cities, created many issues and problems for urban life. (Tahiri, 1377, p. 10) and made it necessary to form organizations to produce goods and services and accept the responsibility of managing citizens' lives. (Golabi, 1379, p. 114) The creation of an organization called the municipality was the most excellent plan used by the civilized world to respond to the countless needs and expectations of city dwellers. (Tahiri)

    Today, municipalities have a continuous and close relationship with the general public and provide services in various sectors, such as issuing permits and building permits for high-rise and ordinary buildings, issuing and modifying the final design and non-contradiction certificates for ordinary and high-rise buildings, issuing permits for separation, change of use and walling, payment of various taxes, acquisition licenses, transactions, violations and other matters related to the city. The users and beneficiaries of these services also pay their share of the costs they impose on the city in the form of "complications" based on the two principles of equality and social justice.  

    1-2- Statement of the problem

    Increasing desire for urbanization and the consequent increase in city administration costs, as well as problems caused by the heavy dependence of municipalities on unstable and unhealthy sources of income, including complications related to building permits and crimes of the Article 100 Commission, which has created an unfavorable situation, have prompted city officials and managers to try to use sources of income, which are for municipalities in terms of providing Finance has a high, continuous and stable capacity and is desirable from an economic point of view..

    Examining global experiences and studies conducted on the effects of renovation in the world, including studies by the World Bank, also show that property taxes (effects of renovation and urban development) are a potential side tool in financing local governments in developing countries. This tax as a source of income can provide access to a broad tax base for municipalities. However, the yield of property tax in developing countries is very small and its share is usually less than 20% of municipal revenues. (Valikhani Dehaqani and Tabatabaei, 2013)

    In Iran, according to the available studies (Hassanzadeh and Khosrowshahi, 2013), for the years 2014 to 2015, 99% of the revenues obtained by Tehran Municipality are related to building permit fees or, in other words, the sale of density, and only 1% is related to other types of taxes.  Also, another study (Hashmi and Taherkhani, 2017) indicates that during the years 1371 to 1385, taxes on construction accounted for more than 75% of the revenues of Tehran Municipality. Also, in the period from 1380 to 1388, Isfahan municipality obtained an average of 49.2% of its income from the sale of surplus and generally 76% of its income from construction tolls. On the other hand, the most important and appropriate type of revenue for municipalities, which is renovation and urban development fees, mainly has limited figures, so that the share of these fees during the mentioned period was on average around 1.4%. (Farji Melai and Azimi, 1390)

    In Astana Ashrafieh (the city studied in this research), based on the information obtained (Table 1-1) for the years 1386-1390, 54.4 percent of the total revenues of Astana Ashrafieh municipality are related to building permit fees (including fees on excess density, fees on separation of land and buildings, fees on balconies and parking lot removal fees) and 5.5 The percentage related to the commission fine of Article 100 and 5.6% related to renovation and urban development fees and 34.5% related to other incomes, including taxes on real estate transactions, taxes on the sale of goods and services, annual car taxes, etc. . . is With the approximate statistics of 20,000 registered license plates including buildings, shops and land in Astana Ashrafieh city and assuming an average annual fee of 500,000 Rials for each license plate, the share of renovation and urban development fees in Astana Ashrafieh should be at least 10,000,000,000 Rials per year (assuming that new constructions remain constant), which according to the available statistics, only 25% of these fees have been received. is  

    (Tables are available in the main file)

    Also, by comparing the amounts collected for renovation and urban development fees with the amount of fees on real estate transactions, during the years 1386-1390 (Table 1-2), when citizens are forced to refer to the municipality for the transfer of their properties and based on legal inquiries, it can be concluded that the amounts collected for renovation and urban development are mostly It is forced. Because the citizen will not be able to buy and sell his property without settling the debts of renovation and urban development charges.

    (tables are available in the main file)

    Therefore, an important and significant part of the renovation and urban development charges are not paid by the citizens, and the citizens do not want to pay such fees and legal funds for various reasons, and in cases where the desired money is paid, it is mostly due to necessity. In fact, according to some, the consequences of renovation and urban development are considered unilateral payments by citizens to the municipality, and citizens do not feel obligated to pay them.

    It seems that this reluctance to pay tolls will reach its peak when citizens feel dissatisfied with the quality of municipal services. Because this view rules that the urban management complex not only takes effective measures to improve the quality of its services in the city in the fields of:

    1-Environmental health including: garbage collection and disposal, services related to cemeteries, public places, etc.

    2- Welfare and recreation includes: public libraries, sports fields, natural promenades around cities, etc.

  • Contents & References of The relationship between the quality of urban services and the willingness of citizens to pay renovation and urban development fees (a case study of Astana Ashrafieh)

    List:

    Abstract..1

    The first chapter of general research. 2

    1-1- Introduction. 3

    1-2- statement of the problem. 3

    1- 3- Importance and necessity of the subject. 7

    1-4- research objectives. 11

    1-5- Research questions. 11

    1-6-Research hypotheses. 12

    1-7- The theoretical framework of the research. 13

    1- 8 - Research area. 19

    The second chapter of theoretical foundations of research. 20

    2-1- Introduction. 21

    2-2- The quality of service to customers (citizens) 21

    2-3- The willingness of citizens to pay urban renovation and development fees. 36

    2-4- The background of the conducted research 42

    Chapter 3 of the research implementation method. 51

    3-1- Research implementation method. 52

    3-2 - Statistical population and research samples. 52

    3-3- Sample size and sampling method. 54

    3-4- Methods and tools for collecting research data. 55

    3-5-validity and reliability of the research tool. 56

    3-6- Research data analysis method. 57

    Chapter IV data analysis and research findings. 59

    4-1- Introduction. 59

    4-2- Description of research variables. 60

    4-3-inferential statistics. 79

    Chapter 5 conclusions, suggestions. 85

    5-1- Introduction. 86

    5-2- The results of research findings. 86

    5-3- Presenting suggestions. 93

    5-4- Research limitations. 95

    5-5-Suggestions for future research 95

    Research sources. 97

    Appendices 103

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The relationship between the quality of urban services and the willingness of citizens to pay renovation and urban development fees (a case study of Astana Ashrafieh)