WHILE SOME AMERICAN cities remain healthy and are even growing, many other cities face great problems. The infrastructure of many cities—the streets, bridges, parks, buildings, sewer, gas, and water lines, and other fixtures—is coming apart and needs repair. Most cities have some neighborhoods that are filled with deteriorating houses. Crime has increased in recent years. There are more poor and homeless people living in cities today than a decade ago.

There is a common thread in all of these problems—a lack of money. It takes a great deal of money to keep cities in good repair and meet the needs of the people who live in them. For many cities finding enough money to operate has become the key to their survival.

How cities operate

A city provides many services for its citizens. These services vary from one...