Cities & Towns Key to State Economic Success

2006 Report Says Cities & Towns Key to State Economic Success

(Phoenix)-A 2006 research report says the overwhelming amount of economic activity in the state occurs within incorporated cities and towns, and describes them as "the economic engines of Arizona."

The report was commissioned by the League of Arizona Cities and Towns and was written by researchers at the Economic and Business Research Center, Eller College of Management at the University of Arizona in Tucson.

Some statistical highlights of the report include:

  • 82.5% of the state population lives within incorporated cities and towns
  • 89% of non-farm jobs are located in cities and towns
  • 91.4% of the state income tax is generated from cities and towns
  • 93% of state sales tax proceeds originate in cities and towns

"The report clearly demonstrates that the state's robust economy is not occurring by accident, but as the result of Mayors and City Councils making economic development a policy priority as well as making investments that attract business and improve the quality of life in our communities," said Doug Coleman, League President and the Mayor of Apache Junction.

The report makes a direct connection between business-friendly practices and greater economic activity and provides examples of activities undertaken by small towns, medium sized rural cities, suburban cities and metropolitan cities.

One survey conducted by a city in the report demonstrates the importance of quality of life by indicating that, "Over 90 percent of all new locates to [our city] cite quality of life as their primary locational determining factor."

The release of the report is particularly timely in light of the boom in economic activity accompanying the recent round of nationally-prominent college football bowl games in Glendale and Tempe.

"This report factually documents our widely-held conventional belief that cities and towns are central to a strong state economy," said Ken Strobeck, Executive Director of the League. "When cities and towns are successful and strong, so is the state," he said.