For some communities, there is a perpetual winter of discontent due to bad fiscal decisions made years ago.  The result is municipal debt that is becoming increasingly difficult to service.

Westgate Entertainment District (Glendale, AZ)
Credit: About.com

Case in point, Glendale, AZ.  A recent article points out that the city is struggling to balance sports-related debt with essential city services.  Unfavorable audits and recently exposed conflicts of interest have already resulted in terminations and investigations within the City Manager’s office.  Expect more fallout as more investigations focus on the Westgate Entertainment District along with other city-backed sports projects.

This is having an impact on residents of Glendale as their taxes are going up and city services are being cut.  The debt burden is a long-term commitment that will take years to pay down, even before tenants like the Arizona Cardinals and Phoenix Coyotes ask for upgrades to their venues…  In other words, this is a mess that isn’t going away anytime soon.

City leaders and businessmen sell grandiose visions of revenue-generating developments to citizens in the hopes of getting government to fund these projects.  When these efforts result in lower than expected revenues, citizens are the ones who pay the price.  Its not just Rust Belt municipalities that suffering due to mismanagement after all.