Cities of regional significance in the formation of amalgamated territorial communities: particularities of accession and prospects for development

Abstract

Legal preconditions and current condition of forming of amalgamated territorial communities (ATCs) on the basis of the cities of oblast significance (COSs) are examined. Advantages of consolidation of adjoining rural (town) communities with the COSs in financial, spatial and institutional fields are assessed. The dynamics of demographic and territorial parameters of COSs before and after consolidation with rural and town communities is analyzed. The analysis verifies the fact that with consolidation of more territorial communities the area grows significantly and the number of population grows slightly due to concentration of population on the limited area of a city and substantial spatial resource of rural communities. Budget parameters of newly created ATCs on the basis of the cities of oblast significance by the criteria of financial capacity of amalgamated territorial communities is estimated. The higher level of development and tax capacity of territorial communities with the center in the city of oblast significance and some diversification of financial parameter among them are emphasized. The following financial results received for urban ATCs are characterized by high diversification: cost of managerial bodies’ maintenance, general fund income per capita, level of budgets’ subsidiarity. Additional parameters to adjust financial estimated data of the efficiency of urban ATCs’ activity are suggested. Special attention is paid to the fact that financial resource is the major additional resource obtained from consolidation with COS for a rural community and spatial – for a city. However, the importance of staff resources for both consolidation participants is somewhat undervalued. Substantial increase of the area contributes to activation of entrepreneurship and investment capacity of cities and improvement of spatial planning in the perspective, leading to post-industrial agglomeration, strengthening of spatial and institutional cohesion of population.