ABSTRACT
This chapter addresses the issues: economic development, financial management, and ethical leadership, and provides practical advice for leaders in the public sector who find themselves face-to-face with these challenges. All over the United States, citizen leaders are finding new ways to address community challenges. A World Bank study concludes that social capital is the glue that holds societies together and without which there can be no economic growth or human well-being. Weaknesses in organizational culture include indifference, a lack of knowledge or understanding of standards on the part of officials or employees, poor or inappropriate incentive systems, and poor leadership, including the use of mixed signals. A budget is based on anticipated revenues and expenditure projections. Too often, budget preparers in small jurisdictions focus mostly on the spending side and devote less attention to the revenue side of the budget. The property tax is considered to be the foundation of the local government revenue structure.
