Financial Resources Review

1 week
Toolbox Themes
  • Urban financeConsider financing components and mechanisms throughout the urban planning process, to strengthen municipal finances and promote the successful implementation of plans.

Assess the current financial situation, define the available budget to finance and fund the plan development and its implementation, and identify any gaps and potential sources.

  • Financial assessment of the city


During this activity, the preliminary technical team analyses the financial health of the city to understand how robust the budget is. They will fill the T4 City's Financial Assessment Guide (a tool inspired by the Municipal Financial Self-assessment Framework proposed by the World Bank) to review municipal finances. This detailed review will examine revenue streams, expenditures, cash balances, indebtedness, capital investments, and tax potential and performance. Once the financial landscape has been clearly mapped, a preliminary project budget will be drafted. Additionally, the team maps any gaps and challenges that could impact the project's implementation and plan long-term outcomes, and consider any financial sustainability mitigation measures. 

Building on the insights gained from the City’s Financial Assessment, this activity also lays the groundwork for future steps in the project development process. It serves as a critical juncture to determine whether there is a need to mobilise additional resources or employ innovative financial mechanisms to achieve project goals. To further aid in this determination, a catalogue of potential revenue-generating mechanisms can be found in Block I Instruments, as well as a Resource Mobilisation activity in Block K Implementation Mechanisms. These tools aim to provide a holistic financial strategy that addresses not only immediate project needs but also long-term sustainability.


1. Review the recommended literature.

2. Assess the availability of financial resources (T4 City's Financial Assessment Guide).

3. Map any potential gaps and challenges in financing and funding the planning process and plan and project implementation, as well as possible mitigation measures.

4. Research the current administrative and institutional context in regard to land and property taxation and access to external sources of financing (loans, subsidies, etc.).

5. Follow-up with these steps and actions along the planning process.