This Topic: Lessons in Good Government

[Michael Dolan]

The following is an extract from an article in last weeks Economist about the city of Ceritos in the Los Angeles basin. The full article is available at -

http://www.economist.com/world/na/displaystory.cfm?story_id=9655054

"Like an increasing number of suburbs, Cerritos is both a bedroom community and an economic engine. It began to prosper in the early 1970s when it encouraged car dealers to cluster near the motorway that clips its western edge. Fully 27 outfits now trade there, making it the largest such centre in a car-obsessed state. Cerritos also has a shopping mall and a “towne center”, otherwise known as an office park. As a result, it has far more jobs than working residents. Last year the city collected $483 in sales taxes per person—more than the glitzy city of Santa Monica. And it has leased, not sold, its land, so a future stream of money is guaranteed.

What goes on inside the offices seems less important to locals than what they look like. The city has municipal codes to rival those of notoriously staid Irvine, a planned city in Orange County: don't even think about installing a rotating, blinking or oscillating sign. Sculptures adorn car dealers' forecourts. Cerritos's busy library is covered with titanium; its Wal-Mart is clad in granite. It has an opulent performing arts centre that will host some 140 impeccably populist acts this year.

Building work is underway on the local jail, known for good reason as the “sheriff's hotel”. Although Cerritos has a contract with Los Angeles's county sheriff for its policing, it pays for the building and the officers. They have some of the easiest jobs in California. So far this year 53 serious assaults have been recorded, a bit less than one per cop. The city is so peaceful, says Daryl Evans, the police captain, that gang members from nearby cities occasionally meet there to play basketball, knowing they will not be attacked by rivals.

Of course, many American cities have built parks, performing-arts centres and fancy libraries while struggling financially. The key to Cerritos's success may be the timing of its investments. Cities such as Cleveland and Baltimore poured money into museums and other grand projects in the vain hope that they would lure businesses and young, creative folk. Cerritos began by building pipelines and roads, then moved on to business parks, policing and schools (including California's best high school). Only when it was rolling in money did it break out the titanium.

Local officials attribute the city's success to fiscal discipline and the ability to follow a long-term plan. That, in turn, is the result of its political culture. Cerritos has a tradition of powerful, long-serving city managers, to whom local politicians frequently defer. As Laura Lee, the mayor, explains, “There are many things we, as elected officials, do not understand.” Voters, it seems, like this arrangement greatly. In a 2002 poll, an astonishing 96% of residents said they were satisfied with the provision of public services."

This is a good example of how good planning and strong fiscal conservatism can work to help cities prosper.