America’s Best and Worst-Run Cities

Strength of local economies, fiscal discipline and standard of living were all factors that were considered in 24/7 Wall St.’s rankings for the best-run cities in America. The 100 largest cities (by population) comprise the municipalities that were scrutinized and in the end it was the cities that best managed their debt and resources that landed at the top of the list. Notably, none of the top-run cities have high poverty rates, so to be fair, with a lucrative tax base and high-income residents, management of such entities certainly has some advantages. Being the economic center of a region and population growth are also traits that characterize America’s best-run cities, according to the rankings.

So what city is the best-run in America? It’s Virginia Beach, Va. Researchers cite the city’s "large and diverse tax base stabilized by the presence of military bases” as a major factor for its placement. That being said, a California city has taken the prize for 2nd place, as Irvine has placed just below Virginia Beach as the best-run city. As reasons for Irvine’s ranking, it is noted that “The City Council plans conservatively [and this] past fiscal year (2010-2011), Irvine outperformed its budget expectations by nearly $14 million.” Coming in third is Madison, Wisconsin.

While two California cities make the best-run list, there are three cities from the Golden State that make the worst-run list. For instance, San Bernardino comes in 4th and its poverty rate is citied as well as “massive loss in home values, and unemployment rates have skyrocketed to the third-highest in the country among the largest cities.”

And what characterizes the nation’s worst-run cities? MSN reports that “Nine of the 10 worst-run cities rely on older industries that are shrinking. Hialeah, Fla., was an important textile hub in the 1960s through the 1980s. Cleveland, Ohio, was one of the nation's leaders in steel production. Detroit, Mich., of course, manufactured cars. Since their booms, all of these cities have shed tens of thousands of jobs. While residents who were able to moved away, those without resources remained. As a result, the cities' expenses have remained high while their tax bases have shrunk.”

Here are the rankings:

Best-run cities:

1. Virginia Beach, Va.
2. Irvine, CA
3. Madison, Wis.
4. Fremont, CA
5. Lincoln, Nebraska
6. Chesapeake, VA.
7. Seattle, Washington
8. Scottsdale, Arizona
9. Chandler, Arizona
10. Plano, Texas

Worst-Run Cities:

10. Hialeah, Fla.
9. North Las Vegas, Nev.
8. Fresno, Calif.
7. St. Louis, Mo.
6. Stockton, Calif.
5. Cleveland, Ohio
4. San Bernardino, Calif.
3. Newark, N.J.
2. Detroit, Mich.
1. Miami, Fla.

You can read the full list of rankings here.