Changes in the financing of municipalities and local governments of selected cities: possible effects on disintegration processes and municipal policy

There was significant reduction in number of municipalities in the Czech Republic in the era of . This is a consequence of the application of the central system of settlement, which based on Christaller’s theory of central places. In connection with the changes after 1989, was disintegration of such integrated communities and the situation has stabilized. Number of villages were renewed but cities with hundred thousand inhabitants (population of these cities around hundred thousand inhabitants) did not experience such process. Due to this fact big cities in the Czech Republic are typical for their larger size because they also administrate residential units of rural character, often many kilometers from the city centers. These parts of the cities are managed in different ways. In connection with the manifestations suburbanization during the past twenty years, the transformation of the social structure of the in these “suburbs” and changes in rules of municipal budgetary allocation of taxes (hereinafter BAT) there is the question of sustainability and stability of thus de ned borders of . The paper presents opinions on the development of nancing system and attempts analyze the motives of the peripheral parts of selected cities with hundred thousand inhabitants remain part or separate from these cities. In connection with changes in the BAT made on 1st 2013, the nancial motive can have an important role. The main aim of the paper will be comparison of the current nancial income of these municipalities with previous periods in relation changes in the BAT and assess the impact of these changes on the potential disintegration and municipal politics. Process of urban disintegration and creation of a new municipality not easy and is provided for in the legal system of the Czech Republic. The paper also gives an of this legislation. Authors focus on the cities of Olomouc and Pardubice.