BEST AND WORST RUN CITIES IN AMERICA

By MSN Money partner on Mon, Jan 9, 2012 10:44 AM

 By Michael Sauter, Charles Stockdale and Ashley Allen

   24/7 Wall St. has completed its first ranking of the best-run and worst-run cities in America. We reviewed the local economies, fiscal discipline and standard of living of the 100 largest cities by population to determine how well each is managed. Based on these data, 24/7 Wall St. ranked the 100 cities from the best to worst run. The best-run city is Virginia Beach, Va. The worst-run city is Miami, Fla.
 
Four of the 10 best-run cities are the economic centers of their regions. Madison, Wis., is one of the best-run cities on our list, and its businesses employ the most people in the area. Six of the best-run cities serve as residential communities for larger metropolitan areas that are the economic centers. For example, Scottsdale, Ariz., is a large city in its own right but is often referred to as a suburb of Phoenix.
 
Frequently, these so-called edge cities have also developed their own vibrant economies. Plano, Texas, is part of the Dallas-Fort Worth metropolitan area. However, the city has a booming tech community, with large offices of major corporations such as Hewlett-Packard (HPQ +0.59%) and Dell (DELL +1.68%).
 
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.
 
Many of the worst-run cities have been in bad shape for years. 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. The populations of four of the worst-run cities decreased between 2000 and 2010. Detroit lost nearly 240,000 residents. On the other hand, the populations of all the best-run cities increased.
 
While there is a strong relationship between high median income and high ranking, there is an even stronger relationship to poverty. While most of the best-run cities have more households making over $200,000 per year than the national average, none of the top 10 cities have high poverty rates. For example, Lincoln, Neb., has only the 33rd-highest median income among the largest cities but the 11th-lowest percentage of households making less than $10,000 per year.
 
For the most part, the best-run cities manage their debt and resources well. The worst-run cities do not. Moody's provided credit ratings and analysis for 16 of the 20 cities on the lists. The two cities that are the best run and that do not have credit ratings, Fremont and Irvine, Calif., do not have a need to finance government projects through debt. Their wealthy and large tax base would suggest that is the case. Hialeah, Fla., one of the worst-run cities according to our ranking, told 24/7 Wall St. that it did not issue city debt because it had other debt instruments to raise money for government projects. San Bernadino, Calif., the other worst-run city without a credit rating, did not return 24/7 Wall St.'s calls.
 
The 3 best-run cities in the US:

 
1. Virginia Beach, Va.

• Violent crime per 1,000 people: 1.88 (8th-lowest)
• Poverty rate: 7.5% (3rd-lowest)
• Adult population that graduated from high school: 93.1% (5th-highest)
• Credit rating: Aaa (negative outlook)
• Population: 439,172

Virginia Beach is, by our measurement, the best-run city in the U.S. Located on the eastern shore of Virginia, the city is one of the most prosperous in the country. Out of the 100 largest cities, it has among the 10 lowest rates of violent crime, unemployment, and poverty. It's also among the 10 best for median income, high school graduation and health insurance coverage. Moody's listed Virginia Beach's three main strengths as a "large and diverse tax base stabilized by the presence of military bases," the city’s "strong and carefully managed financial position" and "comprehensive financial policies and conservative budgeting approach." The city’s credit rating is a perfect Aaa.

2. Irvine, Calif.

• Violent crime per 1,000 people: 0.55 (5th-lowest)
• Poverty rate: 12.3% (9th-lowest)
• Adult population graduated from high school: 95.7% (2nd-highest)
• Credit rating: None
• Population: 212,982

Irvine has a violent crime rate of just 0.55 per 1,000 people, the fifth-lowest score among the major cities on our list. The city is also among the 10 best for home vacancy, unemployment, median income and high school graduation. In 2008, CNN Money rated it the fourth-best place to live in the U.S. According to Craig Reem, the director of public affairs and communications, "we are seeing a gradual improvement in our local economy that allows us to move from recession-ready to recovery-ready. The City Council plans conservatively: This past fiscal year (2010-2011), we outperformed our budget expectations by nearly $14 million."
 
3. Madison, Wis.

• Violent crime per 1,000 people: 3.92 (21st-lowest)
• Poverty rate: 18.7% (40th-lowest)
• Adult population graduated from high school: 95.1% (3rd-highest)
• Credit rating: Aaa (stable outlook)
• Population: 233,777

Madison, the other capital city on our list, was incorporated in the mid-1800. Madison is not a particularly wealthy city, with a median household income of just more than $50,000. Nevertheless, the capital has a perfect Aaa (stable) credit rating, as well as extremely low unemployment and home vacancy rates. Madison city administrative analyst Tim Fruit says, "Over the past few years, we have really made a significant effort toward more carefully planning our six-year capital improvement program. In the past, the out years were not well scrutinized. Now we try to analyze and balance the out years much more carefully."

The 3 worst-run cities in the US:

1. Miami, Fla.

• Violent crime per 1,000 people: 11.08 (13th-highest)
• Poverty rate: 32.4% (5th-highest)
• Adult population graduated from high school: 68.2% (4th-lowest)
• Credit rating: A2 (stable outlook)
• Population: 400,892

According to a 2011 UBS study, Miami is the richest city in the country and the fourth-richest city in the world by domestic purchasing power. However, a 2011 study by the Census Bureau found the Miami metropolitan area also had the second-highest income inequality rate in the nation -- probably due to the incredibly high percentage of households living in poverty. Despite the city's wealth, Miami's median household income of $27,291 is the third-smallest among the 100 biggest cities. Its poverty rate of 32.4% is the fifth-highest. The city faces a handful of other problems. Only 68.2% of adults have a high school diploma or more -- the fourth-lowest rate. Also, 22.5% of housing units are vacant, which is the fifth-highest percentage. A 2011 Brookings Institute report put Miami among the 20 weakest-performing metropolitan statistical areas in the country with regards to recovering from the recession, due in large part to the crash of its housing market.

 
2. Detroit, Mich.

• Violent crime per 1,000 people: 18.87 (the highest)
• Poverty rate: 37.6% (the highest)
• Adult population graduated from high school: 77.4% (18th-lowest)
• Credit rating: Ba3 (on review)
• Population: 711,910

Despite being more notorious for its troubles than any other major U.S. city, Detroit managed to avoid the title of worst-run city in the country. The city has been in a tough spot for decades, but continued problems with corruption and poor management have not helped matters. Detroit already sports the worst credit rating awarded by Moody's and is the only one of the 100 largest cities in the U.S. to have a rating below investment grade. Worse still, the agency is reviewing the Ba3 rating, which already had a negative outlook, after the state of Michigan announced that it's evaluating whether the city's troubles constitute an economic crisis. Of the 100 largest cities, Detroit has the highest home vacancy rate, the highest unemployment rate, the highest poverty rate, the worst violent crime rate and the lowest median household income.

3. Newark, N.J.

• Violent crime per 1,000 people: 10.29 (21st-highest)
• Poverty rate: 30.2% (10th-highest)
• Adult population graduated from high school: 69.2% (6th-lowest)
• Credit rating: A3 (negative outlook)
• Population: 277,232

Newark has a very high rate of poverty, reaching 30.2% in 2010. Its median household income is $32,043, the ninth-lowest among the 100 largest cities. Less than 70% of the adult population has a high school diploma or more — the sixth-lowest rate. Meanwhile, Newark's violent crime rate has been increasing. In late November 2010, the city laid off nearly 15% of its police force. By May 2011, the annual homicide rate had increased by a stunning 65%. Robberies, burglaries and thefts increased as well.

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By: Charles Swindoll

The longer I live, the more I realize the impact of attitude on life.

Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company... a church... a home.

The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past... we cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one string we have, and that is our attitude... I am convinced that life is 10% what happens to me and 90% how I react to it.

And so it is with you... we are in charge of our attitudes.

By Barbara J. Woerner

Virginia Beach

Along the banks of Linkhorn Bay sits a piece of Virginia Beach history.

Briarwood Estate, a rambling Tudor-style mansion built on 4 1/2 acres in 1932, not only has history, but heart.

On Thursday, the home will host "Get Swept Away On Linkhorn Bay," a charity reception to benefit the Judeo-Christian Outreach Center's Scholarship Fund.

"I wanted to emphasize the house," said Realtor Brenda Rawls, the Rose & Womble Realty agent who lists the house. "It's in a magnificent setting."

And there's a lot to emphasize.

Local history cites New York City railroad executive James Bingham Jr. as the builder and the architect as Clarence W. Meakin of Norfolk. Bingham and his family used the house as a summer residence. A dirt road cut through the Potter farm from Hilltop to the residence.

"One of the biggest problems with the building of the residence was figuring how to get the electricity from Hilltop down the dirt road to the house," Rawls said.

The 6,000-square-foot mansion, which is surrounded by 150-year- old trees, contains its original light fixtures, leaded windows, arched doorways, wood floors, paneling and chimneys.

Briarwood Estate is listed at $2.2 million.

At the upcoming reception, guests will sample hors d'oeuvres, champagne, wine and other beverages. The large yard will host classic automobiles, including Tesla Roadster, Duesenberg, Rolls Royce, Jaguar, Ford and a Hess Motorcycle.

"Guests can also tour the estate," said Denise Rose, creative director for Rose & Womble Realty. "It's amazing that the house is still there and so exact."

The event's beneficiary is a cause close to Rawls' heart.

"We (Rawls and husband Skip) went to a dinner where some of the JCOC scholarship recipients talked about what life would be like if they hadn't received the scholarship," she said. "We decided to get involved and ended up helping six of 27 students in the program.

"I never knew the depth of services the organization offers," she added.

The Judeo-Christian Outreach Center, in Virginia Beach, helps homeless families and individuals recover from crises in their lives. Besides food and shelter, it offer educational assistance with scholarships, GED testing and help.

Since 1986, the group has served 32,000 meals a year to both shelter residents and others needing a meal.

Barbara Woerner,

MLS# 1047429                

Below is the absorption rate for the Hampton Roads area. As you can see homes selling over $200,000 are in an Extreme Buyers Market.

Virginia Beach VA Real Estate For Sale:

1013 Assembly Drive, Virginia Beach VA 23454
MLS#  1117726

Well maintained inside and out. Located in a small intimate neighborhood. Two story Entry and Family Room with fireplace. First floor Master Bedroom. Master Bath with tub and shower. Eat-in Kitchen with center island, and walk-in pantry. Large 2 car garage. Other 3 Bedrooms and 2 Baths are on 2^nd floor. Water treatment does not convey but is negotiable.

Search all Virginia Beach VA Real Estate and Homes For Sale

Brenda Rawls has distinguished herself as one of the top Realtors in the Hampton Roads and Virginia Beach VA real estate markets. Brenda assists buyers looking for Virginia Beach real estate for sale and aggressively markets Virginia Beach homes for sale.

A native of Norfolk, Brenda has been a realtor in Hampton Roads since 1983. Brenda Rawls’ specialized training and knowledge provides her sellers and buyers with the expertise required in today’s complex real estate market

You can reach Brenda by completing the online contact form or give her a call, 757-428-3498.

Since your basic homeowner’s insurance policy will not cover damage due to rising water, (i.e. water that collects as a result of an overflow of a body of water or surface water runoff), you would be well advised to research flood insurance policies for your Virginia Beach VA real estate. Think you’re safe because you live in a moderate-to-low-risk flood area? Think again. About 25% of all flood insurance claims come from areas with just such a designation!      

The National Flood Insurance Program (NFIP) is a federal program that offers flood insurance to homeowners who reside in an NFIP community. It is a good idea to determine your community’s flood risk. There are three types of policies available to owners of Virginia Beach VA real estate: the standard dwelling; general property (for businesses and apartments); and residential condominium building association, and each can be purchased through most leading insurance companies (you can call NFIP at 888-379-9531 for a referral) for a relatively low fee paid once a year. Average residential premiums cost about $570 a year, but a low-risk policy can be had for as little as $129 and covers the foundation of your home and the equipment needed for the home’s normal function (i.e. furnace, water heater, and electrical system). You can also purchase additional coverage for furniture, appliances, and personal possessions.     

As with other types of insurance, it’s important to know exactly what your policy covers, information about deductibles, rates, payment, and claim procedures. One area not covered is the basement, so finished walls, floors, and personal belongings found there are not claimable. For residential policies the maximum coverage is $250, 000 for the structure and $100, 000 for personal property. For businesses and commercial properties the limits are increased to $500, 000 for both. Rates are set, do not vary from agent to agent, and depend on factors such as your home’s age, type of construction, and location. Like other policies, having a higher deductible lowers the amount of the premium but will reduce your claim payment.  Be advised that unless flood insurance is required by your lender, there will typically be a 30-day waiting period before your policy goes into effect.

Insurers urge homeowners to inventory all of their belongs, estimate their value, and keep a copy of the list in a waterproofed spot or even in a location away from the residence. Some property owners rely on videotapes to catalog their possessions. Websites such as www.knowyourstuff.com and www.insurance.ca.gov make easy-to-use inventory checklists and planners available to you free of charge.       

Lest you are thinking of foregoing flood insurance to save money, consider this: just a few inches of water from a flood can cause tens of thousands in damage. During the past decade the average flood claim has amounted to over $33, 000! Best not to be penny wise but pound foolish.

Search all Virginia Beach VA Real Estate and Homes For Sale       

Brenda Rawls has distinguished herself as one of the top Realtors in the Hampton Roads and Virginia Beach VA real estate markets. Brenda assists buyers looking for Virginia Beach real estate for sale and aggressively markets Virginia Beach homes for sale.

A native of Norfolk, Brenda has been a realtor in Hampton Roads since 1983. Brenda Rawls’ specialized training and knowledge provides her sellers and buyers with the expertise required in today’s complex real estate market

You can reach Brenda by completing the online contact form or give her a call, 757-428-3498.

TIPS:       

• Develop a plan. Determine your purpose in becoming an investor. Do you want to flip houses, or are you more comfortable with a long-term rental? What kind of property do you want? Single family? Condo? Multi-family? Will you be bidding at an auction? Buying a short sale or foreclosure? What kind of financing will you need?
• Identify your target area. Analyze the economic situation of the neighborhood, population levels, and potential employment prospects. Look at the availability of stores, schools, hospitals, and local industry. Determine the median property values.
• Ask questions. Are prices in the area rising or falling? Is it a safe neighborhood? How long has the property been on the market? What is the condition of the interior and exterior structure?
• Consider financial circumstances. What is the going rate for rentals in the area? What are the yearly taxes? What will it cost to maintain the property? What kind of financing will be available to you?
• Avoid Virginia Beach real estate with HOA fees. Home Owner Association dues which pay for shared facilities and maintenance must be paid by you, the owner, and can be quite high, especially when major assessments are levied.
• Have the property inspected by a professional before you buy. Common sense prevails here. You don't want any unpleasant surprises later on.
• Stick to your preset buying criteria. Concentrate on your cash flow and not on potential capital appreciation.
• Be sensible about renovations. Save the high end appliances, fixtures, features, and decorating for your own home. Use your head, not your heart, when outfitting the Virginia Beach real estate you’re buying for investment purposes.

Enjoy the adventure of investing but always be aware that such a venture can be risky. Make sure you consider the downsides as well as the opportunities for success.

1. CHOOSE A GOOD AGENT:

Search out a successful Realtor who knows your neighborhood, has a good track record in your community, and presents a solid and aggressive plan for selling your Virginia Beach VA real estate.

2. SET A REASONABLE ASKING PRICE:

Be realistic. Have your agent analyze the comps and personally check out the competition. Resist the “greed need” and accept any offer that is reasonable. Beware of hesitation; in today’s market, opportunity doesn’t often knock twice.

3. CONCENTRATE FIRST ON CURB APPEAL:

Remember the fairground midway barkers who encouraged folks to enter their sideshows? Your home’s exterior and landscaping play a similar role. You can’t sell your Virginia Beach VA real estate unless you can entice potential buyers to come inside and be wowed, and that first look at the outside of your property is instrumental in their decision whether or not to do so. Paint fences, railings, mailboxes, and house numbers; update light fixtures and the front door; replace the old door mat. Rake the yard, trim the bushes, and remove all debris. Mow the lawn (did you know that yards that are mowed on the diagonal appear larger?). Edge walkways and set out colorful spring flowers in beds or in containers. Make sure that the outside windows are clean and that the entrance is attractively staged.

4. SCRUTINIZE THE INTERIOR OF YOUR HOME:

Clean, clean, clean! Make the place sparkle with clean windows and mirrors, shiny bathroom fixtures, new or freshly laundered window treatments, and colorful accents in pillows, linens, towels, area rugs, or art. Repair, remove, and/or refurbish faded walls, dripping faucets, and dated wallpaper. Pay the most attention to the kitchen, family room, bathrooms, and master bedroom. Polish floors ‘til they gleam, and add fragrance to the air by displaying freshly-cut flowers. Reposition--or remove--large or unnecessary furniture pieces to make rooms look larger and improve traffic flow. Put personal items away so that buyers can picture themselves, not you, in the home.

5. MAKE THE PURCHASE OF YOUR HOME AN IRRESISTIBLE DEAL:

If you haven’t already done so, increase the “greenness” of your Virginia Beach VA real estate by updating your insulation, installing energy-efficient heating and cooling systems, appliances, windows, and the like. These cost-effective improvements will go far in impressing savvy buyers. Also, offer incentives. Paying a portion of closing and/or moving costs and providing a one-year home warranty program have become fairly common means to attract serious buyers.

• MORTGAGE INTEREST: This can be a fairly large deduction if you are carrying a mortgage on your rental property. Other interest deductions can be for loans for improving the property and interest on credit cards for goods or services used in a rental-related activity. (Note: It is much easier to maintain records if you keep your personal credit card(s) separate from a business credit card.)
• DEPRECIATION: The actual cost of rental property is not fully deductible in the year in which it is purchased. Residential rental property must be depreciated over 27.5 years.
• HOME OFFICE: If certain requirements are met, you may deduct your home office expenses from your taxable income. This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. A portion of a workshop used in connection with your rental Virginia Beach real estate may also be deducted.
• REPAIRS: Usually the costs of repairs to rental property are fully deductible in the year in which they are incurred if they are ordinary, necessary, and reasonable in number. Examples of deductible repairs include repainting, fixing gutters, leaks, or floors, plastering, and replacing broken windows.
• INSURANCE AND LOSSES: You can deduct the premiums you pay for almost any insurance for your Virginia Beach rental real estate. The list generally includes fire, theft, and flood for the property itself, as well as landlord liability insurance. (Note: If you have employees, you may also deduct their health and workers’ compensation insurance.) If you sustain losses due to fire, flood, or theft, you will most likely be able to deduct at least part of the loss, depending on the extent of damage and your insurance coverage.
• ADVERTISING: Expenses related to advertising your rental are deductible.
• TRAVEL: If it is necessary for you to travel a long distance for rental activity, you can typically deduct your airfare, hotel bills, meals, etc. Make sure that you claim only those costs directly related to your rental. The IRS scrutinizes these types of deductions carefully, so be sure to carefully document your expenses. If your travel is relatively close, you use your own vehicle, and your travel is related to your rental property, you can either take a standard mileage rate deduction or keep records for related vehicle expenses (gas, upkeep, repairs). To qualify for the standard mileage rate, you must use the standard mileage method the first year you use a car for your business activity. Moreover, you can’t use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.
• LEGAL AND PROFESSIONAL SERVICES: Expenses paid to an attorney for an eviction, a property management company, tax advisors, employees and independent contractors, etc., are often deductible as they are considered part of operating costs.
• EMPLOYEES AND INDEPENDENT CONTRACTORS: Whenever you hire anyone to perform services for your Virginia Beach rental property, you may deduct their wages as a business expense. Examples include a resident manager, cleaning service, landscaper, remover of snow or trash, and the like.