ACKNOWLEDGEMENT This Annex is a complement to the OECD Territorial Review of Montreal. It includes three case studies, two of which focus on issues of metropolitan governance (Minneapolis Saint-Paul/US and Stuttgart/Germany), and one on metropolitan competitiveness (Philadelphia/US). Individual contributions were provided by Marsha Ann Blumenthal, University of St.Thomas, St. Paul, Minnesota (the case of Minneapolis Saint-Paul), Werner Bächle, Jürgen Guilliard, Jürgen Ludwig and Suzan Ünver from Verband Region Stuttgart (the case of Stuttgart), and Stephen P. Mullin, John Del Roccili, David Crawford and Kevin Babyak of Econsult Corporation (the case of Philadelphia). At the OECD, Tim Goodspeed, Erin Haddock, Lina Kee and Soo-Jin Kim have contributed to the final drafts of the case studies. The Territorial Review of Montreal and its Annex was co-ordinated by Mrs. Lamia Kamal-Chaoui, Administrator, under the direction of Mr. Mario Pezzini, Head of the OECD Territorial Reviews and Governance Division. Georgina Regnier prepared this annex for publication. 2 TABLE OF CONTENTS ANNEX 1. MINNEAPOLIS-SAINT PAUL............................................................................................. 7 Portrait of the metropolitan region.............................................................................................................. 7 Definition of the Minneapolis-Saint Paul metropolitan area................................................................... 7 Demography ............................................................................................................................................ 8 Output and income .................................................................................................................................. 8 Poverty and income disparities................................................................................................................ 9 Labour market ....................................................................................................................................... 10 Industrial mix......................................................................................................................................... 12 Exports................................................................................................................................................... 12 Innovation, research and development .................................................................................................. 13 Entrepreneurship and foreign investments ............................................................................................ 13 Human capital........................................................................................................................................ 14 Transportation........................................................................................................................................ 15 Institutional framework............................................................................................................................. 16 Metropolitan governance .......................................................................................................................... 17 Local financial and fiscal arrangements.................................................................................................... 19 County budgets...................................................................................................................................... 20 City budgets........................................................................................................................................... 20 Borrowing.............................................................................................................................................. 21 Property tax ........................................................................................................................................... 22 Tax base disparities ............................................................................................................................... 23 Local government grants ....................................................................................................................... 25 Government growth............................................................................................................................... 25 Intergovernmental co-ordination............................................................................................................... 26 Vertical co-ordination............................................................................................................................ 26 Horizontal co-ordination ....................................................................................................................... 28 Public-private partnerships.................................................................................................................... 28 Case study 1: Economic development ...................................................................................................... 29 Federal government............................................................................................................................... 29 State of Minnesota................................................................................................................................. 29 Metropolitan Council............................................................................................................................. 30 The City of Minneapolis........................................................................................................................ 31 City of St. Paul ...................................................................................................................................... 32 Chambers of commerce......................................................................................................................... 33 ANNEX 2. THE STUTTGART METROPOLITAN REGION .............................................................. 34 Defining the metropolitan area of the Stuttgart Region ............................................................................ 34 Indicators of socio-economic performance............................................................................................... 36 Output and economic growth ................................................................................................................ 36 Unemployment ...................................................................................................................................... 36 Structural mix ........................................................................................................................................ 37 Innovation and R&D ............................................................................................................................. 38 Accessibility .......................................................................................................................................... 39 3 Institutional framework............................................................................................................................. 40 Local public finance and fiscal arrangements........................................................................................... 43 Municipal finance.................................................................................................................................. 43 County finances..................................................................................................................................... 50 Local taxation and economic development ........................................................................................... 52 The Stuttgart Regional Organisation......................................................................................................... 53 Representation ....................................................................................................................................... 53 Finances of the Stuttgart Regional Organisation................................................................................... 53 Participation of local authorities............................................................................................................ 57 Participation of the private sector and the civic society ........................................................................ 57 Main challenges for the regional body .................................................................................................. 58 Case study 1: Public transport in the Stuttgart region............................................................................... 61 Competent bodies .................................................................................................................................. 61 The regional transport plan.................................................................................................................... 61 The role of the Stuttgart Regional Organisation.................................................................................... 62 Stuttgart Transport Association............................................................................................................. 63 Financing of local public transport.......................................................................................................