Journal of Urban Economics and Management

With the complexity advent of cities and increase of their problems, municipalities manage the problems of cities by employing strategies such as City Development Strategy (CDS). This research has a descriptive – analytic essence, which it sets to the application of Goal Programming model for optimal allocation of construction budget of Isfahan Municipality. It has been tried to identify the most important construction budget’s constraints, Non-priority sectors in the allocation of construction budget, model goals and the impact of subsections of construction budget in achieving the objectives of CDS and checking out the achievement of CDS objectives with current budget management method. The target society includes all the staffs of Isfahan Municipality and 11 of them have been selected for the sample size in non–random manner. In order to analyze the values in years 2011 to 2014, Goal Programming model was used. Some of the required data were collected by using the questionnaire and some of them were extracted from the Municipality documents. According to the model stipulated in three forms, the results of the most complete model indicated that because of the lack of appropriate models for planning the credits and relying on the bargaining power, the allocation of the construction budget was not optimal in any years and the given values to variables do not achieve the goals mentioned in the CDS, and the credits in some subsections were considered more or less than enough, and goal programming model will be a useful tool in determining the optimal values in future years.