Abstract
An attempt is made to develop and verify the effective methodology of urban development projects planning, from the aspect of finance and administration. In the study, Kusatus City, Shiga Prefecture, is selected as the subject city for the case study. A financial simulation system has been built up, which is the analysis platform for the planning. The optimization of the study is linear multi-objective problem, with seven objective indexes correspond to the development objective the Kusatsu City, and four control variables of investment to living, transportation, culture, science and amusement, and welfare infrastructure. The hybrid model concept and time-related dynamic analysis are used in the planning evaluation for final proposal. And by the successful verification of the case study, it could be said that the planning methodology is rational and effective.