The Municipality
As municipal seat, the city of Morelia is the governing authority of 423 other communities, almost all of which are small communities of between three and 1,000 people. 89% of the municipalities 684,145 people in the city itself The municipality covers a territory of 1,199.02km2 and borders the municipalities of Tarímbaro, Chucándiro, Huaniqueo, Charo, Tzitzío, Villa Madero, Acuitzio, Lagunillas, Coeneo, Tzintzuntzan and Quiroga.
Much of the municipality is in the Guayangareo Valley between two rivers: the El Grande and the El Chiquito. Guayangareo means "large hill with a flat side." The municipality’s territory is rugged and dominated by peaks such as Punhuato, El Zapote and the Otzumatlán mountain range, with the highest peak being Quinceo with an altitude of 2,787 meters. The municipality belongs to the Lerma-Santiago river hydraulic region, with the main rivers being the El Grande and the El Chiquito. There are a number of streams including the Zarza and Pitaya. The most important dam here is Cointzio, with other smaller ones being Umécuaro, Laja Caliente and La Mintzita.
Vegetation outside the city varies based on altitude and the type of soil. Mountainous areas are mostly covered in conifers while lower and drier areas have trees such as mesquite. To the south of the city is the Lázaro Cárdenas Forest, which is an ecological reserve. Animal life mostly consists of small mammals, with coyotes being the largest, birds of prey and some reptiles.
The growth of the city of Morelia is having a negative impact on the surrounded forested area. This is particularly problematic in the area north of the city, which belongs to the Lake Cuitzeo basin, and is a main recharge area for the city’s aquifer. The forested areas around the city are also important for the city’s air quality and as a breeding place for pollinating insects needed for agriculture. UNAM has been documenting the species in these forests with the aim of getting them declared as biological reserves.
Most people (+63%) are employed in the commerce section of the economy, with about 25% involved employed in manufacturing and construction industries. Less than ten percent are involved in agriculture. One industrial area is the Ciudad Industrial de Morelia, which mostly houses small and medium-sized enterprises. Some of the products manufactured here include cooking oil, flour, cement, plastics, bottling and candies. Tourism is a rising component of the economy, taking advantage of area’s colonial heritage, smaller traditional communities, natural areas and archeological zones such as Santa María de Guido in the city, Barranca de los Lobos in Teremendo, Nahuatl Sanctuary and Yácatas in Capula. However, it has not been developed sufficiently to be a major contributor.
According to Standard & Poor's report for November 2009, the government of Morelia maintains an adequate development budget, backed by relatively high income and low debt. It is rated on a national scale for Mexico as A+. The economy is projected to be stable with the government keeping control of expenses.
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