The present study was conducted with the aim of investigating the effect of capital structure on the value of urban services. In this study, capital structure was examined in three dimensions: sustainable revenues, managed debts, and public-private partnerships, and its effect on the value of urban services, including quality, speed, service fairness, and citizen satisfaction, was analyzed. The research method was quantitative and structural equation modeling was used to test the hypotheses. The research sample consisted of 384 experts and managers in the areas of finance, revenue, planning, and municipal urban services. The results showed that capital structure has a positive and significant effect on the value of urban services (path coefficient 0.67 and t value 9.12). This finding indicates that strengthening sustainable revenues and using managed debts play an important role in improving the quality and efficiency of urban services. The results also showed that public-private partnerships, despite their smaller share in the capital structure, have a significant indirect effect on increasing innovation and developing urban infrastructure. This study shows that the value of municipal services is a reflection of the financial strength and planning ability of the municipality, and any weakness in the capital structure will directly lead to a decrease in the quality of services perceived by citizens. The findings are consistent with domestic research such as Amiri et al. (1404) and foreign research such as Lee et al. (2025), Johnson et al. (2024), and Fletcher et al. (2023).