The main objective of this research is the role of urban stakeholders’ time horizon in municipal debt financing decisions. The aim is to identify key mechanisms, policy orientations resulting from time horizon differences, and research gaps in Persian and international literature. The methodology is based on a systematic review of library literature; Persian and English sources related to urban financial management, local political economy, agency theory, and intergenerational budgeting were searched and analyzed. Conceptual analysis of empirical evidence and case studies aimed to classify the direct and mediating effects of time horizon on the type and structure of municipal debt (term, short-term/long-term, project bonds, future income-based instruments, and contingent liabilities). The findings show that differences in stakeholders' time horizons play a decisive role in the characteristics of debt decisions: short-term horizons (e.g., electoral pressures of elected officials or citizen demands for quick results) tend to favor short-term debt, the use of quickly liquidated instruments, increased repayment risk, and the use of creative accounting mechanisms; while long-term horizons (e.g., the technical vision of city managers or institutional investors) favor long-term debt-based infrastructure investment, sustainable service planning, and consideration of intergenerational costs. Structural factors such as legal frameworks, tax and budget rules, local financial market depth, and information transparency play a moderating role. The paper’s practical results include suggestions for aligning stakeholders’ time horizons by enhancing transparency and independent auditing, establishing minimum-term rules and debt ceilings, strengthening long-term planning capacity in municipalities, and employing citizen participation mechanisms to reduce short-term pressures. Finally, key research gaps—including the need for cross-city panel analyses, empirical field studies of voter and city manager behavior, and examining the impact of new financial instruments (green bonds, future-income contracts)—are identified and directions for future research are suggested.