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The former is definitely true. There are towns out there in the United States that are on an interstate and play games with their speed limits. You'll see a speed limit of 60-70 up until you hit city limits then it suddenly drops to 30-40, with enforcement lined up at the city limits waiting to nab people.

They're making good money off of these fines.

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But why wouldn't you want lower speed inside the city?

You normally would, but this is just predation on through traffic. It's not like you're going through the middle of main street, these may be off to the side of town with several exits but close enough for the city to dictate speed limits.

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