Local Funding

Stable, local public funding is essential for a successful and equitable park system. It is the primary source for critical maintenance, operations and programming. Those responsibilities are consistently identified by park leaders as the most challenging to fund, but often not covered by state, federal or philanthropic sources. Meanwhile, equity challenges between cities remain. Even with parks, there are haves and have-nots. Stable, local public funding enables communities to address disparities and promote fair and equitable park resources.

City Funding

  • Special Purpose Taxes

    Many parks are funded by tax levies designated for specific purposes for a limited time. They are often one-time levies and not a permanent, sustainable source of funding, unless renewed by popular vote. Some cities issue special purpose levies with a regular schedule for renewal votes to hold city leaders accountable for the levy’s promises.
    Park Funding Use
    Capital/Land Acquisition
  • Business Improvement Districts

    Based on the notion that well-maintained public spaces increase commerce, Business Improvement Districts are a form of public-private partnership that taxes businesses within a designated area and uses them for public improvements, often in downtown areas. Business Improvement Districts are a useful strategy for pooling revenue to support a common goal. BID funds are managed by a nonprofit corporation established by the district. BIDs are increasingly common in cities across the country, particularly for park maintenance. A Green Benefit District, first created in San Francisco, is a public-private partnership property assessment district created by local property owners to fund neighborhood improvements. Revenue is used for parks, open spaces, the greening of streets and neighborhood beautification.
    Park Funding Use
    Capital/Land Acquisition, Operations/Maintenance, Programming
  • Tax Increment Financing Districts

    Tax Increment Financing Districts (TIF) collect property tax revenue within a designated geographic area and allocate it for a specific public improvement projects.

    Park Funding Use
    Capital/Land Acquisition, Operations/Maintenance, Programming
  • “Capitalizing” Maintenance Costs

    Maintenance and operations costs are often forgotten in tax levies and bond initiatives. By capitalizing maintenance costs, cities include those anticipated costs into the levy or bond proposal and set the funding aside in an endowment to cover future costs.

    Park Funding Use
    Operations/Maintenance
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Additional Resources

Case Studies

Local Funding

Stable, local public funding is essential for a successful and equitable park system. It is the primary source for critical maintenance, operations and programming. Those responsibilities are consistently identified by park leaders as the most challenging to fund, but often not covered by state, federal or philanthropic sources.  Equity challenges vary between cities.  Stable, local public funding enables communities to address disparities and promote fair and equitable park resources.  

Local funding for parks comes primarily from four sources:

  1. the general fund, allocated by elected officials through the annual budget process,
  2. revenue generating activities,
  3. legislative initiatives, approved by local elected officials, and
  4. ballot initiatives, approved by citizens by popular vote.

Local laws governing voter-approved ballot measures vary, but most jurisdictions allow them, making them a significant source of funding for local parks.  According to the Trust for Public Land’s Action Fund, in 2019 alone, voters nationwide approved $5.4 billion in local public funding for parks and public land.

We hope you can use the information below to identify new funding sources and make the case for investing in parks as essential infrastructure in your city. For more information on these and other local public funding approaches, see the report Closing the Gap: Public and Private Funding Strategies for Neighborhood Parks, a joint publication of the City Parks Alliance and the Minneapolis Park and Recreation Board.