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

  • Park Dedication Fees

    A park dedication fee uses a portion of land in any housing or commercial/industrial development project be dedicated to public parks, recreation facilities, playgrounds, etc. Alternatively, the developers may pay cash in lieu of a land, which is put in a special fund for park acquisition.
    Park Funding Use
    Capital/Land Acquisition
  • Zoning Strategies

    Zoning strategies allow a city to benefit from the real estate industry and use the funds for capital or maintenance projects. Two zoning strategies of interest include: Incentives and bonuses: Offering developers and property owners zoning incentives to incorporate public amenities into their development plans or contribute to a special park endowment or public improvement fund. Transfer of Development Rights: The Transfer of Development Rights (TDR) allows property owners to sell the development rights from their land for use on another. The original site is then protected as an open space under a conservation easement.

    Park Funding Use
    Capital/Land Acquisition, Operations/Maintenance
  • Development Impact Fees

    Growth pays for growth, the saying goes, ant these one-time fees are assessed on residential or commercial development to fund public infrastructure, including parks.

    Park Funding Use
    Capital/Land Acquisition, Operations/Maintenance
  • Enterprise Funds and Revenue Generating Activities

    Funding park and recreation programs by revenue-generating activities decreases access to parks and programs for low-income residents. Equitable-access strategies include: Free Park and Recreation Passes for members of households that qualify for TANF and SNAP benefits. Voluntary Fees are suggested donations for use. Those who can afford the donation contribute; those who cannot are not obligated. Scholarships are less effective, because few residents access them and volunteer programs in exchange free access can burden already-stressed families. Programming Fees Charging fees for usage of park programs—skating, golf, fitness centers, camps, concerts—is a common strategy for raising non-tax revenue.

    Park Funding Use
    Operations/Maintenance, Programming
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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.