Cities, Towns and Counties
Cities, towns and counties administer local services in their communities. Some of these services are recurrent obligations to ensure public safety, health and welfare. Services such as street maintenance, water and sewer service and administrative functions are funded through local tax dollars. Other projects, such as new water towers, rehabilitation of a building or construction of a new building may be complemented through community-based crowdfunding.
Many communities are collecting less in local tax dollars due to a variety of circumstances. Regardless of the reduced tax revenue, communities are competing in a global marketplace to attract and retain people, which involves providing a high quality of life. The quality of life in a community is not simply based on weather or living near water. Rather, it is defined by the services available to residents in a community. Improvements to exercise trails, parks, improving distribution of water to accommodate growth and expansion represent the types of services that appeal to people.
Community-based crowdfunding will allow your community to tap into private resources that may not otherwise been available to fund public projects. Because of the constraints on local government budgets, communities are required to think strategically. Using the private investments to attract state and federal grants is one method of strategically investing. The private investments made by local and regional residents can be leveraged in order to attract a multiple of the private investment. For instance, if a community undertakes to construct a new water tower due to the deteriorated state of the current water tower. The cost of the new water tower is $1,000,000.00. Assume the state has a 10% local match requirement with the balance funded by the state. This represents a 90% return to the community without using any local tax dollars.
In our example above, a community could build a new water tower without using any local tax dollars. Obviously, there will likely to be the need for local tax dollars to fund portions of a project. However, by raising capital through community-based crowdfunding a community can defer using its tax dollars to fund certain project and spend those resources on other public services.
If your community is planning on a major capital improvement project, then you should be raising funds through community-based crowdfunding. American Dream Crowdfunding, Ltd. is proud to offer its services to your city, town or county as a means of attracting alternative private funds for your strategic projects.