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NYS Comptroller

THOMAS P. DiNAPOLI

The Academy for New York State's Local Officials

Capital Planning and Budgeting: A Tutorial for Local Government Officials

Module 2 - The Capital Budget

Financing: Private Funding and Cooperative Agreements

Private funding

There may be instances where private firms or individuals can provide funding for capital projects or acquisitions, and local governments should not overlook this source of funding. True public/private partnerships work best for large-scale projects where the private entity receives a tangible or intangible benefit. For example, corporations may bid on naming rights to a recreational or cultural venue, providing the local government with significant funds. Philanthropic organizations may be the source of grants or gifts. A community or fraternal organization may contribute money or labor to a project that will enhance the community as a whole. Even smaller, local businesses or private individuals may contribute land or money for a specific project or acquisition.

Cooperative agreements

Intermunicipal cooperation on capital projects is often used for promoting economic development, but is not limited to that area. Regionalism can be attractive to fund-granting agencies because it lowers their administrative costs. Cooperative efforts may enable an area to attract businesses by providing services that an individual municipality would not be able to afford. Highway and other heavy equipment and shared facilities are common intermunicipal endeavors.

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