Stretching Limited Public Funds in Small Cities
For many small cities and rural communities in Minnesota and the Upper Midwest, state and federal dollars are increasingly competitive. Communities that find ways to bring local dollars to the table often have the edge. That’s why capital fundraising campaigns and public-private partnerships (P3s) are becoming essential tools to move water, wastewater, housing, and community facility projects forward.
Local Fundraising That Builds Community Buy-In
When residents and local organizations invest in a project, it not only raises money but also shows strong community support—something grant reviewers love to see. Here are some examples of local fundraising approaches:
- “Buy a Brick” or naming rights campaigns for libraries, parks, or community centers.
- Foundation partnerships that match local donations to double impact.
- Donation drives led by civic groups, chambers of commerce, or volunteers.
Case in Point: In the City of Tracy, MN senior citizens had been fundraising for years to bring a new Senior/Community Center to life. Their dedication, combined with a grant secured through the Minnesota Department of Education and additional local contributions, helped kick the project into high gear. The community is also exploring naming rights within the building to recognize donors further and strengthen local investment in a space designed for lifelong learning and self-improvement.
How Public-Private Partnerships Work in Rural Communities
Public-private partnerships allow cities, employers, and nonprofits to work together on projects that serve both the community and the local economy. Here are some examples in action:
- Childcare facilities tied to workforce needs – Employers provide startup funds or land because reliable childcare helps retain employees.
- Affordable housing projects – Developers contribute infrastructure costs, while cities leverage PFA or USDA funds to close the gap.
- Healthcare and senior facilities – Hospitals or nonprofits contribute capital because expanded services directly benefit their mission.
By sharing costs, P3s keep projects moving and strengthen long-term community ties.
Blending Funding Sources for Resilient Projects
The strongest funding packages come from blending local fundraising, partnerships, and traditional sources (like USDA Rural Development, MnDOT Aeronautics, or Public Facilities Authority grants). This mix creates financial resilience, closes funding gaps, and increases the odds of winning competitive dollars.
Key Takeaway for Small Cities
Local dollars—whether raised privately or pledged through partnerships—unlock larger state and federal resources while building stronger community ownership. For small cities, this approach can make the difference between a stalled project and a completed one.
How Bollig Can Help
At Bollig Engineering, we know that funding is often one of the biggest hurdles for small cities. Our dedicated funding team specializes in helping communities blend local fundraising, public-private partnerships, and state and federal programs to create affordable, successful projects. Call us today at (320) 235-2555 or contact us online to start building a funding strategy that works for your city’s project.
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