CDAE 102: Financial Capital for the Village of Northfield

Financial capital brings your community a different edge with the process of developing your community. Every community has it, but not all communities will have a strong financial capital. The communities that tend to thrive usually will have strong financial resources because if your community has an abundance of financial resources, then they can most likely increase the needs and wants within your community.

The public thinks of financial capital in a community as “the total number of dollars within a given community” (Slide 5, Kelly Hamshaw). This is not true. A community’s financial capital is distinguished from the community’s income, wealth, security, investment and ability to access funding in many forms: savings, credit, grants and tax revenue” (Slide 6, Kelly Hamshaw). Once you are able to calculate how much financial capital your communities have, then your community’s representatives can make a decision on where the resources and money can go.

Addendum 1 is the Village of Northfields Plan to increase the financial capital within the town. The overall goal of this plan is to upgrade the Village Center and to improve all of the major roads within the town. The outcome of this project will increase the number of travelers through the town which in turn will increase revenue for the small businesses in the villages center. Also, by having a new and improved village center, people within the community will be more inclined to go there since it is knew and filled with different social activities.

The way that this project is financed is through two basic concepts. These concepts are public and private financial capital. Public financial capital is the financial resources invested by the community, which is the tax dollars that pay for public roads or public areas. For instance, Northfield’s average tax for public utilities is set at $1,060,211 (American Fact Finder). Private financial capital is the financial resources of individuals or groups, which is the equity in small businesses.


American Fact Finder (2012). State and Local Government Finances. Retrieved from


Village of Northfield (2003). Addendum 1. Retrieved from