The article explores how Croatian cities struggle with limited financial independence for local development projects. Cities have few options to raise money and often don't use them effectively. Most of their budget goes towards basic services like education and healthcare, leaving little for investments. The research questions focus on how the current budget structure hinders local development, the importance of measuring local financial capacity, and how cities can better integrate economic and social development. The study also looks at innovative ways to finance projects, such as pooling public and private funds or creating new revenue streams.