Local governments in Ukraine are facing challenges in filling their budgets, especially the special fund meant for specific purposes. This fund is often underutilized, leading to inefficiencies. The study explores the importance of the special fund in community finances and suggests that increasing its share can benefit local development. By finding ways to generate more income and effectively use reserves, local budgets can become more efficient. Collaboration between government, businesses, and the population is crucial for success. Encouraging local authorities to explore their own resources can boost financial capacity and promote community cohesion.