This is a really interesting process — in Wales there was a scheme called Participatory Budgeting which was supposed to give residents a say in some of the money spent in their community — this was only ever tried properly once in Wrexham are and that was Coedpoeth about 6 years ago.
It also only works at a time when there is not a funding crisis — if you tried this in Wrexham now the Council would blame the new residents groups for the cuts — brilliant piece of blame shift. Planned properly when there are some resources to mange rather than cuts and community ownership is brilliant concept