District councils were first recognized beginning in 1975 following the creation of the Citizen Participation Program. The new program required neighborhoods to follow a 10-step process to form and recognize an organization that would be certified as the neighborhood's district council. This certification has been the basis for district councils continuing to receive city funding through that program and in its new form as the Community Engagement Program. District councils now receive funding from the city on an annual basis through that program. This funding is allocated across district councils on a formula that takes into account the following factors (percentage influence in parentheses):
- Total population (75%)
- Poverty (15%)
- Non-English speaking residents (5%)
- Employment (5%)
The calculation for funding is based on data collected in the decennial census. A minimum funding amount is set to that is adjusted periodically. Funds are meant for expenses related to district councils' community engagement activities. This can include costs for staff, materials, physical space and communication. Community Engagement Program funding cannot be used for undefined items such as "miscellaneous" or "special projects"; the purchase of food and/or beverages; the costs of legal action against the City, including fees to appeal or penalties and interest charges. Funding for the Community Engagement Program comes from both the city's General Fund as well as the federal Community Development Block Grant for districts that qualify for these dollars.
2019 Community Engagement Program Funding
| District | District Council | General Fund | CDBG | Innovation Fund | Total |
| 1 | District 1 Community Council | $50,184 | $35,000 | $6,049 | $91,233 |
| 2 | District 2 Community Council | $86,470 | $35,000 | $6,049 | $125,519 |
| 3 | West Side Community Organization | $34,773 | $35,000 | $6,049 | $75,822 |
| 4 | Dayton's Bluff Community Council | $36,762 | $35,000 | $6,049 | $77,811 |
| 5 | Payne Phalen Community Council | $101,334 | $35,000 | $6,049 | $142,383 |
| 6 | North End Neighborhood Organization | $65,294 | $35,000 | $6,049 | $106,343 |
| 7 | Frogtown Neighborhood Association | $41,701 | $35,000 | $6,049 | $82,750 |
| 8 | Summit-University Planning Council | $42,109 | $35,000 | $6,049 | $83,158 |
| 9 | Fort Road Federation | $56,873 | N/A | $6,049 | $62,922 |
| 10 | District 10 Como Community Council | $63,978 | N/A | $6,049 | $70,027 |
| 11 | Hamline Midway Coalition | $21,873 | $35,000 | $6,049 | $62,922 |
| 12 | St. Anthony Park Community Council | $56,873 | N/A | $6,049 | $62,922 |
| 13 | Union Park District Council | $78,134 | N/A | $6,049 | $84,183 |
| 14 | Macalester Groveland Community Council | $76,685 | N/A | $6,049 | $82,734 |
| 15 | Highland District Council | $96,582 | N/A | $6,049 | $102,631 |
| 16 | Summit Hill Association | $56,873 | N/A | $6,049 | $62,922 |
| 17 | Capitol River Council | $26,873 | $30,000 | $6,049 | $62,922 |
| Total | $993,371 | $345,000 | $102,833 | $1,441,204 |
Other City District Council Program Funding
District councils also receive funding from other city programs to support their community engagement work. One source of funding is the Community Organization Partnership Program (COPP) managed by City Council. District councils are able to apply to ward offices for money to perform neighborhood projects. Also, many district councils participate in the city's "All In" program to promote recycling in neighborhoods, distribute organics recycling containers and co-host Community Drop-Off events.
