If a town was to make a carnival for its residents as a fundraiser, where would it get the money to buy stuff? -

where would it get the capital for all the expenses needed for the carnival/fundraiser?does each town have a cash flow?

Sell early raffle tickets for a big prize like a TV or something. That would give you some start up cash to get some stuff!

It depends on if the town has city government if not it may have to be done by donations from businesses and key members.

They would usually solicit donations and funding (in lieu of free advertising) from local businesses.

Taxes or donations from generous people.