Where Does Dallas Get Its Money?
Dallas pays for city services using money collected from taxes, fees, permits, grants, and other sources. Some of this money can be used for almost any city service, while other funding is restricted to specific purposes.
iN 1 mINUTE…
Every year, Dallas collects money from many different sources. Some of the largest include:
- Property taxes
- Sales taxes
- Fees and permits
- Grants
- Utility payments
Each source has different rules about how the money can be spent.
Think of It Like Your Monthly Budget
Most people don’t get money from just one place. You might earn a bi-weekly paycheck, receive birthday money, sell something online, or get a tax refund.
Dallas works the same way.
Instead of relying on one source of income, the City collects money from property taxes, sales taxes, fees, grants, and utility payments.
the five biggest revenue sources
Dallas collects money from several different sources, but these are among the largest and most important for funding city services.
Property Taxes
Property owners pay taxes based on the value of their property. These taxes help pay for many everyday city services like police, fire, parks, libraries, and street maintenance.
Sales Taxes
When you buy taxable goods in Dallas, part of the sales tax goes to the City. This revenue helps support the General Fund, which pays for many everyday services.
Fees & Permits
These fees help cover the cost of providing specific services rather than relying entirely on taxes.
- Building permits
- Parking fees
- Recreation programs
- Licenses
These fees often help pay for the services they support.
Grants
Dallas receives funding from state and federal governments for specific programs and projects.
Grant money usually must be used for the purpose it was awarded.
utility payments
Water and wastewater customers pay monthly bills that help operate Dallas Water Utilities.
This money generally stays within the utility system and is not used for all city services.
Not every dollar can be spent anywhere
Think of Dallas’ revenue in two categories.
| Flexible | Restricted |
|---|---|
| Property Taxes | Water & Wastewater Fees |
| Sales Taxes | Hotel Occupancy Taxes |
| Grants | |
| Bond proceeds |
Flexible: These generally support a wide range of City services through the General Fund.
Restricted: These funds are limited to specific purposes by law, policy, or the terms of the funding.
why this matters
Understanding where Dallas gets its money makes it easier to understand budget debates.
When residents hear about a budget shortfall, a new grant, or changes in tax revenue, they can better understand why some programs grow while others don’t.
For example:
- A grant for housing generally can’t be redirected to road repairs.
- Water utility revenue generally isn’t used to fund libraries.
- Changes in property or sales tax collections can affect the city’s General Fund
Frequently asked questions
Does Dallas only rely on property taxes?
No. Property taxes are an important source of revenue, but the city also collects sales taxes, fees, grants, and utility payments.
Can the city spend grant money on anything it wants?
Usually not. Grants typically have specific rules about how the money can be used.
Are water bills part of the city budget?
Yes, but they generally fund Dallas Water Utilities through an enterprise fund rather than the General Fund.
CONTINUE LEARNING
Learn about property taxes, sales taxes, fees, grants, and other revenue sources.
Learn how the city allocates funding across departments like police, parks, libraries, and transportation.
Learn how departments, the City Manager, City Council, and residents all play a role in creating Dallas’ annual budget.
Learn how to attend budget town halls, give public comment, contact your council member, and share your priorities before the budget is adopted.