Funding Sources Other than Property Taxes

How does the City Fund Services Beyond Public Safety?  

While public safety is a major focus of the city’s budget, it’s not the only essential service Burleson provides. So how does the city fund other services like the library, senior center, parks, animal control, and street maintenance when the revenue from Maintenance and Operations (M&O) portion of property taxes don’t even fully fund all of public safety?  

The answer lies in a diverse mix of local revenue sources that help fund a wide range of departments beyond police, fire, and EMS.  

Other Major Funding Sources for City Services:  

• Sales Tax: The city collects a one-cent general sales tax that supports services such as the library, senior programs, animal services, and street maintenance. Sales Tax funding helps relieve the burden from property taxes, by allowing people from outside the city to help fund city services. 
• Half-Cent Sales Taxes (4A & 4B): These voter-approved taxes support economic development (4A) and parks and quality-of-life projects (4B). 
• Franchise Fees: Charges to utility providers (such as electric, cable, and gas companies) for use of public infrastructure. 
• Permits, Fines, Fees, and Grants: Help support programs and services without relying solely on tax revenue. 

Together, these revenue streams provide the resources needed to offer the full spectrum of services residents rely on every day. 

What Are the Different Types of City Funds?

The city of Burleson uses several types of funds to ensure that revenues are managed responsibly, transparently, and in compliance with legal and regulatory requirements. Each fund is structured based on how the money is collected and what it can legally support. This approach makes city budgeting fundamentally different from managing a household or private business budget, where funds are often more flexible and interchangeable. 

Fund Types Explained: 

• General Fund 
  The city’s primary fund. Supports core services such as police, fire, library, parks, streets, and animal control. Funded primarily through property taxes, sales taxes, and general revenue. 
• Special Revenue Funds 
  Used for specific programs like The BRiCk recreation center, economic development, or voter-approved projects funded by designated sales taxes. 
• Debt Service Funds 
  Set aside to repay bonds and other debt obligations for major capital projects, such as new facilities, infrastructure upgrades, or public safety buildings. 
• Enterprise Funds 
  These operate like a business, using user fees to support services such as water, wastewater, solid waste collection, and Hidden Creek Golf Course.
• Capital Project Funds 
  These funds are used to track the expenditures of the projects in the city’s Capital Improvement Plan budget appropriated by council.
• Internal Service Funds 
  Used to manage shared services like fleet replacement and information technology that support all departments across the city. 

Each fund plays a specific role in the city’s financial structure, ensuring accountability and responsible use of public dollars. 

Why Can’t the City Use Any Fund for Any Purpose?

It’s a common question: Why can’t the city just move money around as needed? The answer comes down to legal and ethical restrictions that ensure transparency and fairness. 

Many of the city’s revenue sources are restricted by law or governed by specific agreements. For example: 

• The Interest & Sinking (I&S) portion of property taxes used to pay off debt for large capital projects and capital equipment.  
• 4B Sales Tax funds must be used for economic development and quality-of-life projects, as defined by state law. 
• Grants and donations often come with conditions that specify how the money must be spent. 
• Enterprise Fund revenues, such as water or solid waste fees, must be used only to support those specific operations. 
• Endowment Funds  can only be used for purposes the donor specifies at the time of the donation, including the interest earned from the donation. 
• Impact Fees can only be used on capital infrastructure costs in the region and for the purpose for which the fee was instituted.
• Hotel/Motel funds must explicitly be used on activities that promote tourism and the convention industry.
• Street Maintenance Fund is a portion of property taxes that Burleson City Council has dedicated to ongoing street maintenance efforts. 

These restrictions are in place to protect taxpayers and ensure that money is spent in the way it was intended. Following these rules helps build long-term public trust and supports financial integrity across all city services.