Official Web Site of the City of Phoenix

Where Our Money Comes From . . .and Where It Goes

Our city budget is made up of three separate pieces: enterprise funds, federal funds and other restricted funds and the general fund. About a third of our total budget comes from enterprise funds such as water, wastewater, solid waste, Convention Center and golf courses.

With the exception of the Convention Center, no tax dollars support enterprise programs. Instead, users of these services pay fees, which support all the costs associated with delivering services and cannot be used for any other purpose.

Another smaller portion of the budget comes from federal funds and other restricted funds. Federal funds include public housing grants, transit grants, police grants and other social service and low-income grants. Other restricted funds include gas taxes, which only can be used for streets and debt service funds. These funds also include four voter-approved earmarked sales taxes for public safety, transit, and parks and preserves.

The remaining portion of the city budget, about 32 percent, is the General Fund. Our General Fund revenues largely come from local sales tax and state-shared revenues. For many years, the state has distributed state sales, income and vehicle licenses taxes to local cities and towns. In addition, a portion of General Fund comes from fees and court fines.

Anytime you buy merchandise in Phoenix, the sales tax goes directly into the city's General Fund. This fund provides the basic services you receive every day, whether you live in Phoenix or another city. It pays for the city streets, supports the Police and Fire departments and provides the city parks and public transportation. That's why this Proposed Budget focuses on the General Fund.

As a Phoenix resident, you may benefit from a variety of social service programs that are supported by sales tax, including family service and the senior centers throughout the community. Through the city's Neighborhood Services Department, residents get assistance with neighborhood preservation and cleanup.

When you shop in other cities, the tax goes to the general funds of those communities and supports their city services.

Phoenix's sales tax collections are among the lowest per capita among cities and towns in the metropolitan area, even though we provide the highest level of social and public safety services. To ensure that your sales tax dollars support your city services, shop Phoenix.

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Last modified on 02/03/2009 17:11:51