Proposed Arlington budget adjustment might boost tax bills by approximately $12 per month in 2026
In the bustling city of Arlington, local authorities are seeking a solution to a looming financial challenge. The city council has proposed a tax rate increase as a means to address a projected $25 million budget deficit for 2026. The proposed increase would elevate the property tax rate by 3 cents per $100 of assessed value, generating over $11 million in additional revenue next year.
This move is part of a comprehensive strategy to maintain current city services while eliminating the deficit. City staff and the council have also proposed spending cuts totalling about $7.7 million, including the elimination of 42 vacant positions across various departments. Notably, the city plans to delay the actual termination of 22 employees for 14 months.
The proposed tax hike, however, faces opposition from Arlington's police and fire associations. Brett Worman, president of the Arlington Municipal Patrolman's Association, warns that the proposed cuts could worsen a trend of officers leaving the police department. Similarly, the fire associations express concerns that the increase may lead to attrition and difficulty in hiring.
To alleviate some of these concerns, the city is considering using a "challenge grant" to provide 14-month notice to the affected employees. The city council has not yet held any votes on the tax rate increase, and public input has been solicited in town halls prior to a final council vote in September 2025.
It is worth noting that the city's budget woes are primarily due to an unprecedented number of successful property value protests and the delay of home value assessments until 2027 by the Tarrant Appraisal District. The city is legally allowed to raise the property tax rate by nearly 6 cents, but none on the council seem to favour this option.
If approved, the increased tax revenue would allow the city to balance the 2026 budget and provide funding to bridge the gap expected in 2027 due to changes in commercial property tax. An additional cent of the increase would help cover some expected funding challenges in 2027, particularly changes to commercial property taxes.
It is crucial to mention that the city has lowered the property tax rate every year from 2017 until 2025, and in 2026, the rate went up by 2 cents. Yelverton, the city's chief financial officer, needs to hear from the council by Aug. 12 to know what proposed tax rate they want him to take to a town hall.
In conclusion, the tax rate increase, coupled with targeted spending cuts, is the main component of Arlington's strategy to eliminate the $25 million projected deficit and maintain current city services for 2026. The city council is currently seeking public input before making a final decision on the tax increase.
The proposed tax rate increase, worth over $11 million in additional revenue next year, is part of the city's strategy to address a $25 million budget deficit in 2026, as reported in the latest city news. This move in finance could impact the city's public services and the employment of certain officials, sparking concerns from the police and fire associations.
