Proposed increase in Arlington's monthly tax bills and fees by approximately $12 for the 2026 budget balance
Arlington Proposes 3-Cent Property Tax Increase to Balance Budget
The city of Arlington is proposing a 3-cent increase in the property tax rate for 2026, aiming to close a projected $25 million budget deficit and prepare for funding challenges in 2027 [1][3]. This increase is expected to generate over $11 million in additional revenue.
The proposed tax hike would result in an average increase of about $5 per month in homeowners' property tax bills in 2026, and an additional $7 per month in fees for utilities such as water and sewage [1].
The tax increase was proposed alongside other budget measures, including cuts to employee benefits and holding off on cost-of-living raises. However, these measures have been strongly opposed by police and firefighter unions and may be avoided if the tax increase is approved [1][3].
The city is currently considering using a "challenge grant" to give affected employees a 14-month notice, and delaying the actual termination of 22 positions for 14 months [2]. The city council has not yet held any votes on the tax rate increase.
The budget deficit is due to an unprecedented number of successful property value protests and the decision by the Tarrant Appraisal District to delay home value assessments until 2026 [4]. To address this, the city has slashed the projected shortfall to $6.41 million, through measures such as eliminating city jobs, cuts to programs and partnerships, and new or increased fees [5].
The state maximum for tax increase is 6 cents, an option none on the council seemed to favor [3]. The city is also merging its department managing the Arlington Esports Stadium into the parks and recreation department [6].
It's important to note that the city cannot legally operate on a budget with a deficit and needs to close the funding gap before passing the budget [7]. The $11 million in 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 [3].
Brett Worman, president of the Arlington Municipal Patrolman's Association, has warned that the proposed cuts could worsen a trend of officers leaving the police department [1]. The police and fire associations strongly oppose the tax increase, warning it could lead to attrition and difficulty hiring [3].
The city council needs to make a decision on the tax rate increase before a town hall to discuss the possible tax rate increase is held [8]. Yelverton needs to hear from the council by Aug. 12 to know what proposed tax rate they want him to take to the town hall.
| Aspect | Details | |------------------------------|--------------------------------------------------| | Proposed tax rate increase | 3 cents per $100 valuation | | Revenue expected | Over $11 million total | | Budget deficit to close | $25 million | | Impact on average homeowner's tax bill | ~$5 per month increase | | Additional utility fee increase | ~$7 per month increase | | Purpose | Close 2026 deficit, prepare for 2027 exemptions | | Opposition | Cuts to benefits opposed by police/firefighter unions | | City jobs eliminated | 22 positions | | Programs and partnerships cut | Various cuts to services | | New or increased fees | Various fees increased | | State maximum tax increase | 6 cents | | Merged department | Arlington Esports Stadium department merged with parks and recreation department | | Budget deficit cause | Successful property value protests, delayed home value assessments | | Town hall | Planned to discuss the possible tax rate increase | | Council decision deadline | Aug. 12 |
The proposed increase in the property tax rate by 3 cents aims to generate over $11 million, enabling the city of Arlington to meet its budget deficit of $25 million and prepare for funding challenges in 2027. Despite this, the police and firefighter unions vehemently oppose the tax increase, fearing attrition and staffing issues.
