Council in Arlington grants approval for tax hikes and utility expense rise to bridge budget deficit
In a move aimed at addressing a projected $25 million deficit for the 2026 budget, the city council of Arlington has voted to increase the property tax and utility rates. The decision, made in a 7-2 vote, will see an average increase of $12 per month for property owners and utility users.
The tax rate increase, which amounts to 3 cents, will raise the rate to 62.98 cents per $100 valuation. This adjustment is expected to generate over $11 million in revenue for the city next year. An additional cent of the increase will bring in approximately $3.7 million.
The budget woes facing Arlington are largely due to an unprecedented number of successful property value protests and the decision by the Tarrant Appraisal District to delay home value assessments until 2027. These circumstances have created a significant challenge for the city's financial planning.
City Manager Trey Yelverton described this trend as creating new problems, and the tax rate increase is part of a larger strategy to eliminate the budget deficit. The additional revenue from the tax rate increase will be used for a one-time investment in technology, facility maintenance, and the city's fleet of vehicles in 2026.
In 2027, the additional revenue could help the city avoid budgetary challenges created by new business property tax exemptions and traveling housing finance corporations.
It's worth noting that the city council also adopted a $750 million proposed operating budget with an 8-1 vote. Council member Bowie Hogg voted to adopt the FY 2026 operating budget, leaving council member Andrew Piel as the sole nay on that particular vote. Piel and Hogg had previously voted against the tax rate increase, repeating their initial vote on the matter earlier this month.
Despite the passed budget, Hogg anticipates budgetary constraints for the next year. He believes that there are areas in the budget that could have been cut, such as IT projects and delays for a year.
The search results do not provide explicit information about which person specifically submitted the motion to increase the tax interest rate for 2026 at the city council meeting on Tuesday.
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