Arlington City Council voted unanimously on Tuesday night to give its first approval to the fiscal year 2026‑27 budget. The council also voted to keep the property tax rate unchanged at 62.98 cents per $100 of assessed value, a decision praised by City Manager Trey Yelverton as a continuation of responsible stewardship that avoided the rate increase seen in neighboring Fort Worth and Keller.
Budget Highlights
The approved budget projects a roughly $3 million surplus for the city. While the general fund shows a slight shortfall, the deficit is offset by balances in other city funds. The budget maintains essential services and earmarks funds for future projects, though some initiatives will need to be funded through reallocation or borrowing.
Property Tax Rate Decision
Two council members initially advocated for a modest increase to the tax rate, arguing that additional revenue would support expanded services. However, the majority favored stability for property owners. The council’s decision reflects Yelverton’s earlier praise for last year’s 3‑cent tax increase, which helped the city adjust to a property‑value freeze imposed by the Tarrant Appraisal District.
“We can always operate when we know the rules, but when someone changes the rules on you in the middle of a process without any notice, it causes what we dealt with last year,” Yelverton said. “Now that we know the rules, we’ve adjusted, and we have a different plan.”
Revenue Impact of Declining Property Values
Arlington’s taxable property values fell by 1.23%, the second‑largest decline in the city’s recent history, largely due to widespread property‑value protests that reduced assessed values by roughly $5 billion. To offset the loss, council members considered the “no‑new‑revenue” rate, which would have raised the average homeowner’s annual tax bill by about $16. The proposal was rejected in favor of maintaining the current rate, emphasizing the need for fiscal stability.
Water and Sewer Rate Increase
While property taxes remain steady, residents can expect a modest rise in water and sewer fees. The average monthly water bill, currently about $80, will increase to $85 next year, adding roughly $60 to the annual household cost. Council member Mauricio Galante explained the hike as a necessary pass‑through of higher purchase costs from the Tarrant Regional Water District.
Despite the increase, Arlington’s water rates remain lower than those of several nearby cities, offering a relative advantage for local households.
Council Perspectives on Service Funding
New council members Brittney Garcia‑Dumas and Jason Shelton supported the no‑new‑revenue rate, noting that the $16 increase would fund critical services such as street maintenance, police and fire equipment, and expanded homelessness assistance. Garcia‑Dumas warned that keeping the tax rate flat would delay needed improvements, making future projects more expensive. Shelton highlighted that the additional $2.2 million could be directed to major quality‑of‑life programs.
Next Steps
The council will reconvene on September 15 to give final approval to the budget and the tax rate. Yelverton emphasized that projects cut from the current budget are not abandoned; the city will explore alternative funding methods, including shifting resources or borrowing as needed.
Arlington residents can look forward to a stable property‑tax bill, a modest increase in water costs, and a city budget that aims to preserve essential services while positioning the community for future growth.
Original reporting: Fort Worth Report — read the source article.
