Town Hall Discussion Reveals Arlington's Proposed Hike in Property Taxes
The city of Arlington is proposing a 3-cent property tax increase to address a projected $25 million budget deficit for the 2026 budget. This move is aimed at stabilising the city's finances, maintaining essential services, and retaining personnel.
City staff have been working with the council since November 2024 to identify ways to cut spending and increase revenue. The budgetary challenges include the impact of a new business property tax exemption, complications arising from traveling housing finance corporations expected in 2027, an unprecedented number of successful property value protests, and a delay in home value assessments until 2027 by the Tarrant Appraisal District.
The proposed tax increase is expected to provide the city with over $11 million. Around $7.4 million from the increase would be used to balance the 2026 budget, helping to cover the immediate deficit without drastic service cuts. The additional $3.7 million aims to help the city avoid further budgetary issues linked to the business tax exemption and the influx of traveling housing finance corporations in 2027.
Opposed cuts include reductions in employee benefits and raises, which are resisted strongly by police and firefighter unions. The tax increase is intended to prevent service cuts, terminate layoffs, and avoid eliminating cost-of-living adjustments for city employees.
It is important to note that the debt for AT&T Stadium and Globe Life Field cannot be used for anything other than paying off debt from those stadiums. The city's debt service account is not related to the proposed property tax increase. Arlington's debt service is healthy, with the city receiving an AAA rating from S&P, the top rating available.
A town hall will be held at 6 p.m. on Aug. 21 at city hall, 101 W. Abram St., providing residents with an opportunity to voice their opinions on the proposed tax increase.
The city's early repayment of debts for both AT&T Stadium and Globe Life Field is a significant development. Arlington announced it will make the last payment on AT&T stadium this week, saving the city around $150 million. The debt for Globe Life Field's construction is expected to be paid off 14 years early, by 2034, saving the city almost $200 million.
The bond passed by voters earlier this year is being used for things other than the city's general fund. The city's debt service account, used for bonds passed by voters, is a separate account from the city's general fund and cannot be used for payroll, program funding, or maintenance throughout the city.
In summary, the 3-cent tax hike is a strategic step to stabilise Arlington’s finances, maintaining essential services and retaining personnel by bridging the budget gap created by lower-than-expected revenue and new tax exemptions. The tax increase will go only to the general operating budget, not to debt service. Residents are encouraged to attend the town hall on Aug. 21 to learn more about the proposed tax increase and share their thoughts.
[1] Arlington Voice, "Arlington Faces $25 Million Budget Deficit for 2026," 12 May 2025. [2] Arlington Voice, "Property Value Protests and Delayed Assessments Contribute to Arlington's Budget Shortfall," 20 May 2025. [5] Arlington Voice, "Police and Firefighter Unions Oppose Proposed Cuts and Reductions," 5 June 2025.
- To address the upcoming budget deficit and maintain the city's financial stability, a $11 million revenue boost from a proposed property tax increase will help balance the 2026 budget, aid in avoiding budgetary issues related to the business tax exemption and influx of traveling housing finance corporations, and prevent potential service cuts.
- As the city council works to secure the city's finances, a portion of the additional revenue from the property tax increase aims to cover unexpected expenses like an unprecedented number of property value protests and delays in home value assessments by the Tarrant Appraisal District, ensuring essential services are maintained and personnel are retained.
