FY 2026 Budget

The FY 2026 Proposed Budget was presented by the City Manager to Arlington's City Council on August 5, 2025. The video below provides a quick overview of the FY 2025 Proposed budget. To view the entire FY 2026 Proposed Budget document or the FY 2026 Budget Presentations, click on the links below. For more information on what went into developing the FY 2026 Proposed Budget, take a look at the "Piecing it Together" features further down the page.

Preparing the Budget

Each year, the City of Arlington works diligently to create a budget that supports City services, is fiscally responsible and focuses on the City Council’s priorities. For Fiscal Year 2026, several unique challenges are influencing how City staff are approaching the budget:

ARPA Funding: After COVID, the City gradually eased expenses covered by ARPA funding back into the general fund. FY2026 is the last year of this process.
Senior Tax Freeze: Arlington’s increasing senior population enjoys a senior tax freeze once they turn 65, meaning even if their property increases in value, the City portion of their tax bill will stay the same.
Conservative Valuations: Arlington is projecting growth in property values lower than recent historical norms and notably lower than adjacent counties.
Property Tax Protests: The City has seen significant loss in property value through protests, particularly in multi-family residential and commercial properties. The historical loss during the protest period has been between 0.5% and 1%. Last year, the loss was 3%.
New Reappraisal Plan: Following a freeze this past year, Tarrant Appraisal District’s plan is to not reappraise residential properties for two years means Arlington can assume there will be no increase in property values for that period of time.

As City staff works to craft the FY2026 budget, they are keeping the City Council’s new priorities in mind:

Enhance Mobility
Grow Our Economy
Preserve Financial Stability and Resilience
Strengthening Our Communities

Budget-Related Documents

Piecing It Together

Through August, our “Piecing it Together” budget series will provide a high-level overview of the unique situational and economic factors impacting Arlington’s budget this year. Have a question or topic you’d like to see included? Send us a message.

Learn About FY26 Budget at Aug. 14 and Aug. 21 Town Hall Meetings

The proposed budget for the next fiscal year, which begins Oct. 1, includes spending cuts, new fees and fee adjustments, and a three-cent property tax rate increase to close a $20 million budget shortfall in what is needed for Arlington to provide the current level of city services.

Arlington Council Reviews Proposed $750.7 Million Budget for FY 2026

The Council will vote on the budget in September after a series of public meetings, including town halls scheduled for Aug. 14 and Aug. 21, 2025.

Arlington’s Slowing Sales Tax Growth Expected to Continue Next Year

To date, City of Arlington sales tax revenue is about $4 million lower than the Fiscal Year 2025 budgeted amount that was approved by City Council last September. Based on current trends, that shortfall could be as much as $7 million by the time final sales tax data for the fiscal year is available to the City in November.

Senior Tax Freeze Impacts City’s General Fund Growth

The growing impact of the senior tax freeze, which removed $4.3 billion in taxable value from the City’s property tax base this year alone, is one of the challenges city leaders face as they work to balance a projected $25 million General Fund budget shortfall in Fiscal Year 2026.

How Entertainment District Growth Helps City Provide Core Services

While Arlington's Entertainment district is a key piece of helping fund programs and experiences that make Arlington a stronger community, it’s not the only piece of the larger budget puzzle.

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