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Arlington City Council Addresses $20M Shortfall with New FY26 Budget, Residents to See Tax and Fee Increases

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Published on September 18, 2025
Arlington City Council Addresses $20M Shortfall with New FY26 Budget, Residents to See Tax and Fee IncreasesSource: Google Street View

The Arlington City Council has given the go-ahead for the Fiscal Year 2026 budget, greenlighting a series of measures to tackle a looming $20 million budget shortfall. The approved financial plan sees a $750.7 million budget combined with a mix of spending cuts, fee hikes, and a property tax rate increase. The new budget is slated to impact various city services, with a notable reduction in city personnel and adjustments in service delivery across the board.

In light of the budget constraints, the council has agreed to eliminate 42 unfilled positions that span several departments, including Parks & Recreation and Animal Services, as well as Police and IT, according to the City of Arlington. Alongside workforce reductions, the Action Center hotline and Arlington Animal Services will see reductions in their operating hours. Certain amenities, like the employee picnic and community park mowing, will also face cuts.

The property tax rate has been adjusted to $0.6298 per $100 of assessed value. This increment is expected to bring in an additional $11.1 million, which will fund essential city services. "The three-cent rate increase, which would mean a $4.90 a month increase for the average residential property owner, would generate about $11.1 million in revenue," the article from the City of Arlington states.

Arlington residents will also encounter increases in their monthly utility bills. Residential water and sanitary sewer fees are set for a hike, justified by the rising costs of producing and delivering clean drinking water and treating wastewater. Even after the rate adjustments, officials assure that Arlington's fees would remain competitive within the North Texas region. Garbage collection rates are slated for a modest rise, and the stormwater fee will see its final scheduled increment of 50 cents per month, contributing to approximately $27 million annually for city stormwater projects.

The cumulative effect of these financial adjustments means the average Arlington homeowner should prepare for an approximate monthly increase of $12.20, or $146.43 annually, for property taxes, water and sewer services, garbage pickup, along stormwater management. The FY26 budget officially takes effect on October 1, paving the way for these changes to roll out to residents and city services alike.