Arlington City Council passes $722 million budget with 1 cent property tax increase per $100 of property value
Arlington, Texas – The Arlington City Council approved a new budget for the fiscal year 2025 with the first property tax rate rise the city has seen in two decades in what appears to be a significant financial move. The council approved a $722 million budget with a modest 1 cent per $100 of evaluated property value tax increase. An extra $4.1 million in income is predicted from this rise, KERA News reported.
Several projects, like the $500,000 Clean Team project aiming at preserving city cleanliness and the recently built ACTIV, a recreation center serving people aged 50 and beyond, will be funded by this fresh income. The budget also includes the expenses of keeping full-time posts in the police and fire departments originally financed by the American Rescue Plan Act. It also helps the fire department’s four person per unit staffing change.
The budget modifies the employee health fund and shows almost $6 million in cuts and reallocations within other city agencies. The fiscal plan also calls for deferred budget requests from several agencies totaling $23 million. Focusing mostly on road improvements, these postponed projects could be offered to the voters in a bond referendum next spring.
This budget marks the start of a series of financial changes the city must undertake to control the expected flat-to- falling property tax increase. This trend reflects recent developments in the Tarrant assessment District’s approach, including restrictions on assessment increases and a freeze in residential property tax values planned for 2025.
The tax freeze is expected to cause a possible $5 million shortage in 2026, hence proactive financial planning becomes even more important for city leaders. On the first reading, the council approved the budget and the new tax rate with a 7-2 vote considering the tax rise. Andrew Piel and Nikkie Hunter, two council members, objected to the proposals; Hunter especially worried about the distribution of the Clean Team project and favored a concentration on public parks over congested streets.
Read also: Dallas residents invited to join emergency response training sessions starting September 8
September 17, during an evening council meeting, marks the last vote on the budget and tax rate when the fiscal future of the town will once more be under debate.
