City of Arlington Approves $750.7 Million Fiscal Year 2026 Operating Budget

Strategic Insights -

Following two town hall meetings and a public hearing, the City Council voted to approve Arlington's $750.7 million Fiscal Year 2026 operating budget, which includes spending cuts, new fees, and a three-cent property tax rate increase to close a $20 million budget shortfall. The approved budget also includes increases in residents' water and sanitary sewer rates, the garbage collection rate, and the stormwater fee. The budget cuts affect various city services, including the elimination of 42 vacant positions across multiple departments.

Key Takeaways:

  • The City Council approved $7.7 million in budget cuts, including the elimination of 42 vacant positions across multiple departments.
  • The eliminated positions are in departments such as Parks & Recreation, the Library, Animal Services, Police, Planning and Development Services, Document Services, Real Estate, IT, Municipal Court, and Finance.
  • The budget cuts also include closing the Action Center hotline on Saturdays, closing Arlington Animal Services on Mondays, reducing community park mowing, limiting Handitran rideshare public transportation service to within City limits, eliminating the employee annual picnic, reducing the City's fleet, eliminating two city holidays for city employees, and restructuring some operations to eliminate potential additional employee positions in FY27.
  • The City has identified approximately $2.3 million in financial restructuring opportunities and approximately $5.7 million in new fees and fee adjustments to help balance the FY26 budget.
  • The approved budget includes a three-cent property tax rate increase to close a $20 million budget shortfall.
  • Residents will experience increased rates for water, sanitary sewer, garbage collection, and stormwater fees.

Statistics:

  • $750.7 million: The total operating budget for Fiscal Year 2026.
  • $20 million: The budget shortfall that the three-cent property tax rate increase aims to address.
  • $7.7 million: The amount of budget cuts approved, including the elimination of 42 vacant positions.
  • 42: The number of vacant positions eliminated across multiple departments.
  • 3 cents: The increase in the property tax rate to close the $20 million budget shortfall.
  • $2.3 million: The amount identified in financial restructuring opportunities.
  • $5.7 million: The amount identified in new fees and fee adjustments to help balance the FY26 budget.
  • 1.5 miles: The previous boundary extension of the Handitran rideshare service area outside of City limits.
  • 6 days a week: The operating schedule of the Arlington Animal Shelter, previously closed only on Sundays.

Sources:

  • [1] News release from the City of Arlington, Texas.