Arlington gives preliminary approval to tax rate increase, $750.7 million budget
Arlington homeowners will see an increase for property taxes and fees.
The Arlington City Council on Tuesday gave initial approval to raise the tax rate by 3 cents and expand the city’s budget.
The tax rate will now be 62.98 cents per $100 valuation. For a home at the average value of $308,372, the city will collect $1,492.34 in taxes.
Last year, when the average home was worth $319,415, Arlington homeowners paid $58.83 less in annual taxes with the tax rate at 59.98 cents.
Annual water, storm water and garbage fees are increasing by $88.56, effective Oct. 1.
The increases will help close a $20 million shortfall for the upcoming year and buffers for state law changes.
In addition to a tax increase, the $750.7 million budget includes reducing and restructuring areas that are lower on the city’s list of priorities. The city has eliminated 42 vacant positions and is restructuring another 22 positions, primarily associated with the esports facility.
With those 22 positions potentially being eliminated in the next fiscal year, City Manager Trey Yelverton said he hopes this will give those employees 14 months of notice rather than the required 30 days.
Part of the increase is due to property tax laws changing at the state level benefitting business owners, which creates more opportunity for tax exemptions. The city of Arlington also has to make up for the increase in revenue lost due to property taxes being protested.
Only one resident spoke to the city council regarding the three votes taken for the budget and tax rate on Tuesday. Larry McFarland was opposed to all three, saying the tax rate and budget should only be adjusted for inflation.
Council members Andrew Piel and Bowie Hogg voted against the tax rate. Piel voted against the budget as well.
The tax rate, fees and budget will see a final vote on Sept. 16 and will go into effect on Oct. 1.
This story was originally published September 9, 2025 at 9:02 PM.