City manager outlines paths to close $25 million budget gap as ARPA, tax changes bite

City Manager Trey Yelverton told the Arlington City Council on June 10 during an afternoon work session that the city faces roughly a $25 million fiscal gap driven by expiring American Rescue Plan Act funds, a voter-approved senior tax freeze and lower property valuations reported by the Tarrant Appraisal District.

Yelverton said the shortfall reflects several moving parts: ARPA-funded positions that end in 2026; the senior tax freeze, which cost about $3.5 million in lost revenue last year; conservative appraisals and an accelerated protest and litigation trend at the Tarrant Appraisal District; and upcoming state changes to the business personal property exemption that could cut approximately $2.2 million beginning in 2027. “I continue to tell you that I think we do a lot with a lot, but…