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Arlington braces for slower sales-tax revenue; mayor says budget cuts preserved reserves
Summary
Mayor (name not specified) told the Stille Valley Chamber that Arlington’s budget relies heavily on taxes and that recent revenue slowdowns forced cuts while maintaining minimum reserves and increasing public safety spending.
Mayor (name not specified) said Arlington’s 2025–26 budget is built around three priorities—public safety, fiscal sustainability and economic development—and warned the city is feeling a slowdown in sales-tax receipts.
"Recently, we have seen a period of inflation and a slowdown in the local economy, including our sales tax revenues," the mayor said, noting sales tax is a significant revenue source for city services.
The nut graf: Sales and property taxes together supply the bulk of the general fund and a downturn in sales tax reduces the city’s capacity to provide services. City leaders said they made spending cuts to protect minimum reserves while keeping public safety and maintenance funding from falling.
City figures cited in the speech: about 75% of general-fund revenue comes from property and sales taxes; the mayor also stated sales tax is "about 34% of our general fund" and later said "52% is from the sales tax," an inconsistency in the remarks. The transcript also records the city’s property-tax rate as 0.77% and that Arlington receives about 8% of the property tax collected by Snohomish County.
Mayor (name not specified) described active grant-seeking to reduce reliance on local tax revenue. He listed 2024 grant awards that helped the city, including a cybersecurity grant, a comprehensive-plan update grant, a criminal justice training academy grant, a Department of Ecology stormwater grant and FEMA funding for the Prairie Creek Culvert. Large transportation projects were noted as typically funded by federal and state grants.
The mayor said the city received the state auditor’s stewardship award in 2024 for accountability and transparency, and credited that recognition with helping stewardship messages during grant requests.
Looking ahead, the mayor said city staff will continue to pursue federal and state funding for major projects such as SR 531 widening and other transportation priorities that have relied on external grants since 2018.
