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Arlington County Board adopts FY2026 budget, holds property tax rate flat and raises meals tax to 5%
Summary
The Arlington County Board adopted its FY2026 operating and capital budget and tax resolutions April 9, keeping the base real estate tax rate flat but raising the meals tax from 4% to 5%. The package includes one‑time reserves, increases for housing and human services, pay adjustments and funding tied to climate goals; the vote was unanimous.
The Arlington County Board on April 9 adopted the fiscal year 2026 county operating and capital budget, approved the corresponding appropriations and tax resolutions and enacted a series of fee and code amendments. The board kept the county’s base real estate tax rate unchanged at $1.033 per $100 of assessed value, adopted a 5% meals tax (up from 4%), and approved several other tax and fee measures. The package passed unanimously.
Why it matters: The budget funds the county’s safety net and core municipal services while responding to growing uncertainty in the regional and federal economy. County leaders said the package preserves services for vulnerable residents, advances climate and public safety priorities and includes one‑time and ongoing measures to stabilize the county’s finances amid volatile revenue forecasts.
Most important items: The adopted budget includes a one‑time addition of $11,000,000 to the county’s economic stabilization reserve, new one‑time homeless services funding of $1,000,000 and continued major local investments in affordable housing and housing grants (the staff report identifies approximately $17,600,000 in the housing grants allocation). The board also restored funding and program support for childcare licensing and locally funded childcare subsidies to address gaps while state funding is delayed. On compensation, the board approved a 2% range movement and a 3.5% pay increase on anniversary dates for non‑bargaining employees; the budget text estimated the average net salary increase for an employee earning $80,000 would be about $2,280 after health deductions.
The budget preserved and in some places expanded the county’s public safety and climate commitments. The county manager and department leaders described investments to help the fire and police departments recruit and to continue the county’s climate and tree canopy work, including one‑time funding for tree planting and invasive species management and funding for electric vehicle fleet expansion. The board’s guidance also directs prioritization of strategic climate projects through the Climate Action Fund.
Process and vote: The board debated the motions and guidance across multiple work sessions before the April 9 vote. Chair Tacos Carringtonus described the adopted resolution as “the core budget resolution” that reflects the county’s priorities. The final motions that adopt the fiscal year 2026 budget, tax rates and related ordinances were moved and seconded on the floor and carried unanimously.
What’s next: The board instructed the county manager to continue monitoring revenues (consumption taxes and business license tax receipts were cited as items that will be watched closely) and directed staff to return with updated financial information and any recommended adjustments by June if economic conditions change. The guidance document adopted with the budget also tasks staff with ongoing efficiency reviews and targeted community investments called out in the motion.
Ending note: Board members stressed the combination of fiscal restraint and targeted investments — holding the property tax rate steady while shifting some revenue burden to other sources — and emphasized that the adopted package seeks to protect human services and other supports for residents facing economic uncertainty.
