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Arlington council adopts FY2026 operating budget and levies higher property tax rate
Summary
On Sept. 16 the Arlington City Council approved the fiscal year 2026 operating budget and an ad valorem tax rate of 62.98¢ per $100 of assessed value to support it, after public opposition from a resident who urged the council to adopt a rate reflecting the "no new revenue" standard.
Arlington's City Council on Sept. 16 approved the fiscal year 2026 operating budget and adopted a property tax rate of 62.98 cents per $100 of assessed value to fund the plan.
Budget manager Devin Waters told the council the adopted tax rate allocates 18.52 cents to the interest-and-sinking (debt) fund and 44.46 cents to the General Fund. Waters and staff said because the proposed rate exceeds the city's "no new revenue" rate, state law requires a supermajority approval threshold for adoption.
The measure brought public opposition. Larry McFarland, a resident, urged the council to reject the budget and tax levy, arguing the proposal failed to reflect "actual cost increases" and urging the council to adopt a rate matching the "no new revenue" calculation. "A 9.6% increase in a period of 2% inflation," McFarland said in public comment, adding he and other citizens urged a no vote.
Councilmembers moved to adopt the budget and the rate during the meeting's consent and ordinance readings; motions and seconds were recorded and the council voted to approve the budget and ratify the tax rate. Council discussion recorded during the readings focused on statutory requirements tied to adoption and the technical components of the rate.
Why it matters: The adopted rate funds the city's operating plan for Oct. 1, 2025'Sept. 30, 2026. Rising property valuations were discussed during public comment as a contributing factor to higher revenues; resident concerns highlight the political pressure local officials face when tax rates exceed the no-new-revenue benchmark.
Procedural next steps: The tax rate takes effect for the 2026 fiscal year beginning Oct. 1. Residents who want further detail or wish to review the adopted budget can consult the City's posted budget documents and the minutes of the Sept. 16 council meeting.
