Arlington council approves first reading of FY2026 budget, votes to adopt higher property tax rate

The Arlington City Council approved the FY2026 operating budget on first reading and voted to adopt a higher property tax rate at its meeting.

Devin Waters, the city’s budget manager, told the council that revisions since the city manager’s proposal increased general fund revenue by $146,012 and reduced general fund expenditures by $98,813. “On 08/05/2025, the city manager presented the proposed fiscal year 26 operating budget to the city council,” Waters said, and noted the second and final reading is scheduled for Sept. 16, 2025.

Resident Larry McFarland spoke in opposition during the public hearing, urging the council not to approve the budget as presented. “This tax rate will effectively be raised by 9.6%,” McFarland said, and he recommended the council require a rewrite that “mirrors inflation” rather than adopt the proposed budget.

Council Member Odum Wesley moved to adopt the tax rate presented in the motion, described in the meeting transcript as “62 and 98 hundredths of a cent per $100 valuation,” which the motion characterized as a 4.8% rate change in council discussion. Council Member Pham seconded. The clerk recorded roll-call votes during the meeting; the motion passed.

Waters explained that state law requires a separate vote to ratify any property tax increase reflected in the budget. If the council proceeds to a final vote on the budget and the tax rate, the second and final reading of both the budget and related tax ordinance is scheduled for Sept. 16, 2025, at 6:30 p.m. in the Arlington City Council Chambers at 101 West Abram Street.

The meeting record shows council action on the budget and tax-rate items took place after a public hearing and included the single opposing public comment from McFarland. No additional public speakers provided testimony on those items at the meeting. The council will return the items for final vote on Sept. 16.