Arlington City Manager Trey Yelverton told taxpayers at a town hall Thursday that the city is proposing a 3-cent property tax increase in part to avoid cuts to services that could hurt the city.
More than 30 Arlington residents gathered at the Arlington police South District Service Center for the first of two scheduled town halls.
Community members watched a presentation from Yelverton, learning about the city’s efforts before he took questions and heard comments.
Questioned ranged from the impacts of paying off AT&T Stadium early to the impact of bonds on the tax rate. Two residents also shared opinions on additional cuts the city should make.
What has the city done so far?
The city started with a $25 million deficit projected for the 2026 budget. City staff have been working with council since November 2024 to identify ways to cut spending and increase revenue.
The tax rate increase is expected to provide the city with more than $11 million, according to city data. Around $7.4 million (provided by 2 cents from the increase) would be used to balance the 2026 budget.
Another $3.7 million (raised through the additional 1 cent increase) could help the city avoid further budgetary challenges created by a new business property tax exemption and traveling housing finance corporations in 2027.
Some suggested cuts and reductions involved reducing city contributions to employee benefits and foregoing a cost of living raise, measures staunchly opposed by police and firefighter unions in the city. Those were presented as options along with the tax increase in June.
Some other cuts that were suggested would no longer be necessary with the tax rate increase.
Will paying off AT&T help with the current budget challenges?
Arlington announced this week it will make the last payment on AT&T stadium Friday.
Home to the Dallas Cowboys, AT&T Stadium was financed in 2005, taking on debt that was scheduled to be paid off in 30 years. Yelverton said the city is a decade ahead of schedule and has saved around $150 million as a result.
“Good news is it’s going to be paid off 10 years early and $150 million less than what was expected,” Yelverton said. “But those dollars are in a separate fund that are authorized by voters for that venue and that venue only and, subsequently, the Rangers’ venue.”
Because those taxes were authorized by voters, they cannot be used for anything other than paying off debt from the Cowboys and Rangers stadiums.
Yelverton said the city expects the debt for Globe Life Field’s construction to be paid off 14 years early, by 2034. He expects the city to save almost $200 million by paying that stadium off early.
Are any city bonds motivating the proposed tax increase?
Arlington’s debt service account, which is used to pay for things like the bond passed by voters earlier this year, is a completely different account than the city’s general fund.
The money put into debt service cannot be used for things like payroll, program funding or maintenance throughout the city.
Yelverton’s presentation included a slide that showed the proposed tax rate increase of 3 cents will go only to the general operating budget.
Debt service in Arlington is healthy, with the city receiving an AAA rating from S&P, the top rating available.
The city will hold another town hall at 6 p.m. Aug. 21 at city hall, 101 W. Abram St.
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