Financial challenges dominate Arlington council retreet with a projected $25 million deficit in 2026, prompting budget cuts discussions.
Arlington's city council faces a daunting task in addressing a staggering budget gap of $25.1 million. The root cause? A two-year pause on home reassessments by the Tarrant Appraisal District (TAD) and a surge in property value protests[1].
The city had counted on property value increases as a crucial part of its strategic budget planning. But with the TAD's changes, Arlington, like other cities, is scrabbling to make necessary adjustments[1].
City Manager Trey Yelverton delivered the grim news: cuts are inevitable, affecting staff, salaries, and services[1]. Addressing council members and department heads, he stated bluntly, "Everyone in this room will tell you they need more, not less. But we have to make cuts and that's what we're doing."
The Budget Abyss
Arlington's projected budget shortfall surpasses requirements by tens of millions of dollars in 2026[1]. The predicted shortfall in property taxes, with factors beyond just the appraisal schedule, is a considerable contributor[1].
Mayor Jim Ross pinned the blame on the Tarrant Appraisal District, but he acknowledged the council had a responsibility to find solutions[1].
Closing Down Facilities
The city council is considering the closure of various facilities to offset expenses[1]. Proposed closures include a library branch, the Bob Duncan Center, Meadowbrook Center, parks administration building, and other underused facilities.
The reasoning behind these closures is that they're nearing the end of their projected lifespans, making the decision to close them just a few years ahead.
Repairs for these facilities are becoming more challenging due to the unavailability of necessary parts or their exorbitant costs[1]. Andrew Piel, a city council member, objected to closing the Bob Duncan Center, arguing that it contributes positively to the community and remains profitable[1].
Staffing Call to Action
Departments are being asked to trim staffing budgets[1]. Many of these cuts involve vacant positions such as code compliance officers and police support staff. Full-time positions may be reduced to part-time or face layoffs or transfers[1].
Yelverton recommended releasing $4 million in emergency funding to stall staffing cuts for a year, allowing employees some breathing room to transfer or find new employment[1].
Exploring Alternative Revenue Streams
To generate additional funds, naming rights for parks and leasing park space for restaurants or concession stands are being considered[1]. Corporate sponsorships are seen as a promising means to offset some of the operational costs of Arlington's parks[1].
High Level Promotions, a marketing firm specializing in city partnerships, has expressed interest in working with Arlington to connect with potential sponsors[1].
Council member Piel supported this idea, emphasizing the importance of ensuring the appropriate companies and facilities align. "It has to be tasteful," he declared[1]. "We don't want something like the ACTIV Center Presented by Viagra!"
Fee adjustments and adopting medians by businesses are other potential revenue sources[1]. The latter provides advertising on street signs for businesses while offsetting maintenance costs for the city[1].
Although these measures will contribute to reducing the predicted budget deficit, Yelverton cautioned that staffing cuts remain inevitable[1]. Arlington still has $3 million left to find solutions to bridge its budget gap.
Sources:[1] https://www.kera.org/news/arlingtons-budget-faces-shortfall-after-appraisal-district-decision[2] https://www.dallasnews.com/news/ transport/2021/01/02/dallas-transit-agency-faces-potential-crisis-as-state-leaders-refuse-to-help/[3] https://www.star-telegram.com/news/local/community/arlington/article252592137.html[4] https://www.air1saginaw.com/arlington-city-council-projects-budget-shortfall-in-2026-as-property-value-disputes-rise/article_eba31592-4a2f-5d6d-9f78-5d767e00a40a.html
- The city council of Arlington is grappling with a budget shortfall of $25.1 million, attributed to a two-year pause on home reassessments by the Tarrant Appraisal District and an increase in property value protests.
- The news of staff, salary, and service cuts was delivered by City Manager Trey Yelverton, with layoffs and transfers becoming possibilities due to the financial situation.
- The predicted budget shortfall for 2026 surpasses requirements by tens of millions of dollars, with a shortfall in property taxes being a significant factor.
- As a response to the financial strain, the city council is considering closing various facilities, such as libraries and community centers, to offset expenses.
- In an effort to generate additional revenue, the city is exploring alternative streams, including naming rights for parks, leasing park space for businesses, corporate sponsorships, and adopting medians by businesses for advertising purposes.
