Page 11 - FY 2025 Adopted Operating Budget and Business Plan

Budget In Brief Return to Table of Contents

FY 2025 ADOPTED GENERAL FUND REVENUES
As in recent years, the City’s revenue outlook continues to follow a growth trend. After multiple years of above-average increases
coming out of the COVID-19 pandemic, growth appears to have settled back to rates that are more in line with pre-pandemic
growth. This is particularly the case with the City’s two largest revenues: sales tax and property tax. While sales tax revenue
has continued to show solid growth, with revenue in FY 2024 expected to exceed the budgeted amount, the budget in FY 2025
is slightly more conservative, as the rate of growth is expected to taper off slightly. Property values in Arlington increased sharply
in FY 2023 and FY 2024 due to the robust housing market; as interest rates have increased, the growth in property values has
started leveling off. Property values continue to increase heading into FY 2025, but at nearly one-third of the rate of growth for
FY 2024. For FY 2025, assessed property values increased by 5.3% from last year, and sales taxes are projected to grow by
4.1% above the current FY 2024 estimate of $93.4 million, which is $331k above the budget for the current year. The following
table provides a summary of General Fund revenues by major category for FY 2023 Actuals, FY 2024 Estimates, and FY 2025
Proposed revenues.

FY 2023 Actuals FY 2024 Estimates FY 2025 Adopted
Property Taxes $ 124,884,401 $ 145,023,103 $ 152,001,691
Sales Taxes 88,423,472 93,439,194 97,249,802
Franchise Fees 32,359,113 33,109,677 33,601,658
Service Charges 8,023,034 9,120,754 10,270,372
Fines and Forfeitures 5,900,146 5,441,253 5,634,071
Other Revenues 34,714,400 34,658,833 37,977,642

Total Revenues $ 294,304,565 $ 320,792,814 $ 336,735,236

Revenue projections determine the level of resources that can be allocated for programs and projects to support the City
Council’s goals and objectives. The revenue graph below shows the decline in sales tax revenues during FY 2020, the decline
in property tax revenues in the following year, then steady sustained growth in both revenue categories, beginning in FY 2021
for sales taxes and in FY 2022 for property taxes.

FY 2025 Adopted Budget and Business Plan 2 City of Arlington, Texas