Page 10 - CityofArlingtonFY26AdoptedBudget

Budget In Brief

SALES TAXES $93.8 MILLION, 27.0% OF GENERAL FUND REVENUES
The City’s portion of the total 8.25-cent sales tax rate is 2.00 cents. Six and one-quarter cents is retained by the state, the
General Fund receives one cent; one-half cent provides funding to repay the City’s portion of the debt on sports venues, one-
quarter cent provides funding for street maintenance, and one-quarter cent supports the activities of the Arlington Economic
Development Corporation. General Fund sales tax revenue for FY 2026 is projected at $93,785,128. Sales tax represents
27.0% of General Fund revenue in FY 2026, down from 28.9% in the FY 2025 budget. The following chart shows the City’s
sales tax revenue history for the past 10 years.

OTHER REVENUES – $95.3 MILLION, 27.4% OF GENERAL FUND REVENUES

Franchise Fees are paid by utilities for the use of City streets, rights-of-way, and property in providing utility service to citizens.
These revenues represent 10.2% of General Fund revenues in FY 2026, up from 10.0% in the FY 2025 budget. The electric
utility pays the most in franchise fees and is expected to pay $12.8 million in FY 2026. Other franchise fees include telephone,
cable television, garbage collection, and water and gas utilities.
Service Charges are collected by the City for the use of facilities or services. These include various inspections and reviews
conducted by City personnel and transfers from other City funds to reimburse the General Fund for services provided to those
funds. In FY 2026, these revenues represent 3.3% of General Fund revenues, up from 3.0% in the FY 2025 budget.

Fines and forfeitures are obtained primarily from fines assessed by the City’s Municipal Court. In FY 2026, these revenues
represent 2.2% of General Fund revenues, up from 1.7% in the FY 2025 budget. As part of renewed traffic safety efforts,
revenues received by the Municipal Court are expected to increase significantly compared to the budget for FY 2025, by 33.8%.

Other revenue sources for the General Fund include interest, leases and rents, licenses and permits, and taxes on bingo and
liquor. In FY 2026, these revenues represent 11.7% of General Fund revenues, up from 11.4% in the FY 2025 budget.

FY 2026 Proposed Budget and Business Plan 4 City of Arlington, Texas