Page 132 - CityofArlingtonFY26AdoptedBudget

General Fund Summary

GENERAL FUND REVENUES
General Fund revenue classifications range from Taxes (primarily Property and Sales), which comprise 75.48 percent of General
Fund revenues, to Miscellaneous Revenues, which comprise 2.2 percent.

Taxes

The largest single revenue source for the General Fund is Ad Valorem taxes, also known as property taxes. The adopted
property tax rate for FY 2026 is $0.6298 per $100 valuation. Of this tax rate, 70.6 percent, or $0.4446, will be used for General
Fund activities. The remaining 29.4 percent, or $0.1852, will be used for debt service. General Fund property tax revenue for
FY 2026 is estimated to be $158,667,258 from the total tax base of $43,710,730,541. The General Fund’s portion of the sales
tax rate is 1 percent. Sales tax revenue for FY 2026 is estimated at $93,785,128. Other taxes include Bingo Tax and State
Liquor Tax.

Franchise Fees

Franchise Fees are those fees paid by utilities for the use of City streets, alleys, and property in providing their services to
citizens, and account for 10.2 percent of the General Fund revenues. The largest of these is the Electric Franchise Fee, at
$12,823,785. Other Franchise Fees include the Telephone, Water, Cable Television, and Gas utilities, and royalties from the
Landfill.

Service Charges

Service Charges account for 3.3 percent of General Fund revenues, at $11,533,941. These fees are charged by the City for
the use of City facilities or services. This includes selected code compliance fees, various reviews and inspections conducted
by City personnel, and transfers from other City funds to reimburse the General Fund for services rendered.

All Other Revenues

The other revenue sources for the General Fund include Fines and Forfeitures, Licenses and Permits, Leases and Rent, and
Miscellaneous. Fines and Forfeitures account for 2.2 percent of General Fund revenue, at $7,539,359. Municipal Court fines
account for nearly all Fines and Forfeitures. Licenses and Permits account for 3.0 percent of General Fund revenue, and include
development-related permits such as building, mechanical, electrical, and plumbing permits, and certificates of occupancy. Also
included in this category are health and safety items such as fire and childcare permits. Total revenue for this category is
$10,473,286. Leases and Rents are estimated at $12,719,542, or 3.7 percent of total revenues in the fund. The City’s landfill
generates more than three-quarters of the revenue in this category, at $9.9 million. The final revenue category is Miscellaneous
at $7,633,518, or 2.2 percent.

INTERFUND TRANSFERS

Interfund transfers for FY 2026 include three broad categories. The first of these is indirect costs, which are payments by non-
General Fund departments for services received from the General Fund. These services include payroll, human resources,
finance, and building use and maintenance. Indirect costs total $7,508,831 for FY 2026. Support for other funds includes
amounts paid by the General Fund to the Transportation Fund ($772,284), the Street Maintenance Fund ($7,935,247), the
Information Technology Fund for one-time projects ($2,886,580), and amounts set aside for selected reserves ($1,540,033).
The transfers also include the receipt of funds for one-time expenditures, expense reimbursements, or savings from the prior
year; these include $1,093,850 from the Parks Gas Fund, $550,000 from Water Utility for the Small Business Capacity Building
Initiative, and $88,699 from the Storm Water Fund. In the aggregate, the net impact of interfund transfers in FY 2026 is
$4,590,033 transferred out of the General Fund.

FY 2026 Proposed Budget and Business Plan 126 City of Arlington, Texas