Page 5 - CityofArlingtonFY26AdoptedBudget

Manager’s Message

Each year, the City’s proposed budget offers more than a financial roadmap. It reflects the values, expectations, and
responsibilities that define our work in public service. The FY 2026 Proposed Budget arrives at a pivotal time, shaped
by evolving economic conditions and structural changes across our region. These shifts, some gradual, others abrupt,
are not confined to Arlington alone, but their impact is real and present here at home.

In the past year, Arlington has faced economic headwinds that require careful, deliberate adjustment. Sales tax
collections, recently a strong and dependable source of revenue, have slowed. At the same time, changes in property
valuations, partly due to broader philosophical shifts at the Tarrant Appraisal District and Tarrant County, have led to
a decline in property tax revenue. These trends are occurring in an environment where conversations about taxation
and government services have become more polarized. We are seeing fundamental changes in how core revenue
sources are structured, debated, and distributed. These are not momentary fluctuations. They represent structural
transformations that require Arlington to evolve accordingly.

This budget is different than those in recent memory. It is responsive, by necessity, to a new landscape of fiscal
constraints and expectations. But it is also rooted in a steadfast commitment to our residents and to the essential
functions of local government. Arlington continues to adjust; not because we choose to, but because the system
around us is changing, and we must remain resilient and responsive to meet the moment.

Local government is where public service meets daily life. While national and state governments shape broad policies,
it is local government that ensures water runs clean from the tap, that streets are maintained, that emergency
responders answer calls without hesitation, and that neighborhoods have access to parks, libraries, and places to
gather. We provide the foundation upon which our community builds its daily routines and long-term aspirations. In
Arlington, we deliver services that residents depend on – services that define quality of life and public trust.

In Arlington, we are proud to provide these everyday services that residents rely on and value. From a parent taking
their child to a neighborhood park, to a firefighter responding to an emergency, to a librarian helping a student with
research; these interactions define how people experience government services. Our work is not abstract; it is
tangible, visible, and essential. It is in these daily moments that trust is earned, quality of life is shaped, and the role
of local government is most deeply felt.

Yet there is an enduring tension in our work: between the level of service our residents expect and deserve, and the
financial resources available to provide them. Government services cost money. Balancing fiscal responsibility with
service delivery is not simply a budgeting task, it is a constant negotiation between values, priorities, and realities.

The FY 2026 Proposed Budget reflects our best effort to navigate these cascading challenges and external
constraints. This balanced budget is a product of thoughtful prioritization, long-term planning, and an unwavering
focus on service. We will continue to meet the needs of our residents, adapt to change, and preserve the core
functions that define our role in this community. This moment calls not for retreat, but for agility and adaptation – and
we are committed to moving forward with clarity, transparency, and purpose.

Sincerely,

Trey Yelverton
City Manager

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