FINANCIAL LOOK BACK at 2024
The past few years have seen dramatic economic swings, from the sharp downturn during the pandemic to an unexpectedly strong recovery. While new financial challenges arose, including inflation and labor shortages, the City remained committed to long-term strategic goals while adapting to shifting conditions. FY 2024 marked a period of normalization. While growth slowed compared to the sharp rebound seen in prior years, economic trends aligned more closely with historical norms. This is most evident in FY 2024 sales tax collections. General Fund receipts were $ 91.4 million, which is $ 2.9 million( 3.3 %) more than FY 2023. While a 3.3 % increase is down from the average 11 % increase from the prior three fiscal years, it is precisely in line with the annual growth in sales taxes over the previous 25 years. The consistent growth in sales taxes, most of which are paid by visitors to Arlington, provided the opportunity to continue reducing the property tax burden on our residents.
The adopted budget for FY 2024 included a one-cent reduction in the property tax rate, which was the eighth consecutive year in which the tax rate was reduced.
The adopted rate for FY 2024 was $ 0.5898 per $ 100 of assessed value, 5.82 cents( 9 %) lower than the $ 0.6480 rate in effect before the annual rate reductions began. Passed in 2019, state tax law allows cities to accumulate the annual difference between the Voter Approval Tax Rate( VATR, the rate above which a vote by citizens is required for approval) and the adopted tax rate, rolling forward for a period of three years. This accumulated difference is defined as the unused tax rate increment. Because Arlington has consistently adopted a property tax rate that is below the VATR, the accumulated unused increment available for FY 2024 was 6.5 cents.
In FY 2024, the city used 1.25 cents of the unused increment to fund a twophase program to expand Fire apparatus staffing from three to four( 40 positions in year one), consistent with the staffing levels maintained by many of the large fire departments in the DFW area.
The General Fund averaged 76 civilian vacancies in FY 2024, down from the 90 average vacancies in FY 2023 and the peak of 102 in FY 2022. Expenditure savings from these positions as well as other departmental savings meant the City General Fund ended the year under budget in expenditures, and all funds had positive ending balances.
• FY 2024 Tax Rate: Reduced to $ 0.5898 per $ 100 of assessed value, 9 % lower than previous.
• State Tax Law: Allows accumulation of unused tax increments for three years.
• Unused Tax Increment: Arlington’ s was 6.5 cents for FY 2024.
• Use of Funds: 1.25 cents of the increment funded an expansion in Fire apparatus staffing.
• Budget Overview: General Fund had fewer vacancies and ended under budget, with all accounts positive.
$ 100,000 $ 89,039
$ 91, 400
$ 90,000 $ 83,511
$ 80,000
$ 74,538
$ 70,000 $ 62,598 $ 67, 028 $ 63,762 $ 60,000 $ 50,000 $ 40,000 $ 30,000 $ 20,000 $ 10,000
$ 0 FY18 FY19 FY20 FY21 FY22 FY23 FY24
General Fund sales taxes revenues( FY 2018- FY 2024)