Arlington's Financial Health Improves, Earning a "B" Grade

Arlington’s financial condition continued to improve in fiscal year 2023, earning the city a “B” grade from Truth in Accounting. With a $208.5 million surplus, Arlington remains classified as a “Sunshine City,” meaning it has more than enough money to cover its financial obligations. This equates to a Taxpayer Surplus™ of $1,500.

The city’s financial position improved by $127.5 million, largely due to the removal of restrictions on pension-designated assets and a revenue surplus. However, the net pension liability increased due to outdated investment loss calculations based on data from December 2022. This timing discrepancy raises concerns about the accuracy of Arlington’s financial outlook, as it does not fully reflect market fluctuations.
Key findings from the report include:

• Arlington had $949.6 million available to pay $741.1 million in bills.
• The city’s financial surplus grew by $127.5 million, driven by increased revenues and property tax collections.
• With a Taxpayer Surplus™ of $1,500, Arlington ranks 12th out of 75 cities evaluated.

In 2023, Arlington’s property tax collections increased by $25.5 million, fueled by rising property values. Despite this growth, the city reduced its property tax rate to help balance revenue generation with taxpayer relief.

For those interested in a deeper dive into Arlington’s finances—and how it compares to other major U.S. cities—you can read the full Financial State of the Cities 2025 report here.