09/03/2026
The City Commission has approved the City’s 2027 budget, holding property tax revenue at the Revenue Neutral Rate while continuing to fund essential City services, public safety and critical infrastructure.
The 2027 budget includes:
• $40.3 million in total budget authority across all funds
• Approximately $39.2 million in net expenditures after transfers
• A mill levy of 55.911 mills, down from 58.151 mills in 2026
• Approximately $5.4 million in property tax revenue
• $9.03 million supporting Police, Fire and EMS
• $11.70 million toward water system improvements
Arkansas City’s assessed valuation is projected to increase to approximately $96.8 million for 2027. Rather than using that growth to increase property tax revenue, the Commission chose to adopt a Revenue Neutral budget.
The budget prioritizes public safety, core City services, infrastructure and necessary equipment. Investments include Fire/EMS rescue and medical equipment, a Police patrol vehicle, cybersecurity improvements, street projects, stormwater and sewer rehabilitation, and significant improvements to the City’s water system.
Reaching a Revenue Neutral budget also required difficult decisions.
Several requested positions, equipment purchases and facility improvements were deferred. The budget also does not include the requested 2% cost-of-living adjustment for City employees, which would have added approximately $166,000 to the General Fund.
While the City was able to hold property tax revenue essentially flat for 2027, the cost of providing City services continues to rise. Personnel, insurance, equipment, contractual services and infrastructure costs do not remain revenue neutral.
The 2027 budget reflects a balance between those realities: protecting core services, maintaining emergency capacity, investing in essential infrastructure and being responsible with the resources provided by Arkansas City taxpayers.
Total budget authority represents the maximum amount the City is legally authorized to spend across all funds and does not mean every authorized dollar will be spent. A significant portion of the 2027 budget is also associated with major, multi-year infrastructure projects, particularly improvements to the City’s water system.