With quality city services and smart budgeting, WalletHub has ranked the City of Arlington as the best-run city in Texas and as the only Texas city to make it in the national Top 25 list.

The American Dream City came in 25th out of the 150 most populated cities in the country on WalletHub's latest best-run and worst-run cities list. The website ranked Arlington 28th on last year's list.

Arlington was also once again the highest ranked city in North Texas and the only Texas city in the top 25. With more than 380,000 residents, Arlington is the 7th largest city in Texas and the 48th largest in the U.S.

In order to determine rankings, WalletHub's analysts compared the cities across six key categories: financial stability, education, health, safety, economy and infrastructure and pollution. Those factors include the city's credit ratings, long-term debt per capita, graduation rates, crime rates, quality of roads and job growth rate.

WalletHub also scored municipalities on quality of city services and arrived at a "Score per Dollar Spent" index by dividing those scores by each city's total budget per capita.

The City of Arlington, which prepares its annual operating budget using sound fiscal principles and policies, has provided tax relief for residents and businesses by reducing the property tax rate for the past two years.