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City of Austin budget meeting
You could be paying more on your property taxes next year. Austin City Council is deciding if there should be a tax rate election as they work through the final budget. This comes as the city faces a deficit
AUSTIN, Texas - Austin City Council is deciding if there should be a tax rate election as they work through the final budget.
This comes as the city faces a deficit.
Austin city manager proposes $6.3B budget for 2025-26
Austin's city manager presented a proposed budget of $6.3 billion for 2025-26 to the mayor and city council on Tuesday.
The average Austin homeowner could see an increase of several hundred dollars a year on their property tax bill.
The city can't raise the property tax rate by more than 3.5% without a tax rate election.
The city manager's base budget proposal is at 3.5%, which would raise property taxes by about $154 a year.
Austin City Council members' proposals
What they're saying:
One subquorum, council members Vanessa Fuentes, Chito Vela, Ryan Alter, and Jose Velasquez, originally proposed a 6.75 cent increase for things like homelessness, workforce investment, park maintenance and wildfire mitigation.
Another subquorum, Council members Krista Laine, Mike Siegel, Paige Ellis, and Zo Qadri, originally proposed 5.75 cent tax increase.
Mayor Kirk Watson says he wanted a compromise. Most council members are now leaning towards an increase of 5 cents per 100 dollars of property value. They're going through which services that would include.
Laine supports the 5-cent increase.
"I have prioritized making sure that there are funds available where there have been long-standing limited access to city services," she said.
She says considering federal cuts and less revenue, "that's just the sweet spot that will allow us to maintain, as best we can, in the current funding climate, what our city needs."
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Austin City Council budget discussions
The City of Austin is continuing its budget discussion. What is the city planning on cutting?
Council member Marc Duchen doesn't think there should be a tax-rate election at all.
"I'm opposed to the tax rate election that the council is currently considering, which looks like it'll be at least five pennies, which is going to be at least another $200 on top of the base property tax increase," he said.
He adds that residents are already paying for other increases on their property tax bill, and he hopes for better spending data tracking in the city.
"We're at risk of becoming a city of have-and-have-nots," Duchen said.
For more details on each proposal, click here.
What's next:
If the city doesn't vote on a tax rate election on Wednesday, they have until Friday, August 15, to decide and adopt the budget.
The Source: Information from an Austin City Council meeting