Austin City Manager proposes $6.3 billion budget strengthening the community and critical services

Today, Austin City Manager T.C. Broadnax presented a $6.3 billion operating budget to the Mayor and City Council. The proposed budget aims to bolster the high-quality services provided by the City of Austin and aligns with three critical focus areas:

People: Prioritizing engagement with our people, community and staff alike.

Place: Strengthening our community's sense of place, creating a more livable, affordable and resilient Austin.

Partnerships: Building stronger partnerships with local, regional, and international partners.

Engaging with the community on budget priorities has been a cornerstone of the budget development process. In the current climate marked by federal funding cuts, the state's 3.5% cap on property tax revenue growth, and lower than expected sales tax revenue, this budget reflects crucial prioritization of the services that Austinites expect and deserve.

"Engaging with our community to understand their budget priorities is more important than ever in these challenging times of federal funding cuts and limited revenue," Broadnax said. "By focusing on people, places, and partnerships, we can ensure that our budget reflects the needs and aspirations of Austinites, fostering a resilient and inclusive city."

The budget development process began with a projected deficit of $33.4 million with concerns of further declines in volatile revenue sources such as sales tax collections.

City management took measures to maintain funding for essential services and invest in critically needed service expansions through departmental expenditure reductions and restructuring.

Budget Highlights:

• Expanding shelter space for our neighbors experiencing homelessness, and funding new positions to bolster the size of the team doing outreach and encampment management.
  • $8 million in one-time funding, provided through the Housing Trust Fund, for emergency shelter operations at the Marshalling Yard.
  • $3.5 million for a contract to continue operations at the 8th Street Shelter.
  • $925,000 for twelve new positions to expand outreach and improve encampment management.
• Increasing emergency rental assistance by $400,000 for a total investment of $4 million.
• Bolstering inclusive engagement and our commitment to foster a community where all identities are respected.
  • Establishing a Human Rights Division in the office of Equity and Inclusion.
  • $150,000 for We All Belong, a public campaign against hate crimes and incidents.
  • $250,000 to develop the American Disabilities Act (ADA) transition plan to improve accessibility in public places.
• Expanding emergency response operations and providing much needed safety equipment for wildfire response teams.
  • $345,000 for expanded emergency response and cold weather shelter operations.
  • $280,000 for wildfire shelters and equipment to improve the safety of wildfire response teams.
• Additional $3.7 million in Austin Energy for Customer Energy Solutions rebates, incentives, and solar program.
• $375,000 for the Youth Athletic Field maintenance.
• Two staff positions and $125,000 to support and maintain the Colony Park pool.
• Creating an essential new department - Austin Arts, Culture, Music, and Entertainment - to be the centralized hub for Austin's creative ecosystem.
• Planned spending of $2.9 billion for critical infrastructure projects such as wastewater treatment facility improvements, the new Convention Center, and the expansion project at Austin-Bergstrom International Airport. 
  

Impact on Taxpayers:

The proposed property tax rate is $0.5276 cents per $100 of assessed property valuation. The typical Austin homeowner will still see an increase of $12.90 per month, or $154.83 per year, in the City's portion of their annual property tax bill. 

The City's rates and fees, including for electricity, trash service, water, drainage, and the transportation user fee, are proposed to rise in response to escalating operations costs. The projected increase for the typical Austin tax-and ratepayer is $22.35 per month, or $268.23 per year.  

Next Steps:

Broadnax's budget presentation was broadcast live and will be available on ATXN's archive. 

The City also has launched the Performance ATX dashboard to share with the public how citywide goals and the City Manager's top 25 priorities help shape budget decisions, ensuring investments support meaningful progress for all members of the Austin community.

Over the coming weeks, community input meetings and budget work sessions will be hosted by Austin City Council. City Council will have the opportunity to review and initiate amendments to the Proposed Budget before final adoption which will begin on August 13.

To learn more about the City's Budget development process, and get involved, visit AustinTexas.Gov/Budget.