AUSTIN, Texas — Just a few months into his new position, City Manager T.C. Broadnax presented his first budget proposal before Mayor Kirk Watson and the Austin City Council on Friday.
The $5.9 billion Fiscal Year 2025 budget includes nearly $500 million for the Austin Police Department (APD), more than $30 million for the Homeless Strategy Office and sizable investments into equitable housing, Cultural and Heritage districts, the Austin Animal Center and more.
Broadnax said the proposed budget is "Austin Focused," with investments prioritized that "reflect the principles of the community Austin strives to be: Livable, Affordable, Equitable, Sustainable, Resilient, and Welcoming"; "Frontline Focused," to improve city services and keep the city "safe, clean and an attractive, dynamic place to live"; and "Future Focused."
Breaking down the budget
The proposed budget for APD, $496,292,315, is an increase of $18 million and makes up about 35% of the $1.4 billion general fund. Another major percentage of the general fund is the Emergency Medical Services budget, making up about 10%.
Meanwhile, the $30,329,721 set aside for the Homeless Strategy Office makes up about 0.2% of the general fund budget. The Housing Department, which helps with affordable housing resources, was designated a budget of $45,880,916, making up 0.8% of the general fund.
Here are a few other highlights of the proposed budget:
$3.6 million for the “I Belong Austin” tenant stabilization and eviction assistance program
$121.2 million in planned capital spending for the design and construction of "voter-approved long-term affordable housing projects"
$2.6 million in personnel and equipment costs, including funding for 28 sworn positions, for the Canyon Creek Fire/EMS Station
$2.2 million in planned capital spending for projects that "stabilize, preserve and enhance the African American Cultural Heritage District, Red River Cultural District, 5th Street Mexican Heritage Corridor, and East Cesar Chavez District"
$506,000 for an additional street repair team
$425,000 increase in funding at the Austin Animal Center and $30,000 one-time funding for animal boarding services to address capacity issues
Another major addition to the proposed budget would be a 4% wage increase for all city employees to address affordability in Austin. City leaders say that's largely why APD has such a large budget increase, with the department's more than 600-member staff.
"We know that is it is a tough environment for our employees, but as we are trying to remain marketable, we are proud of our ability to give that 4% to our employees for the next fiscal year," Kerri Lang, the Budget Officer for the city said.
The full, 1,163-page budget proposal is available to view online.
How would this budget impact taxpayers?
The proposed property tax rate is 44.93 cents per $100 of taxable value. According to the city, the typical Austin homeowner would see an increase of $8.52 per month, or $102.26 per year, in the city's portion of their annual property tax bill.
Additionally, the city's rates and fees – including for electricity, water, trash service, drainage and the transportation user fee – are proposed to increase in response to "escalating operations cost" and "increasing service demands." The city said the projected increase for the typical Austin tax-and ratepayer is $22.70 per month, or $272.42 per year.
City leaders said since the Texas Legislature put a cap on property tax rates this past session, with the passage of Senate Bill, that may be a challenge in the future.
“The full effect of the property tax caps that we've talked about over the last few years, approved by the Texas Legislature, have come to fruition," Broadnax said. "Harsh realities have set in on municipalities around the state, and Austin is no exception to that.”
It's not something they're considering right now, but city leaders said in the future, tax rate elections could be a possibility.
Broadnax also hopes his new approach of proposing the budget for the next two fiscal years will help the city with financial stability in the future if the revenue has to make some changes.
“For the first time in the city's history, we're presenting and share today with the city council a two-year, balanced budget that allows us to have a much more long-term viewpoint as we approach funding," Broadnax said.
What happens now?
The city will host Community Budget Input Meetings over the next few weeks, and the city council will have the opportunity to review and initiate amendments to the proposed budget ahead of its final adoption. That's scheduled for Aug. 14 through Aug. 16, though the city said it might not take all three days.
During council's meeting on July 24, the public is invited to give comment on the proposal starting at 3 p.m. On council's August 1st meeting, they will set the maximum tax rate.