AUSTIN, Texas — In a 10-1 vote on Wednesday, the Austin City Council adopted a $5.5 billion budget for the 2023-2024 fiscal year, the largest in the city’s history. Council Member Mackenzie Kelly was the only opposing vote.
The city also approved an ad valorem property tax rate of 44.58 cents per $100 valuation, a 3.4% increase.
Altogether, the combined projected impact of tax, rate and fee changes represent an increase for the typical ratepayer of 3.6% – equivalent to an additional $172 per year or $14.31 per month, according to the city.
“The budget Council adopted today reinforces the city’s commitment to community by delivering high quality services and amenities with excellence and reliability,” said Interim City Manager Jesús Garza. “We look forward to implementing Council’s priorities by dedicating new funds and positions to secure the financial health of our city while continuing to move the needle, encouraging innovation and progress.”
The budget incorporates Garza’s “back-to-basics” proposed budget from last month, with additional investments. The General Fund budget is $1.4 billion, and the Capital Budget includes $1.6 billion in planned spending.
It sets aside more than $476 million for the Austin Police Department’s operating budget – more than ever before. The budget also includes a 4% base wage increase for all civilian employees.
The adopted budget includes investments for city services from the proposed budget, including:
- $87.2 million in planned capital spending for the Housing Department’s housing development assistance programs, aimed at creating or preserving deeply affordable housing.
- $80.9 million in homelessness response efforts.
- $6.1 million in one-time funding to contribute to the cost of equipping city facilities with generators to ensure power in the event of a weather emergency.
- $4 million, including new positions, to improve internal processes related to permitting and plan reviews, as well as expedite proposed changes in the land development code.
- $2.7 million to enhance security and cleanliness at parks, library branches, public health clinics and the animal shelter.
- $10.5 million in planned capital spending for aquatic infrastructure projects, including the new Colony Park pool and Givens Pool renovations.
- $1 million in Austin Energy’s budget to conduct a study regarding conversion of the overhead distribution system to underground.
- $2.6 million for police cadet recruitment incentives.
- $5.5 million in planned capital spending for Domestic Violence Shelter.
- $15.9 million in planned capital spending for renovations to the Faulk Library and branch library facilities.
After Garza presented his proposed budget in July, the council made the following amendments and directives:
- $2 million in one-time funding for a mental health jail diversion pilot program.
- $1.8 million to purchase a new aerial fire truck for the Austin Fire Department.
- $1.35 million to increase availability of HIV/STI testing and treatment.
- $1.3 million for a family stabilization grant program for low-income families.
- An additional $2 million for shade structures throughout the city.
- $1.1 million to support digital delivery of services for persons experiencing homelessness.
- Nearly $400,00 to enhance programming at the George Washington Carver Museum and Cultural Center.
- $770,000 to fund seven full-time positions to support services for victims and survivors of crime.
- Over $500,000 to improve maintenance and security at parks, pools, recreation and cultural centers.
The overall tax rate would decrease by 1.69 cents, however, due to rising property values, the typical Austin homeowner will still see an overall 6.1% increase in their tax bill, the City of Austin said. For the typical homeowner – defined as the owner of a median-valued ($499,524), non-senior home – their City of Austin tax bill will be $1,782 per year or $148 per month. This is an annual increase of $102 from last year.
At the same time, some of the city’s rates and fees, including electricity, trash service and transportation user fee, will increase for typical ratepayers in response to escalating operational costs, as well as increasing service demands from a growing population.
The $5.5 billion budget is a $500 million increase over the 2022-2023 budget and a $1 billion increase over 2021-2022.