AUSTIN (KXAN) — After hours of public comment and debate Wednesday, Austin City Council is likely to approve its budget for the next fiscal year, including setting a tax rate, on Thursday. All but one member of the dais has indicated they support a property tax rate high enough to trigger an election (TRE).
“Nobody enjoys paying more taxes, but we do enjoy our parks—we do need to drive on our roads. There are crucial, essential things a city has to do, and the cost of doing those things has risen,” Austin City Council Member Ryan Alter said.
How much will the city ask for in a tax rate election?
Some Austin city council members and the mayor indicated Wednesday they were not comfortable going above 5 pennies in the below scenario. Previously, the council was considering anywhere from the city manager’s proposed base budget to 8 pennies.
As the graph indicates, at 5 cents, a tax rate election would mean the average homeowner’s property tax bill goes up by $302.14 annually, $197.92 of that from the TRE. That does not include rates.
What would you get for it?
City council members so far seem to almost unanimously agree that more money is needed to fully fund the Homeless Strategy Office’s $101 million plan, for parks, public safety and some social services.
Staff brought forward a base tax rate election proposal Wednesday, which included some funding for the Homeless Strategy Office’s (HSO) plan, the housing trust fund, Emergency Medical Services programs, funding for parks, public health, sidewalks and funding for overtime at the Austin Fire Department.
“I wanted to make sure that we have the appropriate overtime for our fire department,” Austin City Council Member Paige Ellis told KXAN of her priorities. She brought forward an amendment on that issue.
That base proposal was amended Wednesday, and council members will continue to add to it or take away from it on Thursday. Some amendments included reinstating funding for police oversight, adding money for the Sobering Center and fully funding the HSO plan.
“Addressing the needs from public safety, whether that’s EMS needs or fire needs, looking at things including library funding, the list goes on and on,” Austin City Council Member Ryan Alter said.
Austin City Council Member Marc Duchen said Wednesday, while he thinks these are important services, he does not support a tax rate election as high as 5 cents and will be voting against items that raise the property tax rate.
Previous coverage
- Aug. 14: Austin budget discussions underway, property tax election all but certain
- Aug. 12: Get up to speed with the latest tax rate election proposals
- Aug. 8: Austin mayor ‘disappointed’ with some tax rate election proposals
- Aug. 5: Austin leaders lay out initial tax rate election proposals
- Aug 1: Texas cities, counties may face new limits on raising property taxes
- July 15: Austin leaders concerned budget cuts too much from community needs
- July 12: Austin City Manager TC Broadnax releases proposed $6B+ budget
What is a tax rate election?
Because of a 2019 state law, taxing entities cannot raise the property tax rate more than 3.5% from the year prior without triggering a TRE.
After City Manager TC Broadnax released his proposed budget, which sat at that 3.5% voter approval rate and would not trigger an election, council members and the mayor started proposing alternatives that cut less services but also add to your property tax bill — so much so, you will likely have to vote on that increase in a November election.
The body started discussion on Wednesday, but it may take until Friday to officially vote on the budget and tax rate.