AUSTIN (Talk1370.com) -- City of Austin residents will go to the polls in November to decide on a property tax increase, after City Council members voted Thursday to approve a $6.3 billion budget for fiscal year 2026.
The budget was approved on a 10-1 vote, with District 10 council member Marc Duchen as the lone "no" on the dais.
City Manager T.C. Broadnax's proposed budget already included an increase in property taxes up to the 3.5 percent "voter approval rate" that would not have required voter approval under state law. Council members voted to add five additional cents on top of the voter approval rate, settling on a final rate of 0.574017 cents per $100 of assessed property value. In the end, that's a 20.18 percent increase compared to the FY2025 approved tax rate of 0.4776 cents.
Each additional penny added to the property tax rate adds up to about $22 million in additional revenue for the city.
“Now it’s time for us to trust our voters,” Mayor Kirk Watson said from the dais Thursday afternoon. "The goal, I believe, has always been... making sure we put affordability first in our community, but at the same time recognize that we need additional revenue in order to make sure we can provide the quality of life that our citizens want and deserve."
Voters will get the final say on the increase in November. If the tax increase is rejected by voters, council members will have to figure out where to cut about $110 million to get back to the voter approval rate of 0.524017 cents.
“Despite a challenging financial landscape, the City is committed to prioritizing essential services for all Austinites,” said City Manager T.C. Broadnax in a statement after the budget was passed.
In all, according to the city, the "typical homeowner" (which is described as a $503,306 home) will see their property taxes increase by roughly $302 a year, or about $25 a month, if the proposed tax rate is approved. The same homeowner will see rates and fees for city services go up by about $115, for a total increase of about $417 a year.
Among the amendments approved by council members on Wednesday and Thursday:
-$8.2 million additional funding for parks and recreation maintenance, natural land restoration, and wildfire prevention.
-Fully funding the City’s Homeless Strategies and Operations department with an additional $31.7 million
-Additional 62 sworn EMS positions to bolster the City’s response to rising call volumes and mental health related emergencies.
-$8.3 million in one-time funding for Austin Fire sworn overtime.
-$3 million for the Expanded Mobile Crisis Outreach Team (EMCOT) to maintain 24/7 response.
-$1.3 million for the Family Stabilization Grant to address economic insecurities, with a focus on housing.
-$800,000 in one-time funding for off-site animal adoption services to help relieve the pressure on the Austin Animal Shelter.
-Additional funding for Austin Public Health trauma recovery and violence intervention services, roughly $2.5 million
The city says the final approved budget document will be published by October 1.