AUSTIN (Talk1370.com) -- Efforts to mitigate a looming staffing crisis that could impact Austin's city services, along with affordable housing efforts, emergency rental assistance, and capital investments are among the highlights in City Manager Spencer Cronk's proposed budget for next year.
The $5 billion budget proposal, released Friday morning, begins a nearly month-long series of workshops, meetings, and votes ahead of the Austin City Council adopting a final budget next month.
"In the wake of the pandemic, just like so many other organizations, our City government today faces a mission-critical challenge when it comes to maintaining our workforce and sustaining the high quality of services our residents have come to expect,” said Cronk.
The proposed budget is based on a property tax rate of 45.19 cents per $100 of taxable value - which is the maximum under the state's 3.5 percent cap based on last year's no-new-revenue rate. The typical Austin homeowner is expected to see a reduction of roughly $111 in the City's portion of their property tax bill.
When increasing city fees and service rates are factored against the property tax decrease, the average Austin homeowner will see an average increase of $120 a year in total charges.
Cronk's proposed budget includes an across-the-board pay raise of 4 percent for the city's civilian staff. According to the city, it is the largest increase in more than two decades for librarians, rec center staff, utility line workers, waste collection and road repair crews, community health professionals and many more.
Across the city, nearly 1,900 non-sworn positions are vacant, which adds up to a vacancy rate of 17 percent.
The budget proposal takes a step towards Council's desire to see a $22/hour living wage for city employees. The budget proposal puts the minimum wage at $18/hour, with a longer-term goal to go higher per Council direction.
Also in the proposal is a one-time retention stipend of up to $1,500 for all city employees who have been employed for at least one year - including temporary employees and sworn public safety staff.
“The simple truth of the matter is that we do not currently have the staff that we need to deliver the services that we must," said Cronk. "For that reason, and others, the core feature of our budget proposal is a renewed emphasis on ensuring that, as we move into the future, we are in a position to recruit and retain the people we need to do the job that our community expects of us.”
Even with the additional investments in the City’s workforce, the proposed budget would provide the typical homeowner with a reduction of more than $100 in the City’s portion of their annual property tax bill.
Other highlights from Cronk's proposed budget include:
•$73 million in planned capital spending to build and repair city sidewalks
•$3.4 million and 17 new jobs to improve disaster response and community preparedness
•Increased City minimum wage and pay raises to address staffing shortages and sustain services
•$27 million for cultural arts, historic preservation and live music, funded by Hotel Occupancy Taxes
•$4.8 million to clean up homeless encampments in public spaces and near waterways
•55 new jobs to improve customer service efforts at AUS airport
•$79 million investment in affordable housing to meet goals set by the Austin Strategic Housing Blueprint
•$1 million towards a Trauma Recovery Center to support victims of violent crime
•$3.6 million for wildfire prevention and education
•One-time funding of $5 million for emergency rental assistance to prevent homelessness as rents rise
•A $2.5 million investment in the Iconic Venue Fund, to help secure places of cultural significance.
Cronk's entire presentation can be watched online on the city's website at ATXN.
