As Austin faces a $33 million budget shortfall, the City Council is weighing whether to put a property tax increase on the ballot this fall.
Austin City Council members met Tuesday to discuss whether they should ask voters to approve a tax increase above 3.5% to fund essential services in the budget.
prevent cities and counties from raising taxes over 3.5% in a given year, but a public vote could allow the city to raise taxes as much as 8 cents on every $100 of taxable value on a home, about for an average Austin homeowner.
Discussions began at an Audit and Finance Committee hearing, but Mayor Kirk Watson said it's not a foregone conclusion.
"There's been no decision made yet," he said. "Don't jump to conclusions on that, because if we're gonna make a decision on all that ... we want to make assure that there's rigor.�
Like last year, Austin is facing some challenges this budget cycle. The city has seen a slump in sales tax revenue and federal pandemic-recovery grants have run dry.
City Manager T.C. Broadnax laid out a $6.3 billion proposed budget that includes a 3.5% property tax increase. That budget also includes cuts to overtime for police and a reduction in fire crew capacity on some fire trucks. Those departments, along with EMS, account for of the city’s general revenue fund, which pays for everything from police to public pools to rent-assistance programs.
AGÕæÈË°Ù¼ÒÀÖ County and Austin ISD have held similar elections in recent years to fund services, and the city previously held a tax rate election for Project Connect, the multibillion-dollar transit project.
The full City Council will meet Wednesday to discuss the budget � and the possibility of a tax rate election. It'll also meet next week to get a final appraisal of a tax rate election's impact on taxpayers before making a decision.
