New Austin City Manager T.C. Broadnax has presented a record $5.9 billion budget proposal for the Fiscal Year 2025.
Austin Mayor Kirk Watson and the Austin City Council will hold public hearings on the 1,163-page proposal in the upcoming weeks.
Broadnax said that the budget prioritizes “community-focused investments” while also investing in future projects, such as the expansion of the Austin-Bergstrom International Airport and other major facilities.
“As federal funds provided through the American Rescue Plan Act (ARPA) expire and growth in sales tax collections slows, municipalities across the state are finally experiencing the harsh consequences of the property tax cap established by the Texas Legislature. Austin is no exception,” Broadnax said in a news release.
“That means we must prioritize critical needs, be circumspect in our investments, and, now more than ever, listen to what Austinites want and need from their City government.”
The proposed budget devotes $121.2 million towards “long-term affordable housing projects,” $506,000 towards street repairments, $2.2 million in spending for projects that preserve cultural districts such as the African American Cultural Heritage District and 5th Street Mexican Heritage Corridor, and more.
Austin homeowners can expect to see an increase in their property tax bills.
“The typical Austin homeowner will see an increase of $8.52 per month, or $102.26 per year, in the City’s portion of their annual property tax bill,” the city’s press release states.
Additionally, Broadnax proposed increasing fees for city services, such as electricity, trash service, water, and others, due to “escalating operations cost” and “increasing service demands from a growing population.” The increase for the typical Austin taxpayer is $22.70 per month, or $272.42 per year.
“These tax increases hit our middle- and low-income residents the hardest … homeowners, renters, and small businesses alike,” said Austin City Council Member Mackenzie Kelly on X. “I’d like to see a strong effort to finalize a budget that includes no increase in property taxes and utility bills, giving people a break from the irregular cost-of-living hikes that are making Austin more unaffordable.”
This is Broadnax’s first budget with the city of Austin, but not the first time he’s proposed a record-high figure: The former Dallas city manager presented the $4.63 billion budget passed by the Dallas City Council last September. Similar to Council Member Kelly in Austin, Dallas Council Member Cara Mendelsohn advocated against increasing the property tax burden on local residents.
In February, Broadnax announced that he would resign in June after pressure from the Dallas City Council, as previously reported by The Dallas Express. He was hired for the same role in Austin and left Dallas early to start his new job in May.
“City Manager, T.C. Broadnax has resigned effective June 3, 2024, at the suggestion of the majority of the Dallas City Council. This resignation is a necessary step towards fostering an environment conducive to maximizing the potential of our beloved city,” said a joint statement from Dallas Council Members Jaime Resendez, Jaynie Schultz, Omar Narvaez, Adam Bazaldua, Zarin Gracey, and Gay Donnell Willis.