Managing the City Budget
Austin is a vital and thriving community. Our collective success generates billions in tax revenue – but this operating income must be carefully managed to fund essential services, invest in future growth and provide a safe and stable infrastructure for all Austinites. Once projects and initiatives are funded, they must be implemented in a timely and efficient manner, then checked afterward to ensure they are productive and beneficial to the public.
The busiest time of the budget process is late summer to early fall, when the city manager’s office works closely with the Council and the departments to enact a balanced budget by the beginning of the fiscal year.
Annual Operating Budget
The City of Austin's annual budget consists of two primary components: the Operating Budget and the Capital Budget.
The operating budget is funded primarily through local property and sales taxes along with several other sources. The budget covers one fiscal year, which begins Oct. 1.
The Capital Budget funds major improvements to City facilities and infrastructure. The money for these improvements comes from bonds, grants, cash and some smaller sources of funding.
- Difference between the two budget components
The City’s Annual Budget has two primary components: the Operating Budget and the Capital Budget. The Capital Budget funds major improvements to City facilities and infrastructure, and is based on the first year of needs in the five-year Capital Improvements Program (CIP) Plan. The Capital Improvements Program (CIP) Plan is an annually revised document that guides the City’s investments in public facilities and infrastructure during a five-year time horizon. The Capital Budget is supported through multiple funding sources, including different types of bonds (debt), grants and cash as well as other smaller sources of funding.
The Operating Budget includes personnel costs and annual facility operating costs. It is funded primarily through local property and sales taxes; revenue transfers between departments; licenses, such as building and development fees; franchise fees for a company’s use of the City’s rights-of-way; charges for services; fines and other smaller sources of revenue such as interest on investments.
City Council holds public hearings on the proposed operating and capital budgets and then approves both budgets in August or September for the following fiscal year, which begins Oct. 1.
Every year the budget process begins in mid-April with a budget outreach effort. Residents can learn more about the budget process by watching our Budget Basics video and delving into details reviewing department-level forecast presentations and publications.
For more information about budget development and budget documents, visit City Budget.
Capital Planning Budget
The City of Austin regularly undertakes projects to improve public facilities and infrastructure for the benefit of citizens. Collectively, these projects are referred to as the Capital Improvements Program (CIP). Projects in the CIP may include the construction and renovation of city facilities, such as recreation centers and libraries; repaving of streets; replacement of water and wastewater lines; and provision of power to residents.
Reporting
The five-year Capital Improvement Plan is produced annually and can be found in the City's Annual Budget.