Austin, TX – After months of development, deliberations, and public input, the Austin City Council has adopted a $6.3 billion budget for the 2025-2026 fiscal year. The budget, approved August 14, incorporates the City Manager’s proposed budget and includes several additional investments to address the community’s needs. 

With the adoption, the City Council also set the stage for a tax rate election this fall, where voters may decide on a property tax increase to support City programs and services. By focusing on core services, including fully funding the Homeless Strategies and Operations department, prioritizing parks, and increased funding for public safety, the City Council adopted a five-cent increase to the voter-approval rate. 

“Despite a challenging financial landscape, the City is committed to prioritizing essential services for all Austinites,” said City Manager T.C. Broadnax. 

The $6.3 billion budget includes:

• Expanding shelter space for our neighbors experiencing homelessness, and funding new positions to bolster the size of the team doing outreach and encampment management.
  • $3.5 million for a contract to continue operations at the 8th Street Shelter.
  • $925,000 for twelve new positions to expand outreach and improve encampment management.
• Increasing emergency rental assistance by $400,000 for a total investment of $4 million.
• Bolstering inclusive engagement and our commitment to foster a community where all identities are respected.  
  • Establishing a Human Rights Division in the office of Equity and Inclusion.
  • $150,000 for We All Belong, a public campaign against hate crimes and incidents.
  • $250,000 to develop the American Disabilities Act (ADA) transition plan to improve accessibility in public places.
• Expanding emergency response operations and providing much needed safety equipment for wildfire response teams.
  • $345,000 for expanded emergency response and cold weather shelter operations.
  • $280,000 for wildfire shelters and equipment to improve the safety of wildfire response teams.
• Additional $3.7 million in Austin Energy for Customer Energy Solutions rebates, incentives, and solar program.
• $375,000 for the Youth Athletic Field maintenance.
• Two staff positions and $125,000 to support and maintain the Colony Park pool.
• Creating an essential new department - Austin Arts, Culture, Music, and Entertainment – to be the centralized hub for Austin’s creative ecosystem.
• Planned spending of $2.9 billion for critical infrastructure projects such as wastewater treatment facility improvements, the new Convention Center, and the expansion project at Austin-Bergstrom International Airport. 

City Council Amendments:

City Council members also approved several amendments and directives as part of the adopted FY 2025-2026 budget, including:

• $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, including:
  • $12 million for Rapid Rehousing services.
  • $8 million for emergency shelter operations at the Marshalling Yard.
  • $5.1 million to support new emergency shelter beds, case management services, and housing navigation services.
  • $3 million for the HEAL initiative, which provides rental assistance, move-in assistance, and post-move case management for individuals transitioning from shelters into long-term housing.
  • $2.3 million for Permanent Supportive Housing.
  • $1.3 million, including 12 positions, to strengthen the administrative support functions within the department.
• 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, including:
  • $1 million for community violence intervention.
  • $500,000 to aid survivors in recovery from trauma.
  • $350,000 to support shelter operations for victims of domestic violence.
  • $350,000 to provide navigation services for families and victims of violence and abuse.
  • $300,000 in one-time funding to support for children who are victims of violent crimes.  

Impact on Taxpayers:

The adopted property tax rate is $0.574017 per $100 of assessed property valuation. This rate is above the voter-approval rate. Upon voter approval of this rate in the November election, the typical Austin homeowner will still see an increase of $25.22 per month, or $302.64 per year, in the City’s portion of their annual property tax bill. 

The City’s rates and fees, including for electricity, trash service, water, drainage, and the transportation user fee, are proposed to rise in response to escalating operations costs. The projected increase for the typical Austin tax-and ratepayer is $34.77 per month, or $417.24 per year.  

The approved budget document is scheduled to be published by October 1, 2025.

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