2023-24 Austin budget proposal aims to get 'back to basics,' interim city manager says

KVUE
Author: Jeff Bell
Published: 8:53 PM CDT July 16, 2023
Updated: 10:08 AM CDT July 17, 2023

AUSTIN, Texas — On Sunday, Austin Interim City Manager Jesús Garza released his recommendations for the Fiscal Year 2023-24 City budget, which he said aims to get “back to basics” and focus on “the core services our residents need and expect.”

The proposal also includes rate and fee hikes for Austin homeowners.

The budget proposes an across-the-board pay increase of 4% for civilian staff, including employees such as librarians, rec center staff, utility line workers, waste collection and road repair crews, community health professionals and more. Under this proposal, the City's living wage, or the minimum payable to any employee, would rise from $20 to $20.80 an hour.

Garza said annual pay for public safety employees will continue to be determined through union negotiations. The City is currently engaged in ongoing contract negotiations with the Austin EMS Association and an arbitration process with the Austin Firefighters Association.

The proposed budget would mean a typical homeowner sees an increase of $25.91 in the City's portion of their annual property tax bill.

But rate increases from Austin Energy and Austin Resource Recovery and hikes in the Clean Community Fee and Transportation User Fee will have Austin homeowners paying an average of $95.63 more a year. The 2% increase is based on a home worth $502,544. That number includes a 20% general homestead exemption.

“We are ensuring we have the staff and resources necessary to keep our facilities like parks, libraries and recreation centers safe, clean and inviting; investing in emergency services to be able to respond more quickly and effectively to calls of medical distress; evaluating service delivery at the Austin Animal Center; and overhauling systems and processes to better serve Austin residents,” Garza said in his message included in the budget proposal.

City leaders said after “high volatility” following the COVID-19 pandemic and the subsequent inflation, Austin is now on track to see a projected 3.5% increase in sales tax revenue over last year's receipts.

Other highlights of the proposed budget include:

• $7 million to fund a down payment on the purchase of the currently leased space at the Ben White facility
• $6.1 million in one-time funding to contribute to the cost of equipping City facilities with generators to ensure power in the event of a weather emergency
• $5 million in the Housing Trust Fund to create a revolving loan fund aimed at lowering barriers of entry for creation of affordable housing developments
• $4 million, including new positions, to improve internal processes related to permitting and plan reviews, as well as expedite proposed changes in the land development code
• $3 million in one-time funding to update City comprehensive plans
• $2.7 million to support new positions and additional contract funding for enhanced security and cleanliness at parks, library branches, public health clinics and the animal shelter
• $2.5 million for a service agreement with the Austin Economic Development Corporation (AEDC)
• $2 million to increase the overtime budget of the Fire Department to reflect actual overtime cost trends
• $3.1 million for deferred and preventative maintenance of safety, public health, library and parks facilities
• $1.2 million to fund full-year operation of the Southbridge Shelter
• $1.2 million in one-time funding to conduct Phase D of the study by Kroll Associates, Inc., to review and evaluate the Austin Police Department (APD) on the extent to which forms of racism, bigotry, and discrimination are present in the protocols, practices, and behaviors of the APD. Phase D of Kroll’s review involves assessing APD employee emails and social media posts
• $1.1 million for the first phase of replacement of ZOLL monitor/defibrillators on City ambulances
• $1 million in Austin Energy’s budget to conduct a study regarding conversion of the overhead distribution system to underground
• $600,000 in one-time funding to mitigate displacement of small businesses

The full proposed budget can be found on the City of Austin website.