City Manager Proposes “Back to Basics” Budget Focusing on Core City Services and Critical Challenges

The City of Austin Interim City Manager’s Proposed Budget for Fiscal Year 2023-2024 aims to ensure Austin is prepared when emergencies happen while investing in the critical areas of affordability, resiliency, quality of life, public safety and ending homelessness.  Interim City Manager Jesús Garza presented the $5.5 billion proposed budget to the Mayor and City Council today, July 19, committing to a focus on essential City services, Mayor and Council priorities, and investments that support transformational change. With an emphasis on “Back to Basics,” the budget proposal refocuses on the core services Austin residents need and expect, according to Garza.   “We are ensuring the City has the staff and resources necessary to keep 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 for help; evaluating service delivery at the Austin Animal Center; and overhauling systems and processes to better serve Austin residents,” Garza said.  Under the budget proposal, the City’s living wage – the minimum payable to any city employee – rises by 4 percent, from $20 to $20.80 per hour. Civilian employees would also receive an across-the-board pay increase of 4 percent.  “Without skilled, professional, and dedicated staff members we could not deliver the services our customers expect and deserve, nor could we tackle the transformational projects that will prepare Austin for the future.” Garza said.  The overall tax rate would decrease by 3.85 cents, from 0.4627 to 0.4242 in the proposed budget. However, due to rising property values, the typical Austin homeowner would still see a 1.5 percent increase in their tax bill – the equivalent of an additional $2.16 a month, or $25.91 a year.  The proposed budget also highlights major investments in several generational projects that, while separate and distinct, are interconnected in their collective ability to vault Austin to world-class city status. These generational projects include the expansion and modernization of Austin-Bergstrom International Airport, the redevelopment and expansion of the Austin Convention Center, and Project Connect – an innovative partnership between the City of Austin, CapMetro, and Austin Transit Partnership to expand and improve the area’s public transportation network, including new light rail and accessible bus system.  Community Budget Input meetings will take place over the next few weeks and City Council will have the opportunity to review and initiate amendments to the proposed budget before final adoption, which is scheduled to begin on August 16.   Proposed Budget – Taxpayer Impact Assessment   Proposed Budget – Full Document   Proposed Budget – Interim City Manager’s Message   Investments in Key Areas Include:  Affordability   The proposed budget contains several investments to tackle affordability including creating a revolving loan fund to help build more affordable housing developments, incorporate affordable housing into city redevelopment projects, providing emergency rental assistance or relocation assistance for tenants facing displacement and funding to support childcare and high-quality early childhood education throughout the city.   Resiliency  This budget proposes further action to prepare, protect, and recover from the impacts of climate change, focusing on resilience to prepare residents, businesses and communities to continue to thrive no matter the disruptions. It builds upon Austin’s resilience and sustainability by updating the emergency management strategic and hazard mitigation plans, continuing to fund the Resilience Hub Network, and formalizing the partnership with The University of Texas at Austin on climate-related work, including joint research projects on issues like heat mapping and water supply  Quality of Life    Maintaining and improving our parks, libraries, and recreation facilities, preserving historic sites and venues, and ensuring every Austinite has access to the resources they need to thrive are core priorities for both City staff and Council. This year’s budget proposes upgrading several service-providing Austin Public Health facilities, completing improvement projects at several City parks and launching several more, preserving historic music and entertainment venues, and expanding Austin Energy’s conservation rebates, energy efficiency, and electric vehicle programs.   Public Safety   Nothing is more important to the success of a city than the safety of its residents and visitors. This year’s proposed budget includes investments to enhance recruiting and retention efforts for 9-1-1 call takers and dispatchers, restructuring and expanding recruitment efforts for both the Austin Police Department and EMS to address sworn staffing shortages, investing in research-based curriculum for APD’s Cadet Training Academy, and upgrading and expanding several joint EMS/Fire stations and stand-alone EMS stations across the city.  Homelessness    The City of Austin and multiple community partners have long been committed to making homelessness rare, brief, and nonrecurring. The 2023-24 proposed budget includes a $55.8 million appropriation in four core components: reducing inflow, crisis response, housing stabilization, and public space management. This includes expanding emergency shelter options, building permanent supportive housing units, funding rapid rehousing contracts, and further investment in the Homeless Outreach Street Team (HOST).  The budget presentation to Council was broadcast live and will be available on ATXN’s archive. To learn more about the City’s Budget development process, and get involved, visit AustinTexas.Gov/Budget.