Months after Austin voters decisively rejected a property tax rate increase, signaling depleted trust in city leaders’ ability to steward public funds, the city is poised to approve a sweeping new measure aimed at reforming that perception.

On Thursday, the Austin City Council will vote on an ordinance that, if approved, will initiate a citywide efficiency audit, launching an ongoing, independent assessment of city services some experts say is novel given its ambitious scope. The measure is intended to show Austinites, many of whom are forced to budget because of the high cost of living, that the city is exercising similar restraint. While most support spending taxpayers’ dollars efficiently, some city employees worry the program could go too far, putting city jobs on the line.

Whether this added layer of transparency helps rebuild trust will be tested the next time the city asks Austinites for additional funding, which could come as soon as November’s bond election.

“We want to make sure that the public has confidence in the way we’re going about our budgeting process,” said Mayor Kirk Watson at a recent City Council work session.

The audit seeks to assess every city department every three years through a contracted, independent auditor.

Watson initially proposed the system-wide audit in the weeks after voters rejected Prop. Q, the measure that would have increased property taxes to pay for city services. On Thursday, Council members will vote on a proposal that has many of the same themes as that initial draft ordinance. However, at a council work session earlier this month, council members added safeguards for city employees after hearing concerns about potential layoffs and a lack of employee involvement in the process.

“The city employees can help you and assist you in identifying waste. They know where it is, they see it every day, and we want them to be a part of this process,” said Carol Guthrie, who represents the union representing city and Travis County workers. “This will be an ordinance; it will be on the books. We want to be sure that the employees are protected no matter which way you go.”

The audit proposal now includes provisions that would establish channels for city employees to submit input in the assessment process, empower managers to submit objections over future recommendations and direct the auditor to prioritize efficiency recommendations that do not include layoffs.

Additionally, if a future City Council wants to amend the auditing ordinance, nine council members must approve the amendment.

‘It’s unprecedented’

“This is an important thing that we’re doing,” Watson said. “It’s unprecedented, but I want it to be unprecedented.”

An outstanding question that won’t be ironed out until the city begins receiving proposals is how much it will all cost.

This type of audit, however, “should pay for itself many times over,” said Mark Funkerhouse, who served as mayor and city auditor of Kansas City, Mo., and now leads a consulting firm that conducts financial audits for local governments.

“A well-done review like this can produce ongoing operational savings of 5% or more of the total budget, which for a city like Austin, would be a lot of money,” Funkerhouse said.

Beyond saving money, Funkhouser agrees that audits are key to showing constituents that a government is operating efficiently and cost-effectively. However, he said building trust would not be immediate.

In the short term, critics may argue putting a spotlight on city problems reduces public trust by identifying them, Funkhouser said. “Really, over the longer run, it builds trust,” he said, “because they’re basically fewer debacles and better delivery of services for citizens.”

Economic consultant Vance Ginn, a former Trump administration associate director for economic policy at the White House, has been advocating for governments at the city and state level to conduct this type of assessment for years.

He said he is unaware of any other Texas cities taking on an audit process this ambitious.

“I think this is pretty unique, and hopefully it will become a trend for other cities and for the state,” Ginn said. “A place like Austin, where a lot of people are moving to, I think it’s going to be really important to see exactly how that money should be spent.”

“Every dollar the government spends comes from taxpayers,” Ginn added, “and we need to make sure each one is being spent wisely.”