The Austin City Council approved a $6.6 billion budget Wednesday night, raising property taxes 3.5% after months of contentious debate over whether Austin residents should shoulder higher costs to preserve social services, housing assistance and other programs amid mounting financial pressure.

The vote capped one of Austin’s most closely watched budget cycles in recent years, forcing city leaders to weigh slowing revenue growth, rising costs and affordability concerns against warnings that deeper cuts would erode the city’s social safety net.

For a resident who owns an average-value home of $471,603, the property tax increase amounts to an additional $114 on their tax bill next year. Factoring in higher fees for services such as trash, water and electricity, as well as new debt to fund infrastructure projects, residents with an average home should expect to pay about $290 more in annual property taxes and fees next fiscal year. If voters approve the bond proposal on the November ballot, that number could rise to as much as about $330

City Council members approved the budget 9-2, with Mayor Kirk Watson and Council Member Marc Duchen voting against. The pair expressed frustration that City Hall failed to exercise greater financial restraint this budget cycle before moving forward with the property tax increase and taking on more debt, especially in the wake of Proposition Q’s defeat last fall.

“I’m a little disappointed. I’m discouraged, so I’m going to vote in a way that I think is going to surprise me,” Watson said before voting against the budget.

“I did not vote for this budget. This budget bothers me. This budget goes back some of on the actions we’ve taken over the past year to strengthen city government and put affordability first,” Watson said.

Those who supported the new budget argued the city is implementing policies that will eventually yield savings and that the new budget prioritizes and bolsters Austin’s social safety net at a time when many Austinites are financially struggling and need those services.

“This budget isn’t perfect, but I’m proud that we were able to protect some of the services Austinites depend on most while putting forward a responsible budget for the year ahead,” said Council Member Zo Qadri.

At the center of that fight were the city’s contracted social service providers, who warned proposed reductions would force layoffs, eliminate programs and weaken Austin’s safety net for some of its most vulnerable residents.

Already reeling from a 10% reduction after Prop Q’s defeat in November, providers fiercely opposed the city manager’s proposal to cut an additional $5.1 million. Ultimately, council approved one of several amendments to redirect $4.7 million in additional property tax revenue to avoid most of the proposed contract reductions.

Changes to emergency communication

Some of the most controversial budget amendments concerned a new emergency communications office that could eventually become part of a stand-alone department independent of the Austin Police Department. Supporters say the change could improve 911 response times, particularly in the peripheries of the city. 

“We all agree there have been amazing improvements in 911 response time… But because we’ve improved doesn’t mean that we’ve gotten where we need to be,” said Council Member Krista Laine. “These amendments are intended to refocus us on improving where people — our people — in the city have been left behind, where families have been traumatized, where response time has cost lives.”

Council was divided on the proposal, with six members voting in favor, Watson and Duchen opposed and Council members Paige Ellis, Natasha Harper-Madison and Chito Vela abstaining. 

The vote followed testimony from Austin Police Chief Lisa Davis, Austin-Travis County EMS Chief Robert Luckritz and Interim Fire Chief Tom Vocke, all of whom questioned whether the shift would produce meaningful change. 

“Everything is about continuous improvement,” Davis said. “Are there gaps? Are there areas for improvement? Absolutely… To remove it from the police department,” she added, “I don’t see the benefit in that.”

The new Office of Joint Emergency Communications will cost $1.4 million to create, including funding for operations, nine staff positions and technology enhancements.

More than $400,000 of the funding for the new unit was previously allocated to APD to support recruitment efforts. Austin Police Association President Michael Bullock told Austin Current the department is about 300 sworn officers short of its authorized staffing level. City Council members argued the department could use forfeiture funds, acquired through civil proceedings, to pay for recruitment efforts.

An example of forfeiture funds, Bullock said, could come from property seized during arrests, such as a vehicle belonging to someone convicted of dealing drugs. The money is “solely at the chief’s discretion.”

Bullock said using forfeiture funds for recruitment could force Davis to choose between those efforts and other department needs, including training, equipment or vehicles.

Other notable amendments  

The Austin City Council also approved taking on additional debt for capital improvement projects not a part of the 2026 bond proposal, including $32 million for transportation mobility projects and $3 million for construction, renovation and expansion improvements to Austin Animal Services facilities.

“We’ve done a great job keeping up with the sidewalk, urban trails and mobility buildout,” Vela said. “If we don’t add additional funds, it’s going to stall, so I want to make sure and keep those crews working and moving forward.”

Both Watson and Duchen opposed taking on additional debt, especially in the wake of the recent decision to call a bond election this November, which would also increase residents’ tax bills if it passes.

The approved budget also funds:

• A $500,000 increase in EMS overtime to help maintain full operational staffing. 
• $1.5 million to conduct a citywide efficiency audit aimed at identifying operational improvements and opportunities for cost savings at City Hall. 
• A $6 million increase in Austin Fire Department overtime budget needed to maintain the four-person staffing requirement.