Austin's next major bond package, likely including a slate of climate-related projects, is on track for a 2026 vote as community members will soon begin weighing which projects and spending could be included.

The big picture

Austin traditionally has held comprehensive bond elections with propositions on several different priorities every six years, including:

• Nearly $570 million for mobility, parkland, housing and cultural facilities advanced in 2006
• More than $300 million for transportation, parks, public safety and public health was approved in 2012
• More than $900 million was backed by voters in 2018 to address a mix of those areas

While aiming for a six-year cycle for broader packages, spending has also been authorized in between, such as with 2020's $460 million transportation bond and 2022's $350 million affordable housing bond. The outlook for spending the remainder of those funds is one reason Austin is now holding off on a comprehensive package until 2026.

After City Council called for investment in environmental priorities last year, a new volunteer resident board was created to oversee the creation of the next wave of debt-funded initiatives. The work of the 2026 Bond Election Advisory Task Force is now in progress as city staff develop an early list of potential projects to look over before next year.

Deputy Chief Financial Officer Kim Olivares told the bond task force in December that 2026 is Austin's "best bet" given the large number of debt-backed projects already on the books, not accounting for even larger updates like the city's convention center redevelopment and airport expansion.

"These off-cycle bond programs really create a challenge in terms of managing compliance with [financial] policy, but also managing our capability to deliver these projects in a reasonable amount of time," she said.

Zooming in

Some officials and community members had hoped to see a climate-centered bond in 2025. However, that deadline wouldn't allow for full project selection and reviews the city now uses for bond creation, Assistant City Manager Robert Goode said a January memo.

"An expedited process reduces the ability to complete a comprehensive and transparent bond process that considers priorities across departments and limits time for project development, objective project evaluation, and incorporation of public input into the final bond program recommendation," he wrote.

Additionally, a large amount of previously approved debt has yet to be spent as of early 2025, leaving an ongoing financial impact and making it difficult for city planners to recommend a shorter timeline for a new bond.

Well over $1 billion from Austin's past bond programs had yet to be spent as of late 2024 and likely won't be until the late 2020s, according to city financial staff. About $700 million in unspent mobility bond funds make up a big piece of that total, and dozens of transportation initiatives will now stretch well beyond their initial time frames set by the city.

Goode said pushing a bond through in 2025 could've also cut into a bigger 2026 package, delaying future projects while also risking what he called "voter fatigue" and possible bond rejection amid a series of costly elections.

The cost

The "typical" city taxpayer—defined as the owner of a home assessed at $412,000—already pays about $400 of their annual property tax bill to cover Austin's debt service. The city estimates its hundreds of millions of dollars in authorized but unissued bond funds will cost the average taxpayer $225 more per year over time.

Those totals don't account for other debt-related taxes paid by Austinites to entities like Austin Community College, Austin ISD or Travis County, or for the Project Connect transit system. A portion of the proposed amenity decks capping Texas Department of Transportation's widened, sunken I-35 could also be funded with city debt in the coming years.

Looking ahead, any bond package approved by voters in 2026 will tack on a further tax burden. Austin now projects every $100 million of future bonds will add $13.78 to the average resident's annual tax bill, and the next program will likely end up totaling several hundred million dollars.

What's next

The city's bond task force will continue to hold regular meetings as development of the package comes together. Various city departments will soon begin bringing recommended projects and priorities to that body, and interested residents, for discussion before a spending outline is finalized.

An in-depth report covering all of Austin's needs is also in the works and will be presented this summer to help guide the process.

A preliminary assessment completed last year found more than $10 billion in new investments needed across all city departments—"far beyond" what a typical bond could address, Goode said. After more analysis, staffers and task force members will cover the requests in more detail before settling on a final project list for the 2026 bond.

"Beginning in July 2025, staff will then partner with the [Bond Election Advisory Task Force] to tackle the heavy lifting: identify, study, engage with the public, and prioritize projects. The prioritized projects will then go through a thorough scoping and cost estimation," Goode said. "This work ... shifts the effort to scope, coordinate and estimate costs prior to taking a proposition to the voters, and is the key to timely implementation."