After
weeks of discussion, Austin City Council voted to pass a $3.7 billion fiscal year 2016-17 budget Wednesday night.
City Council also approved a tax rate of $0.4418 cents per $100 valuation, a reduction from last year’s $0.4589 cents per $100 valuation. An Austin homeowner who is not eligible for senior citizen property tax relief and who owns a $278,741 home—the city’s median value—would face a city tax bill hike from $1,087 in FY 2015-16 to $1,133 in FY 2016-17, an increase of $46, according to a city news release.
The budget passed 8-2-1, with District 6 Council Member Don Zimmerman and District 10 Council Member Sheri Gallo opposing. District 8 Council Member Ellen Troxclair was absent.
The tax rate passed 7-2-2, with Gallo and Zimmerman opposing, District 1 Council Member Ora Houston abstaining and Troxclair absent.
Mayor Steve Adler said the budget was a "really strong balance of affordability issues and providing for quality of life in our city."
Troxclair, who is on maternity leave, said in a statement she would not support the budget and called it "unaffordable."
Here are a few takeaways from the budget:
- Senior homestead tax exemption increases
City Council voted to raise the the tax exemption amount for seniors and disabled persons from $80,000 to $82,500. This means seniors over the age of 65 and disabled citizens pay taxes as though their home were valued $82,500 less than its actual value—in addition to the 8 percent homestead exemption passed earlier this year.
- Quality of life initiatives funded
City Council approved dividing $2.1 million between several initiatives that help raise the quality of life for Austin residents. Council members approved spending $300,000 of the $2.1 million for Supplemental Nutrition Assistance Program, or SNAP, outreach and enrollment; $300,000 for Affordable Care Act outreach and enrollment; and $250,000 for translation and interpretation services.
- More EMS, police positions added
An additional 12 police officers, 21 police department civilian staff and 52 EMS positions were included in the budget.
- City employee pay increases
All cities employees received a 2 percent performance-based pay increase, and the minimum wage for hourly workers went from $13 to $13.50.
- Electric rate decreases
The approved budget includes a decrease for Austin Energy customers of $3.68 for the typical Austin resident, effective Jan. 1.
- Water rate increases
The Austin Water utility residential customers will see a typical monthly increase of $2.95.
