Property tax rates rise as home values drop

Although city staff said the increase would equate to an additional $1.67 per month for Austin homeowners based on the median property value within city limits, estimated at $178,327, the increase for the average Travis County resident would be about $48, according to Community Impact Newspaper calculations.

Ed Van Eenoo, the city's budget officer, said the city uses the median value because half of the homes are worth more and half are worth less than that amount, whereas about two-thirds of homes are worth less than the average value.

The beefed-up city budget includes a 3 percent pay raise for city employees.

"We continue to do better," Van Eenoo said of the fiscal year 2013 budget. "I think we're in a better state than we were last year, and I think last year's was in better shape than the year before it."

City staff project a property tax rate increase of 3.3 cents for every $100 in property value during the next five years.

Travis County

Travis County commissioners are also weighing an increased property tax rate of 50.01 cents per $100 of property valuation, which is up from 48.55 cents, to help pay for employee raises.

"We conducted a market study to see if Travis County employee salaries were in line with other markets," said Leroy Nellis, director of the county's planning and budget office. "That market salary survey resulted in an average 3.5 percent increase."

If approved by Travis County Commissioners, the new tax rate would add $20 to residents' tax bill, Nellis said, a figure that includes a 20 percent homestead exemption for those whose Travis County home is their main residence. The exemption works by calculating the property tax on 80 percent of a property's worth.

In addition to the pay raises, the increased revenue from property taxes would pay for higher employee health insurance premiums and retirement contributions as well as maintenance for county property such as computers, vehicles and roads. Other expenditures include renovating the county's executive office building in downtown Austin and the Travis County Jail.

Larger rates, smaller bills

While Central Health and Austin Community College have either proposed or already approved small increases to their tax rates, because of the lower value of homes, the average homeowner will in fact pay less this year to the two taxing authorities than in 2011.

ACC spokeswoman Alexis Patterson Hanes said the average taxpayer's bill would decrease by almost a dollar if trustees approve the proposed rate of 9.51 cents per $100 of valuation, an increase from 9.48 cents.

Meanwhile, Central Health's rate, which was approved by the organization's board of trustees Aug. 1, will go from 7.89 cents per $100 property valuation to 7.8946 cents, yet homeowners will pay $3 less on average, spokeswoman Christie Garbe said.

The Austin ISD board of trustees said Aug. 2 that it planned to keep its tax rate at $1.242 for every $100 in property value, which would decrease property taxes by $28 for average homeowner, according to a Community Impact Newspaper analysis.

However, voters may be asked to approve an increase to AISD's tax rate in the near future. Superintendent Meria Carstarphen said the board is considering holding a tax ratification election this year or next.

On June 20, the board of trustees approved a one-time 3 percent pay raise for all regular employees, which is costing the district nearly $14.2 million.

"We know that our reserve cannot continue to provide this type of recurring expense indefinitely," Carstarphen said. "We ... will need a recurring revenue stream in order to fund a permanent salary increase or any other new initiatives, which means that the district will likely need to go for a tax ratification election."