Austin Metropolis Council OKs amended FY 2026 funds

Adobe Inventory

The Austin, Texas, Metropolis Council accredited a pared down fiscal 2026 funds late Thursday in response to voter rejection of a property tax charge enhance, whereas teams proceed to scrutinize metropolis spending.

The 11-0 vote amended a $6.3 billion all-funds spending plan for the fiscal yr that started Oct. 1 to handle the lack of $109.5 million in further income that may have been raised by Proposition Q, which was defeated by voters on Nov. 4.

“I imagine the funds modification that we simply adopted reveals that we trusted the voters,” Mayor Kirk Watson mentioned. “We heard the voters, and we reacted to the voters, however I wish to say thanks to the voters for participating within the election and for sending the message.”

Metropolis Council Member Marc Duchen, who voted in opposition to the unique funds, mentioned Texas’ capital metropolis is in a unique place than it was in 2019 and even two years in the past, noting, income will not be growing “at a breakneck tempo” and Proposition Q’s failure “confirmed how involved native residents are relating to how we spend cash.”

“I imagine that this variation did afford us … this chance to debate priorities, to establish financial savings and to take an vital inventory of what is working and what’s not, so I believe the passage of the funds this yr marked a second to reset and rebuild,” he mentioned. 

Whereas the council additionally adopted a decision to implement “monetary greatest practices to strengthen” the annual funds course of, Save Austin Now, the group behind Proposition Q’s defeat, introduced on Friday a petition drive to put a constitution modification on the Could 2026 poll  requiring a recurring efficiency audit of the town funds by an unbiased contractor.

“We merely need the town of Austin and our metropolis council to embrace an unbiased audit so we will lastly see the place we might be extra environment friendly and make our metropolis extra reasonably priced for the hard-working taxpayers who maintain it working,” Steven Brown, the group’s co-chair, mentioned in a press release.

A petition drive on the town’s plan to interchange its conference heart was rejected by the Austin Metropolis Clerk final week for failing to submit sufficient legitimate signatures. In October, the town council accredited as much as $650 million of particular tax income bonds backed by resort occupancy taxes and sure incremental state tax income for the challenge.

Austin United PAC, which submitted greater than 25,000 signatures in October, is making an attempt to amicably resolve the matter, though “there’s a substantial probability that litigation might be required,” based on Invoice Bunch, the group’s lawyer.

The petition seeks to place an ordinance on the Could poll to postpone the demolition and reconstruction of the conference heart for seven years or till the challenge is accredited by voters.

Austin, which had almost $1.25 billion of common obligation bonds excellent on the finish of fiscal 2024, is awaiting suggestions anticipated in April from an advisory activity power about inserting debt propositions on the poll subsequent yr.

Fitch Rankings upgraded the town’s GO ranking to AAA with a steady outlook from AA-plus in August.