Austin’s $6.3 Billion Budget: What Homeowners Need to Know

Austin’s Record-Setting Budget

Austin City Council just approved the largest budget in the city’s history: six point three billion dollars for fiscal year 2025 to 2026. That is a four hundred million dollar increase from last year’s already record spending. The biggest surprise? The Austin Convention Center redevelopment, which last year received 6 percent of the budget, now has just 3 percent. Those funds are being redirected to firefighter overtime, homelessness programs, mental health services, park upkeep, and new EMS staff.

What This Means for Property Taxes

This November, voters will decide whether to approve a property tax rate increase to fifty seven point four cents per one hundred dollars of taxable value. That is five cents above the automatic cap. For the average Austin homeowner, the change would add about twenty five dollars each month, or just over three hundred dollars per year. If approved, the additional revenue will generate one hundred ten million dollars and secure funding for vital city services that were at risk of being cut without the increase.

Where the Money Goes

Two thirds of the budget is devoted to essential services. Austin Energy and Austin Water account for 43 percent, while the General Fund, which covers police, fire, EMS, parks, and libraries, makes up 23 percent. Citywide revenue is expected to grow by 7 percent in the coming year, with Austin Energy charges providing 30 percent of that growth. Translation: your utility bill is now doing more to fund the city than your property taxes.

What This Means for Homeowners and Investors

For high-earning homeowners in Westlake, Bee Cave, Lakeway, and central Austin, this budget debate is more than a headline. It directly impacts property costs, neighborhood quality of life, and long-term investment strategies. QUESTION: As a homeowner or investor, do you see this budget as a smart investment in safety and livability, or another example of costs rising faster than value?

Let’s Talk Strategy

Budgets are not abstract. They determine where your tax dollars go, how safe your neighborhood feels, and how attractive Austin remains to buyers and investors. If you are weighing whether to buy, sell, or hold in the next year, these changes matter. I work closely with clients to help them anticipate how city policies influence property values across Austin’s most desirable neighborhoods. If you are ready to talk strategy, let’s connect.