Government
BY ELISABETH JIMENEZ, HALEY MCLEOD & BEN THOMPSON
Flood recovery prompts TravCo tax increase A one-time tax hike costing the average home- owner hundreds of dollars is planned to cover Travis County’s continuing response to July’s
HaysCo seeks tax hike to fund overturned road bond projects Hays County tax bills may increase as the county pursues alternative funding for 30 road projects halted after its 2024 road bond was overturned in court. What’s happening County Commissioners moved to raise the property tax rate by $0.02 per $100 assessed value in July. That increase would fund most 2024 bond projects, according to county documents. The $440 million bond passed last November with 55% support, and would’ve carried the same $0.02 tax increase. After a resident lawsuit alleging Texas Open Meet- ings Act violations when commissioners called the election, a Travis County judge voided the result in June. Separately, the court also moved to issue $240 million in certi cates of obligation to fund some projects without public approval. A nal vote is anticipated in September and project budgets will be established once the COs are issued. Commissioners said their decision to seek a higher tax rate and issue COs aligns with voter support for the mobility measure. “We’re upholding voters’ decision by their vote [on the bond],” Commissioner Debbie Gonzales-Ingalsbe said July 29. “They have asked us to move forward with those critical improvements.”
severe ooding. The breakdown
Due to state and federal disaster declarations following the oods, the county can raise prop- erty taxes by a greater amount without needing voter approval. Normally, any increase that’d generate over 3.5% more revenue would require voter approval. The county took that approach last year with a tax rate election for child care funding, which was approved by voters. The county’s proposed scal year 2025-26 tax rate is over 9% higher than last year’s. The approved higher property tax rate for the scal year 2025-26 budget year is roughly three cents more per $100 of property value, at $0.375845 per $100 valuation. For the average homeowner—properties valued around $515,213—this means their county tax bill will go up by about $200, with around $72 of that tied to recovery costs from the July ooding disaster. “I think it’s important for people to understand this is necessary because of the unprecedented amount of damage that has occurred throughout Travis County, including the ooding in the Big Sandy Creek and Cow Creek areas,” Commis- sioner Brigid Shea said. “We are having to, in many cases, provide emergency repairs and draw from an emergency fund that we had set up. It’s just important for people to understand the cost
Local tax dollars may increasingly fund disaster recovery as federal aid faces funding limitations.
SAM SCHAFFER COMMUNITY IMPACT
Travis County taxes The county won voter approval last year for a higher tax rate funding a ordable child care, and may now increase costs again due to disaster response.
Tax rate (per $100 property value)
$0.4
$.375845
$.344445
$0.3
$.304655
$0.2
$0.1
0
2024
2025
2026*
*PROPOSED SOURCE: TRAVIS COUNTY COMMUNITY IMPACT
of these storms is signi cant and is growing.” The increase would raise around $42 million set aside in a special reserve, according to the county. The county plans to lower the tax rate again in FY 2026-27 once the road repairs and recovery costs are covered, county sta said.
Austin budget approved, tax rate election called
Tax rate decision
Austin voters will decide whether to fund a larger budget plan with a 20% tax rate increase this fall.
facing nancial constraints like growing de cits through the 2020s. City Manager T.C. Broadnax proposed a balanced budget in July that closed a projected $30 mil- lion-plus shortfall. But most of the council agreed more money is needed going forward, and adopted an expanded spending plan backed by a larger tax hike—triggering the fall tax rate election, or TRE. “It is time for us to trust our voters,” Mayor Kirk Watson said.
Austin leaders approved a budget for the upcoming scal year with a higher property tax increase that’ll require voter approval in a Novem- ber election. What happened City Council voted to adopt a $6.3 billion budget for the upcoming scal year 2025-26 in a 10-1 vote Aug. 14, with council member Marc Duchen against. O cials called this summer’s budgeting process the most di cult in recent memory while
Annual tax bill
$3K
2.9K
$2.5K
2.6K
2.4K
0 $2K Fiscal Year
2024-25 (current)
2025-26 (TRE approved)
2025-26 (TRE rejected)
NOTE: BASED ON A TAXABLE HOME VALUE OF $500,000 SOURCE: CITY OF AUSTIN COMMUNITY IMPACT
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SOUTHWEST AUSTIN DRIPPING SPRINGS EDITION
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