North Central Austin Edition | July 2025

Government

BY HALEY MCLEOD & BEN THOMPSON

Austin proposes record budget, tax election likely

Ocials consider less food truck regulations Food truck permitting, and related revenue collections totaling hundreds of thousands of dollars in Travis County, will soon shift from local to state oversight. The breakdown State legislators and advocates said House Bill 2844, signed by Gov. Greg Abbott this spring, will ease burdens on small busi- nesses. Once in eect next July, food truck licensing and regulation will fall under state health departments rather than local agen- cies like Austin Public Health. Food trucks will also no longer be required to operate out of a central location as of September, and local governments will be prevented from enforcing any rules conicting with the law. The shift in oversight could also lead to slower responses to violations or illness out- breaks, APH sta said, as local ocials can act more quickly when problems arise. The state plans to hire 20 inspectors to monitor around 12,000 food trucks across Texas. “Get ready for more salmonella and more problems,” commissioner Brigid Shea said.

City Manager T.C. Broadnax proposed a $6.3 billion scal year 2025-26 budget in July, including a $1.48 billion general fund for pub- lic-facing services. The big picture Broadnax’s budget is supported by a 10% tax rate increase. The city estimated the “typical” resident— with a median-valued home and standard service usage—can expect a combined 4.9% cost increase from taxes, utility charges and fees. While Broadnax’s budget is balanced for the next two scal years, city ocials have signaled they’ll likely ask voters to raise taxes further this fall given projected future shortfalls, and the loss or expiration of various federal dollars. With decits still projected by the late 2020s, a higher tax rate could support additional spending and avoid cuts to community and council priorities. “Austin still needs investment to be successful. We still need high-quality services to have a high quality of life,” Mayor Kirk Watson said in a newsletter. Some context Under a 2019 state law, a TRE is required if cities seek to raise more than 3.5% in added property tax revenue for operations year-over-year. The pro- posed FY 2025-26 budget falls under that cap, while any higher tax rate would move the city to seek voter approval. Council members have been preparing for a TRE since earlier this year, setting a formal policy this spring to guide the process while limiting such elections to once every four years. If one is called this fall it’d be Austin’s rst for general city spending purposes; voters approved a TRE in 2020 specically

The breakdown Austin’s proposed general fund covers most city services used by residents.

Public safety (police, forensics, re, EMS) 65.61%

14.53% Parks, libraries

Public health, homelessness, social services 9.83%

Transfers/other 3.36% 2.5% Municipal court

1.72% Housing and planning

1.69% Animal services

0.75% Arts, culture, music, entertainment

SOURCE: CITY OF AUSTINCOMMUNITY IMPACT

for the Project Connect transit system that remains in development. “We’re going through uncharted waters, to a large extent. Ultimately, I think tax rate elections will have to become almost a political feature of Texas in the future,” council member Chito Vela said. What’s next City Council is now reviewing the spending plan and will approve a nal budget with amendments aimed at their priorities mid-August. Austin’s scal years start in October.

Travis County Impact

540 food truck permits in Travis County Annual revenue losses under HB 2844 Austin Public Health: $635K Travis County: $145K

SOURCE: TRAVIS COUNTYCOMMUNITY IMPACT

Flood recovery in Travis County to continue County commissioners extended a local disaster declaration this month after deadly ooding left uprooted trees, wrecked homes and washed up debris across parts of Northwest Travis County over the Fourth of July weekend. “This is going to be a long recovery,” commis- sioner Ann Howard said. The overview Several deaths and missing persons were con- rmed. As of July 14, damages are standing around

$73 million with that number expected to continue climbing, a county spokesperson said. Moving forward Travis County has opened a temporary two-way low-water crossing next to the damaged Sandy Creek Bridge to support debris removal and reconnect the community. Restrictions remain in place including a burn ban through Aug. 5 and limited recreational access to parts of Lake Travis due to ood hazards.

Several roads in Northwest Travis County were left impassable after intense ooding.

SAM SCHAFFERCOMMUNITY IMPACT

COMMUNITYIMPACT.COM