City of Austin Property Taxes & Utility Bills Increase

Q: What do a $31.7 million budget gap and the City of Austin have in common and what does this connection mean for Austin residents?A: Yep, you got it…higher property taxes and higher utility bills for the 2009/2010 fiscal year that started October 1^st for homeowners within the City of Austin.What do the changes look like?Let’s start with property taxes:If you own a home within the City of Austin, historically a portion of your tax rate was figured by charging 40.12 cents per $100 of assessed property value.The 2009/2010 City of Austin property tax rate increased to 42.09 cents per $100 of assessed property value.That’s a 4.9% increase in your City of Austin property taxes. For example, if your home is valued at $250,000, $1003 of your total property tax bill was going to the City of Austin. With the changes, $1052 of your total tax bill will go to the City of Austin.Moving right along to your utility bills:

• The average resident will now pay about $3.78 more per month on utility bills due to water and wastewater increases.
• Those using 90-gallon garbage carts will be charged an additional 65 cents per month, a move the city hopes will promote switching to smaller carts and encourage more recycling.

So, where does all the money go?Taxes and utility rates are increasing, so is there a silver lining for Austinites? Yes!The City of Austin has actively pursued involvement from taxpayers through multiple interactions over the course of the past year.  Austin is the first large U.S. city to involve the public on this level. The following are the methods used to involve Austin residents:

• The city budgeters held 30 meetings with boards and commissions.
• Six employee focus groups and five public town hall meetings were held.
• Employees of the city were polled for budget-reduction ideas.
• A hot line and e-mail accounts were created for budgetary comments.
• The city completed a citizen survey.

It’s an empowering concept to have public involvement in the governmental process in a large city such as Austin. It certainly feels more democratic when the people we elect poll us for our opinions over the course of a budget or legislative process.We ask you, Austin Homeowners…how do you feel about these changes? Is there a better solution? Were you involved in the town hall meetings or did you provide any feedback to the city? Please share your comments and stories below, your opinion matters.