Austin advances $6.6 billion budget toward August adoption and tax-rate decision

Austin City Council is moving toward final action on a proposed $6.6 billion fiscal 2026–27 city budget after holding a public hearing July 30. Final budget adoption is scheduled to begin Aug. 12, when the council is also set to consider a maximum proposed property-tax rate for the upcoming fiscal year.

The spending plan, proposed by City Manager T.C. Broadnax, is not yet adopted. Council members can amend the proposal before taking final votes, meaning the final spending total, tax rate, utility rates, departmental allocations and service changes remain subject to change.

What is before the council

The proposed budget totals $6.6 billion for fiscal 2026–27. It would establish the city’s spending plan and departmental priorities for the next fiscal year, while also helping determine service levels and the tax and utility burdens faced by customers and property owners.

The city projected that a typical Austin tax-and-ratepayer would see an increase of $28.83 a month, or $345.95 a year, under the proposal. That is an average projection for a typical tax-and-ratepayer, not a finding that every Austin resident would pay that amount.

The proposed property-tax rate remains a separate decision before the council. On Aug. 12, the council is scheduled to hold its property-tax-rate hearing while beginning the final budget-adoption process.

Process remains incomplete

The July 30 hearing was a public-review step, not final passage. The city’s budget process provides for council review and amendments before final adoption begins.

As a result, neither the $6.6 billion total nor the projected tax-and-ratepayer increase should be treated as final. The city has not established a final council vote outcome in the materials supporting the proposal.

The upcoming decisions matter because they will set the framework for city spending and priorities in fiscal 2026–27. They will also determine the final property-tax and utility-related choices that shape the proposal’s impact on Austin taxpayers and ratepayers.

Residents and other interested parties will have the Aug. 12 council actions as the next identified step in the process. Any adopted budget, tax rate or related rates could differ from the proposal considered at the July 30 hearing.