Last week, Austin City Manager T.C. Broadnax and city staff laid out their proposal for next year’s city budget, increasing it by $400 million to $5.9 billion. 

The budget process has changed since the city hired Broadnax. The city manager’s office provided this year’s proposal and a future outlook of what the planned budget may be for the following year, allowing council members and the public to have a look into the future as well. 

“I really appreciate having the opportunity to look at this in a two-year format,” Council Member Natasha Harper-Madison said in the July 12 council meeting. “I really appreciate that we are giving our constituents the opportunity to operate with good information.”

The budget increase surprised some residents who spoke at the meeting as the sales tax revenue was lower than expected in the past year, causing some to think the city budget may take a hit. 

“I understand from local media that the city is contemplating a 1-to-2-percent budget cut next year,” a District 10 resident said at the meeting. “A cut like this would be really damaging to our parks.” 

Parks and Recreation was allotted an additional $41.48 million dollars in funding. The city plans to finish construction and open the new Colony Park Pool, finish renovations at the Givens Pool and complete the expansion of the Mexican American Cultural Center with the new budget. 

The city manager also proposed an $18.2 million increase to the police department’s operating budget from last year’s, with room for more following the completion of contract negotiations. Currently, the proposed police budget is $496.3 million.

Currently, the city is experiencing an average annual revenue growth of 3.9% and an expenditure growth of 4.1%, leading the city manager’s office to predict that the city will be operating at an $11.2 million deficit in 2028. 

A work session will be held on July 24 where residents will have the opportunity to provide comments on the budget. Following that, the City Council will host a public budget hearing on Aug. 1. The City Council will vote on the finalized budget by Aug.16.