Tax cap to come to a vote

Published 7:23 am Friday, September 4, 2009

The Austin City Council will vote Tuesday on whether they want to cap next year’s property tax increase at 4.59 percent.

After Sept. 15, the city could choose to lower the tax levy but not increase it, according to state law.

A 4.59 percent increase would mean roughly an extra $10 per year on an average $102,000 home in Austin — and would net the city an additional $170,000 in funds during a year when Austin is slotted to lose more than $876,000 through unallottments by Gov. Tim Pawlenty.

Email newsletter signup

City council members and the mayor have discussed the possibility of bringing down the 4.59 percent number, but Austin Administrative Services Director Tom Dankert has warned that having a zero or near-zero percent increase would be fiscally irresponsible.

Dankert said during an Aug. 17 council meeting that having no increase now would likely lead to higher costs later — and possibly a much larger tax spike, something citizens dislike, he said.

“Eventually, someone’s going to have to pay the bill,” Dankert said.

In addition to voting on the tax levy, the city council will be looking to set a truth-in-taxation hearing.

Such public hearings are required of governmental units of 500 or more people, by state law.

They must be advertised and open to the public, and must be held after 6 p.m.

The city has proposed to hold its public hearing on Dec. 1 at 6:01 p.m.

The city council meets Tuesday at 5:30 p.m., followed by a work session immediately after.