Getting your Trinity Audio player ready...

Dissenting voices still consider the increase too high

 

The Austin City Council on Monday night, voted 4-3 to set the 2025 proposed tax levy increase and budget — with a small bit of good news.

The city’s health insurance premium came in lower than expected and resulted in a $90,000 cut to the overall budget for 2025. Instead of the 13% increase that was agreed to in a Sept. 2 work session, the tax levy increase was whittled down to 11.97% equalling a $9.8 million increase over 2024.

The budget was set at just over $49.76 million.

The resulting tax impact for the average homeowner of a $161,100 home will now be an increase of around $75 to $80.

From this point on, the budget can be lowered, but it can not be increased.

Those voting in favor of this new increase included council members Laura Helle, Mike Postma and Paul Fischer along with Mayor Steve King, who was the tie-breaking vote because Joyce Poshusta was not in attendance.

Geoff Baker, Jason Baskin and Jeff Austin voted against.

While the levy increase was shaved somewhat, it still wasn’t enough for those who voted against it.

“I still feel this levy increase is too high,” Austin said. “I still ask why we have to put the burden on the taxpayers.”

The major driver of the levy increase is the addition of two new staff positions — a Human Resources Generalist, which would handle internal and external communications, and a Housing Resource and Code Enforcement Officer dedicated to a proactive approach to blighted properties in the city.

Together, the two positions added $234,000 to the budget, leaving those opposed to such a high levy increase still questioning what the need was in light of the increase.

“The message we need to be sending is this is a council that continues to send a message of fiscal responsibility. I think there are a lot of good things in this budget,” Baskin said, adding that he would be voting against it, particularly because of the housing position. “Adding the new position, I just don’t see the return of investment there. At the end of the day, I’m not comfortable with the level we’re at.”

Baker, one of the strongest opponents of such a high increase, warned: “We will not be better off as a city because of this levy increase.”

However, speaking to her own choice, Helle said she looked at these positions as more forward thinking

“I don’t think we take the levy lightly. I think everybody really put a lot of thought and study into getting the budget where it is,” she said. “The two positions being added I think are long term investments.”

The council will hold its Truth in Taxation meeting at 6 p.m. on Dec. 4 in the City Council Chambers.