Austin City Council Approves FY 2026–2027 Budget, Raises Property Taxes as Affordability Concerns Mount
The Austin City Council voted to adopt the City’s Fiscal Year 2026–2027 budget on Wednesday following a marathon meeting packed with public hearings on tax rates, utility fees, and departmental spending.
The budget takes effect October 1, 2026, and runs through September 30, 2027.
VIDEO: AUSTIN CITY COUNCIL – AUGUST 12
What the Council Approved
The meeting opened with a series of public hearings required before the budget could be finalized. Council members:
- Adopted and levied a new property (ad valorem) tax rate for the City, and formally ratified the associated property tax increase built into the FY 2026–2027 budget.
- Held public hearings on and approved rate and fee changes for four major city utilities and services: Austin Resource Recovery, Austin Watershed Protection (including a new drainage charge rate), Austin Water, and Austin Energy.
- Approved an ordinance authorizing the full slate of city fees, fines, and other charges for the coming fiscal year, with amendments.
- Adopted the overall city budget ordinance, also approved as amended.
- Approved new classification and position ordinances for Austin Fire, Austin-Travis County EMS, and Austin Police, restructuring positions within each department’s classified service.
Michael Bullock is president of Austin’s police union:
Council also approved a one-year, $90.5 million service agreement with the Austin Housing Finance Corporation (AHFC) to continue managing the city’s housing programs in FY 2026–2027.
Housing and Redevelopment Budgets
In addition to the city’s main budget, the Council recessed twice — once to sit as the AHFC Board of Directors and once as the Mueller Local Government Corporation (MLGC) Board — to approve affiliated budgets:
- AHFC’s Grant Operating Budget: $41,972,483
- AHFC’s Capital Budget: $48,534,000
- AHFC’s Housing Assistance Fund: $1,700,000
- MLGC’s Operating Budget for the Mueller Redevelopment Project: $4,420,465
Beyond the Numbers: A Full Slate of Council Directives
Alongside the budget votes, Council members passed ten resolutions directing the City Manager to study or implement a wide range of initiatives, including:
- A review of fees and regulations for special events held in city parks
- A new process for evaluating social service contract performance
- A comprehensive review of performance metrics for the Austin Police Department
- Creation of a “microbusiness” classification with reduced permitting barriers and potential fee waivers
- A security implementation plan for city parks and recreational facilities, in compliance with the city’s TRUST Act surveillance ordinance
- A new nature trail connecting Circle C Metropolitan Park to the Hielscher Tract Greenbelt
- Establishment of an Office of Joint Emergency Communications outside the Austin Police Department
- A study on whether the newly approved drainage charge increase is sufficient to meet the city’s infrastructure needs
- A push for a public database tracking police misconduct complaints (the “G-file”)
- A review of social service contracts slated for cuts or elimination in the new budget
Pushback From the Dais
Not every Council member left the meeting satisfied. Council Member Marc Duchen (District 10) issued a sharp rebuke of the budget’s property tax increase after the vote:
“The City Council let Austin down tonight. Utility rates, county taxes, and the cost of living are all on the rise, and the last thing residents can afford right now is a big property tax hike. Sadly, that’s what they got.”
Duchen’s comments reflect a broader tension that ran through the night’s public hearings: the budget passed alongside rate hikes at Austin Water, Austin Energy, Austin Resource Recovery, and Austin Watershed Protection, compounding the property tax increase at a moment when many residents are already feeling squeezed by rising costs.
Mayor Kirk Watson also dissented.
“I did not vote for this budget. This budget bothers me. This budget goes back some of on the actions we’ve taken over the past year to strengthen city government and put affordability first. This budget adds debt—and it increases the average Austinite’s property tax bill by over $400— that’s just the City’s portion.” — Austin Mayor Kirk Watson
What’s Next
With the budget adopted, city departments will begin implementing the new spending plan when the fiscal year opens on October 1. Several of the resolutions passed Wednesday — including the drainage rate sufficiency study and the police misconduct database assessment — will bring follow-up reports back to Council in the coming months.
Sources:
- City of Austin, Action Taken by the City Council, meeting of Wednesday, August 12, 2026 (official council meeting summary)
- Statement from Council Member Marc Duchen (District 10), issued following the August 12, 2026 Council meeting
This article is based on preliminary council action summaries, which are tentative and subject to change pending approval of official minutes at a future Council meeting.
A Lake Travis High School student-athlete who suffered cardiac arrest Monday during football practice has died.
Odin Hensley was to be a senior on this season’s Lake Travis team.
A suspect was arrested Wednesday morning following an exchange of gunfire with an Austin police officer near U.S. 290 and Interstate 35, according to authorities.
The shooting occurred in the 800 block of Camino La Costa, prompting police to issue a brief shelter-in-place order for the area around 9:17 a.m. APD confirmed the order was lifted shortly after 10 a.m. once the suspect was taken into custody.
This past weekend, Texas Department of Public Safety (DPS) Capitol Region Troopers assisted the Austin Police Department (APD) with a pursuit involving an assault suspect and a possible stolen vehicle.
Capitol Area Crime Stoppers announced the arrest Monday of a fugitive from justice while announcing the search for another.
The Williamson County Sheriff’s Office Organized Crime Unit has been recognized for its efforts against human trafficking.
Pflugerville city leaders are reconsidering whether to continue using license plate reading cameras from Flock Safety, postponing a vote on a new contract after raising concerns about privacy and how data could be shared.
In the Travis/Williamson/Hays County area, two major public school districts are starting their first day of classes today.
Districts Opening Today (August 13)
- Eanes ISD (Travis County)
- Hays CISD (Hays County)
Most other Central Texas districts either opened yesterday or will welcome students next week:
| County | District | First Day of School |
|---|---|---|
| Travis / Williamson | Leander ISD | Opened yesterday (Aug 12) |
| Travis | Lake Travis ISD | Opened yesterday (Aug 12) |
| Travis / Williamson | Pflugerville ISD | Opened yesterday (Aug 12) |
| Hays | Dripping Springs ISD | Opened yesterday (Aug 12) |
| Travis | Austin ISD | Tuesday, Aug 18 |
| Williamson / Travis | Round Rock ISD | Wednesday, Aug 19 |
| Williamson | Georgetown ISD | Wednesday, Aug 19 |
| Hays | San Marcos CISD | Wednesday, Aug 19 |
(Note: Some area charter schools and private schools set their own independent start dates, so calendars may vary for non-ISD campuses.)
With the 2026–27 school year underway, the Austin ISD Board of Trustees meets tonight for an information session highlighting major district updates.
Key items on the agenda include superintendent updates on high school transportation hub stops and the ongoing transition following the closure of Paredes Middle School, along with previews of upcoming district contracts, policy updates, and end-of-year literacy and numeracy metrics for second graders.
Will there be a TEA takeover in Austin ISD?
Three middle schools—Burnet, Dobie, and Webb—have received failing “F” ratings for four consecutive years, and a fifth consecutive failure could trigger significant TEA intervention, including potential school closures or the appointment of a board of managers
Royal Blue Grocery co-founder George Scariano Jr. died suddenly on August 6 at age 58. He is being remembered as a passionate advocate for local entrepreneurs and food systems.
View the portal showing all recent scores for area food stores and restaurants.
A hearing is set for today on the legality of the property tax funding Austin’s Project Connect.
BREAKING (8:00 AM)
UPDATE (1:00 PM)
A Texas DPS trooper fatally shot the driver of a stolen Fort Worth Fire/EMS ambulance this morning after the driver led law enforcement on a chase down I-35 and intentionally rammed multiple vehicles, closing the upper deck of the interstate for hours.
The Texas Department of Transportation will hold an in-person public meeting for the I-35 Georgetown to Round Rock project this afternoon.
Austin’s airport is making big changes to its main terminal.
Beginning in 2027, the Red Garage will close and be removed to make way for the New Arrivals & Departures Hall.
Many of Austin’s public swimming pools are closing for the season.
Some areas of Manor are under a boil water notice.
A busy day Wednesday for area wildfire crews.
Across Texas, five wildfires are currently being reported by Texas A&M Forest Service.
WEATHER
WEDNESDAY’S HIGH / LOW TEMPERATURES
AUSTIN-BERGSTROM INTERNATIONAL AIRPORT
CAMP MABRY
5-DAY FORECAST / AUSTIN, TEXAS
Two people are dead after a military helicopter from Fort Hood crashed in Salado on Wednesday afternoon, according to the Bell County Sheriff’s Office.
The AH-64 Apache attack helicopter crashed around 1:30 p.m. in a field and started a fire, which has since been contained, according to the sheriff’s office.
A gathering of river guides, local leaders, and outdoor enthusiasts in Big Bend National Park‘s Santa Elena Canyon yesterday protested federal border security plans.
The attorney general’s campaign said he wants strong border security that considers Big Bend’s “unique characteristics” — but did not say whether he supports building a wall there. (Texas Tribune)
This week, Francesca Hong, a democratic socialist running for governor in Wisconsin, suffered an upset after a double-digit lead in the polls. Last week, Dr. Abdul El-Sayed, a progressive, pulled off a stunning victory in Michigan against his well-funded opponent.
Nate Cohn, the chief political analyst for The New York Times, makes sense of what happened in Wisconsin and Michigan, and what it might tell us about the future of the Democratic Party.
A special live pod from San Antonio last night and the launch rally for Latinas for Gina Hinojosa – a brand new campaign initiative to help elect the first Latina governor in Texas state history, led by the Latino Victory Fund Texas PAC. Great time at the Woodlawn Theater, which we learned is the biggest comedy club in all these United States! In this podcast, the five primary speakers:
Luz Elena Chapa (candidate for Bexar County District Attorney): 4:00
Katy Padilla Stout (candidate for Congressional District 23): 14:55
Kristian Carranza (candidate for Texas House District 118): 22:00
Katharine Pichardo (President and CEO of Latino Victory Fund): 28:05
Gina Hinojosa (Democratic nominee for Texas Governor): 33:55
Identification and assistance requirements for Texans voting by mail are back in place after a federal appeals court overturned a lower court’s decision.
SPORTS
MLS: After defeating Club Puebla on Sunday, Austin FC will host Mexican powerhouse Club América in their third and final Leagues Cup 2026 Phase One match on tonight. The match will begin at 7:30 p.m. CT as the Verde & Black aim to clinch a spot in the quarterfinals. (Austin FC)
MLB: The Houston Astros have put a little more space between them and in-state and division rival Texas Rangers.
Nick Allen hit a go-ahead sacrifice fly in the eighth inning, Steven Okert led an Astros bullpen that allowed just one run and Houston beat the San Francisco Giants 2-1 on Wednesday.
Houston (62-60) won the series to finish 3-3 on its trip and now returns to Daikin Park for a nine-game homestand, all against AL West opponents. (Associated Press)
Mike Trout had three hits and two RBIs, Jose Siri keyed a three-run sixth inning with a pinch-hit RBI double, and George Klassen earned his first major league win in the Los Angeles Angels’ 5-2 comeback victory over the Texas Rangers on Wednesday night. (Associated Press)
ON THE SCHEDULE
The Rangers conclude their series in Anaheim this evening while the Astros have a travel day off.
AL WEST STANDINGS
| Rank | Team | W | L |
|---|---|---|---|
| 1 | Houston Astros | 62 | 60 |
| 2 | Texas Rangers | 60 | 61 |
| 3 | Seattle Mariners | 56 | 65 |
| 4 | Athletics | 47 | 74 |
| 5 | Los Angeles Angels | 47 | 74 |
Tight race at the top — Houston’s only 2 games up on Texas, with Seattle a bit further back. Oakland and the Angels are both mired at 47-74.
NFL: Houston opens its preseason slate tonight at NRG Stadium, hosting the Los Angeles Chargers in a 7 p.m. kickoff. It’s the first live look at the Texans since a divisional-round exit ended their playoff run last January, with coaches set to get early reps for roster hopefuls before the games start counting in September.
23 DAYS UNTIL TEXAS FOOTBALL
COLLEGE FOOTBALL: Are Texas Longhorns fans sleeping on former 5-star Michael Terry III?
Emerging buzz from fall camp suggests the versatile running back could carve out a pivotal role in a stacked backfield, with clips of Terry’s physical, goal-line runs sparking optimism.
We’re turning the radio dial back to 1950.
Tales of the Texas Rangers originally aired on NBC Radio from 1950 to 1952 and later on CBS Television from 1955 to 1958.
Film star Joel McCrea voiced the radio version as the fictitious Texas Ranger Jayce Pearson, who uses the latest scientific techniques to identify criminals. His faithful horse, Charcoal (or “Charky”), helps Pearson to track down the culprits.
The radio shows are reenactments of actual Texas Ranger cases.
Episode: “Blood Relative” – November 12, 1950
