Overview
- The Austin City Council adopted the $6.6 billion FY 2026–2027 budget on Wednesday night in a 9-2 vote with Mayor Kirk Watson and Council Member Marc Duchen opposed.
- City staff discovered an unexpected $4.7 million in property-tax revenue that the council moved into ongoing housing vouchers, which freed $4.75 million in one‑time money to restore some social service contracts subject to performance reviews.
- An internal city audit found 19 of 25 nonprofits missed at least one performance target, and council directed staff to review third‑party contracts before permanent restorations are approved next year.
- Council created and funded an Office of Joint Emergency Communications with roughly $1.3–$1.4 million to move 911 call takers out of the Austin Police Department despite public safety leaders warning the change could complicate response operations.
- The budget uses the full 3.5% tax cap, raises utility and service fees, and authorizes certificates of obligation for capital projects including roughly $32–$33 million for mobility work, increasing near‑term costs for homeowners and drawing on reserves that could tighten future budgets.