The city budget, explained
Every year Austin decides how to raise and spend billions of dollars. The process is public, it runs on a calendar, and residents get to speak.
The city budget is the most consequential document Austin produces each year. It decides how many police officers and firefighters the city employs, how often the buses run, whether the libraries stay open on weekends, and how much you pay in city property taxes. Because it touches everything, the budget is where a lot of the year's biggest political fights play out.
The fiscal year
Austin's budget year does not follow the calendar year. Like many Texas cities, the city operates on a fiscal year that begins October 1 and ends September 30. The city manager proposes a budget over the summer, the council reviews and amends it, and a final budget is adopted before the new fiscal year begins in the fall.
Where the money comes from
City revenue comes from several sources, but two matter most to residents. The first is the property tax, levied as a rate on the taxable value of homes and businesses. The second is sales tax, a share of what you pay at the register. The city also collects fees for services and utility revenue. When the council "sets the tax rate," it is deciding one of the biggest levers over both how much the city can spend and how much homeowners owe.
General fund versus enterprise funds
Not all city money is interchangeable. The general fund pays for core services that do not charge users directly — police, fire, parks, libraries. It is funded largely by taxes. Separately, the city runs enterprise funds for services that charge for what they provide, such as water and wastewater. Those funds are supposed to cover their own costs through rates rather than through taxes. Understanding the difference explains why the city can face a squeeze in one area while another looks healthy.
How the budget is adopted
- The city manager proposes a draft budget, built from department requests and revenue forecasts.
- The council reviews and amends it in a series of work sessions, often adding, cutting, or shifting funding.
- Public hearings are held before adoption. State law requires public notice and hearings on the budget and the proposed tax rate.
- The council votes to adopt the final budget and set the tax rate for the year.
How residents can weigh in
The budget is one of the easiest places for an ordinary resident to have a say, because the process is slow, scheduled, and legally required to be public. You can review the proposed budget when it is released, attend or watch the work sessions, and sign up to speak at the public hearings. If there is a specific program you want funded or protected, the weeks before adoption are the time to make that case. See how to follow city hall for the practical steps, and how Austin works for how the budget fits the bigger picture.