Budgeting for the 'big five' tax hikes

AUSTIN (KXAN) - To run the city of Austin, it is going to cost taxpayers almost $3 billion dollars next year. Monday, the Austin City Council approved the 2011 budget .

The annual Trail of Lights is out. Ten new firefighters, 48 new police officers and 30 new paramedics are in. The council also gave the green light for salary increases for all city employees. The city's almost 12, 000 employees will get a 2.5-percent raise for the first time in two years. City libraries will also get about $500,000 for new materials.

To make it happen, city property taxes are going up. But that is just one piece of the pie when it comes to the total tax bill.

University Medical Center Brackenridge and community health clinics across town are two places receiving tax dollars through the Travis County healthcare district, now called Central Health .

The new proposed tax rate that covers those who cannot afford healthcare is a higher number than last year.

"It's not a tax increase because our rate is only going up to the extent that existing property values have gone down," said John Stephens, Chief Financial Officer for Central Health.

Try to explain that to Owen Waters, whose property value stayed about the same.

"It's still gonna mean more taxes because the rates going up," said Waters.

He will be digging deeper to cover what's referred to as the "big five." Takes hikes are on the horizon from the city of Austin, the Austin Independent School District, Austin Community College, Travis County and the Central Health.

Water said his property taxes have gone from $8,000 to $12,000 in the six years he has lived in the 78703 zip code. His home is just east of MoPac off Windsor Road.

Based on this year's proposed rates, someone who owns a $185,000 home will pay about $3431 in total property taxes.
Last year it would have been $3303 if their home was assessed at the same value. That is an increase of $128.

"I think government should reduce taxes during economic downturns," said Waters. "I think there's no excuse for collecting additional taxes to give public employees raises during this time period."

The healthcare district alone said they will get $1 million more in revenue from new properties on the tax rolls for the first time.

For Waters, it is the emergency services that could operate more efficiently.

"They say they have coordinated services. I still see three fire trucks, five cop cars -- all kinds of people standing around," said Waters. "The communications people show up, the roads people show up. They're all standing around on our payroll."

Click here to view current tax rates and previous tax rates.