The six percent tax levy increase passed by the City Council Tuesday evening will not equate to an overall six percent tax increase for Austin residents, according to Tom Dankert, director of administrative services.

The levy increase will bring in $234,000 in additional tax revenue to the City of Austin, increasing the total tax levy to $4.13 million for 2011.

An article published in the Herald on Thursday stated that Austin residents should not see any increase in their taxes. While some residents may experience a barely noticeable increase, others could see their taxes increase by three or four percent, depending on the tax base growth within the community.

According to Dankert, this percentage increase is dependent on the valuation of each citizen’s property. Therefore, the owner of a newly constructed home or business, or someone who recently added onto their home or business, is more likely to absorb a larger impact of the levy increase.

Dankert explained that historical trends show community growth at a rate of about three percent, so he and the City Council are hopeful that three percent of the levy increase will be soaked up by that growth, while the other three percent will spread itself throughout the community based on individual property valuation.

In the event that Austin sees a major increase in new businesses, that in itself could absorb a good portion of the levy increase.

“Anytime you have commercial growth that can take care of much of the tax increase,” Dankert said, citing the construction and opening of Wal-Mart in recent years as an example.

Revenue created by the tax levy will be used for capital outlay projects such as replacing municipal pool drain covers, squad cars, maintenance for the senior center and library, street projects and several other maintenance needs and projects through the general fund.

Dankert said Austin residents can rest assured that the 2011 budget does not allow for wage increases, meaning that none of the tax revenue will be used for increasing the wages of city officials.

City Council passed the tax levy increase by a vote of 6-1 Tuesday night with only Marian Clennon dissenting.

The council will be holding its truth-in-taxation hearing Dec. 7 at 6 p.m. and will be holding the final vote on the budget Dec. 20.

Dankert said the council can still lower the tax levy percentage until the truth-in-taxation hearing; however, it can no longer raise the amount.

“Nobody likes to pay more taxes, including me,” Dankert said. “The ultimate goal is to get citizens involved in the process and making suggestions.”