Council could seek 5 percent tax increase in 2015, add 1.5 positions
Published 10:18 am Tuesday, June 3, 2014
Though the city of Austin’s finances were solid last year, the Austin City Council will consider raising the city’s tax levy by 5 percent in 2015 to accommodate more city staff and keep current services.
The city is looking to raise about $265,000 more in funding to keep up with salary requirements, PERA funding and minimum wage increase costs. That amount would also support a new librarian and another full-time building inspector, rather than the part-time inspector the city budgets for.
“To keep things absolutely the same, you have to raise it almost by 3.5 to 4 percent,” Mayor Tom Stiehm said. “These are services people are asking for.”
The city of Austin has cut staff from about 180 positions in the 1980s to about 139 positions this year, about two positions annually over the past 25 or so years. Yet recent retirements and other vacancies have forced city staff to look at the way it operates.
Librarian Gayle Heimer recently announced her retirement, which goes into effect in April 2015.
Austin Public Library Executive Director Ann Hokanson said Heimer is practically irreplaceable, as she serves as the library’s cataloger and technology specialist, two separate jobs in many libraries. She told the council during a work session Monday that Heimer’s departure means she’ll need another staff librarian to keep up with increasing demand for library services.
“I need to know, when I hire Gayle’s replacement, whether I’m going to get another librarian for the long term,” Hokanson said to the council.
In addition, the city’s planning and zoning department is down a building inspector after the previous part-time inspector quit earlier this year. The city hopes to turn that into a full-time position to keep up with commercial and other types of inspections, as well as increased residential inspection demands.
Council members appeared supportive of the new staff requests and directed city staff to take into account a 5 percent levy increase — about $205,000 or so increase in taxes, according to estimates provided by Finance Director Tom Dankert — when city departments submit budget requests over the next few months.
“We’ve really stretched our staff to the max,” Council Member Jeff Austin said. “Every department that’s out there, they’re bursting at the seams.”
Dankert said the $265,000 in increased costs is an estimate and could change as 2015 gets closer.
The city must set a preliminary levy plan by Sept. 15 and set the official levy by Dec. 15. Yet the city may not raise taxes by a full 5 percent. Austin expects to get about $80,000 in increased Local Government Aid next year, according to state estimates. In addition, the city usually gets 2 to 3 percent more in taxes every year from new property owners.
The council also received the results of its 2013 financial audit Monday. The city took in about 98 percent of its expected revenues and spent about 96 percent of its $30.8 million annual budget. In addition, its $14.7 million unreserved budget fell within recommended audit guidelines.