Decibel
What Does Prop Q 'Buy' Rundberg?
Clip | 7m 56sVideo has Closed Captions
What will the proposed tax rate increase bring to Rundberg? And what will it cost?
Austinites are casting their ballots on Prop Q, the tax rate election that could increase property taxes to pay for a host of services. But how will these services help Rundberg, and Austin overall? And what will it cost residents? We get into it.
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Decibel is a local public television program presented by Austin PBS
Funding for Decibel is provided in part by Texas Mutual and Roxanne Elder & Scott Borders
Decibel
What Does Prop Q 'Buy' Rundberg?
Clip | 7m 56sVideo has Closed Captions
Austinites are casting their ballots on Prop Q, the tax rate election that could increase property taxes to pay for a host of services. But how will these services help Rundberg, and Austin overall? And what will it cost residents? We get into it.
Problems playing video? | Closed Captioning Feedback
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- Next month, Austin voters will head to the polls.
But we're not picking a candidate, we're voting on our wallets.
(bright music) Voters will decide on a tax rate election or a TRE.
You've probably heard it referred to as Prop Q. It will increase property taxes to help fund a host of city programs.
But what will it potentially buy residents, and what will it cost?
Let's get into it.
(bright music) How much will it cost?
So the TRE will increase property taxes by 5 cents per $100 of property value.
If you have a home worth about $500,000, which is the average in Austin, you're gonna pay about $300 more per year in property taxes.
In Rundberg, property values are a little bit lower, around $350,000 on average.
So residents in Rundberg are gonna pay about $180 more in property taxes per year.
But the average income in Rundberg is lower than in Austin overall and for some families, the financial burden could be more difficult to manage.
If the TRE passes, the city of Austin is gonna collect $110 million in additional revenue.
What if you rent?
You're not entirely off the hook.
Landlords may increase your rent to make up for the new taxes.
- It all just depends on the overall, you know, rental market.
- [Host] The city council member Chito Vela says he's not worried about skyrocketing rents.
- This rental market and in District 4 in particular has softened a lot.
Right now, I don't expect landlords to be able to pass any kind of increase down to their renters on a dollar for dollar basis.
There's just too many good deals out there right now.
- In Texas, landlords can increase your rent by any amount once the lease is up.
You can check your lease for details on rent increases for your apartment.
What does this increase get you?
The big ticket item is homelessness services.
(gentle music) Some funds would go towards operating and maintaining shelters like the Marshalling Yard and the 8th Street shelter.
- How long ago was that?
- Started about a week ago.
- A week ago?
- [Host] It would also let the city hire 12 more homelessness intervention specialists to help with outreach efforts.
Funds would also go to what they call midstream interventions, emergency shelters and short-term housing.
- All right, I'll be around, okay?
I'm gonna go check on some other people.
- [Host] According to Echo's annual point in time count, there are about 125 homeless individuals in District 4, though the actual number may be higher.
The city's Homelessness Intervention Office has already made targeted efforts to help people on Rundberg Lane and close encampments in the area.
- And then this part is for your income part.
So I put your income information right there.
- The last piece would be upstream interventions, meant to keep people from becoming homeless in the first place, like providing funds for utility hookups for emergency bills.
This could have a huge impact on Rundberg residents.
According to 211 call data, 42% of calls from the Rundberg area were people looking for assistance with housing.
And of that, 61% were looking for assistance with rent, fees, and motel costs.
The other big investment is for emergency mental health services.
- Looks like we got a call.
- Since 2021, you could call 911 for a mental health emergency, but specialized responders weren't available all the time.
This budget asks for an additional $3 million to expand that program 24/7.
(gentle music) It's a program that's already had tangible results.
According to one early report, if clinicians went with police to a call, the officer's time on that call was cut in half.
The odds that they would arrest or involuntary detain someone also dropped by about 50%.
Some funds would address people's physical safety as well.
$850,000 would be used to help people dealing with domestic abuse, stalking, or human trafficking.
If funded, this could have a big impact in Rundberg, which deals with high numbers of domestic abuse cases.
What if this TRE doesn't pass?
Your property taxes are still gonna go up, just not as much.
(upbeat music) The city council will pass a new budget at the 3.5% cap.
That's the amount they can raise taxes without triggering an election per state law.
Other costs are going up whether the TRE passes or not.
Utilities are expected to be about $400 higher on average, and Travis County is increasing their tax rate by 8% to pay for flood damage repairs from July.
This has been opponent's biggest problem with the TRE.
They say between rising costs and increasing taxes, Austinites are being asked to pay for too much.
- We strongly oppose the proposed tax rate hike and TRE as it would significantly impact the financial viability of the multifamily properties within NACA in the Austin area.
- Basically, a lot of people in the district and the city as a whole are struggling.
You've heard that, you're gonna keep hearing that all day long.
- It's a scam to tell Austin residents if they want basic social and/or essential services, they need to vote for higher tax rates.
- Why does the city need this money?
So there's two big reasons.
One of them, according to council member Vela, is the law that's triggering this election right now.
- 3.5% property tax cap is just not feasible for a Texas city.
- [Host] In 2019, SB2 capped property tax increases at 3.5%.
Anything above that requires voter approval.
Vela says that has stymied the city's budget.
- So in 2020, 2021, '22, '23, '24, we held to that 3.5% property tax revenue level.
But it's just come to the point that we need additional revenues to just continue to provide the municipal services that Austinites have come to expect.
- [Host] The other problem, Vela says, is a drastic drop in federal funding.
- We're losing very important grants left and right.
The state continues to really just not participate.
- Austin's already lost over $105 million for the I-35 expansion, 32 million for solar energy programs, and 15 million for public health initiatives, just to name a few.
Vela and other city council members have said that because of these cuts, it's up to Austinites to take care of each other now.
- There's not gonna be a federal program that's gonna sweep in and kind of deal with this problem for us.
We have to take care of ourselves.
- Election Day is November 4th and early voting runs through October 31st.
You can find more about polling places at votetravis.gov.
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