With cap of $687M, bond task force to weigh $4.4B in city needs
After city staff delivered a $4.4 billion needs assessment later this month, the Bond Election Advisory Task Force will start reviewing a trimmed list of capital needs for the City of Austin’s 2026 bond election this summer. Prior to its planned report to City Council next spring, the task group, which has been meeting on a regular basis since October 2024, will start examining project recommendations in August.
Based on the city’s present debt capacity and the intention of minimizing the financial impact on taxpayers, city budget staff suggested in a report released last week that the 2026 bond package not surpass $687 million. According to the memo’s data, the ordinary homeowner, whose property is valued at $525,000, would pay an additional $99.82 in debt service taxes each year if they had a larger bond. An additional $100 million in bond money would result in an approximate $14.26 increase in the annual bill.
To evaluate the suggestions from city departments, the task force’s working groups will convene from August to January. The entire task force will then examine and compile those suggestions between January and April of 2026. In May, the panel is anticipated to present its final proposal to the City Council, which has until August 6 to put the bond package on the ballot for November 2026.
Projects that staff have determined are feasible over a six-year horizon, taking into account project readiness, manpower availability, and implementation capacity, form the basis of the needs assessment. The $4.4 billion working list of identified capital needs must be drastically trimmed to fall within the budget staff’s suggested boundaries, which add up to $10.4 billion.
Based on the city’s strategic plan, each department has created project charters and technical rating criteria. Projects are being assessed based on sustainability, affordability, resilience, and equity. The Office of Sustainability and the Equity Office, which collaborate with departments to identify historically underprivileged areas and evaluate the possible climatic implications of planned infrastructure expenditures, also contribute to the grading process.
Proposed bond investments have been grouped by city staff into a number of general categories that correspond to important policy concerns.
Roadway resurfacing, urban trails, ADA access, and safety enhancements that are in line with the 2019 Austin Strategic Mobility Plan are all included under transportation. Land acquisition, pool renovations, trail connections, maintenance facility upgrades, and community green space are all included in the Parks and Parkland category. Investments in cultural and artistic institutions are also included; the estimated overall category need is more than $1.8 billion.
Housing and homelessness, public safety and community facilities, flood protection, water quality, and protected lands are some of the other bond chapters that are being reviewed. In order to make sure every investment promotes equitable outcomes, departments are also taking into account elements like climate resilience, anti-displacement initiatives, and the possibility of leveraging grants.
As of right now, every new capital project owned by the city that costs more than $2 million to build must adhere to Austin Energy Green Building requirements, LEED Silver certification, or other similar sustainability criteria. As part of the planning process, departments are also carrying out feasibility studies for EV charging, rooftop solar, and non-potable water reuse.
The city still has $1.38 billion in authorized but unissued bond funds from prior elections, which coincides with the bond development process. The amount of new debt that can be issued without substantially raising the city’s overall tax burden is further limited by that current obligation.
In recent months, task force discussions have centered on how to effectively organize working groups and whether to expedite certain climate-related infrastructure through a potential 2025 bond. The task committee discussed a 2025 standalone climate bond election in February, but decided to postpone it in favor of adding environmental projects to the bond cycle for 2026.
Task force members are anticipated to get the complete, verified list of projects that qualify for general obligation bond funding at future meetings. They will then work with staff to score these projects before reducing the number of projects to meet the $687 million cap.
The 2026 bond election would probably come after a tax rate election that voters are anticipated to vote on in November, if Council approves it next spring. In order to address general fund difficulties in the next budget cycle and the anticipated shortages in the years to come, council and staff have indicated that the tax rate election is necessary.
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