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HEADLINES



x49
City closes $25 million budget gap
Updated: 7/23/2008 6:33 PM
By: Reagan Hackleman

Budget gap closes, other areas of spending shuffled.  
You'll have one less day a week to check out books at Austin's 21 branch libraries, due to budget cuts proposed by the City of Austin.

The City Manager, Marc Ott said there isn't any other alternative either.

"Obviously we had to make some difficult choices to close that $25 million budget gap," Ott said.

By closing each branch one day a week, the library system will use the money to improve library safety, cleanliness and quality.

Some of those choices include a smaller pay raise for City of Austin employees, the elimination of EMS cadet class and a hiring freeze on most vacant city positions.
City Manager Marc Ott.  

The Austin Police Department's budget takes up the largest part of the budget, at $233.2 million.

There's enough money for 24 new officers and money for 61 new patrol cars.

Under the proposed budget, throwing away trash will become more expensive, too.

It will also cost citizens more money to throw away trash:

For those with a 30-gallon garbage can, rates will increase by $4.40 per month
For 60-gallon cans, rates increase $6.15 per month, and
For the big yellow-orange cans, rates increase $6.90 per month.

"The service level that people see and enjoy now, by in large, will remain the same," city council member Mike Martinez said.
 

Now it's up to the Austin City Council to look over the budget and ask questions and possibly make changes.

"I am concerned about another reduction in road maintenance for the third year in a row. I'm concerned about giving up the single investment from the general fund for affordable housing and I'm concerned about closing libraries one day a week," Ott said.

Back at the library, Caroline Driscole hopes that closing one day a week will only be temporary.

"Unfortunately, sometimes when things like this get started they never get put back in," Driscole said.

Ott presented a balanced budget to the Austin City Council Wednesday morning.

As one of his first big tasks since becoming city manager, Ott was required by City Charter to find ways to make up for a $25.3 million budget shortfall.

Helping to close the gap is a proposed $10.5 million withdrawal from the city's budget stabilization fund.

Also, city employees will not be getting their normal 4.5 percent cost of living increase; instead, they will receive a 2.5 percent increase.
 WATCH THE VIDEO
More Information
Budget gap

City Manager Marc Ott presents a balanced budget and lets the City of Austin know where we're feeling the pinch most.



The budget does include a change in property taxes. Taxes will decrease, from 40.34 cents per $100 assessed value of a home to 40.28 cents.

If your house is worth $175,000, your city taxes will be roughly $704.90.

The city's total 2009 general fund budget will be $620.7 million (that number does not include Austin Energy or Austin Water Utility).

The 2008 budget was $593.3 million.

The budget is not final until the Austin City Council approves it on September 10, 2008.





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