The Austin City Council held a budget work session on July 15, 2025, focusing on the proposed budget for the upcoming fiscal year. The meeting highlighted a 3.7% increase in the general fund, bringing the total to approximately $1.5 billion. This increase translates to an additional $23.1 million for fiscal year 2025.

The general fund allocation reveals that public safety continues to dominate the budget, accounting for 64.5% of the total. Community services, which include libraries, public health, and parks and recreation, make up 26.8% of the general fund.

Key discussions included planned incremental changes for fiscal years 2026 and 2027. A proposed 4% civilian pay increase is expected to add $9.3 million in costs for fiscal year 2026. Additionally, a living wage increase will contribute $1.2 million to the general fund. Health insurance costs are projected to remain flat, with no increase in the city's contribution.

Wage increases for sworn employees, including EMS, police, and fire personnel, were also addressed. EMS is set to receive a 3% increase in both fiscal years 2026 and 2027. The police department is projected to see a $13.2 million increase, equating to 6% in fiscal year 2026, followed by a 5% increase in fiscal year 2027. The budget also includes support for the police retirement system, with a contribution of $1.3 million and an annual payment of $3.7 million for the upcoming fiscal year.

The Austin Fire Department is currently in negotiations for its employee contract, and a placeholder has been included in the budget to account for potential wage increases.

Overall, the meeting underscored the city's commitment to maintaining public safety funding while also addressing employee compensation and community services in the upcoming budget cycle. Further discussions and decisions will continue as the council works towards finalizing the budget.