Austin voters will soon determine the fate of Project Connect, a 15-year, $7.1 billion overhaul of the city's transit system. Although it has been in development since 2013, the plan is still opaque to some residents, who have questions about what it might mean for their neighborhoods—and their wallets.
This week, Austonia will be answering some questions, ranging from the cost of the plan to the projected ridership. You can find the other installments here:
- How feasible is Project Connect's $7.1 billion price tag?
- How much has Capital Metro spent on advertising Project Connect and who is funding the groups that oppose it?
- How will Project Connect affect transit ridership?
- How does the pandemic affect Project Connect?
If Austin voters approve Proposition A this Nov. 3, they will see a permanent 8.75-cent increase to the city's property tax rate. The revenue from this increase will fund the initial investment of Project Connect, the proposal for which includes two light rail lines, an underground downtown tunnel, a bus system expansion and new park and rides.
There have been conflicting reports, however, about how such an increase will impact taxpayers.
Two groups that oppose Project Connect—the political action committee Our Mobility Our Future and the nonprofit Voices of Austin—both have said it will amount to around a 25% increase. Voices of Austin recently debuted a calculator tool using this figure.
Meanwhile, Capital Metro says Proposition A would increase local property tax bills by 4%.
So which is it?
If approved, Proposition A would lead to a 20% increase to the city of Austin's property tax rate. It's important to note, however, that city property owners also pay property taxes to other entities, including Austin ISD, Travis County, Austin Community College and Central Health. If Proposition A is approved, city residents would see their overall property tax bill increase by around 4% because of Project Connect. Those who live outside the city limits will not be impacted.
In terms of dollars, the owner of a $401,644 home—the average appraised value in the city of Austin this year—would see a tax bill increase of $351.44 if Project Connect is approved. The owner of a $1.5 million home would see an increase of $1,312.50.
How did the aforementioned groups arrive at 25%?
They included the property tax rate increase approved by Austin City Council for expenses unrelated to Project Connect.
Local governments in Texas can increase their property tax rate a certain amount—such that it would return 3.5% more revenue than the previous year—without voter approval. Austin City Council voted in August to increase the city property tax rate within that range for the upcoming fiscal year. The revenue that is collected under that rate will go toward the city's FY 2020-21 budget, which funds the police and fire departments, Austin Public Health and the library system, among other things.
Additionally, council members voted to order a tax rate election, which is required to increase the property tax rate beyond the 3.5% threshold. Proposition A asks voters to approve an additional 8.75-cent increase to the city's property tax rate to pay specifically for Project Connect.
When considered together, the city's approved FY 2021-22 property tax rate and Proposition A would lead to a 24.5% increase to the no-new-revenue tax rate, or the rate that would result in the same amount of property tax revenue as the city collected last year.
As property owners are aware, home values typically appreciate each year. The average appraised home value in the city of Austin increased more than 6% between 2018 and 2019. As home values increase, so too does the tax burden on their owners.
Notably the Travis Central Appraisal District is not reappraising homes this year due to a dispute with the Austin Board of Realtors. As a result, the appraised value of homes will remain unchanged from last year.
Jeffery Bowen has lived in Austin since 1989 and is a member of the Project Connect ambassador network, where he represents the Austin Neighborhood Council. If Proposition A is approved, it will lead to a $225 increase in his tax bill—not accounting for the other tax rate increases.
Bowen doesn't feel that Project Connect is worth the cost considering its limited reach to his neighborhood. "In the southwest part of town, I kid very seriously that we are nothing but a bunch of cash cows for feeding Capital Metro," he said.
(The Austin Neighborhood Council does not make endorsements on local propositions.)
Homeowners are not the only ones who will see a difference if Proposition A is approved. Commercial property owners, such as landlords, will owe more in property taxes, too, which will trickle down to their tenants.
Leslie Pearlman has lived in Austin for 10 years and rents a place in the Cherrywood neighborhood. She plans to vote yes on Proposition A because she believes Project Connect can address the city's major issues of traffic congestion, affordability and equity.
"When I pay rent, I am paying property taxes," she told Austonia. "To me, it is the same as if I owned a house, and I am willing to pay more."
This story has been updated to clarify the initial investment proposed under Project Connect.
- Austin City Council will put $7.1 billion Project Connect transit plan ... ›
- CapMetro cuts $3 billion from Project Connect due to COVID ... ›
- This was the year for Project Connect in Austin. Then came ... ›
- Dramatic downtown Austin drone shows scope of Project Connect's ... ›
- Project Connect transit plan to be decided by Austin voters - austonia ›
- The pros and cons of Austin's $7.1B transit plan Project Connect - austonia ›
- Austin leaders urge residents to support Prop A - austonia ›
- 5 reasons to support and oppose project connect in austin - austonia ›
The roar of Austin FC fans will be heard soon, as the newest Major League Soccer member looks to kick off their season in a brand new stadium in 2021.
- CapMetro targets Austin FC fans about Project Connect stop - austonia ›
- Austin FC's 2021 debut season shines as bright spot for fans ... ›
- Austin FC fans to host Matthew McConaughey in memers-only Q n A ... ›
- Austin FC installs stadium seats, stadium opening in spring - austonia ›
- austin-fc - austonia ›
- 1 1/2 oz Tito's Handmade Vodka
- 1 oz lemon juice
- 3/4 oz simple syrup
- 1/2 oz pomegranate juice
- 1 maraschino cherry
You've seen and heard messaging from the city, transit opponents, and the big money PACs. You've probably read Emma Freer's in-depth, multi-part series, a fact-based exploration of Project Connect—and the tax rate election proposal, known as Proposition A, that would fund it—from multiple perspectives.
Chances are, if you moved to Austin in the past two years, it was probably for a tech job.
- Bay area tech workers eye moving to Austin post-pandemic - austonia ›
- Google delays returning to Austin offices as COVID-19 spikes ... ›
- Tech company Auctane signs lease at new Austin development ... ›
With films like Coco streaming on Disney+ and Day of the Dead Barbies lining Walmart shelves, it is clear that the commercial aspects of Dia de los Muertos are alive and well.
(Chris Caselli/Mexic-Arte Museum)
- 9 Austin business serving Halloween-inspired treats - austonia ›
- CDC guidelines for holidays in 2020 - austonia ›
- Zilker Park Holiday Tree installed, park closes for trail of lights ... ›
Today is going to be a windy one, according to The National Weather Service, which predicted breezy conditions in the Austin area and South Central Texas.
- Saharan dust storm expected to reach Texas this week - austonia ›
- For lovers of all things autumn: - austonia ›
- Hurricane Hanna brings flooding, power outages to southern Texas ... ›
In round figures the 18 active candidates running for the five seats on the Austin City Council raised a quarter-million dollars just in the last few weeks alone and they spent more than a half-million dollars during the same period. Total fundraising to date is nearly $1.2 million.