AUSTIN (KXAN) — Light rail, a downtown tunnel and an extended bus system are just some of the features of the $7.1 billion Project Connect, and it’s headed to voters in the form of Proposition A on November’s ballot.
Those with the Downtown Austin Alliance say Project Connect is a “critical” need. Austin Mayor Steve Adler agrees and said, “this is the right project, at the right time – we need transit now.”
However, some downtown Austin business owners feel otherwise.
On Monday, business owners came together for a news conference to express their concerns. Many noting the COVID-19 pandemic’s impact on their business and how Proposition A would affect their future. Their biggest worry is a property tax increase.
“I was checking to see how much more we would be paying next year if this goes through and it was $3,000 more,” Shannon Sedgwick of Esther’s Follies explained. “We are not open, not going to be open for a long time, so no money coming in and we’re going to be paying an extra $3,000.”
“I can’t imagine paying those taxes next year at 25% more forever,” Jack Gilmore, the owner of Jack Allen’s Kitchen added.
Adler said those numbers can be misleading.
“The other side is putting out a number that is just wrong in terms of the costs. It’s objectively false. The actual cost is about 78 cents a day for the median homeowner in the city, and for that 78 cents a day we get so much.” he said.
For the average Austin homeowner with a home valued at $325,000, the following is how the tax bill would break down.
If voters only approve Proposition A, they would see about a 20% spike on their property tax bill each year.
When you add Proposition B to the mix, homeowners are now looking at a 24% tax hike.
If you combine both props and add the city’s recently budgeted tax increase, then Austin homeowners’ tax bill would go up 25%.
A group made up of community organizations for Proposition A will host its own press conference to share why they believe the community should vote on Proposition A. They say it will create a more well-connected city, bridge the divide between east and west Austin and provide thousands of construction jobs.
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