Austin voters delivered a decisive rejection of Proposition Q on November 5, 2025, with about 63% voting against the proposed property-tax increase that would have generated roughly $110 million annually. Instead of raising the rate to the Prop Q level, City Council adopted a lower tax rate and is now turning to internal spending reforms to balance the budget.

Council members have directed staff to bring in outside help to scrutinize expenses across departments, including travel, discretionary office budgets, and other non-core costs, with oversight routed through the Audit and Finance Committee. The city adopted a tax rate of $0.524017 per $100 valuation—still around 10% higher than last year, but lower than the $0.574017 rate that would have taken effect under Prop Q.

The December 11 Regular Meeting is the final regular Council meeting of 2025 and the last major chance this year for Council to act on budget adjustments, contracts, zoning cases, and mobility agreements.

The city will still collect more in property taxes than last year, but significantly less than Prop Q would have allowed. That gap has to be resolved through spending controls, program prioritization, and potential service shifts, not higher tax rates.

The first-year impact of Austin’s HOME ordinance (Feb 2024–Feb 2025) shows 436 new duplex/triplex units approved across the city. Small-lot prices (<3,000 sq ft) fell around 5.5% over the same period, suggesting modest affordability gains in some segments.

A federal displacement study summarized in local media, however, finds a higher share of HOME activity in Displacement Risk Areas, particularly East and Southeast Austin. Austin’s Tenant Relocation Assistance Program (~$700,000/year) is widely considered insufficient for larger households and manufactured-housing communities.

More “missing middle” housing is appearing—but renters in older housing stock face increased displacement pressure.

A proposed four-year labor agreement worth roughly $63M—including a reduced 49.8-hour “Austin Schedule”—remains stalled. The Nov 20 vote was withdrawn as Council and the union clashed over a related charter amendment requiring four-person staffing and limiting station closures.

Union leaders say they won’t return to negotiations “right now.” Council members warn the charter petition could force deeper cuts to parks, libraries, or public health in future downturns.

Immediate services remain unchanged, but pay raises and schedule reforms for firefighters are delayed. Longer-term governance stakes are significant.

CapMetro launched Rapid lines 800 (Pleasant Valley) and 837 (Expo Center) in Feb 2025, offering higher-frequency service to East and Northeast Austin. The Board approved Transit Plan 2035 in October, outlining major service and infrastructure priorities for the next decade.

Upcoming December meetings will guide 2026 decisions, including service allocation and Project Connect sequencing.

Travis County is accepting applications for the Sobering Center Board until Dec 19 at 5 p.m. Seats on the Housing Authority of Travis County and Civil Service Commission closed in November.

The Sobering Center oversees an essential part of Austin’s jail-diversion and behavioral-health strategy.

SB 8, regulating multi-user restrooms in public schools, colleges, and government buildings, takes effect today, Dec 4. Civil-rights groups argue it will negatively impact transgender Texans; supporters frame it as a privacy measure.

The CHA highlights persistent affordability and health disparities. Related studies find child-care costs around $1,000+/month and living wages over $50/hour for single parents.

A DAA program offering 50%-off rides (up to $40) through Jan 1 was fully claimed on Dec 1. Additional vouchers may be released if funding allows.

Austin Water opened the renovated reservoir at 826 Old Koenig Lane on Dec 3, replacing the city’s oldest finished-water facility.