Over this summer, the Bond Election Advisory Task Force will begin to evaluate a narrowed list of capital needs for the City of Austin’s 2026 bond election, following the delivery of a $4.4 billion needs assessment from city staff later this month. The task force, which has met regularly since October 2024, will begin reviewing project recommendations in August, ahead of its scheduled report to City Council next spring.
In a memo released last week, city budget staff recommended that the 2026 bond package not exceed $687 million, based on the city’s current debt capacity and a goal of limiting the financial impact on taxpayers. Data in the memo show that bond size would increase the annual debt service tax bill for the median homeowner — defined as a home assessed at $525,000 — by approximately $99.82. Each additional $100 million in bond funding would raise the annual bill by roughly $14.26.
The task force’s working groups will meet from August through January to assess proposals from city departments. Those recommendations will then be reviewed and consolidated by the full task force between January and April 2026. The group is expected to deliver its final recommendation to City Council in May, with the Council facing an Aug. 6 deadline to place the bond package on the November 2026 ballot.
The needs assessment is based on projects that staff have identified as feasible over a six-year horizon, based on project readiness, available staffing and implementation capacity. The full inventory of identified capital needs totals $10.4 billion, with the $4.4 billion working list needing to be reduced significantly to fit within the limits recommended by budget staff.
Each city department has developed technical scoring criteria and project charters based on the city’s strategic plan. Projects are being evaluated on factors including equity, resilience, affordability, and sustainability. The scoring process also incorporates input from the Equity Office and the Office of Sustainability, which are working with departments to identify historically underserved areas and assess the potential climate impacts of proposed infrastructure investments.
City staff have organized proposed bond investments into several broad categories that reflect key policy priorities.
Transportation includes roadway resurfacing, urban trails, ADA access and safety improvements aligned with the 2019 Austin Strategic Mobility Plan. The Parks and Parkland category covers land acquisition, pool renovations, trail connections, maintenance facility upgrades and neighborhood green space. It also includes investments in cultural and arts centers, with the total category need estimated at over $1.8 billion.
Other bond chapters under review include :housing and homelessness, community and public safety facilities and flood protection, water quality and protected lands. Departments are also considering factors such as climate resilience, anti-displacement priorities and the potential for leveraging grants aimed at ensuring each investment supports equitable outcomes.
Under current policy, all new city-owned capital projects exceeding $2 million in construction cost are required to meet LEED Silver certification, Austin Energy Green Building standards, or other comparable sustainability measures. Departments are also conducting feasibility studies for rooftop solar, non-potable water reuse and EV charging as part of the planning process.
The bond development process comes at a time when the city still has $1.38 billion in authorized but unissued bond funding from previous elections. That existing obligation places additional constraints on how much new debt can be issued without significantly increasing the city’s overall tax burden.
Task force conversations over the past few months have focused on whether to accelerate specific climate-related infrastructure through a possible 2025 bond and how best to structure working groups. In February, the task force debated a standalone climate bond election in 2025, ultimately deferring it in favor of incorporating environmental projects into the 2026 bond cycle.
In upcoming meetings, task force members are expected to receive the full vetted list of projects eligible for general obligation bond funding, and begin scoring them alongside staff before narrowing the pool to fit within the $687 million ceiling.
If approved by Council next spring, the 2026 bond election would likely follow a tax rate election expected to go before voters this November. Council and staff have signaled the tax rate election is needed to address general fund pressures in the upcoming budget cycle and shortfalls forecast for the years ahead.
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