Latest news with #DevelopmentServicesDepartment
Axios
24-04-2025
- Business
- Axios
Austin Mayor Kirk Watson on budget deficit and Trump cuts
Austin Mayor Kirk Watson has fulfilled many campaign pledges, but he now faces major uncertainties, including a ballooning budget deficit and an unpredictable federal partner in the Trump administration. Why it matters: Grand plans — such as tree-laden bridges over a remade Interstate 35 and major expansions of the airport — could be in jeopardy. State of play: Watson, who previously served as mayor in the 1990s and then as a Democrat in the Texas Senate, was reelected to a second consecutive term as mayor last fall. During his second stint in City Hall, he has made government operate more efficiently, hammered out public safety labor contracts and marshaled a major easing of city home construction rules. Yes, but: In early April, the Trump administration canceled a $50 million grant meant to reduce flooding risks for Austinites. That came on the heels of a cancellation of money for electric vehicle chargers. Plus: Less-than-expected sales tax revenue has driven a projected $33 million budget deficit that city officials will have to close, either by slashing city services or by raising more money, either through fees or taxes. A 2019 state law caps property tax revenue and the Travis Central Appraisal District has reported that home values are down. The big picture: Under Watson's watch, Austin appears to be functioning as well as ever. The city's Development Services Department, long known for causing headaches among developers and homeowners, has cut its initial review time from more than 100 days to 33, per city data. 911 calls are getting picked up faster — from 77% within 15 seconds a few years ago to now at least 90% (though emergency response times in a city clogged with construction remain stubbornly hard to cut). Even City Council meetings, once notoriously long (9.5 hours, on average, a decade ago), are moving relatively swiftly (typically under 6 hours in the second Watson administration). Zoom out: The city has invested in housing for people exiting homelessness, and animosity between police and City Hall has ebbed, even as the relationship remains chary. We sat down with Watson to talk about the state of play. This interview is edited for brevity and clarity. What, if anything, should Austinites expect about what might happen with city services or fees as a consequence of this deficit? "We're in that point in the movie where everybody that's in the raft is hearing a loud noise, and they act like, 'Is there something coming up now?' and the people watching the movie, we all know there's a waterfall coming. We anticipated that this is where we're going to be. It would be premature to start speculating about what might happen with this or what might happen with that. We'll be looking at everything." How concerned are you about federal commitments, for the city's big public transportation project, for the airport expansion, for I-35 efforts? "There's a whole lot on the table that can create uncertainty and concern. " "The way we were thinking about it is if the (grant) was signed, we're assuming it's still coming through ... but that's no longer the case." Does the deficit and the Trump administration somewhat capriciously cutting big blocks of money jeopardize some of your efficiency agenda? "It is now just the context in which we govern." We're getting to the home stretch in the legislative session. What's out there that gives you most concern? "On Project Connect (the city's multibillion dollar light rail and bus plan), I remain concerned about the Legislature stepping in the way (of) the voters will on that. I also am concerned about (the punitive effect of) bills that mandate certain actions on the part of a city that — for example, encampment cleanups — if the cities don't do things a certain way, they'll stop sales tax revenue. Those sorts of bills don't take into account the practical impact ... that (if) you take away sales tax, that can have an impact on public safety" which makes up much of the city budget." You must feel like you have a little more control with what's going on at the Capitol than what's going on in Washington. "I certainly feel more comfortable because I know more of the people I'm dealing with at the Capitol, I have more relationships. I have a far better ability to just walk up the street and talk to somebody or get somebody on the phone. And I've been very pleased this session with the openness of members to talk to me about bills, and even bills that we don't like. Whereas with the $50 million grant, it just disappeared. There's nobody who chats with you beforehand." Individuals and institutions are being tested in this political climate, whether it's a university or a law firm. Is that something the city of Austin is prepared for? "I don't think anybody has figured out who's going to be tested and how they're going to be tested. My rules are, one, focus on what I can control — make sure local government is stable as we focus on the fundamentals of governance. The second is, do no harm." What's an example of what you mean about that? " Immigration. We have almost no power in that, except the power to make it worse. I'm not going to take actions that ... end up doing more harm to the very people we say we're trying to protect." What are you enjoying most about your job and what right now is giving you the most heartburn? "The thing I enjoy the most about the job is that you can have such an immediate impact. And the part that frustrates me is probably the flip side of that coin, that sometimes it moves more slowly than I would like to get that immediate impact."
Yahoo
27-02-2025
- Business
- Yahoo
Austin leaders expected to vote on new short-term rental rules Thursday
AUSTIN (KXAN) — On Thursday, Austin city council is expected to work through several proposed changes to how the city regulates short-term rentals (STRs) — think Airbnb or VRBO. The proposed changes include collecting hotel occupancy tax (HOT) and requiring STR companies to provide city permit numbers on public listings. 'For a number of years, we have had short-term rentals that are operating in our city that are unlicensed. We're talking about more than 10,000 STRs running in our city that are not licensed. And so part of this week's action is a huge step forward in getting more of those short-term rentals into compliance, making sure that they are licensed,' Mayor Pro Tem Vanessa Fuentes said. Council members have already proposed some changes to the ordinances and Austin Mayor Kirk Watson expressed concern about moving forward with several proposed items entirely. 'In my view, we are not ready to make some of the key decisions and won't be by Thursday. For me, I want us to be in consistent dialogue with leaders at the Capitol regarding the best approaches to addressing regulation of STRs. Additionally, I would like to see the City moving on licensing improvements and making the cost more in line with peer cities before instituting a new regulatory scheme. And, there are legal concerns that I would like answered,' Mayor Kirk Watson posted on the message board earlier this week. During Tuesday's work session, council discussed bills working through the legislature that may impact the city and a recent lawsuit by Airbnb over New Orleans' short-term rental regulations. 'With those two contexts in mind… we want to ensure that we do what we can in a way that that allows us to move forward, to get more short-term rentals into compliance and licensed,' Fuentes said. There are several short-term rental ordinances city staff are putting before the public and city council Thursday. The city defines a STR as somewhere that is rented out 'for periods of less than 30 consecutive days.' Those proposed changes include: To operate a STR on a property that has three or fewer units, the license holder must be an individual ('corporations would not be allowed to purchase a property under another LLC and then operate it as a short-term rental,' Daniel Word, the assistant director of Austin's Development Services Department, further explained) If that individual wants to operate more than one STR in Austin, those rentals would need to be at least 1,000 feet from each other (in the case of apartments or housing with more than four units, a cap of 25% of the units would be placed) The changes would require platforms to collect the same tax hotels do, called Hotel Occupancy Tax (HOT) 'One of the elements of the ordinance is that the platforms will require hosts to provide the license number in the advertisement, and will de-list properties that are not licensed upon request from the city,' Word said. The city said existing STRs will be allowed to continue under the new rules as long as the properties are not a nuisance and ownership remains the same. That only covers STRs that are currently permitted with the city. There are roughly 2,200 of those right now, Word said. Austin city council members have already proposed amendments to the changes the city initially brought forward and those will be worked through Thursday. You can read more about those proposed changes here. Earlier this month, the Planning Commission and Austin City Council members heard from members of the short-term rental community, rental hosts and neighbors plagued by nuisance short-term rentals. Austin hears feedback on proposed 'overhaul' of short-term rental regulations 'We need the planning commission and the council to understand that these un-staffed hotels are not appropriate for our neighborhoods and that they bring with them a lot of safety concerns and neighborhood compatibility issues,' said Rose Ballard, one of the speakers. Ballard said there had been several instances of violence, including a shooting, stemming from short-term rentals in her neighborhood. Meanwhile, hosts of short-term rentals also showed up to ask that the rules not overly restrict them, make hosting more expensive, or in the case of Darrell Gest — who said he has operated a permitted STR with his wife since 2014 — he requested more slight changes to the rules, including maintaining privacy for hosts during the listing process. 'For us and our neighborhood, it's a small neighborhood, I believe we're the only STR in there…but the fact that we live in the home and people are coming into our home and staying with us, it reduces a lot of the other problems and concerns that other people may have,' Gest told KXAN. Several representatives from Expedia Group, the parent company for VRBO, were also in attendance or spoke at that meeting. 'We were grateful for the extensive stakeholder engagement the entire [city of Austin] team has done so far throughout this process. VRBO is proud to be headquartered in Austin and along with other Expedia group brands, proud to play a key role in Austin's economy… we encourage responsible short-term rental regulations because a diversity of lodging options is an integral part of any thriving tourism ecosystem,' Jaclyn Terwey, the regional manager of government affairs for Expedia Group, said during Tuesday's meeting. Terwey said the rules Austin have so far drafted are 'clear and without prohibitive barriers for compliance.' Terwey also said the platform is prepared to start collecting Hotel Occupancy Tax, one of the proposed changes, but that they were working with staff to clarify some language in the proposed ordinance. According to Airbnb, a survey of hosts in Austin from late 2023 to late 2024 showed more than 70% used the extra income they got from hosting to cover personal living costs. More than 50% surveyed told Airbnb that the extra cash helped them stay in their home. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
