City Council prioritizes $10M for roadway projects funded by street impact fees

The Austin City Council Work Session on May 6, 2025, focused on funding strategies for roadway projects and the potential for increased revenue through various fees and taxes. Key discussions included the allocation of street impact fees, temporary use of right-of-way fees, and the car rental tax.

One significant topic was the street impact fees collected from different areas of the city. These fees can only be used for projects in adjacent areas, limiting their application. The council discussed prioritizing an additional $10 million for roadway projects, which would delay other existing projects by two to three years.

Another point of discussion was the temporary use of right-of-way fees. The council noted the possibility of increasing these fees by 25%, which could generate an estimated $24.5 million over seven years. This increase would not affect current projects, providing a potential funding boost for future construction.

Additionally, the council explored the car rental tax, which currently supports operations at the Palmer Event Center. An analysis indicated that this tax could be leveraged to issue bonds for roadway projects, contingent upon voter approval in an upcoming election before the current debt expires in 2029.

Overall, the meeting highlighted the council's efforts to identify and enhance funding sources for essential roadway improvements while balancing the impact on existing projects. The discussions set the stage for future decisions regarding infrastructure funding in Austin.