Austin's economy is strong, but not strong enough for employee pay raises, according to the city's budget office.
A five-year budget outlook presented to city council members predicts that the city would not be able to afford an annual 3-percent wage increase, even if the council decides to raise property taxes. Giving those raises to all city employees would require $42.7 million, according to the budget office.
Meanwhile, the city is currently in contract negotiations with public-safety unions, but with this forecast, pay raises may be kept at a minimum.
Council members will continue to discuss the budget forecast over the next few months.