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City Council launches review of Austin's contracting, consultant spending

City Council is seeking a wide-ranging review of Austin's contracts and grants due to reported problems with oversight of that spending, which totals billions of dollars per year.

The details: A resolution from Mayor Kirk Watson passed May 21 calls for a comprehensive review of Austin's procurement and grant management with the aim of improving "oversight, transparency, accountability, consistency." The project could bring several changes to city procurement rules. Additionally, Watson proposed the creation of a public procurement dashboard to track how city contracts are performing.

A recent internal audit detailed issues with Austin's use of consultants, which now cost the city more than $100 million annually. With findings of lacking oversight and justification for those expenses, the May resolution asks to analyze the "use and purpose" of third-party consultants across all city departments.

 
On The Business Beat
COVE women’s boutique relocates to South Lamar storefront

COVE relocated to South Lamar Boulevard after 10 years off South Congress Avenue, the women’s boutique announced in a news release.

The new location is larger, features more fitting rooms, free parking options and has a trend-driven inventory.

What they offer: The boutique sells luxury swimwear, special occasion dresses, jeans, jackets and skirts. The store also sells shoes, jewelry and accessories. 

Popular brands at COVE include Frankie’s Bikinis, For Love & Lemons and Motel. 

What’s new: In addition to the parking and larger space, the space also has a larger floor space for sales associates to offer personalized styling, according to the release. The store will also introduce a bar concept to accommodate activations, pop-up events and brand collaborations. 

  • 2151 S. Lamar Blvd., Austin

 
Transportation Tuesday
Highway expansions, more lanes: 6 Austin metro transportation updates

Check out the latest transportation project updates across the Austin metro. 

Upcoming projects
MoPac South expansion
Project: The project features a number of express lanes along the 8.7-mile stretch from Cesar Chavez Street to Slaughter Lane in Austin, alongside shared-use paths and pedestrian crossings, according to the Central Texas Regional Mobility Authority.
Update: Public comment on the proposed project closed May 3. West Lake Hills and Rollingwood officials issued a conditional letter of support for the project in April.

  • Timeline: TBD
  • Cost: $825 million
  • Funding source: TBD

Ongoing projects
San Gabriel Parkway extension
Project: The project extends San Gabriel Parkway in Leander eastward from Isaias Drive to W. Ronald Reagan Boulevard between Palmera Ridge and Palmera Bluff subdivisions as an arterial roadway.
Update: According to city officials, construction is ongoing; a traffic signal at San Gabriel Parkway and Ronald Reagan Boulevard is expected to be operational in 2026.
  • Timeline: 2025-27
  • Cost: $7 million
  • Funding source: city of Leander certificates of obligation bonds

 
CI Texas
8 of the nation’s fastest-growing cities are in Texas, census data shows

Texas was home to eight of the nation’s fastest-growth municipalities in 2025 as people continue moving to smaller cities in the state’s large metropolitan areas, new U.S. Census Bureau data shows.

The details: Celina, located about an hour north of Dallas, grew faster than any other U.S. city in 2025, according to the census data released May 14. The city grew by 24.6% between July 2024 and July 2025, and 64,427 people called Celina home as of July 1.

Fulshear, a 64,630-person city west of Houston, saw the second-fastest growth in the nation last year, at 21%.

What's happening: Helen You, interim director of the Texas Demographic Center, said the trend of people moving to smaller cities in major metros “is not unique to Texas."

The suburban boom comes amid a slowdown in overall population growth, according to previous Community Impact reporting. While Texas gained more new residents last year than any other U.S. state, growth slowed significantly amid a nationwide reduction in immigration from other countries.

 

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