By Bill Oakey – March 21, 2014

Yesterday, the Austin City Council voted 5-2 to give seniors and disabled homeowners a long-overdue increase in the Over-65 Homestead Exemption.  They increased the exemption from $51,000 to $70,000.  So, now the City of Austin and Travis County wil both offer the same $70,000 exemption.

Now for the question that a lot of people are asking.  How much money will this save on your tax bill?  The answer is really simple.  The increased savings is $95.51 per year, under the current tax rate.  And it doesn’t matter what your home appraisal is.  The entire $70,000 exemption reduces your taxes by $351.89.  To do the calculation, just take $70,000, divided by 100, which is $700.  Then multiply $700 times the current tax rate of .5027 and you get $351.89.

We have five City Council Members to thank for this victory.  They are the two co-sponsors, Laura Morrison and Mike Martinez, along with Kathie Tovo, Mayor Pro Tem Sheryl Cole, and Chris Riley.  Change does not come easy at City Hall.  And if I learned anything from this experience, it is this.  There is no form of trench warfare more brutal than the fights over funding issues!  People will put their hearts and souls on the line to compete for projects during the budget cycle and throughout the year.

A crucial final vote at a City Council meeting can be like a football game.  You may think you know the odds going in, but you really don’t.  In this case, it is safe to say that it went right down to the wire.  I would especially like to thank Council Member Kathie Tovo, and her Policy Aide, Shannon Halley.  Their dedication, patience, and responsiveness to emails and phone calls really helped make the difference!

For those who are wondering, the Over-65 and Disabled Homestead Exemption had not been adjusted since 1986, when Ronald Reagan was President.  We have good reason to celebrate!

By Bill Oakey – March 18, 2014

Today the Austin City Council did not vote to spend any of the $14.2 million budget surplus.  By the time of the 9:00 work session, there was only one spending item left on the table that was directly tied to the surplus.  That was Council Member Chris Riley’s $200,000 item to fund a land use study for the South Shore of Lady Bird Lake.  He withdrew that item and left open the option to possibly bring it up later.

Mayor Lee Leffingwell opened the meeting with a spirited appeal to the Council not to spend the surplus.  In fact, he spoke against the idea of the spending items being placed on a work session agenda.  Instead, he called for a more transparent process with public input and fair competition between competing priorities, like they have during the regular annual budget process. The mayor also opposed spending last year’s surplus, but he was outvoted.

Council Member Kathi Tovo emerged as an outstanding example of applying due diligence on behalf of the taxpayers.  Although she initially considered using some of the budget surplus to fund a worthy project at a senior recreation center, she worked with City staff to find another funding source.  The project can be funded with money available from voter-approved bonds.

But, as it turned out, none of the proposed projects that Council Members had earmarked to be paid for with the budget surplus got approved today, even the ones that can have been funded from other sources.  The order of the day was to delay action until a clear policy for any type of budget amendment can be adopted.

There was a revised budget amendment policy on the agenda today, but that was included in this blogger’s request for a delay as well.  There are some worthy elements in the proposal, but there is also a giant loophole that needs to be plugged.  Thankfully, the City Council voted to postpone action on the policy until April 10th.  I hope to meet with the Mayor and some of the Council Members before then to recommend some improvements.

Those of you who are following the affordability issue and bringing your friends onboard are helping to make a difference at City Hall.  Your emails to the City Council have been noticed, and that fact was even alluded to at the meeting today.  All I can say is please keep it up!.  If you ever wondered what the official City of Austin Organization Chart looks like, I will give you a little hint. Guess who is at the very top of the chart?  Guess who is higher than the City Manager and even higher than the City Council?

WE ARE!  We, the people.  And, hey, don’t you ever forget it!

By Bill Oakey

March 14, 2014

In just a few short weeks, the City of Austin will begin an annual event that is not as much fun as SXSW or hunting for Easter eggs.  But it’s not without a fair share of drama and intrigue.  Like it or not, here it comes.  30 years is a long time to be ensnared in the budget process as a financial watchdog.   During that time I have learned a few things that you might like to know.

There is a method to the madness.  I will keep it as simple and as brief as possible because some of you need to get to work so you can pay your property tax bills.  Here goes:

1. The City has posted an online training guide that you can read.  It is called “Adopting A City Budget and Property Tax Rate Training.”  Check it out at: http://texascityattorneys.org/2013speakerpapers/RileyFletcher/BudgetAndTax_LeelaFireside.pdf

2. Here is the most important section, quoted verbatim, beginning at the bottom of Page 5:

“In the resolution adopting the proposed maximum property tax rate, Austin adopts the highest rate that keeps us below the trigger for citizens to take action to roll back the rate. Council then can consider various budget scenarios in the upcoming months that may lower the rate needed to generate the revenue for the upcoming fiscal year’s budget, but they know the cap and the cap is public. A sample of this resolution is at http://www.cityofaustin.org/edims/document.cfm?id=141378“

If the City Council were to vote unanimously to save the budget surplus, it would be a huge morale booster for you and for the entire community!  You have the option to leave the money in reserve accounts, or apply some of it towards a reduction in next year’s budget.

Just take a moment to contemplate the hopeful message you would be sending to the hundreds of thousands of citizens who are deeply concerned about affordability.  You would be sending a message that the City has turned a corner on fiscal responsibility.  The impact of doing that would resonate beyond the city limits.  Even the bond rating firms on Wall Street would regard it as a positive signal.

Please do not turn your backs on this opportunity!  We are all out here watching and anticipating your action on this.  It affects more people in more ways than you probably even realize.  These include small business owners, young workers on low salaries, seniors on fixed incomes, single mothers trying to raise a family, and newcomers considering buying a home in Austin.

For all of the above reasons, and for general sound fiscal principles, I urge you to put aside the wish list of spending items until next year’s budget cycle.  Vote unanimously to accept the City Manager’s recommendation and save the budget surplus.

Please do the right thing for the current and future citizens of Austin!