Monthly Archives: August 2020

23% City Tax Increase Baked In Before November Election!

1 Reply

By Bill Oakey – August 18, 2020

As the pandemic drags on and threatens to be compounded by the winter flu season, Austin taxpayers face another daunting challenge. Last week the City Council adopted their new budget that includes a 23% property tax increase. This increase is for Project Connect’s “initial investment” of $7.1 billion for a horribly flawed mass transit plan. Voters will decide whether to approve the tax increase in the November 3rd election.

But by the time the election gets underway, the Travis County Tax Office may have already processed our new property tax bills with the City’s 23% increase baked in. This link shows that last year, the Travis County Tax Office submitted electronic bills to taxpayers on November 1st. It remains to be seen whether it is possible or feasible for the County to wait until after the election to prepare this year’s tax bills.

What Happens If Tax Bills Get Processed Before The Election, And Voters Reject The Unconscionable Tax Increase?

The Texas Municipal League has published a helpful guide to implementing Senate Bill 2, which contains the State legislation related to this topic. At the bottom of Page 9, it states:

”If property owners pay their taxes using the originally adopted tax rate and the voters ultimately reject that rate at an election in November, the city must refund the difference between the amount of taxes paid and the amount of taxes due under the voter-approval tax rate.”

As you can easily imagine, we could be headed for a confusing and chaotic whale of a mess! Long before the November election, scores of businesses, landlords and homeowners struggling with mortgage payments during the pandemic will confront a harsh reality. They may be delinquent or completely unable to pay their property tax bills. On top of that, the City of Austin may have to calculate and process tax refunds for a few hundred thousand taxpayers.

And If That Isn’t Enough, Another City Tax Increase Is Looming!

In their infinite wisdom, the City Council chose this unfortunate time to put a whopping $460 million bond issue on the November ballot. Proposition B is a grab bag of projects including bike lanes, urban trails and transportation improvements. Some of these are well thought out and necessary. But voters should reject it this year, because it is loaded down with far too many expensive goodies that we can’t afford during a hundred year health crisis and recession. (For crying out loud)!

The absurd Project Connect item is Prop A on the November ballot. The nearly half-billion dollar goody bag is Prop B. So, here is a slogan that we can share with friends all the way to the November election:

Vote Nay On Prop A, and No Sirree On Prop B!

Advertisement

The Ugly Truth About The Project Connect Ballot Proposition To Raise Property Taxes 23%

9 Replies

By Bill Oakey – August 13, 2020

Does Austin need some kind of improved mass transit system? Absolutely. Do we need a good plan to relieve traffic congestion? Absolutely. So, does the City Council’s November ballot initiative to raise your property taxes by 23% address those needs and solve the traffic problems?

Absolutely not! And there are plenty of reasons why.

Are You Ready for Just One Car Lane In Each Direction On Major Sections of Guadalupe, North  Lamar and South Congress?

if you go to the Project Connect website, you will see a fairyland artist’s rendering of a beautifully landscaped, massively wide boulevard. There are two lanes in the center for the rail line. Then there are two car lanes on each side of the rail line, with drivers cruising along blissfully. But this little slice of paradise is about as real as the yellow brick road that leads to Emerald City in the Land of Oz.

All you have to do is take a little trip from North Austin along North Lamar and Guadalupe through U.T. and then across the river and down South Congress. Look out the window and count the number of car lanes. Unless you see six wide lanes all along the route, you will be witnessing a big heap of trouble for the Project Connect Pie-In-The-Sky transit plan. Just do a Google search for “Project Connect” “car lanes,” with the quotes exactly as shown. You will find plenty of community concerns about this critical issue. What is Capital Metro’s response? Oh, well, we could always dig some more tunnels or do some elevated sections. Bottom line – There is no firm plan to address the problem. It’s all couched in several layers of ambiguous speculation. A “yes” vote in November will guarantee clogged turn lanes and exponentially worse traffic congestion.

But Isn’t It About Time We Got People Out of Their Cars?

If you dare to raise serious questions about the murky state of this transit plan, you will hear that familiar refrain. Well, of course in an ideal world, most people would abandon their cars and step into a sleek rail car that will whisk them away to their destination  There are cities like Portland and Vancouver that have excellent transit systems. But most of the good ones were started at least 30 years ago, when the costs were much cheaper. In today’s Austin, we have a large suburban population that uses the roads. There won’t be a rail line to serve most of them for decades. But they still need to come into the City and use the roads every day when they go to work. Project Connect’s grand plan is simply a companion piece to the high density land development scheme that threatens to disrupt and displace existing residents of Central Austin neighborhoods. It is designed to carry young hipsters back and forth to the bars and festivals, and of course to their high tech jobs.

The Ugly Truth About the Real Cost of a Citywide Transit System

You don’t have to look far into the Project Connect webpages to come across a key phrase that no one should overlook – “Initial Investment.” Yes, the glossy pages and slick ads will try to convince you that we can have a huge north-south Orange Line, a Blue Line all the way to the airport, a series of downtown tunnels, and a slew of new rapid and regular bus routes – all for the $7.1 billion from raising your property taxes and imagined Federal support. But remember that the November vote is only the “initial investment.”

The Real Cost Is at Least 8 Times Higher than $7.1 Billion!

All you have to do is look at the rail initiative approved by Seattle voters in 2016. It calls for a $54 billion expansion of their rail system. You read that right – $54 billion! And not for the entire citywide system, but just for an expansion of their existing system. This is why Project Connect refers to the November vote to raise your property taxes as an “initial investment.”

But hold on, it gets worse. In case you were wondering whether there would be cost overruns in Project Connect’s cost estimates,, take a look at this article that hit our fellow taxpayers in Seattle: “Seattle Light Rail, Transportation Plan Busting $54 Billion Budget.” They are barely getting started and the costs are already spiraling upwards. Project Connect’s plan calls for Austin’s entire downtown section to be built in underground tunnels. Just close your eyes and try to imagine the staggering, ever-escalating costs piling up over time to accomplish that.

Hey Wait! Aren’t We In the Middle of a Pandemic??

The first question anyone should have asked with regard to Project Connect is whether this year is the right time to ask voters to raise their property taxes. We have no firm estimates on how many businesses will fail completely between now and the end of the year. Even the ones that survive the downturn will be strapped for cash. How in the world will they be able to pay their property taxes in full and on time in January. Is anyone at the City or Travis County even looking into this question? Have they surveyed the many types of struggling businesses to gauge the situation? Have they calculated the potential loss of sales tax revenue combined with a steep loss of property tax revenue? What about all the unemployed workers? And the hundreds, if not thousands of landlords who haven’t been able to collect their rent payments?

Update: 6:00 PM, August 13

Today the City Council made it official. They voted unanimously to put the Project Connect measure on the November 3rd ballot. The referendum calls for an 8.75 cent hike per $100 home valuation. This would mean a property tax increase of 23%!! It would cost the owner of a median-valued home of $326,368 an additional $332 per year. The ill-conceived timing and the exorbitant cost makes this the most foolhardy and irresponsible action of any City Council in our lifetime!

Please send an email link to this page to all of your contacts, and share it widely on social media.