Category Archives: Action Alerts

How You Can Vastly Increase Voter Turnout To Defeat Prop Q

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By Bill Oakey – November 3, 2025

Tomorrow is Election Day. With a few simple steps, you and I and our friends can drive the final nail into Prop Q’s coffin.

We Just Need to Get People Out to Vote!

We can do that by sending a series of messages, designed to go viral throughout today. Take the sample message show below. Modify the wording if you wish. But keep it short and simple. Next,  copy the message. Then you can easily paste it into a dozen or two emails, addressed to people in your Contacts. And also, please post it to your social media.

Here is a sample message that you could use:

Please be sure to vote tomorrow. Make yourself a note, or put it on your calendar. Vote “No” on City of Austin Proposition Q. Ignore the misleading ballot language. This is an unaffordable 20% property tax increase that will hurt homeowners, renters and small businesses. It will create a fresh $100 million slush fund every year, forever. See more information at AustinAffordability.com. (Be sure to include the sentence below).

Please take the time to post this message to your social media, and email it to as many of your friends as time allows.———————————
Hopefully, this strategy will cause the messages to multiply like a chain.

Musical Accompaniment for This Blog Posting:

“Drivin’ Nails In My Coffin” – Asleep at the Wheel, from their first album in 1973.

Watch Out For Bad Messaging – Prop Q’s Final Stretch

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By Bill Oakey – October 31, 2025

I woke up this morning to a strange article in the Austin American-Statesman. It laid out some final perspectives and analysis on Prop Q. Two things really stood out. One was the assumption that if you are a Democrat, you must be in favor of Prop Q. Nothing could be further from the truth! The Travis County Democratic Party wound up with a tie vote on endorsing Prop Q. The party chairman cast the deciding vote, much to the great disappointment of many Precinct Chairs who voted. They preferred a “No Endorsement” outcome.

The other fallacious assumption in the Statesman article was that if you live in West Austin, you must be wealthy, and therefore Prop Q supporters can count on your vote. Well, I live In Tarrytown, and I’m certainly not wealthy. On my daily walks for the past few weeks, I have run into quite a variety of total strangers. I have yet to encounter a single one who supports Prop Q. They were all adamantly opposed to it. Their reactions were tinged with emotion.

A Tale of Two Different Mindsets

This section is best described with a final Prop Q poem and a pair of divergent images. I’ll start with the poem:

The Prop Q messaging is in high gear
That fateful Election Day is almost here
Those big dollar donors with a “vote yes” conviction
Should think about the renters who might face eviction

If you are a student, cut out of your classes
You are in big trouble if Prop Q passes
Hustle on down and cast your vote
Then go back to class, or get an ice cream float

If you’re busy on Tuesday, thinking you might not show
Just close up your laptops and giddy-up go
With Council members sipping drinks on distant shores
We must have every vote, including yours

Let’s stamp out Prop Q like smoldering embers
And send a strong message to those City Council members
Clear across Austin, in all the polling places
Let’s all come together, with defiant smiling faces!

Musical Accompaniment for This Blog Piece

1. “Distant Shores” – Chad and Jeremy

Stop Prop Q In Its Tracks – Vote While You Still Can

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By Bill Oakey – October 30, 2025

Early voting continues through tomorrow, Friday, Halloween. If you can’t make it to a polling place before the weekend, make plans to vote on Election Day, next Tuesday.

Voting In This Election Is An Uplifting Emotional Experience!

Reports are coming in from across the city that Austinites are fired up to defeat Prop Q. At a recent Barton Hills Neighborhood Association Meeting, their District 5 City Council Member, Ryan Alter, tried to make the case for Prop Q. But the members weren’t buying it. They voted overwhelmingly for a resolution opposing Prop Q. Nextdoor threads are lit up with excited folks railing against Prop Q.

But nothing quite compares to joining your neighbors at the nearest polling location, to cast your ballot. While standing in line, you will hear an amazing array of words and concepts that never seem to penetrate the walls of City Hall. Things like fiscal responsibility, transparency, accountability…oh my goodness! Could we possibly be on the verge of a big turnover of the current City Council in next year’s elections? The voices of the people are getting quite loud at the moment. City Council candidates are even stalking the hallways in movie theaters. I witnessed this last Sunday at the Alamo Drafthouse.

Oops, I guess I’m getting just a little bit ahead of myself. You just need to gear up for that uplifting emotional experience that awaits you when you go to vote! Don’t do it by yourself. It’s much more fun to gather a group of friends and neighbors to join you. The power to reshape the mindset at City Hall is in your hands, so grab the opportunity.

If you know anyone who is still on the fence about Prop Q, click on some of the latest posts for this blog, and send them the links. The list of the latest posts is shown on the right on this page. Let’s take down the biggest tax increase in Austin history – the dreaded Forever Tax that threatens to haunt us all, long past Halloween.

Early Voting Is Here – Rally Your Neighbors To Oppose Prop Q!

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By Bill Oakey – October 20, 2025

We Need to Spread the Message

The facts are on our side, but not everyone has heard the message. Each one of us should take some time to alert friends and neighbors. Post links to this blog or similar outreach materials to your social media. Send out emails.Talk to the folks on your block.

Myths Vs. the Facts – Spread the Word

1. Shameful Myth – Public safety, parks and libraries and apple pie will wither away without Prop Q.

Fact – All of the basic services and wishlist items can still be funded in the City Budget if Prop Q fails. As the Chamber of Commerce pointed out, the City Manager produced a balanced budget.

Fact – City officials can adopt the same belt-tightening that your family and others are using in this harsh economy. They can learn from Houston, Dallas and San Antonio.

2. Crazy Myth – Only Republicans and conservatives are against Prop Q.

Fact – The Travis County precinct chairs were evenly split over endorsing Prop Q. The party chairman rolled over and broke the tie. That endorsement is laughably weak.

Fact – The groundswell of taxpayer resistance to Prop Q crosses all party lines. The crazy, partisan tactics in the For Prop Q mailers are a joke. Toss those into the recycle bin!

3. Silly Myth – “This is not about taxes, it’s about our values.”

Fact – Austinites don’t value the prospect of huge rent increases. We don’t value watching our beloved, iconic local businesses closing, because they can’t afford the taxes. And we certainly don’t value anyone losing their home.

Fact – Austin’s spending on the homeless is massively higher than any other major Texas city. The compassionate thing to do is bring the spending under control, and use performance measures for effective results. Just throwing money at the problem hasn’t worked – not even close!

Never Forget That This Is a “Forever Tax”

Over $100 million every single year, into eternity. Remember this image when you go to sleep tonight. Then show it to your friends when you wake up. And don’t forget to vote!

A New Prop Q Poem

Early voting is here, you can now have your say
Don’t let anything stand in your way
The most important thing you can do
Is rally your friends to vote NO on Prop Q!

Beware of false messaging and misleading factors
Prop Q’s big donors are all City contractors
The Budget can be balanced, I’m not pretending
The City just needs to cut wasteful spending

The wishlist of programs that Prop Q is touting
Can still be funded, no need for the shouting
A NO vote would just bring fiscal responsibility
And push City Hall toward affordability

Musical Accompaniment for This Blog Piece

”The Long and Winding Road” – The Beatles

Stop The “Forever Tax” – Vote No On Prop Q!

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By Bill Oakey – September 29, 2025

$100 Million Dollars – Three Times The Amount Of The Budget Shortfall, Every Year, Forever!

The City Tax Rate Election on November 4th is something to tell your friends, neighbors and colleagues about. The City claims to have a $33 million budget shortfall. But, if the voters approve Prop Q, the folks at City Hall will end up with a huge slush fund. This thing would generate over $100 million. The property tax rate accumulates each year, and becomes the new baseline for the following year. So, the $100 million tax windfall would repeat itself until the end of eternity!. It’s a Forever Tax. And, the City can pass annual regular tax increases on top of the Forever Tax. We simply can’t let this happen!


Why Is The City Asking For All That Money?

Please, please, please don’t be fooled by the ballot language on Prop Q. It is worded to make you fear that our parks will crumble into decay, and even fewer police officers will patrol our streets, without the Forever Tax. The language is very broad, generic and vague. You will not see any specific departmental programs or services that will be expanded if Prop Q passes. And City officials have not told us exactly which specific programs or services will be impacted if Prop Q fails.

A Huge Bombshell That No One Is Talking About!

We deserve to see a detailed accounting, showing the items within each department that would be funded, expanded or reduced, depending on the outcome of the election. Well, last Friday night, instead of watching “Superman” on HBO Max, I explored the FY 2026 Approved City Budget. On Page 917, I discovered a set of General Fund Financial Policies for Tax Rate Elections. Here is Policy #3:

“The City shall clearly identify the level of programming or services funded with the additional revenue generated above the voter approved rate, and provide an accounting of the expected level of services should the election fail.”

There is a City Council Resolution that formalized this policy. It began as a recommendation that passed unanimously by the Audit and Finance Committee. Then, on May 22 the City Council unanimously passed it as Resolution No. 20250522-058.

Where Is The Transparency That Was Promised Back In May?

That question will be put to the City Council while you are reading this. In the meantime, here’s a little history lesson about the City Budget. Several years ago, I got a surprise phone call from 1980’s era City Council Member, Max Nofziger. He shared what he had recently learned about the budget. From its earliest days until the year 2000, it went up on a gently inclining slope. From 2000 onward, it has shot up into the sky.

The City Should Manage Its Budget The Way Austin Families Do

If Prop Q fails, the City will still have the maximum tax increase allowed by State law. In this tough economy, many Austin families are struggling. People have to do without what they want, or postpone things until they can afford them. With Prop Q, homeowners and small businesses would suffer. Landlords would pass their costs on to renters. This is the wrong time for a walloping tax increase.

Ax The Tax! Vote No On Prop Q!

For additional info, check out AustinTaxRateElection

Musical Accompaniment For This Blog Piece

1. “One Minute Past Eternity” – Jerry Lee Lewis

2. “Forever” – The Little Dippers (Actually the Anita Kerr Singers)

3. “Everybody’s Somebody’s Fool” – Connie Francis

4. “Eternally” – Petula Clark

5. “Please Love Me Forever” – Bobby Vinton

6. “Taxman” – The Beatles

Austin Energy’s Rate Increase Tied To Not Selling Enough Electricity

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By Bill Oakey – July 28, 2022

That headline should jolt anyone out of bed, if they are not awake already. Yes, you read it right! This is a deja vu from a few years ago. We were urged to conserve water. Then Austin Water told us they were raising its rates, because they weren’t selling enough water.

The shocking news from Austin Energy seems outrageous on its face. But the philosophy behind it is chilling and disturbing. Here’s the explanation from Austin Energy’s vice president of finance: “Customers have become more efficient in their energy usage, but the current rate design is not as efficient as the customers, causing the revenue to be unable to keep up with costs. This means the old rate structure was built in a way that assumed the top energy users would to an extent subsidize the lower energy users. However, over the last 20 years, customers have become more efficient in using energy. This has eliminated a large portion of the higher-end energy users, causing Austin Energy to lose revenue.” 

Wow! Let’s think about that statement. He is literally suggesting that wealthy people who have moved into Austin neighborhoods, into big fancy homes, have made those homes more energy efficient. Therefore, the outdated rate design does not allow these folks to pay more and “subsidize” the low and middle-income folks who pay less for electricity.

Austin Energy’s shameless solution is to stick the smaller users with the highest portion of the rate increase. It would guarantee that by raising the fixed monthly customer charge by $15.00. On top of that, they want to decrease the number of rate tiers, and flatten their impact. This will lower the costs for the biggest users.

Here’s Why That Philosophy Falls Apart

1. It would exacerbate the income inequality that underlies Austin’s affordability crisis.

2. Instead of solving Austin Energy’s revenue problem, it would make it worse. Residents and small business owners at all income levels would make energy efficiency a high priority. They would use this link and this link on Austin Energy’s own website!  Yes, Austin Energy is offering us rebates and incentives to conserve. Then, with the other hand, they want higher base rates every month because they’re not selling enough electricity!

3. And get this, folks…The future outlook is even worse. On June 28, the Fitch bond rating service downgraded Austin Energy’s revenue bonds to AA-. Here is a statement from the first page of their report. “The planned rate increase is projected to contribute an additional $48 million in base rate revenues. AE expects additional base rate increases will be necessary to improve the utility’s operating cash flows and leverage profile on a sustained basis.”

Yup, that’s Austin Energy’s brilliant management plan. Watch the customer base shrink, as more homes and businesses install solar panels, energy storage batteries, etc. Have they not been adjusting their operational plans to coincide with the evolving market? It looks like they’re desperately trying to keep the ship afloat, by piling rate increases onto the masses of people who can’t afford to join the solar club.

I Have a Much Better Solution

1. Use the list of single-click links in my previous blog posting to email every City Council member and the Mayor. Ask them to cancel the proposed rate increase. The record daily highs and record high overnight lows this summer are producing historically high electric bills. This will easily shore up Austin Energy’s revenues.

2. The City Council owes it to the citizens to hold a series of public engagement sessions to evaluate the best path forward for Austin Energy. As for the ongoing formal rate hearing process – Nip it, Snip it, STRIP it! A new City Council will be sworn in next January. Why suffer through the agony of the other kind of swearing, that would accompany a raucous and contentious electric rate battle this fall? Citizens and small businesses are already being crushed by high summer bills.

3. Ausin Energy is the most important asset that our city owns. It provides us with electricity. But it is also a vital revenue source for the City’s general fund. Their financial dilemma needs to be carefully evaluated by our new Mayor and City Council. And most importantly, you and I and our friends and neighbors deserve a seat at the table!

Call To Action – Let’s STRIP Austin’s Electric Rate Increase Proposal!

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By Bill Oakey – July 25, 2022

On Friday July 22nd, KXAN-TV News aired a story about our oppressively high summer electric bills. The historic triple-digit heat has led to these burdensome bills, that are straining family budgets at a time of record high inflation. But, as I pointed out in the news segment, Austin Energy has a nasty surprise for us, lurking around the corner. They want to pile on a new base rate increase!

In the news interview, I explained that Austin Energy will be sweeping up the highest peak season profits in their history, from May through September. This will pour tens of millions of extra dollars into their coffers, well above their current year’s budget. The City Council will have every reason to nip the rate increase in the bud, as well they should.

But my jaw dropped to the floor, as I listened to Austin Energy’s response to that suggestion on KXAN. Here are their misleading and faulty arguments:

1. We don’t make any profits. The extra revenue is returned to the City.

2. We will earn extra revenue, but we also have additional expenses, with “the high cost of energy.”

The full costs of fuel and ERCOT power purchases are passed through to us, the customers. That charge appears on the Power Supply Adjustment line on our electric bills. The summer demand surge will undoubtedly push the charge higher. The fixed monthly amount is modified each year in November.

It’s true that Austin Energy’s revenue transfers to the general fund are not the same as a private business profit. But, here we’re talking about a revenue surplus – a windfall. In a recession or a time of high inflation, the revenue surplus can be used to keep customer rates stable. (Hint for the City Council)!

Imagine this historic seasonal windfall, with a new base rate increase stacked on top of it! That would generate even more tens of millions of extra revenue – every year. There are suspicions that the City wants to dodge the Legislative property tax cap with higher general fund transfers.

Here’s The Rub – Get Ready for a Snub!

The rate increase proposal would shift some base rate costs away from big businesses, onto residential ratepayers. And it would upend the residential rate tiers, pushing higher costs onto low and middle-income folks. We simply can’t let that happen! It’s a slap in the face in a city with extreme income inequality and an affordability crisis, plus high inflation.

It’s Time For a Call to Action!

S-T-R-I-P: Stop The Rate Increase Proposal

Nip It, Skip It, STRIP It!

My plan is to meet with neighborhood groups and civic organizations across the City, to explain what’s going on here. This is my fifth decade of affordability activism. I served on the City Electric Utility Commission from 1985-1990. This time around, we may have a victory in the palm of our hands. There are four City Council seats and the Mayor’s race on the ballot in November. Even if the current City Council adopts the lopsidedly unfair rate proposal, the new Council could scale it back or STRIP it completely. It’s up to you and me and our friends and neighbors, to elect a consumer-friendly Mayor and City Council. We can do it! Any future rate increase must not penalize small users, and it must protect residential and small business ratepayers!

Here’s What You Can Do to Help

1. Contact every City Council member and the Mayor. Ask them to STRIP (Ooooh!…They can do some of it behind closed doors, subject to the open meetings law limitations).

2. Ask the City Council to put senior discounts on the fixed customer charges for every category on our utility bills. It’s high time for the City to help our longtime residents.

3. Alert your friends, family, neighbors and co-workers. Send them the link to this blog piece.

4. Subscribe to this blog to stay up to date on our path to victory. A convenient STRIP Guide will soon be made available. It will tell it like it is in plain, simple language. The veil of special interest subterfuge will be peeled away and clearly exposed. We will wrestle our publicity-owned utility away from the special interests, and give it back to the people!

Use These One-Click Links to Send Emails to the City Council:

Mayor Steve Adler steve.adler@austintexas.gov
1. District 1 – Natasha Harper-Madison natasha.madison@austintexas.gov
2. District 2 – Vanessa Fuentes vanessa.fuentes@austintexas.gov
3. District 3 – Sabino “Pio” Renteria sabino.renteria@austintexas.gov
4, District 4 – Jose “Chio” Vela jose.vela@austintexas.gov
5. District 5 – Ann Kitchen ann.kitchen@austintexas.gov
6. District 6 – Mackenzie Kelly mackenzie.kelly@austintexas.gov
7. District 7 – Leslie Pool leslie.pool@austintexas.gov
8. District 8 – Paige Ellis paige.ellis@austintexas.gov
9. District 9 – Kathie Tovo kathie.tovo@austintexas.gov
10. District 10 – Mayor Pro Tem Alison Alter alison.alter@austintexas.gov

Musical Accompaniment for This Blog Posting:

1. “Let’s Call The Whole Thing Off” – Harry Connick Jr., from “When Harry Met Sally”
2. “The Stripper” – David Rose, 1962 #1 song
3. “Behind Closed Doors” – Charlie Rich
4. “The Streak” – Ray Stevens
5. “Heat Wave” – Martha & the Vandellas
6. “Windfall” – Rick Nelson
7. “77 Sunset Strip” – Don Ralke
8. “Tell It Like It Is” – Aaron Neville
9. “The High Cost Of Living” – Wood’s Tea Company
10. “When The Lights Go On Again” – Mary Duff

An Open Letter To City Hall

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By Bill Oakey – May 7, 2021

A Quick Background Summary

I have been a community taxpayer advocate since 1983. I have recently urged the Austin City Council to allocate a significant portion of their $195 million in Federal COVID Rescue Plan Funds to cover the City’s budget shortfall, and reduce or eliminate any property tax increase in the upcoming City Budget. So far, I have run smack into a brick wall. They never even thought of what I’m suggesting, and the City’s CFO has asked the City for authorization to raise taxes all the way to 8%, instead of using the Federal money. Please go to the home page of this blog and scroll down to earlier postings for more details.

Please Send Me Your Hardship Stories…

Use the Comments section of this blog, or email me. If you or someone you know is facing difficulties with this year’s high tax appraisals, send me their stories. Do you know a landlord who cannot afford to keep their property because they can’t raise the rent high enough to cover the taxes? Or someone who could be forced to give up their own home? Or a small business that will have to close if their taxes continue to rise beyond reason? I will compile these stories and submit them to each member of the City Council. It is HIGH TIME that longterm Austin residents and our iconic business owners had their voices heard at City Hall!

Read On, And Let’s Break Through That City Hall Brick Wall!

On Wednesday, I met with a City Council policy advisor. It did not go well. And I’m afraid that many others at City Hall have had their heads dunked into the same sour vat of faulty reasoning. The comments below are addressed to all of them. The last part is a fervent appeal to anyone at City Hall who might be willing to wake up and see what is happening around them.

Hello to Anyone Listening at City Hall,

I don’t know where you are getting your advice from. But they steered you in the completely wrong direction. Their mode of thinking will make our City’s financial condition much worse than it is today. You won’t have to take my word for it. You will see it unfold yourself, and it will not be a pretty picture!

If you and the people who have influenced you cannot see that $195 million in aid from the Federal government can help a City mitigate their financial difficulties, then maybe you and they are beyond help. There are many other cities that saw it several months ago, and they are taking the obvious and correct actions. This is not just about lowering taxes. The Federal money needs to be applied towards shoring up the city’s financial foundation, regardless of where you set the tax rate.

Providing tax relief during a recession and a pandemic is a separate issue. And it’s one that should be considered as well. It could only be done for a year or two, but THAT’S WHAT A RECOVERY IS. It’s a temporary thing. If you don’t want to cut the effective tax rate to zero, then cut it to 1%.

Do not obsess over the limitations placed on the City by the State Legislature. If you are concerned that their limit on raising taxes will hurt the City’s financial condition long term, then get this. That’s all the more reason to shore up the budget now with Federal money. That’s a major reason why Congress passed the American Rescue Plan in the first place!

You have the information on the other cities that are following the correct path. You can choose to ignore it. Or, you can choose to dissect each of those cities’ plans, and conjure up reasons why Austin’s situation is somehow different. But it won’t change the reality. Austin is in financial trouble, for all of the reasons that you pointed out. But refusing to take advantage of a large infusion of money that could provide relief to the citizens makes no sense at all.

Please do not think that what I am telling you is coming from me alone. This is not about one person sitting at home with a blog. A large number of people across the City are involved in this effort – because they care about Austin. All of them can easily see a few simple facts:

1. Austin’s bond rating has already been lowered once. We cannot afford to pass up the opportunity to prevent it from being lowered further.

2. Spending nearly all of the Federal money on the homeless and other social programs would be a very bad idea. There is plenty available to take care of those needs AND shore up the City budget too.

3. In my meeting on Wednesday, I was told 15 or 20 times that the City cannot afford to lower taxes because of Austin’s debt, contracts with City workers and the City’s structural financial weakness. If that is the case, then please tell the community HOW IN THE WORLD we can possibly afford billions in additional debt for Project (Dis)Connect??!!

4. The high tax appraisals and looming tax increases facing homeowners and small businesses are not on the City Council’s radar at all. You can’t address a problem until you make it a top priority. It is long past time for at least one or two City Council members to stand up publicly and finally take notice! Which one or two of our City Council members will it be?

Please use this single-click link to email the Mayor and City Council. Forward this blog piece to your friends, post it on social media, and ask your friends to do the same.

Mayor Steve Adler

Mayor Pro Tem Natasha Harper-Madison

Council Member Vanessa Fuentes

Council Member Mackenzie Kelly

Council Member Sabino “Pio” Renteria

Council Member Paige Ellis

Council Member, Leslie Pool

Council Member Kathie Tovo

Council Member Gregorio “Greg” Casar

Council Member Ann Kitchen

Council Member Alison Alter

You Can Help Win The Taxpayer Battle!

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By Bill Oakey – April 28, 2021

Let’s cut right to the chase. We now have the facts we need to win a taxpayer victory, with the Federal Rescue Plan funds. The City will have to recognize that an 8% maximum tax increase won’t be necessary in the upcoming budget. They can simply cover the shortfall with the Federal funds. You’re going to be amazed, when you see how obvious the evidence looks:

1. Houston – City Controller Chris Brown says, “A $615 million influx of federal funds will help Houston stave off a potentially disastrous budget season.”

2. New Orleans – Officials said that they hope to stretch the funds to cover what could be years of budget shortfalls from the drop-off in tourism and sales taxes.

3. Grand Rapids, Michigan – Proposed budget shortfalls offset by American Rescue Plan

4. Memphis – This is the clincher! Mayor Strickland: “Federal funds will go to budget shortfalls, the tax rate will go down.”

5. Kansas City, Missouri – Received $195 million, exactly what Austin got! They will use it to restore budget cuts and enhance public services.

Check out my clumsy attempt at poetry, and then hit the single-click link to send an email to the Mayor and all 10 City Council members.

What’s wrong with some of our local officials?
Are they too inept to even write their initials?
All they have to do is look around
The solution is right there, so easily found

From Memphis to Grand Rapids, and towns in between
They’re applying Federal funds to their budgets so lean
In Austin where homes are so hard to afford
They just want to tax us, good gracious, Good Lord!

I research this stuff in the dead of night
And I’m nowhere near ready to give up the fight!
So, City Council members and County Commissioners too
The taxpayers are advancing, you know what to do!

Please use this single-click link to email the Mayor and City Council. Be polite, ask them to do right, and we can win this fight!

Then share this blog piece with everyone you know, and post it on social media.

Musical Accompaniment For This Blog Piece:

1. “Memphis” – Johnny Rivers
2. “Way Down Yonder In New Orleans”– Freddy Cannon
3. “Houston” – Dean Martin
4. “Saginaw, Michigan” – Lefty Frizzell
5. “Kansas City” – Wilbert Harrison
6. “Walkin’ To Missouri” – Sammy Kaye, 1952. First record in my music collection, at age 5

Taxpayer Alert – City Considers 8% Property Tax Hike, Instead Of Using COVID Rescue Funds!

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By Bill Oakey – April 26,  2021

Before the ink was barely dry on tens of thousands of shockingly high Austin property tax appraisals, City budget officials crafted a startling and alarming memo to the City Council. First reported by KXAN News last Thursday, the memo describes a purported $23 million shortfall in the upcoming City budget that will be hammered out this summer.

Despite Receiving $195.8 Million in American Rescue Plan Funds, Chief Financial Officer Suggests 8% Tax Increase!

The Texas Legislature has placed a 3.5% revenue cap on City and County tax increases. But, there is an exception to the tax law. I had to rub my eyes and blink twice to believe that I read his words correctly. But this is what Austin CFO, Ed Van Eenoo said to KXAN News:

“Essentially the language says that, you know, if there’s a disaster declaration, the year of that disaster declaration and the subsequent year, cities have the opportunity to go to the 8% increase,” Van Eenoo said. He estimates that change would result in about $15 to $20 million more in revenue for the city.

He Forgot to Mention That Austin Received $195.8 Million In  COVID Rescue Plan Funds!

The City has a special webpage that celebrates the huge Federal windfall. But you won’t find a single word about using it to provide critical property tax relief for homeowners and small businesses. Are they completely out of their minds?! The spending plan includes these categories: Public Health, Economic Recovery Resources, Hotel Occupancy Tax-Funded Services and Contingency. The $39.2 million contingency is for “unanticipated events.”

Well, Guess What…The “Unanticipated Event” Contingency Would Wipe Out the City’s Budget Shortfall

Or, the City could easily adjust some of the other non-health categories. The disturbing memo that the Budget Office sent to the City Council on April 16 echoes the CFO’s bizarre obsession with raising taxes to the 8% legal maximum. Here is the very first “Action Item” in the memo:

“Council must take action to direct that the voter‐approval rate be calculated using the higher, 8% increase factor. This initial action does not require that Council ultimately adopt a property tax rate at this higher level, but this direction must be given in order for Council to retain the option to do so during its budget adoption proceedings in August.”

The memo also lays out a parade of fee increases, stretching over the next five years! And don’t forget this year’s 23% tax increase for the Project Connect boondoggle!

Please Join With Me. Let’s Unite Behind a Much Better Property Tax Increase Amount:

Use This Single-Click Link to Email the Mayor and All 10 City Council Members

Tell them you support a zero property tax increase and zero fee increases in the upcoming City Budget. Be sure to ask for a zero increase in the “effective tax rate.” That would actually lower the rate that goes on your tax bill, and help offset the huge tax appraisal increases. It’s a no-brainer to use a portion of the American Rescue Plan (ARP) funds to bring tax relief to struggling Austin homeowners and small businesses.

Keep in mind that 6 City Council seats are up for election next year! Share this blog link with all of your friends, and post it to social media.

The Brookings Institution Recommends That Cities Use ARP Funds to Cover Budget Shortfalls

You may hear excuses for why tax relief can’t be done, or why it isn’t a good idea. That is poppycock! Here is what the Brookings Institution says about it:

“Based on our on-the-ground work in Northeast Ohio and Birmingham, Ala., we believe that elected officials—and the networks of civic, business, philanthropic, and community stakeholders that surround them—should take a three-pronged approach to using their ARP funding: stabilize, strategize, and organize. Stabilize – ARP provides state and local governments with the resources to stabilize their operating budgets.”

Raising Taxes As High As Possible Is Embedded In the City’s Bureaucratic Culture

Starting the budget process with the highest possible tax increase is like giving a teenager a $100 bill to go to the movies, and hoping he will bring back $86. The City’s motto seems to be “Raise taxes first, and ask questions later.” It is time for every homeowner and small business owner to rise up and stop that nonsense dead in its tracks!

Musical Accompaniment for This Blog Piece:

1. “Rescue Me” – Fontella Bass, original version, 1965
2. “Love Minus Zero / No Limit” – Joan Baez, written by Bob Dylan
3. “Zero Zero” – Bent Fabric
4. “Emotional Rescue” – The Rolling Stones
5. “Rescue Me” – Linda Ronstadt, 1972