Tag Archives: Austin affordability

The Most Important Rail Statistic You Will Ever See

By Bill Oakey – August 10, 2014

“In 1980, Cato Institute fellow Randal O’Toole says, the census reported that 9.8 percent of Portland area residents used transit (buses, at the time) to get to work. In 2012, 75 miles of rail transit later, that number had fallen to 7 percent.”

That is a direct quote from Ben Wear’s Austin American-Statesman article on Portland’s sprawling light rail system. This is a system that cost many billions of dollars over more than 30 years, with far more Federal and state cost sharing than Austin could ever hope to see.

And don’t forget one huge factor in that figure of 7% transit ridership as of 2012. It includes all public transit – buses as well as rail. There is much more to write about, talk about, and think about with regard to Austin’s proposed urban rail, as we look to the November bond election.

But for now, let me just say it one more time. Portland has built a massively expensive 75 mile rail system. The percentage of their population that uses mass transit, including both rail and buses fell from 9.8% to 7% between 1980 and 2012.

So there you have it.

Steve Adler Supports City Homestead Exemption

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By Bill Oakey – August 5, 2014

Voters who were still undecided in the mayor’s race can breathe a big sigh of relief. The decision just got a whole lot easier with yesterday’s announcement. Steve Adler is calling for the City to adopt a 20% residential homestead exemption on our property taxes. No sooner did the words spring forth from his lips, than Mike Martinez and Sheryl Cole shrieked their resistance.

Of course the City cannot be more responsible in its budget. Of course they can’t grant us the very same exemption that Travis County has offered for two decades! What an outlandish and preposterous idea! The financial rule of thumb at City Hall has been to spend as much money as possible as quickly as possible. And if there is a budget surplus in midyear, be the first out the door with ways to spend that too.

That’s precisely why Austin has an affordability problem. If the local leadership does not set the right tone, every other group, public or private, will assume that we don’t have a problem. But this time around, the citizens know better. We have seen how affordability affects our own family budgets. And we cringe at the thought of so many good people having to sell their homes and leave Austin.

What we need to do is tell Mike Martinez and Sheryl Cole that their time is up. They each had eight years to steer the City onto an affordable path. Instead they did the exact opposite. Both major utilities are facing unending rate increases. Taxes and fees at every level have spiraled out of control. So, why should we expect anything more than business as usual from either incumbent candidate for mayor?

Here’s What Steve Adler Says About the Homestead Exemption

“Yesterday, as I officially filed for Mayor on the City of Austin ballot, I announced my support for a twenty percent property tax homestead exemption for Austin homeowners. I hope you’ll join my efforts in charting a new way forward, away from the same old policies that have left our city the most unaffordable in the state.”

“The time has come for tax relief for Austin homeowners. I propose phasing this in over four years in a revenue-neutral way, without cutting city services and without significantly impacting renters.”

“I would prefer this homestead exemption be a flat amount instead of a percentage, but state law does not provide that remedy. A twenty percent homestead exemption is the maximum allowed by Texas state law, and is one of the only tools we have for property tax relief now. As mayor, I will fight hard at the legislature for more fairness in our tax structure.”

But What About Those Loud Voices Criticizing Steve Adler on the Environment?

Out of hundreds of legal cases over a long career, Steve participated in a tiny number of cases that were not favorable to the environment. It is a huge stretch to even think about comparing those to the untold number of harmful votes by both Mike Martinez and Sheryl Cole. During eight years in office, they attended close to 400 City Council meetings. In that time period, they voted against neighborhoods and the environment dozens upon dozens of times.

If you are happy with the status of development over the Edwards Aquifer, or the wasteful spending on Water Treatment Plant #4, or the steady erosion of neighborhood plans and protections, then feel free to vote for more of the same. If you have not met with Steve or attended a forum to listen to his ideas, then keep an open mind about him. You owe it to yourself to consider a fresh start to a badly broken and unaffordable system at City Hall.

The next time you pull out your wallet or purse, ask yourself if you are better off than you were a few years ago.

Ask yourself if you can afford more of the same. Or, if you would rather vote for a mayor like Steve Adler, who will listen to all of the people instead of just the special interests.

What Happened To Austin’s Budget Surplus – And Why Is Nobody Talking About It?

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By Bill Oakey – August 1, 2014

Back in March, readers of this blog launched a successful email campaign to stop the City Council from spending a $14.2 million budget surplus. But since then we have heard nothing from City Hall about what has been done with that money. This week the City Council began discussing the budget in earnest during a two-day work session. But there are several critical questions that have not been brought to light:

How Much Has the Budget Surplus Grown Since February?

It was at a March City Council work session that they made the decision not to spend the $14.2 million surplus. So, if that money went into a reserve account, how much is it worth today? We were told that the announced February surplus came from a combination of increased sales tax revenues, vacant staff positions, increased permit fees, and other revenue increases from an improving local economy. Now we deserve to know how much the surplus has grown since February?

I have repeatedly recommended that the City Council ask for detailed quarterly reports on the budget versus actual spending numbers. These reports should be presented to the City Council’s Audit and Finance Committee. This simple, common sense reform should have been in place already. And we should not have to wait for the new City Council to enact full transparency for our taxpayer dollars. Especially when two long term incumbents are asking voters to elect one of them as our next mayor!

How Much Money Is Left Over From All Those Vacant Staff Positions?

As of last December 31st, the City Manager reported that 9.7% of the City’s workforce existed only on paper as unfilled vacancies. Every month that has gone by since then with unfilled vacancies presents the potential for increases to the budget surplus. When I researched this issue back in May, I learned something quite disturbing from Council Members Mike Martinez and Bill Spelman. They both informed me that the vacant positions are fully funded in the budget, and that the affected City departments can transfer the money and spend it on other items! We are talking about millions of dollars of taxpayer money that is repeatedly and consistently allowed to slip down into a black hole.

Despite my meetings with both Mr. Martinez and Mr. Spelman, no action has been taken to improve the accountability or the transparency of these surplus budget funds. Even at a time when affordability has risen to the top among the issues in the current City Council campaign.

In previous postings to this blog, I have recommended that the City limit the funding of vacant staff positions to the 5% level that has been adopted by Portland, Oregon. And I suggested that the City Council enact the Honolulu model for controlling funds for vacant staff positions. In Honolulu, these funds are held in a provisional account in a central office. They are restricted for use only to hire new employees, and the funds are distributed on an as-needed basis. It is long past time that the taxpayers of Austin be given the same accountability standards that other prudent American cities enjoy. And we should only elect City Council candidates who commit to adhering to these logical and reasonable standards.

To learn more, you can read one of my previous blog postings on this topic here.

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Rail And Road Bond Taxpayer Impact – A Chart Of The Numbers

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By Bill Oakey – July 30, 2014

We know now that the $1 billion package of urban rail and road bonds would raise the debt portion of our City of Austin property taxes by 6 cents. Between 2015 and 2020, that rate would increase from .1151 to .1751. As you discuss this epic boondoggle with your family and friends, and urge them to vote against it in November, you can use the chart below to show them the taxpayer impact on their homes.

Since many readers of this blog have complained that their tax appraisals have increased dramatically in the past few years, I decided to build the chart using annual appraisal increases of both 5% and 10%. The appraisals range from a starting point of $200,000 to $500,000. The chart makes it easy to see that the cumulative level of tax and appraisal increases that Austin is currently experiencing is simply not sustainable. If all of the estimated tax increases for the various taxing entities were built into a single chart, I shudder to think how ominous it would look! So, for now, let’s just examine the taxpayer impact of the rail and road bonds.

Click the link below to see the chart.

Property Tax Impact of Rail & Road Bonds

Rail Bond Vote Would Bring Historic Tax Increase

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By Bill Oakey – July 30, 2014

If anyone thinks the property tax impact of an annual City Council budget battle is something to worry about, please consider this. For the last two years, the budget discussions have centered around changing the City’s tax rate by a tiny fraction of one penny. That’s because our tax appraisals have skyrocketed, meaning that even a zero change in the tax rate would yield a considerable tax increase.

Well, make sure you are sitting down when you read this. If voters approve the $1 billion urban rail and road bond package in November, they can say hello to a 6 cent increase in the property tax rate over the next five years. The sobering details are contained in a City document called “General Obligation Bond Capacity Analysis.” You can read it here.

What Would Happen to Our Bond Debt If the Rail Bonds Pass?

That’s an easy question to answer. It would flat out double! Our current general obligation debt, made up of previous bond votes for roads, parks, libraries, open space, and housing stands at about $1 billion. So, in one fell swoop we would double our debt by voting for the rail and road package. And the worse part is that it would do essentially nothing to relieve traffic congestion for most existing residents.

In fact, Austin won’t even come close to attaining the ridership levels needed for Federal funding for the urban rail line unless we reach extremely optimistic, massive growth projections. The developers pushing for the rail line from Riverside to Highland Mall would need to convince voters of the “miracle” in economic development potential that the project would bring. And yet, as one Austin American-Statesman reader wrote to the editor recently, “Well, thank goodness they are building a line from Riverside to Highland Mall, because I travel between those two points all the time. SAID NO ONE EVER!”

What the City Report Says About Taxes, the Debt and Our Bond Rating

Here is a snapshot of some of the report’s most significant facts and conclusions:

1. Our current general obligation debt is about $1 billion.

2. We still have an additional $425 million in 2006-2013 bonds left to issue.

3. The City estimates that another $425 million will be needed in a separate bond election in 2018, on top of the $1 billion in rail and road bonds to be voted on this November.

4. In order to preserve our AAA bond rating, we would need to raise property taxes by 6 cents between 2015 and 2020 if all of the bonds pass.

5. Not only would the property tax rate increase by 6 cents, but the City estimates that property tax appraisals will jump by over 25%! Their example shows a $200,000 home being assessed at $255,000 by 2020. So, the tax impact would multiply exponentially.

Don’t Forget About All the Other Tax Increases!

None of the above estimates include the back to back tax increases for the main part of the City Budget, plus utility rate increases and add-on fees, and taxes for AISD, Travis County, ACC, and Central Health. And don’t forget that ACC will be asking for a $386 million dollar bond package this November as well.

So, as long as your career is rocking along with huge pay raises every six months or so, or your retirement income is zooming past inflation and leaving you with extra piles of cash, then you can easily afford to vote for the rail bonds. But if you’re like the vast majority whose income is flat or even decreasing, then make sure you pass this information along to your friends and ask them to cast a resounding NO vote in November.

Maybe In Another Lifetime…

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By Bill Oakey – July 26, 2014

This blog posting is a tribute to a special friend that I have not even met in person. Her name is Roberta. She follows this blog and often challenges me with good questions and interesting thoughts to ponder. Like many of us, it appears that she is prone to occasional bouts of whim and fantasy. I should know all about that. My biggest creative influences growing up were Rod Serling and Richard Matheson, and others with a sweeping capacity for wild and adventurous imagination.

Here is what Roberta slipped into a message that she sent this morning:

I must admit that I love her styling! Such a cool font, and just the color that I happen to like. How could she have known that?

There was another time, back in the old days, when people used to entertain suggestions about me running for City Council. So, what I did was try to imagine what that might really be like. Here’s what I was told by a top aide to the mayor at the time. When you run for office, all of your friends turn out to cheer you on. You see those same friends and meet new ones every single day. They are just like you. They want grassroots representation at City Hall. They want you to stand up to the special interests. You are surrounded constantly by the best people you would ever want to meet. The excitement of the campaign builds to a fever pitch.

Then comes Election Day.

Then comes the Victory Party…

Then, your friends practically lift you off the ground, as they clap and holler and raise the roof off the place. You WON!! TV cameras start glowing. You start glowing. You go to bed that night, thinking it was the biggest night of your life. And maybe it was.

By the next morning, if not sooner, things begin to shift just a little. People that you never spoke to during the campaign suddenly start smiling at you. I’m talking big, wide smiles. They dress a little bit nicer than some of your friends. Maybe a whole lot nicer. But it’s their demeanor that really stands out. They approach you like that long lost roommate that you haven’t seen in 25 years. They’re so happy to see you, and they can’t wait to sit down for a chat.

Then, as you pull your chair up to the table, your brand new friend hands you a business card. That person behind the smile wants something from City Hall. Something that you probably campaigned against.

From that point on, your life changes completely.

Suddenly, it becomes a lot trickier to determine who is your friend and who is not. What they say to your face and what you hear that they said behind your back may be two different things. But still, you try your best to get used to it.

After you move into your new office, you look forward to greeting the friends that surrounded you during the campaign. But where are they? Why don’t all of them show up on your calendar? The reason is really simple. They are just too busy, with some of them working two jobs to take care of their families. But your calendar is full. There is no shortage of people with plenty of time on their hands. Because they will be paid to come and see you.

The bottom line is that you have two choices. Try to be nice to all of them, even if you plan to vote against some of their requests most of the time. Or, brush them all off and sit alone in your office with nobody to talk to except the walls.

Ah, but there are some advantages. Restaurants that you could never afford to go to suddenly show up on your calendar. The check is never placed next to you at the table. Tickets to plays, concerts, and all manner of things drop out of the sky. Lavish parties. Schmoozing events. Comedy shows…

Speaking of comedy shows, did I forget to mention those long Thursday meetings down on Second Street? The ones that start at noon and sometimes don’t end until 3:00 the next morning?

It’s not that I don’t have lots of things in store for the new members of the Austin City Council. They will be reminded that all of us are still out here watching what they do. Because I will be one of those reminders.

As you sit down with your friends at your favorite hangout during one of Austin’s high-flying events, that glass of wine or beer might start to wobble. You might hear the deafening roar of a helicopter overhead. The mayor and his top aides will be swooshed away to an air conditioned box at Memorial Stadium or a certain unnamed racetrack.

And I will be either sitting at this computer, relaxing on the couch with a cold beer, or out partying with real, dependable friends. With thoughts of the next reform that needs to be finished, somewhere in the back of my mind.

But all of us should be lucky enough to have at least one Roberta in our corner…

Top Neighborhood Leader Files CodeNEXT-Related Ethics Complaint

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By Bill Oakey – July 25, 2014

Mary Ingle, President of the Austin Neighborhoods Council has filed a complaint with the City Ethics Review Commission over the alleged lobbyist status of a CodeNEXT Advisory Group appointee. The Austin City Code bans lobbyists from serving on boards, commissions and citizen advisory panels.

Ms. Ingle’s primary concern is the fact that the Land Development Code Advisory Group is stacked with special interest members from the real estate and development community. This is the group that is working with City staff and hired consultants on the CodeNEXT project, which will overhaul the established City Code provisions for land use planning and zoning. Neighborhood leaders are seriously concerned that CodeNEXT will be used to override hard-fought neighborhood protections from inappropriate development.

Implementing Code Revisions Before They Are Even Written

Without a doubt, anyone can see that elements of CodeNEXT are already creeping into certain areas of the City, even before the ink has time to dry on the preliminary stages of the code revision process. In fact, the November bond proposition for urban rail pre-supposes that certain parts of town will be turned into CodeNEXT-styled corridors of massive multifamily “activity centers.” So, not only was the output of the CodeNEXT consultant work pre-ordained before it started, but the imprint from the special interest “advisory group” can be viewed from anyone’s car window, bicycle or skateboard. Or even from a Capital Metro rapid accordion bus.

Can We Limit Special Interest Representation on Advisory Panels?

When Mary Ingle emailed her press release to me last night, it triggered some old memories from 1985. That was the year that I tried to get the City Council to adopt a Public Interest Protection Ordinance. It would limit the number of special interest members on boards, commissions, and advisory panels. Today I retrieved the old documents and a newspaper clipping form the Austin History Center. This calls to mind another reform that was suggested in the old days, but never came to pass. My hope is to revive it and bring it before the newly elected City Council next year. I have a blog posting on it planned for next week.

Mary Ingle’s Press Release – Kudos to Her!

FOR IMMEDIATE RELEASE

Austin, Texas

July 24, 2014

On July 24, Mary Ingle, who is president of the Austin Neighborhood s Council, filed on her own behalf an ethics complaint against a member of the City’s Land Development Code Advisory Group. The complaint alleges that Melissa Neslund is an unregistered lobbyist in violation of the City Code and that she is barred from serving on the Code Advisory Group that was created for citizen input on the current plan to revise the City’s Land Development Code.

“By filing this complaint, I am trying to signal what is symptomatically wrong with our City’s land planning and development process,” said Ingle. “The Land Development Code Advisory Committee was appointed by the City Council and City Manager. The composition of this group is almost exclusively from members of the real estate industry to the virtual exclusion of neighborhood advocates. Only one of the 11 members of the group can be characterized as speaking for neighborhood interests. Too many of the others either have financial ties to real estate industry or motives to please the City staff. I think that I can safely say that the real estate industry shares my lack of confidence in the Planning and Development Review Department. The bottom line is that this exclusionary group will produce undue, biased influence on the new code product. Undue influence of developer – financial interests can be linked to the root cause of many of our community’s problems.”

At a press conference today in East Austin, Ingle observed that older core neighborhoods are being radically transformed by profit – driven developers given almost a free hand by City staff to demolish existing affordable homes and replace them with less affordable structures not compatible with neighborhoods.

She said that higher property taxes are driving ordinary citizens to the suburbs. “We can do a better job than this,” she said. “The current process to revise our land development code is flawed. The data- gathering process is statistically invalid, an d those relative few people who have given input have been excluded from commenting on the data compilation. This is a bad start for a process that will affect the live s of generations of ordinary citizens”.

Ingle said that the complaint is not personal. “Our laws should be enforced, and an investigation of business relationships of other members of the Citizens Advisory Committee should commence.”

“It’s time for ordinary citizens to wake up,” she said. The Citizens Advisory Committee and City Staff are advocating sweeping changes in our neighborhoods, including possible radical zoning changes. Our Land Development Code needs updating, but not this way,” she said.

“We need to go back to the drawing board and get this right, “ Ingle concluded.

Support Laura Pressley For City Council District 4

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By Bill Oakey – July 23, 2014

We would all like to find candidates who will hit the ground running as soon as they take office. But the voters in District 4 are lucky enough to have someone who is working hard for affordability even before the election! I’m talking about Laura Pressley, and I’m pleased to offer her the endorsement of this blog.

Here’s What Laura Has to Say About Affordability

“As a survivor of domestic violence and sexual assault and one that received support from various organizations to survive, I understand the need for social services in our community. I have lived through not being able to pay for rent, food and only having $16 to my name at Christmas and not being able to buy my daughter any presents. Those were incredibly scary times and we got through them with the help of many generous organizations and friends.”

“Today, a woman coming to Austin, in my same situation, most likely would not be able to make ends meet given the cost of living and affordability issues we have. Many of the overwhelming affordability pressures that exist in Austin are directly due to the policies of our elected representatives at City Hall. The massive corporate subsidies and tax breaks, the misplaced budgetary priorities, up-zoning that enables and drives gentrification, inefficiencies in key city departments, and the “we’re rich” spending culture that various Mayors, City Council Members and City Staff have with regard to parties, banquets, travel, etc. are like a thousand cuts tearing at our affordability. These are some of the important policy changes that are needed at City Hall.”

“We need a course correction at the leadership and policy level of our City Council. We need experience, leadership, and the courage to lead by example and hold the budget writers and departments accountable for waste and policies that drive higher utility rates, higher tax rates and more City debt.”

Here’s a Look at What Laura Has Already Done for Affordability

1. Stopping a $1.5 Million Water Utility Fee Waiver – The City Council was poised to give away $1.5 million in badly needed Water Utility revenue to U.T. for a medical school construction fee waiver. After reading about it on this blog, Laura dug into the issue, contacted the media, and stood her ground in front of the City Council on June 12th. Her success in stopping the fee waiver is nicely documented in this YouTube video.

2. Taking the Lead On Public Outreach Regarding the Urban Rail Bonds – When Laura joined an email discussion of the badly misplaced and hugely expensive urban rail bonds, she did a lot more than just listen and share her thoughts. She organized an urban rail public forum for August 26th, which will feature several speakers focusing on various aspects of the issue. The forum will be moderated by KVUE-TV. More information will be posted on this blog as soon as it is available.

3. Helping to Reform the Public Input Process at City Hall – Like most of us, Laura is frustrated by the fact that big ticket consultant-driven plans like Imagine Austin, CodeNEXT, and Project Connect only pay lip service to public input. There are no guidelines to require that the public suggestions and opinions be summarized, quantified, or incorporated into the new policies that are developed in the plans. On this blog I proposed that the City adopt a Public Engagement Ordinance. (You can read about it here). Laura immediately took the proposal to the Austin Neighborhoods Council Executive Committee, so they could prepare a resolution. Once again, she is hitting the ground running, without waiting until after the election. District 4 voters should follow her lead and run to the polls during early voting this fall and vote for her.

Visit Laura Pressley’s Website And Facebook Page to Learn More

When you go to her website, you will see that affordability is right at the top of her list! You can click here to make a donation to her campaign. And go here to visit her Facebook page. Make sure that you send this blog link to all of your friends and neighbors in District 4.

Kathie Tovo Is Hands Down Best Candidate In District 9!

Austin Affordability

Let's Put the Public's Ability to Pay Into Austin's Planning Process