Tag Archives: Austin Property Taxes

How Austin Can Apply COVID Rescue Funds To Tax Relief

By Bill Oakey – April 27, 2021

Winning a battle to help the taxpayers is not an easy task. It’s like climbing up a hill backwards during a snowstorm in the dark. But it can be done, and this time it really must be done!

Get Ready To Go Down Into The Weeds!

This is what I have learned so far in researching the Federal American Rescue Plan Act. I am sharing this information with the Austin City Council:

1. Drill down on the American Rescue Plan details. Here is a good summary.

Take note of Item 2. on Page 17, under “Allandale Use of Funds”:

2. for the provision of government services to the extent of the reduction in revenue (i.e. online, property or income tax) due to the public health emergency.

This provision nails it. Austin has lost sales tax, property tax and various fee revenues since the pandemic began. These revenue losses can be covered with American Rescue Plan (ARP) funds. Some or all of the City’s projected budget shortfall can be covered with these funds. Here’s how to determine the exact amount:

This information is from the bottom of Page 2, in this Texas Municipal League document.

Eligible uses of ARP funds include:

– Responding to the public health emergency with respect to Covid-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.

– Responding to workers performing essential work during the pandemic by providing premium pay to eligible workers performing services inside recipients’ territories, or to eligible employers that have eligible workers who perform essential work.

– Providing government services to the extent of the reduction in revenue of such recipient due to the pandemic relative to revenues collected in the most recent full fiscal year of the recipient prior to the pandemic.

– Necessary investment in water, sewer, or broadband infrastructure.

The third bullet applies to our City Budget. Our most recent full fiscal year prior to the pandemic was FY 2019. It appears that pandemic-related revenue losses in the FY 2020 Budget are covered by the Rescue Plan funds, to the extent that the added revenues will bring the total up to the FY 2019 level, for each type of revenue. This provision does not make clear whether any FY 2021 revenue losses can be replenished with Rescue Plan funds. Please address this question to the Texas Municipal League or the U.S. Treasury. If I find out, I will let you know. You have until December 31, 2024 to spend the Rescue Plan funds. So, you could easily apply them to next year’s Budget, and provide relief on taxes and fees.

2. The Rescue Plan funds can be used for various health initiatives and social services. Many of these programs are funded annually in the City Budget. It seems to me that you should be able to apply the Rescue Plan funds directly to those eligible services, in lieu of property taxes. That would be in addition to the revenue shortfalls that you are allowed to cover.

Here’s the Bottom Line

You folks on the City Council have a unique opportunity to bring tax relief to homeowners and small businesses during this stressful period of the pandemic. This should be an easy win-win for everyone concerned. Think about these words from the recent KXAN News story:

Patrick Brown, a former Travis County chief appraiser, said with people already strained, an increase in the property tax calculation cap may put too much of a tax burden on Austinites. 

“It’s definitely going to affect all the commercial properties and land, and rental properties and the landlords, particularly ones that have acquired a mortgage loan in the last two or three years,” Brown said. 

That, in turn, he said will affect rental rates. 

“And that could push a number of residents out into the periphery and make Austin even less affordable than it is already,” he said.

Stay Tuned and We Shall See What Happens…

The next step is to ask the Travis County Commissioners to use part of their $247.1 million in Rescue Plan Funds for property tax relief. This news article makes no mention of their planning to do any such thing.

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

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 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

Welcome To Austin’s Newest Mass Transit Bureaucracy

By Bill Oakey, April 20, 2021

First of all, the pandemic has upended the old historic model of mass transit. But, does the City Council and Capital Metro recognize that? Have they modified the plans for Project Connect the way other major cities are doing? Ridership has decreased dramatically, peak times have shifted and routes have been altered. See these two extraordinary articles:

2. Pittsburgh Post-Gazette

Austin taxpayers face a bleak future of spiraling property tax increases for a new bureaucratic morass that may not even succeed in their mission. Unless we have strong oversight and rigid accountability standards, the high cost will displace many thousands of longtime Austin residents.

1. The City of Austin’s property tax increase this year for the Project Connect plan  is 8.75 cents per $100 valuation. That is almost as high as the 11 cent tax for Central Health, and even closer to Austin Community College’s 10.6 cent tax!

2. The City and Capital Metro created a whole new bureaucracy for implementing Project Connect’s $7.1 billion plan. It is called the Austin Transit Partnership. I have tried several online searches for “Austin Transit Partnership budget,” and cannot find one that is published anywhere. So, who can tell us how this year’s 23%, 8.75 cent City property tax increase, that is almost as high as ACC and Central Heath is being spent?

3. The $7.1 billion transit plan was sold to the voters as an “initial investment.” The final cost for a citywide plan would easily be 3 to 4 times that amount in local funding.  In 2016, Seattle voters approved a $54 billion plan to expand their existing rail system. By 2019 it was already over budget!

4. I am proposing to the City Council an annual public review process for the Austin Transit Partnership budget. It would closely follow the City’s budget process, with a proposed budget released a few months ahead of final adoption. This would be followed by 2 or 3 public hearings, with City Council members present. The final budget would have to be approved by our elected City Council. I am also asking for this year’s budget for our 23% property tax increase (8.75 cents) to be published and posted online.

5. The new Austin Transportation Partnership is busy recruiting coordinators, facilitators, liaisons and all manner of other bureaucrats to begin the process of studying and evaluating the approach to formulating the implementation of Project Connect’s $7.1 billion plan (!) Check out this colorfully worded job posting for “Manager, Board Relations:” The very first sentence has a typo with repeated words:
Manager, Board Relations
“The Manager Board Relations reports directly to the reports directly to the General Counsel and Chief Administrative Officer.“

Here is one of my favorite bullet points in the job posting:

“Develop and maintain viable systems and procedures to implement board policy providing knowledgeable input to the Board in their decision-making process.”

6. There are serious questions as to whether the proposed downtown tunnel is even feasible. The fault that runs north and south through underground Austin poses major engineering challenges. And our downtown streets were elevated several feet in the late 1800’s, because of severe flooding. In the 1980’s, an amateur explorer crawled through a narrow tunnel and discovered what remains of the old downtown streets. He showed a film to the City Council. This evidence of a previous downtown, and why it was buried still lies beneath us today, shrouded in mystery.

Musical Accompaniment For This Blog Piece:

1. “Ambrose (Part 5)” – Linda Laurie, 1958
2. “To Tell the Truth TV Show” – featuring Linda Laurie

KXAN Forecasts Historic Wave Of Property Tax Protests

By Bill Oakey – April 16, 2021

Just as Austinites began enjoying the marvelous joys of spring weather, amid hopeful signs of finally escaping the pandemic, a thunderous roar could be heard reverberating across the city. On Thursday afternoon, the initial sounds were much quieter – little mouse clicks and computer keystrokes. And the nearly silent taps and swipes across phones and tablets. Then came the sweeping surge of audible gasps, quickly followed by various combinations of howls, shrieks and screams. Many people exclaimed out loud, “How could this even be possible!!??” The Travis Central Appraisal District’s website went live with this year’s stunning property tax appraisals.

On the evening local news, KXAN became the first to report on the story. Click here for the video, or read about it below:

Tax Experts Anticipate More Home Appraisal Protests Than Ever

By Kevin Clark, April 15, 2021

AUSTIN (KXAN) — As the local housing market changes dramatically, hundreds of thousands in Travis County are getting their home appraisals from the Travis Central Appraisal District for this year. The numbers are important because they’re used to calculate property taxes. But tax experts tell KXAN they expect more homeowners than ever to fight back.Last year, TCAD says there were 127,000 protests. This year, even more are expected.

“We’ve already had folks calling us and asking us to help them, anticipating that ‘hard hit’ in those values,” said Debra Bawcom, CEO of Texas ProTax, which helps represent homeowners who want to protest the values set by the appraisal district. (Link provided by this blog).

As it does around this time every year, TCAD has begun sending out appraisal notices. But as housing demand continues to skyrocket, the appraisal district is reporting higher median home values. In 2020, Travis County’s median home value was $354,622. This year, TCAD says it has reached $413,403. The only year this number didn’t go up from the previous year was last year — that’s when the appraisal district froze appraisals because of a data dispute.

“I think it’s going to really shock the property owner how much that value is going to increase because the appraisal district is going to have to play catch up now for two years,” Bawcom said.

Bill Oakey is just one homeowner feeling the effect. He owns one-third of a triplex in West Austin. According to the appraisal notice Oakey received, its value went up 55% from last year.“The first thing that occurred to me was that the alarm was going to go off, I’m going to wake up and tell everyone about the bad dream I just had,” he told us.

Property owners have until May 17 to protest their appraisals. From there, homeowners can try and reach a settlement with TCAD informally or have a formal hearing in front of the Appraisal Review Board. More details on the process and timelines can be found here. Texas law caps increases of tax-assessed value to 10% per year for those with homestead exemptions. Anything above that is ripe for a protest, which is exactly what Oakey plans.

“I’m going to try to become an example of how you can win,” he said.

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

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.

The School Property Tax Double Whammy – Please Spread The Word On This!

By Bill Oakey – February 21, 2018

I have said this before, and I’ll say it again. AISD’s property taxes are the single biggest threat to Austin affordability. Nothing else even comes close. But if you thought the Robin Hood funding disparity was the only issue, guess what…That is only half of the problem. Each half of the problem is pretty scary, but taken together it’s a disaster. So, as soon as you finish reading this, please share it with as many people as you can. Our only hope in surviving the disaster is if enough people get motivated to speak out against it.

The State of Texas Is Double-Dipping on Your School Property Taxes…Here’s How It Works

Several years ago, the total State share of public school funding was 50%. The rest came from local property tax dollars. And as you know, big cities like Austin have to send back hundreds of millions of dollars each year in Robin Hood “recapture” payments. ($533 million this year). Those funds go to “property poor” school districts.

Every year for the past several years, our property appraisals have been going up. This is happening in all of the big cities that contribute to the Robin Hood system. That has caused school property taxes to skyrocket. And that’s where the double whammy comes in. The State is siphoning off this windfall of extra revenue, and spending it for non-educational items in the budget.

Here’s how it works. Technically, all of the Robin Hood revenue does flow to the property-poor school districts. But each year, as the pot of recapture money increases, the State decreases its share of public school funding. The “leftover money” from reducing public school funding gets spent on other items in the budget. This is a backdoor method of enacting a full-blown statewide property tax! That type of tax is unconstitutional, and it was ruled unconstitutional by the lower court. Then, the Texas Supreme Court ruled that it is constitutional, but “badly flawed.”

Let’s Take a Look At the Seismic Shift In State School Funding

State Representative Donna Howard’s office prepared this graphic that illustrates the problem. Here are the highlights:

  1. The State contribution to public school funding sinks from 45.3% to 31.7% from 2011 to the projection for 2019.
  2. The local property tax share shoots up from 54.7% to a projected 68.3% in the same period
  3. School property taxes make up 54% of your property tax bill.

Here’s how that looks in actual dollars for the same 8-year period:

  1. Local property tax share increases by $7 billion
  2. State share decreases by $3 billion

If you think all over those numbers look scary, just consider this – Every single one of them will get worse every single year unless we organize and mobilize to push for reforms!

Is the Robin Hood System Bad, Or Is It REALLY Bad?

These figures come from the AISD website. And remember, Robin Hood is only half of the double whammy…

  1. AISD is projected to send nearly $2.6 billion in recapture payments to the State between 2016 and 2020.
  2. By 2019, more than half of AISD’s local school property tax dollars will be sent back to the State

How Does Texas Public School Funding Compare With Other States?

On a national basis, Texas looks pitiful. You would think that business leaders would be the first to demand better educated candidates to fill critical jobs. But in Texas, “business-friendly” means lower taxes and less regulation. I would encourage these folks to take a hard, sobering look at some of these numbers. The U.S. Census Bureau’s latest report shows these rankings for per-student public school spending in fiscal year 2015. (Imagine how bad it must be now!)

  1. State funding per student: Texas ranked #47, with $4,189
  2. Local property tax funding per student: Texas ranked #19, with $5,716

What Are Our State Politicians Doing About This?

Some would like to spend more money on charter schools and less on public schools. And some want to restore the State share of public school funding to at least 50%. That’s where it was before the real estate boom caused the annual explosion of our property appraisals. But there is a cruel irony in all of this.

Gov. Greg Abbott and Lt. Governor Dan Patrick are blaming your high property taxes on cities and counties. They are running their reelection campaigns on a promise to put a cap on the revenue that cities and counties can raise through property taxes.  This is a slick political trick that takes the growing public frustration over high property taxes and spins it upside down and backwards.

The State school financing system is the problem! And if it continues on its current path, Austin taxpayers will indeed face a true disaster. I contend that it is simply not sustainable. Unless enough wealthy people move here to completely displace nearly everyone who has lived in Austin for more than ten years or so. And after a while, even those newcomers would start to fume over the property taxes. The projected numbers are staggering.

Here’s What You Can Do to Help

  1. If you get a flier in the mail from anybody running for office that promises property tax reform by blaming it on city or county taxes, stick it right here:
  2. Send this blog post to every pertinent organization that you belong to. Encourage them to distribute it to all of their members. If they have regular meetings, ask them to put it on their upcoming agenda for discussion. Invite good speakers to make a presentation.
  3. Make sure that you and your family and friends vote for candidates that recognize and admit the true cause of high property taxes!

Finally, Here Are Two Things That We Need to Fight For

  1. The Robin Hood recapture system needs to be reformed to make it fairer for Austin and the other big cities. Austin has a huge number of students living in poverty.
  2. The State needs to stop double-dipping on our local school property taxes. They need to increase the State share of funding for public schools back to at least 50%, if not more.

Save Money Under The New Tax Bill – Pay Your 2017 Property Taxes By December 31st

By Bill Oakey – December 27, 2017, Updated December 28, 2017

Please note: Your 2017 property tax bill is not due until January 31, 2018. This blog piece offers a suggestion to pay it by December 31st, to take advantage of changes to itemized deductions in the new Federal income tax law. But, you cannot claim a 2017 Federal tax deduction by prepaying your 2018 property taxes. The 2018 property tax bills will not be generated until the fall of next year.

If you itemize your income tax deductions, you could save money by paying your 2017 property taxes by December 31st, this Sunday. The new Federal tax bill puts a $10,000 cap on state and local taxes that you can deduct. This change takes effect in 2018. So, if your property tax bill is higher than $10,000, paying it by December 31st could give you a one-time cost savings. You might want to consult with a tax accountant to evaluate your best option.

Your 2017 tax bill was mailed to you several weeks ago. You can also look it up on the Travis County Tax Office website. If you want to pay it by mail by December 31st, follow these guidelines from the Travis County Tax Office. Payments made with a U.S. Postal Service postmark on the due date are considered timely. Commercial postal meter imprints are not considered postmarks for the purpose of determining timely payments.

As to why those property taxes are so high, and what can be done about that, here’s a parting thought. Go ahead and enjoy the parties on New Year’s Eve. Then, check back with this blog in the New Year. There will be plenty of adventures ahead in the battle for affordability!

City Council Rejects Police Contract – But Will They Trim The Cost?

By Bill Oakey – December 14, 2017

The late-night vote to send the contract back to negotiations was unanimous. And unprecedented. It came after seven hours of heated public testimony from both sides in the debate. This is the first time a City Council has ever rejected a police contract. Here’s the bottom line…

We Have Until March 22 to Implore the City Council Not to Let the New Contract Double Our Property Taxes Every 9 Years!

This issue is also about improved public oversight of the police. But for hundreds of thousands of taxpayers who are struggling with the taxes we already pay, we face a very real danger. The police negotiators will continue to demand higher pay in exchange for the reforms in citizen oversight.

What Is Wrong With This Picture?

I ask everyone reading this to please grab a pen and write down eight critical words – How do they do it in other cities? Put that scrap of paper in your wallet or purse. Then, every time you meet a City Council member, pull out that note and read the critical question out loud – How do they do it in other cities? What’s wrong with the picture in the police contract discussions is this:

1. Austin already has the highest police salaries in the State of Texas.

2. Our standards for public oversight of police are among the lowest in the country.

What Were the Scariest Moments in Last Night’s Meeting?

Over and over again, I kept hearing the same line of talk. Look at these variations on a single theme, straight from the Council dais and from the lips of the speakers:

1. “If we add X number of officers over the next five years, how much money will be left in the General fund for other programs?”

2. “If these new benefits are kept in the contract, will we end up with more or less money to spend in the General Fund than we were able to spend this year?”

Every time I heard a question like that, I knew something scary that is fundamental for every taxpayer to know…

City Officials Are Assuming That Raising Property Taxes to the 8% Legal Maximum Is the New Normal!

When Council members asked, “Can we afford this in the police contract, or can we afford that,” here’s what they meant by “afford.” They wanted to know if the “leftover money” after the contract was paid would be enough to cover the other services that the City normally provides. Plus all the new spending items from goals that the Council has set. All of this assumes the same chilling fact. The City expects to hit the maximum allowed 8% property tax rate every year going forward. And if that happens, your City taxes will double every 9 years.

How Can We As Taxpayers Stop This Cost Spiral?

1. Email and call City Council members. Ask them to reduce the unaffordable pay raises in the police contract.

2. Ask them to establish more reasonable boundaries for the pay raises.

3. Ask them to communicate those boundaries to the police and the City negotiating staff BEFORE the negotiations even begin.

4. Above all, ask the City Council to let the negotiators know that bringing our police accountability standards up to the nationally accepted level DOES NOT require granting unaffordable pay raises!

5. Don’t ask the City Counci…Tell them…That there is no such thing as “leftover money” in the City Budget. They need to overhaul their thinking and adopt a whole new set of goals. Doubling our property taxes every 9 years MUST NOT be an option. Would everyone please pause and take a look at the subtitle of my blog at the top of this page. It says this…

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

Every City Council member should ask themselves one little question before they tuck themselves into bed tonight…When was the last time period that most of their constituents got annual pay raises, year after year, equal to what they as taxpayers are giving to City employees? Then, let them drift peacefully off to sleep and have pleasant dreams.

Affordability Petition To The City Council – Let’s All Join In!

By Bill Oakey – August 11, 2016

Unless Austinites come together quickly and petition the City Council, the new budget will hit us with the biggest round of property tax, utility and monthly fee increases in several years. The entire concept of affordability has been tossed to the wind by a City Manager and staff that appear to be isolated from the realities facing us. The lofty language in the budget crows about a booming local economy. But it doesn’t mention what’s happening to you and your neighbors – being taxed out of your homes, runaway rent increases, and stagnant wages.

This Petition Needs To Move Quickly. You Can Print It and Distribute It To Your Friends. Or Just Share This Blog Link By Email And Social Media

Affordability Petition to the Austin City Council – August 2016

We call upon the Austin City Council to reject the City Manager’s FIscal Year 2017 Budget recommendation. We respectfully ask you to recognize that affordability is the number one civic issue, and to protect the interests of taxpayers by taking the following actions:

1. Make responsible adjustments to the Budget to reduce the effective tax rate increase from 8% to 4% or less, in line with most City Budgets adopted since 2011. Delay or phase in new programs. purchases and staff positions, rather than sacrificing critical community needs. (Annual increases of 8% would cause property taxes to double in 9 years – even sooner if tax appraisals go up).

2. Place all utility charge and utility bill add-on fee increases on hold. Ask the City Manager to report back to the City Council with a much more affordable fee schedule. (The dollar impact of the utility and fee increases is 2.4 times higher than the property tax increase for a typical resident).

3. Provide senior citizen discounts for all utility bill add-on fees. This is necessary since these fees are growing faster than property taxes.

4. Establish a sliding scale for City employee pay raises. Consider a flat dollar amount or a percentage with a dollar cap. Provide living wages for low-income workers. (2.5% raises over 10 years would increase a $150,000 salary by $37,329. But a $30,000 salary would only increase by $7,466. This would promote economic segregation).

5. Allocate equal City resources to retaining existing Austin residents as for recruiting new businesses. Please consider the AustinAffordability.com ”Homeowner Retention Initiative” as a starting point, along with policies and practices to help renters.

6. Establish a formal timeline to rapidly implement the Mayor’s “Music & Creative Ecosystem Stabilization Recommendations.” We need to protect Austin’s creative Industries and our quality of life.

7. Compile a comprehensive list of all City plans, determine estimated costs for each plan, along with a grand total cost for all of the plans. Publish the list on the City’s website. Seek public input to prioritize the plans and develop an affordable timeline for implementing them.

8. Make an official declaration of 2017 as “The Year of Affordability,” and pursue it as vigorously as you did the 2016 declaration for “The Year of Mobility.”

For more details on how the FY 2017 Budget shuns affordability, read this posting.

How to Get the Petition to the City Council

The fastest way is to use this single-click link to email all of them at once. Just tell them you support the AustinAffordability.com Affordability Petition. Or copy and paste it into your email. If you want to distribute printed copies, those can be mailed to: Austin City Council, P.O Box 1088, Austin, Texas 78767.

Come to the Public Hearings Next Thursday, the 18th

Please invite your friends and come to speak at the City Budget and Tax Rate public hearings. These will be held at 4:00 on Thursday August 18 at City Hall, 301 W. 2nd Street. You can sign up to speak on Item # 82 and Item # 84 at the kiosks in the City Hall lobby beginning next Monday, August 15th.