Tag Archives: Austin

Can We Stop Austin Energy From Wasting Over $40 Million?

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By Bill Oakey – June 5, 2014

Update: Response From Austin Energy Is Now Included

If you owned a business that needed more space, what choice would you make on this deal. Would you build a brand new building for $67 million, or would you buy a bigger building with plenty of parking right next door for less than half the price?

Well, guess what…Austin Energy not only wants to spend $67 million for the new building, but on June 12th they will ask the City Council for an additional $9 million to develop the PLANS for it!   The bureaucracy is alive and well, but this time we can’t let them get away with it.

Brian Rodgers, who is well-known for exposing the commercial tax appraisal inequities several years ago, sent out an alert this morning on the Austin Energy building boondoggle.  A broker friend of his advised him that the huge 48 acre campus formerly owned by AMD is available for sale for $25 million.  The address is 5900 East Ben White.  It is located just a few feet away from the spot where Austin Energy wants to build their boondoggle.  The price tag for AE’s dream building comes in at $375 per square foot, which is higher than the going rate for many downtown buildings.  There is also another building nearby that should be evaluated for cost.

Right now, we need to do two things:

1. Contact all seven City Council members, using this link, to ask them to cancel the $9 million planning contract for the new building.  This is Item #13 on the Council Agenda for June 12th. Ask them to evaluate purchasing the former AMD campus at 5900 East Ben White, as well as Building 312 at 6800 Burleson Road.

2. Work with the new candidates running in November to establish a reform.  All proposed City building projects should be evaluated on a matrix against specific alternatives, using strict cost-conscious guidelines.

Austin Energy Responds – What Part of “Affordability” Do They Not Understand?

Late this morning, the Austin American-Statesman posted an online story on the criticism of Austin Energy’s expensive new building plans.  The response from Austin Energy will probably not surprise you.  Vince McGlone, a facilities manager, made this comment regarding the former AMD facility that is bigger and half the cost:

“I’m very familiar with that building, I used to work there,” McGlone said. “It does not suit our needs, it is 1986 vintage equipment. What we’re trying to do with our new suite is create a building that does not draw upon natural resources as much.”

Sandra Strauss-Jones, an Austin Energy project manager, offered this description of the new building that they want.  “The new East Austin building would highlight the green-building practices the utility preaches. It will have solar panels in the parking lot, rainwater harvesting and pedestrian walking and biking trails.”

My Comments:  It would be great if they could provide some type of solar panels for whatever building they get.  There are lots of green building options out there.  They need to go back to the drawing board and find a way to do it cost effectively with an existing, cheaper building.  As for the bicycle and pedestrian hiking trails, I’m sorry.  But we just want you to keep our lights on, guys!  Do your hiking on your own time at your own expense.  Or else, uh, take a hike!  What part of “affordability” do you not understand?

A Look Back At Austin Energy’s Current Headquarters

For a bit of nostalgic history, here is how Austin Energy wound up in their current headquarters on Barton Springs Road.  In the late 1980’s that building was called the Sumiken Building.  A hack “consultant” who had worked in the mayor’s campaign lobbied for the contract to construct that building.  Even though this guy had no real estate license, and often wore no shoes, he received a fat commission for speaking on behalf of the project at City Hall.  Citizens were so outraged by this and other insider deals, that they elected several new council members who were far worse than what we had.  It wasn’t until a few years later that Brigid Shea, Daryl Slusher, and Jackie Goodman were elected on a neighborhood and environmental platform.

Austin Leaders Should Unite Behind Tax Appraisal Reform

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By Bill Oakey – June 4, 2014

The Travis County Commissioners Court took the first step on Monday toward meaningful action on tax appraisal reform.  Thanks in large part to the efforts of commissioner candidate, Brigid Shea, the Court is seriously exploring whether to legally challenge all of the commercial tax appraisals in Travis County.  Two stunning facts tell the story of gross inequities in the current system:

1. Commercial property is currently being assessed at only about 60% of its market value, thanks to a gaping loophole in State law.

2. The Travis Central Appraisal District is out-gunned by high priced lawyers who often sue in court and win if those property owners don’t get the appraisals they want from TCAD.

The end result is that residential homeowners get the shaft.  And with Austin taxes hitting unsustainable levels, local leaders are speaking out on the need for reform.  If the County Commissioners follow through with their challenge, the entire state will take notice, and regardless of the outcome, the Legislature will be confronted with the issue come January.

County Judge Sam Biscoe stated after the discussions in executive session on Monday that a lot of legal questions will need to be answered before commissioners can decide whether to take action.  A formal challenge would trigger the need to find out what set of appraisals the City, County, and other taxing entities would use for tax collections in the upcoming year.  A potential delay in tax collections could jeopardize the chances of a challenge being filed.  The issue will return to the Commissioners Court on June 17th.  At that time, homeowners will be given an opportunity to speak.

City Council Member Kathie Tovo has scheduled an item for the City to consider an appeal as well.  What would really be helpful would be a coordinated effort, including AISD.  The year of 2014 apparently marks the tipping point where citizens and local leaders have finally gotten the message.  Austin cannot continue to grow and maintain a booming economy unless there is available money to pay for services.  Homeowners cannot be expected to carry a lopsided portion of that burden.  It’s not even a matter of whether they WANT to pay.  The fact is that rapidly increasing numbers of them simply can’t afford to pay any more.

Mayoral Candidate Steve Adler Adds His Voice To The Call For Reform

I especially appreciate the comments that Steve Adler made on Monday in his handout to the packed crowd of frustrated homeowners at the Commissioners Court on Monday:

“Residential property owners are being unfairly burdened with property taxes. The city and local governments should have challenged the system years ago. There is nothing new about this problem and it is good to see Travis County considering action now.”

“Politicians should be honest when they talk to taxpayers about raising taxes, regardless of what they do with the tax rates. Taxpayers deserve truth in taxation.”

Mr. Adler’s characteristic breadth of scope in approaching complex issues will place him ahead of the pack when it comes to tackling property tax issues.  His experience working in the Legislature will help with respect to appraisal reform.  And he has made it clear in discussions with me that he would not tolerate the deceptive City Hall practice of hiding behind the tax rate during annual budget deliberations.  It was Steve Adler who brought to my attention the fact that the 7/10 of a cent tax rate reduction in the City Manager’s budget forecast actually adds up to a 5.5% tax increase.

I was reminded of John Kerry’s comment in his acceptance speech at the 2004 Democratic National Convention, “Imagine a President who believes in science!”  Well, how about this.  “Imagine a mayor who believes in truth in taxation!”

If This Is A Chess Game, What Is The Next Move?

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By Bill Oakey – June 2, 2014

If you often feel like a pawn in somebody else’s chess game, you are not alone.

The Players are looking down at Us from their perches on the upper floors of the tall towers. Those towers are all over the country, and even in some places overseas.  They can see us on their super-HD computer screens.  I’m not talking about literally seeing us through the cameras on our computers.  I’m talking about the figurative representations of us.

They are the kings and the queens, the rooks and the knights.

We are the pawns.

The City of Austin is just one ledger on one page in their impressive portfolios.  Of course, there are more of these viewing stations in downtown Austin than there are in New York, California , and Dubai.  But the objective is the same.  Move the pieces on the chess board around.  And try to outwit the opponents.  Try to make as much money as they can as fast as they can.  If only those gosh darned pawns didn’t get in the way sometimes!  They could make even more money.

We are the little dots seen slogging through the crowded streets, trying to get to work, to the grocery store, or perhaps over to Barton Springs, if only we could find a parking place.  And then slogging back home again to get some rest.  Before getting into the game all over again the next morning.

The Players have to be pretty worried right now.  Our tax appraisals were not a pretty picture. The news media is telling them that we have been observed acting restless.  So, what does that mean?  What will They do if We fall victim to the simple laws of economics?  No amount of maneuvering on the chess board can change the fact that we only earn X amount of income.  We can only afford so much in taxes.  We can only afford to vote for X number of bond elections.

The economy is part of the game too, but it is a Silent Player.  Just like Mother Nature is silent. You can’t do anything about the weather.  And when the economic scales get tipped out of balance, it becomes a desperate race against time.

Can The Players find enough new pawns to replace the estimated 40 current pawns who are leaving Austin every day?  Can they build enough self-enclosed “apartment communities” where the lowest rent for a one bedroom apartment is $1,375 per month?  These places have secured club rooms, open terraces with views, green lighting, and DNA testing for dogs.  You read that right.  If you find dog poop on your doorstep, THEY know whose dog did it. They have everybody’s dog’s DNA.  (I’m not making this up!  I saw it last night).

They want you to sell your single-family house so they can scrape it off and add another “apartment community” to their portfolio.

But what will happen to Them if the economy and Mother Nature don’t cooperate?  They have to scrambling to find a solution to the drought problem.  (I have to wonder how They feel about the proposed 30% water rate increase, with a new “drought fee” added to it).

Reports keep popping up in the news, stating that too many of Us are have stagnant wages and we can’t keep up with the costs of living in Austin.  So, I will end with the same question that I started with.

If this is a chess game, what is the next move?

1,070 Days And Counting – Let’s Urge The City To Fix The Problem!

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By Bill Oakey – May 31, 2014

When KXAN aired their investigative report this week on staff shortages at the City’s 911 Call Center, I assumed that the problems with burned out workers, call takers putting citizens on hold, and high overtime costs for taxpayers were a relatively recent problem.

Sadly, I was wrong.  The Austin American-Statesman ran a story on June 27, 2011 with the headline, “An Emergency at the City’s 911 Call Center?”  Here are the first two sentences from that story:

“Austin 911 officials say they are so strapped for operators that they have routinely spent $1 million or more for overtime and for temporary workers to fill shifts, even as thousands of callers waited on hold sometimes for minutes at a time because no one could immediately answer.”

“The city has not added any new operator positions to a staff of about 200 in nearly a decade, despite nearly 25 percent more calls to the center and repeated requests from call center managers. ”

Nearly three years later, just this past week, we heard this from Robert Maxwell at KXAN:

“Records show Austin 911 paid out nearly $1 million in overtime and for temporary workers this fiscal year. Some of the overtime was aimed at curbing the staff shortage problem due to scheduling issues or staff calling in sick.”

There is talk swirling around in some quarters that a new report to address the problems may be coming.  KXAN has seen a draft of this report, but no one at City Hall seems to know if or when it will be released.  Meanwhile, the City Manager’s formal budget proposal is due to be presented to the City Council in late July.

This morning at the Citizens Forum at the City Council, I made an attempt to jump-start some relief for the beleaguered 911 Call Center workers and a chance at better efficiency for the taxpayers.  Here is a KXAN website report on that.  The story should run on this evening’s 6:00 PM news.  (Saturday)

We need to rally our friends to contact the City Council and ask them to do a budget amendment from surplus funds to hire some new 911 Call Center staff.  If you agree that 1,070 consecutive days is long enough to wait for this critical public safety issue to be resolved, you can email all 7 City Council Members here with a single click.

Another Huge City Management Failure – The 911 Call Center Fiasco

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By Bill Oakey – May 29, 2014

Update: Please see City staff response at the end of this posting.

In two recent blog postings, I pointed out the fact that the City operated from last summer through the end of December with over 900 vacant staff positions funded in the budget.  And yet, here we are eight months into the fiscal year with the 911 Call Center seriously understaffed.  The workers are so severely stressed that they have a 20% turnover rate for call takers and 25% for dispatchers.  Overtime costs are soaring, citizen wait times for emergency calls have increased, and the City Manager has allowed the situation to continue.

For the past two years in the budget process, the Emergency Communications Division, which is under the Police Department, has requested more staff.  Both times the requests were denied. Now, as we approach the third budget cycle, we learn that finally, a new City report is forthcoming that will highlight the seriousness of the issue.  The Public Safety Commission will include this topic on their agenda at their June 2nd meeting.

On yesterday’s news broadcasts, a KXAN investigative report based on seven months of research spelled out the troubling details.  You can watch the KXAN video and read about it here.  The broadcast revealed high amounts of staff absences for sick leave and stressful overtime requirements.  It is not cost effective to operate a critical public safety office in such a manner. Having to constantly rehire and train new people does not serve the taxpayers well.  Especially in an environment where over 900 citywide staff vacancies were fully funded in this year’s budget.

It is long past time for someone at City Hall to step up and deal with this problem.  How much worse does it have to get before they take action?  This issue illustrates one more reason why we desperately need new leadership, both at the management and City Council levels.

Update: City Staff Unmet Service Demand Dated May 20th

As part of the annual budget process, City financial staff has made a recommendation for 61 new non-sworn police staff positions.  These include some new staff for the 911 Call Center, although the exact number is not specified.  See Page 33, Item 5 in the staff recommendation. This provides hope that some relief may be coming in October.  In the meantime, at the Citizens Forum on Saturday, I will ask the City Council to transfer at least $1 million in surplus funds to pay for new staff between now and the end of September.

Hold On To Your Wallets – Here Comes ACC!

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By Bill Oakey – May 28th, 2014

When it comes to local entities that impact your property taxes, Austin Community College often flies under the radar.  They do not garner nearly the publicity nor the public scrutiny that Central Health, Travis County, or the City of Austin gets.

But now the cat is out of the bag and all of that is about to change.

Richard Rhodes, the President and CEO of ACC is calling for a November bond election to the tune of just under a half billion dollars – $475 million, to be exact.  This article in today’s Austin American-Statesman tells the story.

It’s as if all of the dictionaries in all of the libraries at ACC somehow had the word “affordability” stripped out of them.  Even if that were the case, where has Mr. Rhodes, the advisory panel that recommended the huge bond package, and the ACC Board of Trustees been lately?  If they have been anywhere near the City of Austin, they must know that taxpayer here are tapped out.

In the laid back days of the 70’s and 80’s, the governmental entities had a standard process for bond proposals.  They would appoint a citizens advisory panel and ask for suggestions on what would make a good bond package.  The wish list items would quickly pile up, and the committee would recommend nearly all of them.  Why not, they figured.  Austinites always approve bond elections.

The tide began to turn last year.  AISD was shocked into reality when half of their bonds failed at the polls.  This year, the public’s appetite for big spending projects is even less than it was a year ago.  Affordability has risen to the top tier for virtually every candidate running in the new 10-1 district City Council races.

The smartest thing ACC could do is cut their construction and renovation wish list by half or two-thirds.  Then it might have some chance of passage.  Otherwise, they will be set back by another year or longer, causing their most critical needs to be delayed.

What ACC is up against is the very simplest of all economic realities.  People can only afford what their incomes and their budgets will allow.  In a local environment where realtors are telling their neighbors that far too many Austinites are having to sell their homes because they can no longer afford to live here, everyone needs to sit up and take notice.

Since ACC, for whatever reason, has not gotten the message, you can help with that right now.  Send an email message to Richard Rhodes, their President and CEO, using the link below:

mailto:rrhodes@austincc.edu

Huge Rate Increase Could Cripple Austin’s Water Utility

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By Bill Oakey – May 21, 2014

If you have been recently stunned by the tax appraisal notice on your house, how would you feel about a 30% increase in your water rates next year?  And then, how about a new “drought fee” on top of that base rate increase?  As hard as that sounds to swallow, it is actually possible unless the City Council listens to citizen appeals to take other measures to help the Water Utility.

On May 7th, the Austin American-Statesman published a sobering article that details the scenarios for what seems like unimaginable rate shock coming to City water customers.

“The utility plans to increase its base water rates next year, resulting in a monthly bill of $49.12 for the typical homeowner, up from $38.35 this year — a 30 percent jump.”

And that’s just the beginning.  While you are reading this, a new committee is reviewing options for calculating the new “drought fee” that would accompany the base rate increase.  Below are the five options being considered.  Be sure to keep reading to the end, because there are some ways that the City can avoid clobbering the ratepayers with such punitive and onerous rates.

Options for the Proposed Drought Fee

Option 1

Fee of $1 (Stage 3) or $2.75 (Stage 4) for every 1,000 gallons that any customer (a home or business) uses.

Fee for typical homeowner (who uses 7,000 gallons a month): $7 (Stage 3) or $19.25 (Stage 4)

Total water bill: $56.12 (Stage 3) or $68.37 (Stage 4)

Option 2

Different fees for each type of customer (single-family homes, apartment complexes, smaller businesses and larger companies/agencies) for every 1,000 gallons used.

Fee for typical homeowner: $5.18 (Stage 3) or $18.41 (Stage 4)

Total water bill: $54.30 (Stage 3) or $67.53 (Stage 4)

Option 3

Similar to Dallas’ program. For residential customers, fee would kick in only if they use more than 11,000 gallons per month. All nonresidential customers would pay a fee regardless of how much water they use.

Fee for typical homeowner: $0 (Stage 3 or Stage 4)

Total water bill: $49.12 (Stage 3 or Stage 4)

Option 4

Different fees for homes and businesses; fees also based on amount of water used.

Fee for typical homeowner: $5 (Stage 3) or $22.50 (Stage 4)

Total water bill: $54.12 (Stage 3) or $71.62 (Stage 4)

Option 5

Different, flat fee for each type of customer (single-family homes, apartment complexes, smaller businesses and larger companies/agencies).

Fee for typical homeowner in Stage 3: $4 (Stage 3) or $12 (Stage 4)

Total water bill: $53.12 (Stage 3) or $61.12 (Stage 4)

How Can the City Help the Water Utility and Avoid the Devastating Rate Shock?

Earlier this year, the City announced that there was a $14.2 million budget surplus in the General Fund.  Readers of this blog rallied to the defense of taxpayers and convinced the City Council not to spend this surplus.  I have made a proposal to the City Council, asking them to transfer the budget surplus to the Water Utility to help hold down any forthcoming rate increase.  (See the previous blog entry, “A Possible Breakthrough for the City’s $14.2 Million Budget Surplus.”)

In addition, the budget surplus should be even higher by the time the City Council begins budget deliberations early next month.  I have asked the Council to itemize the large amount of leftover funds from 900 unfilled staff positions that were funded in the current year’s budget.  Unless most of those positions have been filled since early January, then the City should have an additional surplus that could be transferred to the Water Utility.  For long-term accountability to the taxpayers, I have recommended that the City follow the policies of other cities, such as Honolulu and Portland.  These cities do not allow individual departments to stockpile large amounts of money from unfilled positions.  The danger is that the money can easily be spent for other projects.  We need better oversight of taxpayer money, and the City Council needs to exercise its authority over the budget process.

The final option that the City can use to help the Water Utility is to sell some unused and unneeded land that the was purchased by the utility.  Why should ratepayers be saddled with huge rate increases, while the hot summer wind blows over many acres of unused property that the City could sell for a handsome profit?

How Does the Fitch Bond Rating Service Feel About Our Water Rates?

The Fitch Bond Rating Service has made their position clear in their May 19th review of the Water Utility’s bonds.  Below is an excerpt from their report:

DECLINING RATE AFFORDABILITY

“Fitch considers AWU’s combined water and wastewater rates somewhat high relative to income levels of city residents, and in comparison to other large urban systems. Although rate hikes on a combined percentage basis have been fairly modest over the last several years, the city’s total monthly residential bill currently amounts to about $88, equal to an above average 2.1% of median household income.”

“The Rating Outlook for the series 2014 bonds and outstanding parity water and wastewater revenue bonds is revised to Negative from Stable.”

Now, we just have to wonder…Is anybody down there at City Hall listening…?

City Council To Host Citizens Forum – Saturday May 31st

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By Bill Oakey – May 20, 2014

Austin taxpayers have a rare opportunity to let their voices be heard at a special Citizens Forum hosted by the City Council.  We are only about 10 days away from the start of Budget Season.  So, we need to let them know that “holding the line” does not mean keeping the tax rate within a fraction of a penny of where it is now.  We need full accountability on what the true budget surplus is, including the original $14.2 million plus the money left over from all those vacant staff positions.  And we should ask them to use that surplus to cover the revenue shortfall in the Water Utility – instead of passing a gigantic rate increase that would do nothing to encourage conservation.

My suggestion is to bring your tax appraisal notices to the forum.  Bring your utility bills and your property tax bills.  Let the City Council know that “business as usual” will not be tolerated in the upcoming budget.

We have Council Member Kathie Tovo to thank as the sponsor of this Citizens Forum.  Last month, she was the recipient of the AustinAffordability.com “Above and Beyond” award.   Below you will see her picture with the award, followed by the official announcement of the Saturday forum.  You and your neighbors and friends can contact the City Clerk’s office (512-974-2210), and make plans to fill the Council Chambers on May 31st with a resounding message on affordability.  Let’s tell them with a unified voice that the current spending path is simply not sustainable.

Kathie Tovo With "Above and Beyond" Award

Kathie Tovo With “Above and Beyond” Award

CITY COUNCIL TO HOST CITIZEN FORUM SATURDAY, MAY 31

Forum will be held at 9 a.m. Saturday, May 31, 2014.

The Austin City Council will host a three-hour Citizens Forum, 9 a.m. Saturday, May 31, 2014, at Austin City Hall (301 W. Second St.).

Council invites the community to come and speak directly about any topic or issue they feel the Council needs to hear about or address.

“City Hall and city government should be accessible to everyone,” said Council Member Kathie Tovo. “Austinites with daytime jobs and those with children cannot always make it Downtown during the week to make their voices heard. I’m committed to creating opportunities for everyone to be able to address the Council on issues important to them.”

Tovo’s co-sponsors agree that having a weekend meeting could be more accessible for some people who cannot attend the regular Thursday Council sessions.

“We recognize there is a need for alternative opportunities for all constituents of Austin to be able to be heard by their City representatives, and I look forward to hearing from new voices as a result of this Citizens Forum,” Mayor Pro Tem Sheryl Cole said.

“We all recognize that attending Council meetings on Thursdays isn’t possible for everyone who works and has a family, but might want to come speak on an issue,” Council Member Mike Martinez said. “We should be taking steps like this to ensure that every citizen has the opportunity to address Council and make their voices heard.”

There are two ways residents can sign up to speak:

  • General Citizen Communication:  There are 20 slots available under General Citizen Communication and require registration in advance of the meeting. Sign up begins May 9 either by contacting the City Clerk’s office at (512) 974-2210, in-person at City Hall or by email at citizens.communication@austintexas.gov. Pre-registration closes May 23. These registrations will be posted on the agenda and citizens will be asked to provide a topic in advance to allow Council to engage in a full discussion of the topic. The same rules regarding registration during regular council meetings apply.
  • Open Citizens’ Communication: Participants may register using the City’s Speaker Sign-up kiosks located in the lobby of City Hall.  Participants may also register in person beginning at Noon on Wednesday, May 28 through the day of the forum. The number of speakers is limited by the noon meeting deadline or until all the speakers have spoken. Council will only be able to listen to these topics and not engage in a dialogue with the citizens.

For both General Citizen Communications and Open Citizens’ Communications, speakers have three minutes, and no time can be donated to be used by someone else.

Travel Resources:

The address for City Hall is 301 W. Second Street.  The following Cap Metro routes offer downtown service: 3, 4, 17, 22 or 801. Find schedules and complete route information at capmetro.org or by calling 512-474-1200. Get step-by-step travel directions for using Capital Metro routes with Trip Planner.

The Big Set Of Numbers That Don’t Add Up – City Projects 33.6% Property Tax Revenue Increase!

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By Bill Oakey – May 19, 2014

The City of Austin has released a very strange set of numbers.  Maybe you can help me figure them out.  if it’s just me who’s crazy, then the rest of you can breathe easier and I’ll go find something else to do.

On April 24th, the City’s financial staff released a Five Year Financial Forecast for all City departments.  The strange phenomenon that I discovered involves the number of new employees projected to be added annually for each department.

Let’s Look at How the City Introduces the Numbers

Here is a brief introduction to the staffing projections, taken from Page 7 of the report:

Staffing Projections

“Staffing costs represent the single largest component of the City’s Budget, and an accurate projection of future staffing levels is essential to forecasting expenditure growth. This section details existing positions and projected changes in the City’s Financial Forecast. ”

My comment:  Take careful note of the portion that I underlined in the first sentence.  You will want to come back later and read it again.

Now Let’s Look at Their Description of the Numbers

From Page 7, Third Paragraph:

“Staffing projections for General Fund departments do not include any positions required to implement new programs or enhance service levels. However positions have been included to address service demands arising from newly annexed areas, a growing population, and the opening of new facilities.”

My comment:  Those sentences sound a little fuzzy.  But not nearly as fuzzy as the numbers.

Now Let’s Take a Look at the Numbers…Click each link below:

Five Year Staffing Projections – Page 8

Five Year Staffing Projections – Page 9

Here Comes the Brain-Twister…Do These Numbers Make Any Sense?

The following City departments are projected to see no change at all in staffing levels for six years in a row, including this year:

Animal Services, Fire (Non-Sworn), Health & Human Services, Parks & Recreation, Planning & Development Review…(Really?), Police (Non-Sworn), Austin Convention Center, Economic Development, Juvenile Case Manager Fund, Neighborhood Housing & Community Development, Parks & Recreation – Golf, Traffic Safety Fund

These City departments are projected to see no change in staffing levels over the five years from 2015 – 2019:

EMS (Non-Sworn), EMS (Sworn), Austin Transportation –  Parking Management, Austin Transportation – Transportation Fund, Aviation, Child Safety, Public Works – Capital Projects Management, Public Works – Transportation Fund. (Note: The last two departments each lose staff from 2014 to 2015)

Of course, there are several departments that are projected to see increased staffing levels. These include the new downtown library, police and fire, Austin Energy and the Water Utility. The Water Utility’s staffing numbers look pretty disturbing, considering the fact that Austinites have heeded the call for conservation and are using less water.  Even further usage reductions are forecast over the next five years.  And yet, the Water Utility plans to add 136.75 new positions, second only to the 187 for new police officers.  The forecast suggests that the drought will continue, but it blindly assumes that water restrictions will remain at Stage 2.  For an explanation of the projections for the Water Utility, see Pages 29 – 31 in the City report.

What’s the Bottom Line for You As a Taxpayer?

How About a 33.6% Increase in City Property Tax Revenue…

The official projections for tax, utility and fee increases do not look good.  On Page 17 of the report, you will see that home appraisals are forecast to increase by at least 5% each year.  You can see the ominous progression of increasing taxes here:

Five Years of Escalating Tax Increases

The most shocking thing about this chart is that it shows Austin’s total property tax revenue increasing a staggering 33.6%, from $355.3 million to $474.8 million!  The tax rate, which would cost you more even if it stayed the same, is projected to steadily increase. Then you have to pile on utility rate increases, a parade of add-on fee increases, and all the other area taxes that you pay.  As scary as that sounds, the stark reality is probably much worse.  If anyone believes the projections that all those City staff positions will remain flat for five to six consecutive years, can we talk about that bridge that I have for sale?

The best solution to this strange conundrum of numbers that don’t look reliable is to work with our new City Council candidates and ask them to commit to much better transparency and accountability in the whole process of budget, planning, audit and finance.  The oversight role of the City Council and their authority over the budget is crucial.

Beyond that, the current City Council should take a good hard look at whether they should continue to rely on the current City Manager, or send him on his way and appoint an interim manager to take his place.  A six month internal transition before the new City Council takes office might be the best first step to getting the City’s fiscal house in order.

Coming Monday: A Big Set Of Numbers That Don’t Add Up – Except To A Disaster Waiting To Happen

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By Bill Oakey – May 16, 2014

If I had kids in the house, I would be having a good little talk with a fifth grader.  Sometimes fresh young minds can see things that are right in front of them that we can’t see.  In this case, I have stared at the same set of numbers several times, only to discover that they don’t add up.  The passing of the weekend will not cause those numbers to make logical sense, any more than rubbing my eyes and looking at them again could.

But I can tell you one thing for sure….

You are going to find them very interesting.

So, bookmark this blog.  If you are using a portable device, add it to your home screen as an icon.  (That nerd sitting next to you can show you how to do it).

Have a good weekend.  Don’t use too much water.  And don’t forget to pay your electric bill.

Try listening to the new album by Martina McBride…You won’t be able to listen to “Come See About Me” without wanting to get up and dance.

See you on Monday.