[00:00:05]
[CALL TO ORDER]
EVERYBODY.IT'S THREE O'CLOCK ON JULY 22ND, 2025, AND I WILL CALL TO ORDER THE AUDIT AND FINANCE COMMITTEE OF THE AUSTIN CITY COUNCIL.
WE ARE MEETING IN THE CITY COUNCIL CHAMBERS, WHICH ARE LO LOCATED AT CITY HALL 3 0 1 WEST SECOND STREET IN AUSTIN, TEXAS.
AND WE HAVE A MAJORITY, UH, WE HAVE ALL OF THE, UH, MEMBERS OF THE COMMITTEE AND SOME ADDITIONAL COUNCIL MEMBERS THAT HAVE JOINED US AS WELL.
[Public Communication: General]
HAVE FIVE PEOPLE THAT HAVE SIGNED UP TO SPEAK, AND SO I'M GONNA CALL YOUR NAMES WHEN I CALL YOUR NAMES, IF YOU'LL JUST COME FORWARD AND TAKE ONE OF THE CHAIRS.UH, AND THEN WE'LL GO IN ORDER AND, AND HEAR FROM YOU TODAY.
SO, PAULA ANI, PAULA ANI, RYAN SAUNDERS, BOB NICKS, KATHY MITCHELL, AND SAVANNAH LEE.
IF YOUR NAME'S BEEN CALLED, PLEASE COME FORWARD AND GRAB A CHAIR.
AND MS. SULTANI, I'LL CALL ON YOU FIRST.
THANK YOU SO MUCH FOR HAVING ME.
I'M ONE OF THE CO-DIRECTORS OF A GRASSROOTS ORGANIZATION CALLED VOCAL TEXAS.
BASED HERE IN AUSTIN, WE ORGANIZED TO END HOMELESSNESS, THE DRUG WAR, MASS INCARCERATION, AND AIDS.
AND I'M HERE TO URGE YOU TO SUPPORT THE FULL 8 CENT TAX REELECTION.
I KNOW THAT'S NOT A SMALL, SMALL ASK, BUT WE'RE NOT FACING SMALL CHALLENGES.
WE'RE IN THE MIDST OF A HISTORIC HOUSING AND HOMELESSNESS CRISIS THAT I'M SURE YOU'RE ALL AWARE OF, AND WE ALSO HAVE FEDERAL BUDGET CUTS LOOMING.
THE PROPOSED TAX RATE AT THE MAXIMUM LEVEL IS THE ONLY OPTION THAT MEETS THE SCALE OF THE MOMENT.
WHEN I THOUGHT ABOUT WHAT I WANTED TO SHARE WITH YOU TODAY, I THOUGHT OF BOTH THE PROGRESS MADE AND THE PAIN THAT PEOPLE ARE STILL FEELING.
THE GOOD NEWS IS, IS THAT AUSTIN HAS MADE REAL STRIDES.
WE'VE STRAY STRENGTHENED THE HOMELESS STRATEGY OFFICE.
WE'VE EXPANDED SHELTER BEDS, WE'VE IMPROVED SHELTER QUALITY, WE'VE FIXED BROKEN PROGRAMS. SOME OF OUR VERY OWN VOCAL TEXAS LEADERS WHO EXPERIENCED HOMELESSNESS FOR YEARS ARE NOW HOUSED.
ONE NOW WORKS FOR VOCAL TEXAS AS AN ORGANIZER, AND THAT'S REALLY POWERFUL, BUT I WON'T SUGARCOAT IT.
THE SITUATION IS STILL SO BAD FOR SO MANY PEOPLE OUT THERE.
MOST OF OUR MEMBERS REMAIN UNHOUSED EVERY SINGLE DAY.
OUR ORGANIZERS MEET PEOPLE STANDING IN LINE FOR HOURS OUTSIDE OF TRINITY CENTER, SUNRISE, THE TEXAS HARM REDUCTION ALLIANCE, WAITING TO ACCESS BASIC SERVICES.
THE WAIT LISTS ARE LONG FOR CASE MANAGEMENT, HOUSING SERVICES, VOUCHERS.
PEOPLE ARE WAITING AND WAITING AND WAITING RIGHT NOW.
THE CHANCES OF FINDING TRULY AFFORDABLE HOUSING SUPPORTIVE HOUSING OR A RENTAL VOUCHER IN AUSTIN ARE EXTREMELY SLIM.
EVEN THOUGH WE'VE HEARD SOCIAL SERVICES WILL NOT BE CUT IN THIS YEAR'S BUDGET, THE CITY HAS BEEN RELYING ON ONE-TIME MARKER FUNDS THAT ARE ABOUT TO RUN OUT.
HUNDREDS OF PEOPLE IN RAPID REHOUSING AND ON EMERGENCY HOUSING VOUCHERS ARE ON THE VERGE OF BECOMING HOMELESS AGAIN.
AND WITHOUT FUTURE FUNDING, WE HAVE NO PLAN TO REPLENISH THOSE FUNDS OR EXPAND THOSE PROGRAMS. SO LET'S BE CLEAR, THE INVESTMENTS IN THE TRE SCENARIOS ARE NOT LUXURIES OR EXTRAS.
THESE ARE LIFELINES FOR POOR PEOPLE IN OUR CITY.
THEY FUND SHELTER BEDS, CASE MANAGERS, NEW PERMANENT SUPPORTIVE HOUSING UNITS, RAPID REHOUSING, COMMUNITY-BASED SHELTER INITIATIVES.
THESE ARE THE PROGRAMS THAT WILL HELP STABILIZE PEOPLE SURVIVE, HELP THEM SURVIVE AND HEAL.
AND WITHOUT THEM, THE ENTIRE CITY FEELS THE CONSEQUENCES.
IF AUSTINITES CARE ABOUT PUBLIC SAFETY AND QUALITY OF LIFE, WE MUST ASK THEM TO HELP THE CITY INVEST IN IN BOTH OF THOSE FOR EVERYONE, ESPECIALLY THOSE MOST IN NEED.
LASTLY, I WOULD LIKE TO ADD THAT WE WOULD LIKE TO SEE BOTH PREVENTION AND DIVERSION ACT ADDED TO THE SCENARIOS, UH, FOR THE TRE.
AND WE'RE SUPPORTING AN 8 CENT INCREASE INSTEAD OF SIX OR SEVEN.
THANK THANK, THANK YOU, MA'AM.
UM, APPRECIATE YOUR BEING HERE.
RYAN SAUNDERS, FOLLOWED BY BOB NICKS, THEN KATHY MITCHELL AND SAVANNAH LEE, IF Y'ALL WANNA GO AHEAD AND TAKE A A SEAT, YOU, YOU'RE WELCOME TO DO THAT.
THANK YOU FOR ALLOWING ME TO BE HERE.
UM, I'M HERE TO DISCUSS A FEW TOPICS RELATED TO INEFFICIENCIES THAT IMPACT BUDGET.
AND YOUR NAME IS RYAN SAUNDERS, RIGHT? YES, SIR.
RYAN SAUNDERS IN DISTRICT THREE.
UM, I'M HERE TO DISCUSS A FEW TOPICS RELATED TO INEFFICIENCY THAT IMPACT BUDGET, WASTE, POLICE RESOURCES, AS WELL AS CREATE FRUSTRATING CIRCUMSTANCES FOR RESIDENTS.
IT SEEMS CITY LEGAL AND MUNICIPAL COURT HAVE MORE POWER AND INFLUENCE ON
[00:05:01]
CITIZENS' LIVES THAN MANY REALIZE, YET THERE DOES NOT APPEAR TO BE CLEAR OVERSIGHT OR ABILITY TO CHECK THEIR ACTIONS.I HAVE HAD ISSUES WITH CITY LEGAL MAKING DETERMINATIONS ON CITY ORDINANCES THAT IMPACT QUALITY OF LIFE INEFFICIENCIES DEALING WITH MUNICIPAL COURT IN REGARD TO GETTING PARKING TICKETS WHILE I HAVE AN ANNUAL RPP PERMIT WHERE YOU SEND MULTIPLE EMAILS WITH SUPPORTING INFO ABOUT THE PERMIT, ONLY GETTING AN AUTOMATED RESPONSE AND THAT YOU'RE IN A QUEUE AND THEN RECEIVING A LETTER THAT YOUR TICKET IS DELINQUENT TO DRIVE TO MUNICIPAL COURT TO BE TOLD THAT THEY DID RECEIVE YOUR COMMUNICATIONS.
THAT LETTER WAS AUTO TRIGGERED AND YOU'RE JUST BACKLOGGED.
AND LAST BUT NOT LEAST, UH, NUISANCES SUCH AS ANIMAL NOISE, IS NOW ONLY ABLE TO BE REGULATED THROUGH CITIZEN COMPLAINTS AT MUNICIPAL COURT.
I'M HERE TO TALK ABOUT THE ISSUES AT A HIGH LEVEL, SO I WON'T GO INTO TOO MUCH DETAIL, BUT I FEEL LIKE I WAS BASICALLY BLACKMAILED INTO MEDIATION DIRECT QUOTE FROM A CITY LEGAL EMPLOYEE.
IF YOU WANT TO GO TO COURT AND REFUSE MEDIATION, WE WILL REFUSE ANY ADDITIONAL FUTURE CHARGES RELATED TO THIS ISSUE.
AND I WAS DENIED WHEN I ASKED FOR A MEETING TO SIT DOWN AND REVIEW THE 10 PLUS CITIZEN COMPLAINTS I HAD FILED, BECAUSE RESPONSES TO THESE COMPLAINTS BY THE COURT ARE SPORADIC, AND IT'S VERY HARD TO GET ANY CLARITY AS TO WHAT IS GOING ON WITH THEM UNLESS YOU'RE EXTREMELY PERSISTENT.
IN REGARDS TO THE BUDGET, I WANNA MENTION THE IMPACT ON PUBLIC SAFETY.
BY OCCUPYING POLICE MANPOWER THROUGH THE CONFUSION AND INEFFICIENCY OF ORDINANCES SUCH AS NOISE AND SOUND ORDINANCE ISSUES, POLICE SOURCE OFFICERS ARE OFTEN EVEN RELUCTANT TO TICKET FOR CERTAIN ORDINANCES BECAUSE OF PAST RESISTANCE FROM MUNICIPAL COURT TO ENFORCE THE CHARGES.
ONE EXAMPLE WHEN IT COMES TO NIGHTLIFE AND NOISE ISSUES, IT'S THE CONFUSION AND INEFFICIENCY OF DIFFERENT CRITERIA FOR DIFFERENT USES.
UM, FOOD TRUCKS, SPEAKERS ARE RESPONSIBLE.
A PD RESIDENTIAL TO RESIDENTIAL IS A PD.
SHORT-TERM RENTALS IS CODE ENFORCEMENT.
OUTDOOR MUSIC VENUE PERMITS IS CODE ENFORCEMENT.
BUT IF THEY ONLY, IF THEY HAVE A PERMIT, IF THEY DON'T HAVE A PERMIT, BUT THEY'RE VIOLATING THE RULES, THEN THEY WOULD BE A PD.
I HAVE A SHORT-TERM RENTAL ON ONE SIDE OF MY PROPERTY, A BAR ACROSS THE STREET, A FOOD TRUCK PARK ON THE OTHER SIDE, AND A SINGLE FAMILY, UM, ON THE OTHER SIDE.
AND IF ALL FOUR WERE CAUSING NEWS NOISE DISTURBANCES, EACH WOULD HAVE DIFFERENT DECIBELS FOR NOISE ORDINANCE.
EACH ONE IS, UH, REGULATED BY DIFFERENT DEPARTMENT OF JURISDICTION.
SO IF A CODE ENFORCEMENT OFFICER ATTENDED ONE AND THE OTHER WAS VIOLATING, THEY COULDN'T WRITE A TICKET AND A SECOND POLICE OFFICER WOULD HAVE TO, UM, RESPOND.
THE CITY AUSTIN, UH, REQUIRES COMMERCIAL ESTABLISHES THAT USE SOUND EQUIPMENT OUTDOORS IN ANY SPACE, NOT FULLY ENCLOSED BY FOUR SOLID WALLS AND A ROOF TO ATTAIN THE OUTDOOR MUSIC VENUE PERMIT.
IT STATES THAT IT MUST HAVE FOUR PERMANENT WALLS.
HE HAD A BAR THAT HAS A GLASS GARAGE DOOR THAT CAN OPEN AND CLOSE, WAS DETERMINED BY THE LEGAL DEPARTMENT TO NOT BE AN OUTDOOR MUSIC VENUE.
AND THEY'RE ALLOWED WITH THE GARAGE DOOR OPEN, STILL HAVE LIVE MUSIC AND DJS.
UM, I WOULD ASK THAT JUDICIAL COMMITTEE BE BROUGHT BACK.
UM, BOB NICKS, MR. NICKS ISN'T HERE.
KATHY MITCHELL, FOLLOWED BY SAVANNAH LEE.
UH, I'M KATHY MITCHELL WITH EQUITY ACTION.
AND WE ARE, UH, VERY HAPPY TO SEE THE LIST OF SERVICES THAT IS PROPOSED FOR THE TRES.
UH, PARTICULARLY I WOULD SAY STARTING AT 5 CENTS AND HIGHER.
UH, BEFORE THAT, IT'S JUST GRAVE SADNESS THAT WE ARE NOT ABLE TO PAY FOR THE SERVICES THAT ARE LISTED.
UM, SOME OF THIS IS OF COURSE, UH, DIRECTLY ATTRIBUTABLE TO A FEDERAL ADMINISTRATION THAT IS CLAWING BACK OUR IDEA OF WHAT IT MEANS TO BE AMERICAN AND HOW THAT WOULD BE PAID FOR.
UH, BUT SOME OF IT IS CHOICES THAT THIS BODY MADE LAST YEAR WHEN THE POLICE CONTRACT THAT WE COULD NOT AFFORD PASSED.
AND I'M NOT TRYING TO HAVE, AND I TOLD YOU SO, I'M JUST BEING REAL.
UH, AND IN TERMS OF THE COMMUNITY SUPPORT FOR THE TRE, I THINK YOU WILL FIND A RESOUNDING YES TO ALL THE SERVICES THAT ARE THERE.
AND I THINK YOU WILL FIND SOME SKEPTICISM AROUND ADDITIONAL MONEY FOR THE POLICE DEPARTMENT THAT IS IN THIS BUDGET PROPOSAL.
SO, TO ME, A GOOD FIRST STEP IN STRAIGHTENING OUT WHAT IT IS THAT WE THINK IS IMPORTANT IN THIS CITY IN LIGHT OF THE MOMENT THAT WE ARE NOW IN, WOULD BE TO, TO THE GREATEST EXTENT POSSIBLE, MINIMIZE WHAT WE ARE ADDING TO THE POLICE BUDGET.
AND SO THESE TWO THINGS ARE CONNECTED.
I KNOW I'M HERE TO SPEAK TO THE TRE, WHICH I'M GONNA SPEAK IN SUPPORT OF, AND ALSO A COMMIT FROM, A COMMITMENT FROM COUNSEL THAT WE HAVE INVESTED A MASSIVE AMOUNT IN OUR POLICE DEPARTMENT, AND IT'S TIME TO START LOOKING AT ALL THE OTHER THINGS.
AND THERE ARE LOTS OF WAYS TO DO THAT.
AND THIS LIST IS PART OF THAT PROCESS.
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A LOT OF CONVERSATIONS THAT WE NEED TO HAVE ABOUT CIVILIANIZING VARIOUS FUNCTIONS AT A PD, SOME OF WHICH YOU JUST HEARD ABOUT FROM THE PREVIOUS WITNESS.SO, UM, I WANT TO SAY YES, BUT I KNOW THAT I'M ALREADY HEARING BACK FROM MEMBERS OF THE COMMUNITY THAT I WORK WITH THAT THEY WANNA KNOW WHERE YOU ALL ARE ON THIS CONUNDRUM OF THE ABILITY TO JUST AT ANY POINT PUT NEW PROGRAMMATIC WORK AT A PD WHERE IT DOES NOT BELONG.
SO WE WANT SOME KIND OF COMMITMENT.
I DON'T KNOW WHAT THAT LOOKS LIKE.
MAYBE IT'S JUST SOME COMMENT FROM THE DAIS.
UH, THANK YOU MAYOR WATSON AND COUNCIL MEMBERS FOR HAVING US.
MY NAME IS SAVANNAH LEE AND I'M HERE WITH EQUITY ACTION.
WHILE WE UNDERSTAND THAT THIS IS A BIG DECISION, WE FEEL THAT A BIG DECISION IS NECESSARY FOR US TO MEET A VERY BIG MOMENT.
AS MENTIONED BY COUNCIL MEMBER SIEGEL IN THE BUDGET REVIEW LAST WEEK, THIS CANNOT BE THE MOMENT THAT WE SHRINK FROM THE PROGRESS THAT AUSTIN HAS MADE.
AS ARPA FUNDING CLOSES OUT AND THE TRUMP ADMINISTRATION CLAUSE BACK FUNDING ALREADY PROMISED FOR SERVICES THAT FORM THE BACKBONE OF COMMUNITY CARE IN AUSTIN, WE MUST FILL THAT GAP.
A TAX RATE ELECTION COULD PROVIDE THE FUNDING WE NEED, NOT JUST TO TRIAGE THE MANY RECENT CRISES WE'RE FACING, BUT ALLOW AUSTIN TO DEMONSTRATE WHAT A GREAT CITY AND A FUNCTIONING DEMOCRACY CAN LOOK LIKE.
EVEN AS DEMOCRACY FALTERS AROUND US.
STUDIES SHOW A LONG-TERM COST SAVINGS OF $4 FOR EVERY DOLLAR SPENT ON HOMELESSNESS PREVENTION PROGRAMS. OTHERS SHOW COST SAVINGS OF $97 PER DOLLAR SPENT ON HARM REDUCTION LIKE SYRINGE EXCHANGE, EXCHANGE PROGRAMS. THE MORE WE'RE ABLE TO INVEST IN OUR COMMUNITY NOW, THE LESS WE WILL HAVE TO SPEND LATER.
PREVENTATIVE SPENDING ISN'T JUST A COMPASSIONATE AND MORAL CHOICE.
IT'S THE SMART AND EFFICIENT ONE.
MEANWHILE, THE PROJECTED 20 26, 20 27 BUDGET PROMISES MILLIONS IN CUTS TO SOCIAL SERVICE PROGRAMS. THESE CUTS COULD HAVE CATASTROPHIC EFFECTS ON AUSTINITES WHO ARE ALREADY HANGING ON BY A THREAD.
IF A TRE IS WHAT MUST BE DONE TO ENSURE THAT THOSE CUTS ARE NOT MADE, IT MUST BE SOMETHING THAT WE CAN TAKE TO THE VOTERS.
WE WANT TO MAKE CLEAR THOUGH, THAT FUNDING FROM ANY POTENTIAL TAX RATE INCREASE CANNOT GO TO ADD EVEN MORE IRREVERSIBLE AND UNNECESSARY DOLLARS TO APDS BUDGET.
THIS BUDGET PROJECTS THAT BY NEXT YEAR, WE WILL HAVE ADDED NEARLY A HUNDRED MILLION DOLLARS TO A PD WHILE EVERYTHING ELSE GETS CUT.
THE CARE I SPOKE ABOUT EARLIER, THE KIND OF CARE THAT IS COMPASSIONATE, EVIDENCE-BASED AND WILL PROVIDE LONG-TERM COST SAVINGS IS PREVENTATIVE, NOT PUNITIVE.
WE WANNA ENSURE THAT ANY TTRE THINK ANYTHING THAT A TRE THINKS ABOUT, THINKS ABOUT PUBLIC SAFETY HOLISTICALLY.
A SAFE COMMUNITY IS ONE WITH ROBUST HEALTH SERVICES, FULLY EQUIPPED MENTAL HEALTH RESPONSE TEAMS, WELL MAINTAINED PARKS, JOB PROGRAMS THAT ACTUALLY PLACE FORMALLY INCARCERATED PEOPLE IN MUCH NEEDED JOBS.
A STRONG LIBRARY SYSTEM AND ACCESSIBLE CHILDCARE, A TAX FREE INCREASE SHOULD THE VOTERS APPROVE, SHOULD ONLY BE SPENT IN THESE AREAS.
AUSTIN VOTERS WANT TO HELP PEOPLE SUCCEED.
THAT'S THE CHOICE IN FRONT OF YOU AND IN FRONT OF OUR COMMUNITY.
WHILE THE CURRENT ADMINISTRATION ATTEMPTS TO SAVE A FAILING AGENDA OF MASS ARREST AND INCARCERATION WITH TEXAS REDISTRICT REDISTRICTING, WE CAN AND MUST BE THE BEACON FOR A WHOLE DIFFERENT SET OF CHOICES AND THE DEMONSTRATION PROJECT TO SHOW THAT THE AUSTIN WAY WORKS.
UH, SO THAT INCLUDE CONCLUDES ALL THE PEOPLE THAT HAVE SIGNED UP TO SPEAK, UH, FOR OUR PUBLIC COMMUNICATION.
UH, SO FOR PURPOSES OF WHERE, WHERE WE'RE GONNA GO, LET ME KIND OF TRY TO OUTLINE, FIRST OF ALL, WE, WE DON'T ANTICIPATE THAT, UM, AT THIS EARLY POINT IN THE PROCESS THAT WE'RE, THE COMMITTEE IS IN A POSITION TO MAKE ANY SORT OF FINAL RECOMMENDATION.
TRE, NO, TRE, THAT SORT OF THING.
AND I WANNA WALK THROUGH THE PROCESS SO THAT THE PUBLIC WILL KNOW KIND OF WHAT'S GOING ON.
THERE'S, THERE'S A REAL DESIRE ON THE BA ON THE, THE PART OF THE COUNCIL TO PUT RIGOR BEHIND THE DECISIONS THAT WE'RE MAKING.
AND, AND PARTICULARLY WE'RE PUTTING SOMETHING TO THE VOTERS.
SO PART OF WHAT WE'RE ATTEMPTING TO DO IS HAVE A LOT OF TRANSPARENCY.
AND THAT INCLUDES, BY THE WAY, UH, QUITE A FEW MEETINGS RELATED TO THIS.
IT ALSO INCLUDES GETTING DATA OUT THERE, SUCH AS THE DATA THAT THE MANAGER'S OFFICE PROVIDED, UH, FRIDAY NIGHT, UH, WHICH ARE THE DIFFERENT ALTERNATIVES, GETTING, GETTING THOSE KINDS OF THINGS OUT THERE SO THAT PEOPLE WILL BE ABLE TO SEE THEM AND SEE WHAT WE'RE TALKING ABOUT, UH, AND THE IMPACT THAT THIS WOULD HAVE ON HOUSEHOLDS AND, AND, AND DIFFERENT APPROACHES TO THE TAXES.
UM, AND IT ALSO INCLUDES A FIRST TIME EVER A POLICY THAT WAS PASSED BY THE AUSTIN CITY COUNCIL AT THE RECOMMENDATION OF THE AUDIT AND FINANCE COMMITTEE REGARDING HOW TO WALK THROUGH A DECISION TREE FOR, UM, A, A TAX RATE ELECTION.
WITH THAT, LET ME TALK ABOUT THE CALENDAR FOR A SECOND.
SO, TOMORROW AT 9:00 AM THERE WILL BE A BUDGET WORK SESSION THAT'S RELATED TO THE GENERAL
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FUND.PEOPLE CAN COME AND SPEAK ABOUT ANYTHING THEY WANNA SPEAK ABOUT, BUT IT, IT'S RELATED TO THE GENERAL FUND.
UH, ON THURSDAY, WE'RE HAVING WHAT I GUESS WE WOULD CALL A REGULAR COUNCIL MEETING.
UM, BUT IT'S, IT'S NOT RELATED TO THE BUDGET, BUT I JUST MENTIONED 'CAUSE WE'RE GONNA MEET PRETTY MUCH EVERY DAY THIS WEEK.
BUT TOMORROW IS A BUDGET WORK SESSION, BEGINNING AT 9:00 AM NEXT TUESDAY, JULY 29TH, THERE WILL BE ANOTHER BUDGET WORK SESSION THAT BEGINS AT 9:00 AM AND THAT WILL BE RELATED TO THE ENTERPRISE AND CIP BUDGET.
WE'RE CURRENTLY NOT SCHEDULED, BUT, UH, BECAUSE THE WORK OF THE AUDIT AND FINANCE COMMITTEE WANTS TO BE COMPLETE, AND WE BELIEVE THAT BY JULY 30TH, WE OUGHT TO HAVE FINAL PROPERTY VALUATIONS, UH, PROBABLY LATER IN THE DAY, WHICH WILL ALLOW US TO LOOK AT THOSE AND BE, AND GET THE DATA OUT THERE TO THE PUBLIC.
WE'LL HAVE A SPECIAL CALL MEETING OF THE AUDIT AND FINANCE COMMITTEE ON JULY 30TH AT THREE 30, JULY 30TH AT THREE 30.
AND THAT'LL BE POSTED, UH, VERY SOON.
THEN ON THURSDAY, JULY 31ST, THE COUNCIL WILL HAVE A MEETING TO, AND, AND A KEY PART OF THAT IS TO SET THE MAXIMUM TAX RATE.
UH, JUST BRIEFLY, THE MAXIMUM TAX RATE IS A REQUIREMENT OF THE STATE SO-CALLED TRUTH AND TAXATION LAW THAT REQUIRES THAT THE GOVERNING BODY BY VOTE DECLARE THE MAXIMUM TAX RATE IT WILL CONSIDER WHEN IT PASSES A BUDGET.
THAT'S A KEY AS WE'RE DISCUSSING A POTENTIAL TAX RATE ELECTION, BECAUSE WHAT THAT, THE MAXIMUM TAX RATE NEEDS TO BE SET IN SUCH A WAY THAT IT DOESN'T PRECLUDE A TAX RATE ELECTION.
THAT WOULD GO UP TO A CERTAIN AMOUNT BECAUSE WHAT WILL HAPPEN IS WITH THE, THE PASSAGE OF A BUDGET THAT THAT TRIGGERS SUCH A THING, WE WANT TO SET THAT TAX RATE, UH, WHERE YOU CAN DO, YOU CAN NOT PRECLUDE SOMETHING LIKE THAT AND YOU CAN ACTUALLY DO IT.
THAT'S NOT TO SAY, AND I WANNA BE VERY CLEAR, AND I'LL SAY THIS EVERY CHANCE I GET, WHAT THAT, THE MAXIMUM TAX RATE THAT GETS PASSED, THAT IS NOT TO SAY THAT WILL BE THE TAX RATE THAT GETS PASSED.
IT IS JUST SETTING IT THE MAXIMUM.
WE'LL CONSIDER, UH, AS WE, AS WE GO THROUGH THE BUDGET PROCESS, THAT WILL BE JULY 31ST.
UH, AND, AND WE'LL, WE'LL DO THAT, BUT NINE O'CLOCK THE WORK SESSION WILL BEGIN, AND AT THREE O'CLOCK THERE WILL BE A BUDGET HEARING.
UM, AND THAT WILL ALSO BE WHEN THE AUDIT AND FINANCE COMMITTEE, ANY, ANYTHING WE SAY ON THE 30TH WILL BE BROUGHT FORWARD TO THE FULL COUNCIL ON THE 31ST.
UH, WITH REGARD TO POTENTIAL FOR A TRE, UM, I'LL ALSO MENTION ONE OTHER THING AND, AND I POSTED IT ON THE MESSAGE BOARD FOR THE PUBLIC THAT'S INTERESTED IN THIS.
THAT'S ONE AGENDA ON THE 31ST.
ONE OF THOSE TIME CERTAINS IS THE THREE O'CLOCK BUDGET HEARING.
WHEN YOU SIGN UP TO SPEAK FOR THAT AGENDA, TIME IS GONNA GET CUT OFF THE WAY WE NORMALLY CUT OFF.
SO YOU'RE NOT GONNA BE ABLE TO SIGN UP TO SPEAK FOR A THREE O'CLOCK HEARING UP UNTIL 2 45.
IT'S LIKE, UH, WHEN WE HAVE OUR REGULAR MEETINGS OF THE COUNCIL AND WE HAVE A TIME CERTAIN AT TWO O'CLOCK, IT'S JUST PART OF THE AGENDA.
SO YOU'RE GONNA HAVE TO SIGN UP IN, IN, IN ADVANCE.
IT'S ALL LAID OUT ON THE, THE MESSAGE BOARD.
UM, JUST FOR O OTHER INFORMATION, MONDAY, AUGUST 4TH IS THE REQUESTED DEADLINE FOR FILING BUDGET AMENDMENTS BY THE COUNCIL AND IFCS, UH, TUESDAY, AUGUST 5TH IS A POTENTIAL BUDGET WORK SESSION.
THURSDAY, AUGUST 7TH IS A BUDGET WORK SESSION.
AND THEN WE AUGUST 13TH THROUGH THE 15TH, IF WE NEED ALL THREE DAYS, WE'LL BE FOR BUDGET ADOPTION.
SO, UM, THE OTHER THING I WANNA SAY BEFORE WE GET INTO THE NEXT PART OF THIS IS FOR THOSE THAT ARE PAYING ATTENTION TO THIS, NO DECISION HAS BEEN MADE YET.
SO THOSE WHO SAY THERE'S ALREADY A DECISION, UH, FOR A TRE AND HOW MUCH IT IS, YOU'RE NOT RIGHT.
THERE'S BEEN NO DECISION MADE YET FOR THOSE THAT SAY THERE'S A DECISION NOT TO HAVE A TRE, UH, OR IT'S TOO LOW, NO DECISION HAS BEEN MADE YET.
DON'T JUMP TO CONCLUSIONS ON THAT.
UM, AGAIN, BECAUSE IF WE'RE GONNA MAKE A DECISION ON ALL THAT, AS WE MAKE A DECISION, WE WANNA MAKE ASSURE THAT THERE'S RIGOR MEMBERS.
WHAT I WAS GOING TO DO NEXT WAS I WAS GOING TO PUT US IN A SITUATION WHERE WE COULD ASK QUESTIONS OF,
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UH, OUR PROFESSIONAL STAFF WITH REGARD TO TAX RATIFICATION ELECTIONS.AGAIN, TO PUT SOME RIGOR BEHIND THIS, GET INFORMATION OUT TO THE PUBLIC.
THE WAY I WOULD LIKE TO DO THIS, UH, UNLESS THERE'S OBJECTION, IS HAVE A, AN EXECUTIVE SESSION RELATED TO SOME OF THE QUESTIONS RELATED TO TRE.
AND THEN COME BACK IN AND, AND START WITH THAT BY ASKING QUESTIONS OF STAFF, UM, AND, AND TALKING ABOUT WHAT, WHAT IT MEANS TO HAVE A TRE, HOW YOU GO ABOUT BALLOT LANGUAGE, THOSE SORTS OF THINGS.
[Additional Item]
THERE'S OBJECTION, UH, THE AUDIT AND FINANCE COMMITTEE WILL NOW GO INTO A CLOSED SECTION TO TAKE UP ONE ITEM.AND PURSUANT TO SECTION 5 5 1 0 7 1 OF THE TEXAS GOVERNMENT CODE, THE COMMITTEE WILL DISCUSS LEGAL ISSUES RELATED TO ITEM NUMBER ONE, WHICH IS THE RECOMMENDATION OF A TAX RATE ELECTION AND CERTIFYING CONDITIONS FOR THE ELECTION.
IS THERE ANY OBJECTION WITHOUT OBJECTION? WE WILL GO INTO EXECUTIVE SESSION AT 3:21 PM UH, FOLKS, WHEN WE FINISH, WE'LL COME RIGHT BACK OUT AND WE'LL START THE MEETING AGAIN.
IT'S 4:07 PM ON JULY 22ND, 2025, AND I WILL CALL BACK TO ORDER THE, UH, AUDIT AND FINANCE COMMITTEE OF THE CITY OF AUSTIN, UH, THE AUSTIN CITY COUNCIL.
AND IN CLOSED SESSION WE DISCUSSED LEGAL ISSUES THAT WERE RELATED TO ITEM NUMBER ONE, BUT I'VE CALLED US TO ORDER WHEN NOBODY IS HERE THAT I NEED IT.
MR. HOWELL, IF I COULD GET YOU TO, SO MEMBERS OF THE PUBLIC, UM, WHAT WE,
[1. Recommendation of a tax rate election and certifying conditions for the election. [Erik Nelson, Deputy Director- Budget Office]]
WHAT I INDICATED BEFORE WE WENT INTO EXECUTIVE SESSION IS WE KNOW THERE ARE A LOT OF QUESTIONS ABOUT TAX RATE ELECTIONS OR TRES.UM, AND SOME OF THEM ARE VERY BASIC, UH, SOME OF 'EM ARE MORE COMPLICATED.
BUT WHAT WE HAVE ASKED MR. HOWE TO DO, WHO IS WITH THE LAW DEPARTMENT, WHAT WE'VE ASKED HIM TO DO IS FOR HIM TO WALK THROUGH TRE 1 0 1, IF YOU WILL, TO KIND ANSWER SOME OF THE BASIC QUESTIONS ABOUT WHAT HAPPENS WHEN YOU HAVE A TAX RATE ELECTION AND HOW YOU GO ABOUT A TAX RATE ELECTION.
UH, INSTEAD OF US THROWING QUESTIONS AT HIM, UH, HE'S JUST GONNA MAKE A, A BRIEF PRESENTATION.
UH, I'LL OPEN IT UP FOR ANY QUESTIONS THAT ANYBODY HAS, UH, BUT, BUT THIS WILL BE A GOOD WAY FOR US TO GET INTO THE BLOODSTREAM HOW THIS KIND OF, UH, WHAT THE, WHAT THIS THING LOOKS LIKE IF WE END UP DOING IT.
THIS IS IAN HOWE, ASSISTANT CITY ATTORNEY.
SO AS WE LOOK AT GOING FORWARD TO ADOPTING A BUDGET AND TAX RATE, UM, I'M GONNA GO OVER SOME OF THE BASIC THINGS THAT THE PUBLIC MAY HAVE QUESTIONS ABOUT AND COUNCIL MAY HAVE QUESTIONS ABOUT.
UM, AND I'M GONNA TALK ABOUT THE BRIEFLY, THE, UH, BUDGET ADOPTION REQUIREMENTS AND THE TAX RATE ADOPTION REQUIREMENTS AND HOW THAT RELATES TO REELECT, UH, UH, TAX POSSIBLE TAX REELECTION IF COUNCIL WERE TO DECIDE THAT THEY WANTED TO GO THAT WAY.
THE PRI UH, PRINCIPLE POINT IS THAT WHEN COUNCIL ADOPTS A TAX RATE AND A BUDGET, THEY ADOPT ONE BUDGET AND THEY ADOPT ONE TAX RATE.
UM, IF THE TAX RATE IS ABOVE THE VOTER APPROVAL RATE, THEN COUNCIL UNDER STATE LAW MUST CALL A TAX RATE ELECTION.
UM, AND THEN THAT PROPOSITION, UH, THEN YOU'RE CLEAR ABOUT WHAT THAT TAX RATE ELECTION IS, IS ON, AND I'LL, I'LL SHOW THAT LATELY, BUT YOU'RE TALKING ABOUT WHAT THE TAX RATE, YOU'RE GONNA BE CLEAR ABOUT WHAT THE TAX RATE IS AND FURTHER INFORMATION REQUIRED BY LAW.
SO WHEN WE TALK ABOUT THE VOTER APPROVAL RATE, UM, I THINK THAT'S SOMETHING THAT'S COMMONLY TALKED ABOUT.
YOU HEAR THE 3.5% THROWN AROUND A LOT, AND WHAT WE'RE TALKING ABOUT IN A BASE LEVEL IS 3.5% MORE THAN THE CITY SPENT ON MAINTENANCE AND OPERATIONS LAST YEAR.
NOW, IT'S MUCH MORE COMPLICATED THAT IF ANYONE WANTS TO LOOK AT IT, IT'S IN THE TAX CODE CHAPTER 26.
UM, BUT THERE ARE A SERIES OF CALCULATIONS THAT GO INTO THAT.
SO IT'S MORE COMPLICATED THAN JUST THAT.
IT'S 3.5% MORE THAN THE CITY RAISED LAST YEAR.
BUT, UM, PRIMARILY YOU'RE LOOKING AT MAINTENANCE AND OPERATIONS AND, UH, YOU'RE NOT LOOKING SO MUCH AT DEBT.
ALL RIGHT? UM, AS YOU GO FORWARDS WITH THAT, THE COUNCIL'S GONNA APPROVE THE BUDGET
[00:25:01]
BY AN OR, UM, THEY'RE GONNA APPROVE THE BUDGET, THEY'RE GONNA APPROVE THE TAX RATE, AND THEN THEY'LL HAVE TO DO AN ORDINANCE, UH, CALLING THE ELECTION.AND THE, THE STATE LAW HAS SPECIFIC LANGUAGE THAT IT REQUIRES IN THAT PROPOSITION.
SO THIS ISN'T ONE OF THOSE SITUATIONS WHERE THE CITY CAN TAKE MULTIPLE TAX RATES TO THE VOTERS AND LET THE VOTERS CHOOSE.
THE STATE LAW IS VERY SPECIFIC THAT YOU'RE TAKING THE ONE TAX RATE AND THE VOTERS ARE VOTING UP OR DOWN, UM, TO APPROVE IT OR NOT APPROVE IT.
AND IF THE VOTERS DON'T APPROVE IT, THEN WHAT HAPPENS IS THE CITY'S TAX RATE AUTOMATICALLY GETS KNOCKED BACK DOWN TO THE VOTER APPROVAL RATE, UH, AND THEN THE, THE CITY.
SO, SO THERE ISN'T AN ALTERNATIVE AT THAT POINT.
THAT IS THE TAX RATE FOR THE NEXT YEAR.
THERE IS, THERE'S NOT AN OPTION AFTER THAT FOR THE CITY IN REGARDS TO THE TAX RATE, AND I'LL JUST READ THIS SPECIFIC LANGUAGE JUST SO PEOPLE KNOW WHAT THE LANGUAGE IS JUST SAYS, APPROVING THE ADVER ADV VALOREM TAX RATE OF SOME AMOUNT OF CENTS PER A HUNDRED DOLLARS VALUATION.
AND YOU GET, AND FOR THE CURRENT YEAR, AND YOU GOTTA GIVE THE RATE, I ACTUALLY, I'M NOT SORRY, I'M NOT GONNA READ IT EXACTLY, BUT YOU GIVE YOUR, YOUR TAX RATE AND YOU SAY HOW MUCH HIGHER IT IS THAN IT WAS LAST YEAR.
UM, AND THEN YOU ALSO SAY WHAT THE PURPOSE IS FOR WHY YOU'RE DOING THAT INCREASE.
UM, AND WHEN YOU'RE, WHEN COUNCIL IS ADOPTING THE BUDGET, UH, KEEP IN MIND THAT'S, THAT'S THE BUDGET FOR THE UPCOMING YEAR.
THAT'S THE TAX RATE FOR THE, THE UPCOMING YEAR.
AND SO THE PUBLIC'S AWARE, AND THEN THE NEXT YEAR, THE COUNCIL WILL ADOPT THE BUDGET FOR THAT YEAR AND THEN THE TAX RATE FOR THAT YEAR.
SO THE TAX RATE FOR THE UPCOMING YEAR IS NOT AUTOMATICALLY THE SAME FOR THE NEXT YEAR.
THAT'LL COME BACK TO COUNCIL IN THE FOLLOWING YEAR.
AND, UM, THAT, THAT'S THE SUMMARY.
UM, I WANT TO ASK IF ANYBODY'S GOT ANY GENERAL QUESTIONS.
ONE THING I WANT TO JUST MAKE SURE FOR CLARITY PURPOSES, THE BUDGET THAT WAS PROPOSED BY THE CITY MANAGER, WHAT'S BEEN REFERRED TO IS THE MANAGER'S PROPOSED BASE BUDGET.
THAT BUDGET GOES UP TO THE VOTER APPROVED APPROVAL RATE, SO THAT ANY INCREASE IN, IN THE RATE ABOVE THAT WOULD, WOULD TRIGGER AN ELECTION.
ANYBODY ELSE GOT QUESTIONS? OKAY.
AND WE REALLY APPRECIATE IT MEMBERS.
WHAT I THOUGHT I WOULD, WHAT WE WOULD DO BEFORE WE THEN NEXT GO INTO, UH, THE ALTERNATIVES THAT HAVE BEEN PRESENTED AND PUT TOGETHER BY OUR STAFF IS JUST CALL ATTENTION.
I'M NOT GONNA READ THROUGH IT, BUT AGAIN, CALL ATTENTION FOR THE PUBLIC TO LOOK AT THE TRE DECISION TREE THAT THE COUNCIL PASSED ON THE RECOMMENDATION OF THE AUDIT AND FINANCE COMMITTEE.
AND WHAT I'LL PROMISE TO DO IS, UH, PUT POST THIS ON THE MESSAGE BOARD AGAIN TODAY.
WE WILL POST THE, THE, THE POLICY THAT WE PASSED, UH, THE DECISION TREE THAT WE PASSED ON THE MESSAGE BOARD TODAY, SO THAT ANYBODY THAT WANTS TO WILL SEE WHAT IT IS THAT WE WILL AS A, UH, AS A AUDIT AND FINANCE COMMITTEE THAT WE WILL WALK THROUGH, MAKE A RECOMMENDATION TO THE COUNCIL, AND, AND THEN THE COUNCIL, UH, WILL, WILL VOTE BASED UPON THAT, THAT ADOPTED POLICY.
NOW WITH THAT, UM, I SEE TWO PEOPLE READY TO GO.
UH, ONE, WHY DON'T Y'ALL KICK IT OFF.
TELL US HOW YOU WANNA PROCEED AND THEN WALK US THROUGH, UH, IN A GENERAL FASHION, THESE ALTERNATIVES SO WE CAN TALK ABOUT, UH, WHERE WE ARE.
HELLO, MAYOR, COUNCIL MEMBERS ERIC NELSON FROM THE OFFICE OF BUDGET AND ORGANIZATIONAL EXCELLENCE.
UH, WE DO HAVE A PRESENTATION THAT I'LL TRY TO GET THROUGH SWIFTLY, UH, SO WE CAN LEAVE MORE TIME FOR YOUR QUESTIONS STARTING OUT.
UH, WHY ARE WE HERE? WELL, CONSISTENTLY, SINCE THE PASSAGE OF SB TWO, WE'VE SHOWN A VERSION OF THIS CHART, AND GENERALLY SPEAKING, OUR EXPENDITURE GROWTH IS A LITTLE BIT HIGHER THAN OUR REVENUE GROWTH.
AND, UH, DURING THE PANDEMIC, WE HAD SOME UNEXPECTED FEDERAL ASSISTANCE, AND WE HAD AN EXPLOSION IN SALES TAX THAT KIND OF, UM, MASSED THAT FUNDAMENTAL DYNAMIC FOR A LITTLE WHILE.
BUT NOW THAT SALES TAX COLLECTIONS HAVE DROPPED, UM, ITS BACK.
SO WE HAVE NOT JUST EXTREMELY LIMITED OPPORTUNITIES TO FUND SIGNIFICANT NEW INVESTMENTS, BUT WE HAVE, UH, REAL STRUGGLES
[00:30:01]
TO BALANCE AGAINST, UM, OUR EXPENDITURES FOR OUR BASE LEVEL OF GENERAL FUND SERVICES.WE'RE STARTING TO SEE, UH, SOME OF THE CONSEQUENCES OF THAT APPEAR EVEN IN OUR FY 26 PROPOSED BUDGET, WHICH RELIES ON A $14.1 MILLION TRANSFER FROM OUR RESERVES IN ORDER TO PROVIDE TRANSITIONAL FUNDING FOR SOCIAL SERVICE CONTRACTS.
IN OTHER WORDS, UH, TO GIVE THESE PROVIDERS A WINDOW TO PREPARE FOR STEEPER MORE PERMANENT CUTS, UM, THAT WOULD TAKE PLACE IN THE NEXT FISCAL YEAR.
OUR RESERVES ARE PROJECTED TO END THE YEAR AT 15.8%, WHICH IS $18.2 MILLION BELOW THE 17% FINANCIAL POLICY LEVEL.
LOOKING AHEAD TO FY 27, UH, WE HAVE PRODUCED A BALANCED BUDGET PLAN, UH, BUT WE DID HAVE TO MAKE SOME SIGNIFICANT ADJUSTMENTS.
AS I MENTIONED, THERE WOULD BE DEEPER AND PERMANENT CUTS TO SOCIAL SERVICE CONTRACTS.
UM, WE WOULD HOLD CIVILIAN WAGES FLAT, AND WE WOULD ALSO ELIMINATE THE TRANSFERS TO THE HOUSING TRUST FUND.
AND CAPITAL REHABILITATION FUNDS TOTAL OF THESE MEASURES WOULD SAVE THE GENERAL FUND ALMOST $50 MILLION, WHICH GIVES YOU A SENSE OF THE SCALE OF THE REDUCTIONS NECESSARY TO BALANCE AGAINST OUR EXPECTED REVENUE COLLECTIONS NEXT YEAR.
FOR A LITTLE CONTEXT, UH, PRIOR TO SB TWO, THE INFLATION FACTOR IN WHAT WAS THEN KNOWN AS THE ROLLBACK RATE WAS 8% AS OPPOSED TODAY IS 3.5%.
IF WE'D ADOPTED A RATE AT THAT 8% LEVEL EVERY YEAR SINCE IT TOOK EFFECT, THE GENERAL FUND WOULD NOW HAVE 190 MILLION MORE PROJECTED PROPERTY TAX DOLLARS IN THIS FY 2026 PROPOSED BUDGET.
AND THAT'S THE EQUIVALENT OF ADDING, UM, OVER EIGHT AND THREE QUARTER PENNIES TO OUR PROJECTED TAX RATE.
OF COURSE, WE DIDN'T ALWAYS GO TO 8%, BUT WE WENT BACK AND WE LOOKED AT THE 10 YEAR AVERAGE PRIOR TO SB TWO, AND WE WERE AT ABOUT A 6.54% LEVEL ABOVE THE, UH, AS AN EFFECTIVE INCREASE.
AND IF WE APPLY THAT ACROSS THE YEARS SINCE SB TWO TOOK EFFECT, WE WOULD HAVE 123 MILLION MORE PROPERTY TAX DOLLARS THIS YEAR OR THIS COMING YEAR, WHICH IS EQUIVALENT TO ABOUT 5.7 PENNIES OF TAX RATE.
ON THE OTHER HAND, WE DON'T WANT TO JUST LOOK AT THE CITY'S REVENUE NEEDS AND CHALLENGES.
WE ALSO NEED TO CONSIDER THE TAXPAYERS THAT PROVIDE THAT REVENUE.
SO THIS TABLE DISPLAYS A 10 YEAR HISTORY OF THE COMBINED PROPERTY TAX BILL EXPERIENCED BY AUSTIN'S TYPICAL HOMEOWNER, UH, THAT WE, THAT WE'VE, UH, DEFINED AS THE NON-SENIOR OWNER OF A MEDIAN VALUE HOME THAT QUALIFIES FOR A HOMESTEAD EXEMPTION.
AS YOU CAN SEE AT THE BOTTOM, THE COMBINED BILL HAS RISEN BY A LITTLE OVER 5% FOR THE PAST 10 YEARS, A PERIOD IN WHICH INCOMES GREW BY ABOUT FIVE PER 0.7%.
BUT I SHOULD ALSO POINT OUT, UH, EN LARGE PART DUE TO TRES BY A ISD AND TRAVIS COUNTY, THE TYPICAL HOMEOWNERS TAX BILL GREW BY ALMOST $1,000 IN FY 25 OR OVER 13% LOOKING AHEAD TO FY 26.
WE DON'T HAVE, UH, FIRM DATA FROM ALL OF THE OTHER ENTITIES, BUT WE DO KNOW WHAT THE CITY'S PLAN IS.
UM, JUST DIALING INTO THE PROPERTY TAX IMPACT ON THIS SLIDE, UH, IN OUR BASE BUDGET AT THAT, UH, MAXIMUM, UH, VOTER APPROVAL RATE, WE'D BE PROJECTING A PROPERTY TAX INCREASE OF 7.9% FOR OUR TYPICAL HOMEOWNER.
UM, THAT IS A PROJECTION AND IT CAN AND WILL CHANGE WHEN WE GET THE FINAL CERTIFIED ROLES FROM THE APPRAISAL DISTRICTS.
BUT AS I MENTIONED, UM, AT THE PRESENTATION LAST WEEK, WE HAVE AN ONGOING DYNAMIC WHERE WE HAVE MORE AND MORE DEBT SERVICE AS A RESULT OF, UH, BOND INITIATIVES THAT WERE APPROVED BY VOTERS OVER THE PAST SEVERAL YEARS THAT WE WERE ISSUING MORE AND MORE DEBT FOR.
AND, YOU KNOW, LOOKING FORWARD TO FY 27, THAT TREND WILL CONTINUE AND WE'RE PROJECTING A 7.5% INCREASE, UM, IN THAT YEAR, AGAIN, FOR OUR BASE BUDGET AT THAT MAXIMUM TAX RATE.
MOVING TO THE TRE ITSELF, I DON'T WANT TO ECHO TOO MUCH WHAT IAN SAID.
UM, SO WE CAN SKIP THE FIRST PART, BUT IN DESIGNING, UM, THESE TRE SCENARIOS, WE WERE GUIDED BY THE FINANCIAL POLICY THAT WAS RECENTLY ADOPTED BY THE COUNCIL, UM, WHICH TASKED US WITH PERFORMING A COMPREHENSIVE ANALYSIS OF JENNIFER FUND PROGRAMS AND SERVICES TO PLAN IT SO THAT WE DO NOT, UH, UH, CONDUCT A TRE MORE THAN ONCE EVERY FOUR YEARS.
[00:35:01]
WORK TO CLEARLY IDENTIFY THE LEVEL OF PROGRAMMING OR SERVICES WE'RE FUNDING WITH THAT ADDITIONAL REVENUE AND ACCOUNT FOR THE SERVICE IMPACT IF THE ELECTION SHOULD FAIL.AND WE WANT TO MAKE SURE THAT THESE INVESTMENTS ARE SUSTAINABLE OVER THE MEDIUM TERM OVER THAT, THAT FOUR YEAR TRE WINDOW, UH, LATE FRIDAY NIGHT, AND WELL, TO BE HONEST, WE MIGHT HAVE SLIPPED INTO SATURDAY
WE, I WAS GONNA, I WAS GONNA POINT OUT THAT YOUR NUMBERS MAY BE OFF JUST A LITTLE ON THAT.
UH, CITY MANAGEMENT DEVELOPED THESE SCENARIOS STARTING FROM OVER $300 MILLION OF SPENDING PROPOSALS AND DRAWN FROM COUNCIL FEEDBACK ON THEIR PRIORITIES, BOARD, COMMISSION, UH, RECOMMENDATIONS, THE COMMUNITIES REQUEST, AND LOOKING AT DEPARTMENT'S PROPOSED SERVICE ENHANCEMENTS THAT WE SOLICITED AND EVALUATED THROUGHOUT THE BUDGET DEVELOPMENT PROCESS.
WE THEN FILTERED THESE THROUGH A HOLISTIC FINANCIAL ANALYSIS OF THE GENERAL FUND IMPACTS.
AND AGAIN, OUR, OUR MAIN FOCUS WAS SUSTAINABILITY.
WE WANTED TO MAKE SURE THAT BOTH THE BASE BUDGET AND THESE NEW INVESTMENTS WOULD BE SUSTAINABLE THROUGH FY 29.
WE WANTED TO TRY TO ENSURE THE HEALTH OF GENERAL FUND RESERVES AND RESTORE OR MAINTAIN COMPLIANCE WITH OTHER FINANCIAL POLICIES.
THIS TABLE SUMMARIZES THE SCENARIOS.
UM, IT GIVES YOU A SENSE OF THE MAGNITUDE AND TIMING OF THE EXPENDITURES THAT CAN BE SUSTAINABLY SUPPORTED AT THESE DIFFERENT LEVEL OF INCREASES.
AND IMPORTANTLY, UH, EACH ONE ENSURES A BALANCED GENERAL FUND THROUGH FY 29.
AND EXCEPT FOR MAYBE THE FIRST ONE, ALL OF THEM GET VERY CLOSE TO OR MAINTAIN COMPLIANCE WITH OUR 17% GENERAL FUND RESERVE POLICY.
UH, TRANSLATING THOSE SCENARIOS INTO, UH, MORE CONCRETE BUT STILL PROJECTED, UH, TAX AND REVENUE IMPACTS.
UH, YOU CAN SEE THAT EACH PENNY EQUATES TO ABOUT A 2.5% ADDITIONAL, UH, EFFECTIVE INCREASE.
SO, YOU KNOW, ONE PENNY GO TAKES YOU FROM THAT THREE POINT A HALF TO A SIX AND, AND YOU CAN FOLLOW THE CHART ALL THE WAY DOWN AND, UH, ALSO COMPARE, UM, THOSE SCENARIOS WITH THE REVENUE THAT EACH ONE WOULD GENERATE RELATIVE TO OUR BASE BUDGET PROPERTY TAX REVENUE.
AND FINALLY, WE WANNA TRANSLATE AS WELL HOW THIS, THESE ADDITIONAL PENNIES, UH, WOULD IMPACT OUR TYPICAL HOMEOWNER.
UH, THE CHUNK IN THE MIDDLE WILL COMPARE, UH, THE INCREMENTAL IMPACT OF A TRE AT THE VARIOUS LEVELS TO THAT BASE LEVEL, AND THE CHUNK ON THE RIGHT WILL SHOW YOU WHAT OUR PROJECTED TOTAL INCREASE INCLUSIVE OF ANY TRE WOULD BE FOR OUR TYPICAL HOMEOWNER IN FY 26.
AND WITH THAT, UH, WE'RE HAPPY TO TAKE ANY QUESTIONS, MEMBERS QUESTIONS? YES, COUNCILMAN? ER, I WANTED TO TAKE A MOMENT JUST TO UNDERSTAND, AND THIS WILL PROBABLY BE CLEARED UP THAT OUR NOW JULY 30TH MEETING WHEN WE GET THE FINAL ROLES, BUT IN THE BUDGET DOCUMENT ITSELF, IT MENTIONS THAT OUR TAXABLE VALUE IS 227.1 BILLION, WHICH SEEMS WOULD SUGGEST THAT 1 CENT WOULD BE 22.7, NOT 21.6.
I'M JUST CURIOUS THAT DISCREPANCY.
RIGHT? WELL, SO THAT'S TRUE IN TERMS OF THE LEVY, THAT'S THE AMOUNT THAT WILL, WE WILL BILL THE COMMUNITY, I GUESS YOU'D PUT IT.
UM, GENERALLY SPEAKING, WE BUDGET, UH, 98.5% COLLECTION RATE BECAUSE WE KNOW THAT WE WON'T GET PERFECT COMPLIANCE.
THAT KNOCKS YOU DOWN TO, I BELIEVE, UM, ABOUT 22.3 OR SO.
AND THEN THE CITY ALSO HAS SEVERAL, UH, TAX REINVESTMENT FINANCING ZONES, AND WE ARE COMMITTED TO, UH, MAKING PAYMENTS TO THE ZONE THAT ARE DETERMINED BY THE VALUE CAPTURED WITHIN THOSE ZONES AND THE TAX RATE.
AND WHEN WE, UM, ACCOUNT FOR THAT, THE NET THAT WOULD END UP IN THE GENERAL FUND AVAILABLE FOR, UH, ONGOING MAINTENANCE AND OPERATIONS EXPENSES, IS THAT 21.6 MILLION.
UM, THAT REALLY IS MY ONLY QUESTION AT THIS MOMENT.
IT MIGHT HAVE OTHERS, BUT THANK YOU.
SO FOR PURPOSES THAT ARE, LOOK, LET ME ASK ANYBODY HAVE QUESTIONS? OKAY.
SO FOR PURPOSES OF SOMEONE LOOKING AT THIS SLIDE DECK, I WANT TO COMPARE
[00:40:01]
SLIDE EIGHT AND AND 13 I THINK IT IS.JUST SO THAT PEOPLE CAN SEE WHAT, WHAT WE'RE DEALING WITH, UH, AS YOU'VE LAID IT OUT HERE IN THE FY 26 PROPOSED RATE, YOU'VE GOT, YOU, YOU, YOU WALK THROUGH FOR THE TYPICAL RATE AND TAXPAYER AND THE NUMBER YOU COME UP WITH IS 4 76 31 AS A TOTAL.
SO THAT INCLUDES THE PROPERTY TAX BILL AND, AND ALL RATES AND FEES, RIGHT? UH, YES SIR.
AND IF YOU MULTIPLY THAT TIMES 12, THAT GETS YOU AN ANNUAL, WHAT THE, WHAT THAT TYPICAL RATE AND TAXPAYER WILL BE, WILL THE INCREASE THAT, THAT THAT PERSON WILL SEE, UH, THAT THAT WOULD BE THE TOTAL, YOU'D MULTIPLY THE $22 AND 35 CENTS BY 12, I'M SORRY, OF COURSE.
TO, TO GET YEAH, YEAH, OF COURSE.
AND THEN YOU TAKE THAT NUMBER AND GO TO 13, IF SOMEBODY'S TRYING TO FIGURE OUT WHAT HAP WHAT HAPPENS TO THEIR, TO THEIR BILL, ONE PENNY WOULD ADD ANOTHER $40 AND 26 TO THAT, CORRECT? THAT'S CORRECT.
AND YOU JUST WALK YOURSELF THROUGH THIS.
I'M JUST TRYING TO GET CLARITY AND RIGOR ON WHAT, WHAT THIS DOES TO AN INDIVIDUAL HOUSEHOLD.
UM, MEMBERS, IS THERE ANYTHING ELSE YOU WANNA BRING UP AT THIS MEETING OTHER THAN, UH, ME REITERATING THAT WE WILL MEET ON THE 30TH AT THREE 30? THAT MEETING WILL BE POSTED AND AT THAT MEETING WE WILL HAVE HOPEFULLY THE, THE FINAL ROLES BE ABLE TO GIVE SOME DIRECTION WITH REGARD TO WHAT GETS BROUGHT.
BLESS YOU, WHOEVER THAT IS, UM, UH, WE'LL BRING BACK TO, UH, THEY'LL BRING BACK TO COUNCIL FOR US TO VOTE ON THE MAXIMUM TAX RATE THE NEXT, WHICH IS ON THE 31ST.
UM, AS WE, AS WE MOVE FORWARD IN TRYING TO GET THROUGH THIS BUDGET PROCESS, IS THERE ANYTHING ELSE, ANYBODY? YES, MAYOR PROTO? YES.
AND AS FOR ANYONE WATCHING, YOU COULD TELL RIGHT NOW WE'RE BEING VERY THOUGHTFUL AND DELIBERATE AND REALLY UNDERSTANDING THE PROCESS AND THE CONTEXT OF WHAT IT WOULD TAKE TO CONSIDER A TAX RATE ELECTION FOR PROCESS, UH, CLARIFICATION.
TOMORROW WE'LL MEET TO HEAR FROM STAFF AND GET RECEIVE BRIEFINGS ON THE GENERAL FUND AT THAT TIME.
I'M JUST CURIOUS, I MEAN, CERTAINLY KNOWING THE, UM, THE AMOUNT OF EFFORT THAT WAS DONE TO BRING A BALANCED BUDGET AS WE RECEIVE THE BRIEFINGS FROM STAFF TOMORROW, I, THE QUESTIONS I HAVE PREPARED AROUND THE GENERAL FUND DO TAKE INTO CONSIDERATION AND BRING OUT SOME OF THE BUDGET SCENARIOS THAT HAVE BEEN PRESENTED TO US.
SO FOR DELIBERATIONS FOR TOMORROW, HOW SHOULD WE HANDLE THAT? BECAUSE I MIGHT BE PULLING FROM, WELL, I, I THINK, UM, ALL COUNCIL MEMBERS HAVE THE VARIOUS SCENARIOS MM-HMM
SO I ACTUALLY THINK THAT'S GOOD THAT YOU'RE GOING TO BE ABLE TO, TO MAKE THOSE KINDS OF COMPARISONS IF YOU WANT TO.
AND, AND I, I THINK WE JUST, JUST DO IT, DIVE RIGHT IN.
I MEAN, THAT'S, THAT'S THE PURPOSE, THE PURPOSE OF THE MEETING TOMORROW IS FOR GENERAL, GENERAL FUND DISCUSSION.
SO, UH, NO NEED TO HOLD BACK ON THOSE BECAUSE THEY'RE, THAT WE ASKED FOR 'EM FOR A REASON.
AND HAVE THE TRE ALTERNATIVES BEEN POSTED ONLINE TO WHERE THEY'RE PUBLICLY ACCEPTED? I DON'T KNOW THAT QUE THE ANSWER TO THAT QUESTION.
HAVE THOSE AL I DON'T BELIEVE THEY HAVE, BUT WE CAN CERTAINLY TAKE CARE OF THAT.
LET, LET'S, LET'S GET THAT DONE.
OTHER, YES, COUNCIL MEMBER VA JUST A, A QUICK, UH, COMMENT REALLY, UH, WHERE KIND OF CHARTING, UH, WHAT IS GOING THROUGH UNCHARTED WATERS? UH, TO A LARGE EXTENT.
UH, I THINK ULTIMATELY I THINK THE TAX RATE ELECTIONS WILL HAVE TO BECOME A, ALMOST A POLITICAL, YOU KNOW, FEATURE OF, UH, TEXAS IN THE FUTURE.
BUT, UH, I, I APPRECIATE, UH, BOTH LAW AND BUDGET JUST KIND OF LAYING OUT, UH, THE, THE PATH FORWARD FOR US.
UH, THIS IS GONNA BE OUR FIRST TIME REALLY KIND OF WORKING THROUGH THE PROCESS.
UH, AND, AND I DO, UH, JUST APPRECIATE THE, THE ON FINANCE COMMITTEE AND THE COUNCIL AND STAFF IN GENERAL, JUST TRYING TO MAKE THIS AS, AS, AS THOUGHTFUL AND DELIBERATE OF A, OF A, A PROCESS.
UH, I, I WISH WE HAD MORE TIME, HONESTLY.
UH, UH, THIS IS A, A BIG BUDGET PROCESS.
IT'S ALWAYS A BIG BUDGET, BUT THIS IS AN EVEN BIGGER BUDGET PROCESS AND I WISH WE HAD EVEN MORE TIME AND I WISH WE WERE ABLE TO, BUT IT IS WHAT IT IS.
I MEAN, THIS IS STATE LAW AND, AND, AND THIS IS WHAT IS UH, UH, BEFORE US.
UH, BUT I JUST WANTED TO MAKE THOSE COMMENTS.
AND AGAIN, JUST, UH, THANKS STAFF FOR, I KNOW IT'S ALWAYS A BUSY TIME OF YEAR, THIS'S, EXTRA BUSY TIME OF YEAR, UH, EVERY UH, FOUR YEARS WE'RE LOOKING AT IT.
[00:45:01]
GOOD.COUNCILOR MEMBER, UH, YES, COUNCILOR DICKON.
I'VE GOT ONE QUESTION AND ONE CLARIFICATION I'M LOOKING FOR.
AND THE QUESTION IS, IF THIS IS TO, UM, ED OR ERIC, IF AS YOU VISITED WITH YOUR COUNTERPARTS, UH, AND OTHER TEXAS CITIES THAT ARE UNDER THE SAME CONSTRAINTS THAT WE ARE, ARE THEY LOOKING AT THE PROBLEM IN PRETTY MUCH THE SAME WAY WE ARE, WHICH IS ENTERTAINING THIS IDEA OF A TAX OR ELECTION POTENTIALLY EVERY X AMOUNT OF YEARS TO TRY AND ADDRESS WHAT MIGHT BE SYSTEMIC SHORTFALLS? OR ARE THEY LOOKING AT THIS DIFFERENTLY? IT, IT'S A GREAT QUESTION.
I DON'T HAVE A ANSWER FOR YOU.
I MEAN, I, I, I DO TALK TO CFOS IN OTHER LARGE CITIES AND IN THE AREA AND I'VE NOT HAD THE DISCUSSION WITH THEM SPECIFICALLY ABOUT HOW ARE THEY MANAGING THEIR TAXES AND TAX RATE ELECTIONS OVER TIME.
AND I, I DON'T EVEN HAVE IMMEDIATE, UH, UH, KNOWLEDGE IN REGARDS TO WHETHER OR NOT THESE OTHER CITIES WILL BE PURSUING THAT THIS YEAR.
BUT HAPPY TO LOOK INTO THAT FOR YOU.
DO YOU KNOW IF ANY OF THEM HAVE PURSUED IT IN PRIOR YEARS? UM, NO.
I, I, TRAVIS COUNTY AND THE SCHOOL DISTRICT BOTH DID TAX RATE ELECTIONS LAST YEAR.
UM, AND I'M AWARE OF UH, I THINK THREE OR FOUR OTHER SMALL TEXAS CITIES THAT HAVE DONE TAX RATE ELECTIONS.
AND OF COURSE AUSTIN DID ONE FOR PROJECT CONNECT IN 2020.
BUT AS ERIC MENTIONED, IT'S UH, THE CONSEQUENCES OF SB TWO HAVE BEEN SLOW TO ARRIVE BECAUSE OF THE HUGE FEDERAL STIMULUS SPENDING AND THE, AND THE UPWARD TICK THAT'S CAUSED IN SALES TAX REVENUE HAS ALLOWED, ALLOWED A LOT OF CITIES TO, UM, TO MANAGE THROUGH THE THREE AND HALF PERCENT REVENUE CAP.
BUT WITH THE FEDERAL STIMULUS DRYING UP AND SALES TAXES, UH, FLATTENING OUT, YOU'RE, YOU ARE SEEING OUR STORY IS NOT UNIQUE.
YOU'RE SEEING HOUSTON AND SAN ANTONIO AND DALLAS, THEY ARE DEALING WITH BUDGET DEFICITS.
UM, BUT I DON'T HAVE THE INFORMATION.
I'LL GET THAT IN REGARDS TO WHETHER OR NOT THEY'RE CONSIDERING, UH,
I WOULD LIKE TO AT SOME POINT IF I CAN'T FOLLOW UP WITH YOU ON THAT.
AND THE SECOND QUESTION IS WE'VE GOT, WE PRESENTED WITH I THINK EIGHT SCENARIOS THAT CORRESPOND TO THE EIGHT PENNIES THAT ARE ON SLIDE 11.
I'M JUST WONDERING, UM, IF THERE'S ANY VALUE IN STEPPING THROUGH, VERY BRIEFLY, HOW, 'CAUSE SOME OF THEM ARE ONGOING.
UH, LIKE THE FIRST SCENARIO IS ONE TIME, SOME OF THEM ARE ONGOING.
IF IT MAKES ANY SENSE FOR NOT JUST US BUT THE PUBLIC TO GET A BRIEF WINDOW INTO WHAT THOSE, UH, SCENARIOS MEAN FOR THE CITY AND WHY YOU CHOSE IN SOME CASE, TO PRESENT SOME AS ONE TIME AND SOME CASES, SOME AS ONGOING.
WE CAN DO THAT NOW OR WE CAN DO THAT TOMORROW WHEN, WHEN WE GO THROUGH THE, THE I'M, I JUST WANNA MAKE SURE IT GETS
YEAH, I, I WOULD SUGGEST WE DO THAT WHEN WE GO THROUGH THE GENERAL FUND BUDGET.
UH, SO WE CAN, WHEN THEY DO THAT, THE WHOLE COUNCIL WILL, WILL BE HERE.
OTHER THOUGHTS OR QUESTIONS? YES, COUNCILMAN ELLIS? I HAVE ONE, UH, QUESTION THAT'S MORE ABOUT FORMATTING.
I APPRECIATE THE, UM, THE TRE SCENARIOS THAT HAVE BEEN PRESENTED TO US.
I FOUND THE LEFT HAND COLUMNS TO BE A BIT CONFUSING WHICH ONES WERE ACTUALLY LINED UP WITH WHICH DEPARTMENT.
AND SO IF THAT'S GONNA BE OUT THERE FOR THE PUBLIC TO DIGEST, I JUST MAY SUGGEST, YOU KNOW, EITHER DRAWING SOME LINES OR COLOR CODING OR, OR SOME SORT OF WAY TO KIND OF UNDERSTAND WHICH UH, BUCKETS OF FUNDING SCENARIOS ARE APPLYING TO WHICH DEPARTMENTS.
SO WE CAN HAVE THAT CONVERSATION TOGETHER.
AND, UH, WE'RE ALSO, I JUST WANTED TO SAY, 'CAUSE WE'VE HAD A FEW INQUIRIES WORKING ON, UM, GETTING AN ACTUAL EXCEL VERSION DISTRIBUTED TO COUNCIL OFFICES AS WELL.
[Future Items]
UM, FOR MEMBERS OF THE PUBLIC THAT ARE PAYING ATTENTION, UH, TOMORROW AT 9:00 AM WE WILL HAVE A BUDGET.THE CITY COUNCIL WILL HAVE A BUDGET WORK SESSION.
YOU WILL, AS YOU CAN TELL FROM THE DISCUSSION JUST NOW, IT'LL BE RELATED TO THE GENERAL FUND.
UH, JULY 24TH, THERE'S A COUNCIL MEETING.
THEN JULY 29TH THERE WILL BE A BUDGET WORK SESSION BEGINNING AT 9:00 AM RELATED TO THE ENTERPRISE FUNDS AND CIP BUDGET ON JULY 30TH AT THREE 30 THERE WILL BE AN A SPECIAL CALLED AUDIT AND FINANCE COMMITTEE MEETING ON THURSDAY, JULY 31ST, THERE WILL BE A COUNCIL MEETING TO SET THE MAXIMUM TAX RATE.
WE WILL BEGIN WITH A NINE O'CLOCK WORK SESSION, AND AT THREE O'CLOCK THERE WILL BE A BUDGET HEARING.
THAT'S ALL ONE AGENDA, ONE MEETING MONDAY, AUGUST 4TH, WE WILL HAVE, THAT'S THE REQUESTED DEADLINE FOR THE FILING OF BUDGET AMENDMENTS AND IFCS AUGUST 5TH.
WE HAVE SCHEDULED A POTENTIAL BUDGET WORK SESSION AUGUST 7TH, THERE WILL BE A BUDGET WORK SESSION.
AND THEN WE ARE SCHEDULED AUGUST 13TH THROUGH 15TH FOR BUDGET ADOPTION
[00:50:01]
MEMBERS.ANYTHING ELSE WITH THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE AUDIT AND FINANCE COMMITTEE OF THE AUSTIN CITY COUNCIL AT THIS SPECIAL CALL MEETING ON JULY 22ND WITHOUT OBJECTION, WE ARE ADJOURNED AT 4:36 PM THANK YOU EVERYBODY.