Back to Archives

Austin's $500K Water & Electric Bond Sale

Friday, October 28, 1892 special called

Major Infrastructure Funding: Austin city officials approved the sale of $500,000 in Water Works and Electric Light bonds to a New York firm, securing funding for the city's essential utilities infrastructure.

Competitive Bidding: The city received offers from multiple New York firms, ultimately selecting one that charged less than 1.5% commission on the bond sale—demonstrating efforts to get the best financial deal.

Quick Approval Process: The ordinance authorizing the bond sale was fast-tracked through all three required readings and passed with overwhelming support (16-1 vote), with only one alderman dissenting.

One Holdout: Alderman Platt voted against the measure both on the third reading and final passage, though the reasons for his opposition were not recorded.

Full Transcript

396 Minutes of a Called meeting of the City Council Austin, Texas, Oct. 28, 1892. Hon. John Mc Donald, Mayor, presiding. Roll Call. on Call Present Present: Aldermen Anderson, Glass, Graham, Hume, Jackson, Linn, Miller, Nitschke, North, Platt, Schneider, Schuler, Suter, Townsend, Warmoth, Ziller- 16. Absent Absent- Aldermen Assmann, Ketchum, Morris, Newton, Shelley, Weygerman.- 6. Call of Council read The following call of the City Council and certificate thereon were read: Mayor's Office, Austin, Texas, Oct. 28, 1892. To the members of the Board of Aldermen of the City of Austin: Gentlemen: I hereby call a special meeting of the City Council of the City of Austin to assemble in the Council Chamber at the City Hall at 8 o'clock, p.m., this evening, October 28, 1892, for the purpose of taking such action on a proposition to purchase bonds of the City of Austin as the City Council may deem proper to take. Very Respectfully, John McDonald, Mayor. 7:40 p.m. Austin, Texas, October 28, 1892. I hereby certify that Aldermen Anderson, Assmann, Glass, Graham, Hume, Jackson, Ketchum, Linn, Miller, Newton, Nitschke, North, Platt, Schneider, Schuler, Shelley, Suter, Townsend, Warmoth, Weygerman and Ziller have each been served with the above call of the Council by having it read to each of them in person, and that Alderman Morris was served with it by leaving a true copy of the same at his place of business. John Rhenneville, Police Officer. Alderman Shelley entered the Council and answered to his name. Water works & Electric Light Bonds The Mayor then had read from his letter Copy-book a Copy of a letter which he had written in response to inquiries concerning the sale of the remaining $500.00 Water works and Electric Light bonds of the City of Austin and fully Explained to the City Council the present status of the subjects. Sale of last $500,000 The following was then laid before the Council: Office of the Board of Public Works, Austin, Texas, October, 28, 1892. At a special meeting of the Board held this afternoon the following proceedings were had: The Mayor stated that he was in receipt of a communication from a second firm in the City of New York offering [illegible], less than 1½ per cent commission for the five hundred thousand dollars $500,000 of Water Works and Electric Light bonds now on hand --- Page break --- W. & E. Bonds. and held by the city. Whereupon the following resolution was offered and unanimously adopted: Resolved, That in the opinion of the Board the offer Sale of bonds accepted submitted by the Mayor should be accepted by the city and that the city Council be requested to authorize the Board to consummate the Sale. John McDonald, Mayor. Attest: Frank Hamilton, Secretary pro. tem Ordinance authorizing Alderman North then introduced an Ordinance delivery & sale Entitled "An Ordinance to authorize the delivery and sale of the waterworks and Electric Light bonds of the city of Austin to the amount of five hundred thousand dollars heretofore issued by the city of Austin." It was read the first time, after which a motion was made to suspend the rules and place the Ordinance 2nd Reading on its second reading, which was adopted by the following vote: Yeas- Aldermen Anderson, Glass, Graham, Hume, Jackson, Linn, Miller, Nitschke, North, Platt, Schneider, Schuber, Shelley, Suter, Townsend, Warmoth, Ziller-17. The ordinance was accordingly read after which a motion was made to suspend the rules and place 3d Reading the ordinance on its third reading, which was adopted by the following vote: Yeas- Aldermen Anderson, Glass, Graham, Hume, Jackson, Linn, Miller, Nitschke, North, Schneider, Schuber, Shelley, Suter, Townsend, Warmoth, Ziller-16. Nay- Alderman Platt. The ordinance was read a third time after which a motion was made that the ordinance do now Final Passage pass, which was adopted by the foregoing vote. Yeas- Aldermen Anderson, Glass, Graham, Hume, Jackson, Linn, Miller, Nitschke, North, Schneider, Schuber, Shelley, Suter, Townsend, Warmoth, Ziller-16. Nay- Alderman Platt. On motion the Council then adjourned. Minton Morris, City Clerk.