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Austin Disputes Tax Authority, Approves Utility Wires

Monday, February 7, 1898 regular

Tax Levy Legal Questions: The City Attorney delivered a lengthy analysis of whether Austin had authority to impose additional taxes to pay a federal court-ordered debt, ultimately requesting more time to investigate due to ambiguities in the city charter about tax limits.

Sewerage System Expansion Approved: The Austin Sewerage Company was granted authority to extend its pipeline system under city streets and alleys without needing special council approval for each project, allowing them to make immediate customer connections.

Telephone Wire Permission Granted: Graham & Andrews received approval to run a telephone line from their Congress Avenue business to connect with Dr. Wooten's office on East Sixth Street.

Salary Budget Reduced to Monthly Basis: After debate, council cut the proposed officers' salary appropriation from an 11-month amount of $31,085.08 down to just $4,873.90 for January 1898, suggesting financial constraints.

Municipal Services Reports: City officials reported 49 arrests in January, 16 deaths in the city, and 17 patients remaining in the city hospital, along with various property damage claims referred to committees for investigation.

Full Transcript

733 Minutes of a Regular Meeting of the City Council Hon. Jno. D. McCall, Mayor presiding. Austin, Texas, Feby 7th 1898. Roll Call. Present Aldermen Beaty, Belvin, Crooker, Fischer, Haymes, Horton, Kuhn, Maddox, Messmore, Miller, Morris, Platt, Powell, Redd, Roberdeau, Rosengren, Shelley, Strumpf, Taylor, Townsend and Zilker. 21. Absent Aldermen Nitschke. 1. Minutes approved as recorded. On motion, the minutes were approved as recorded without reading. Petitions etc Pet. of Graham & Andrews to run a telephone wire. By Alderman Shelley, Petition of Graham and Andrews for permission to run a wire from their place of business on Congress Avenue, to connect with the office of Dr. Wooten on East Sixth Street. On motion the petition was granted. Pet. of Scottish American Mortgage Co for reduction of assessment for taxes of 1897. By Alderman Shelley, Petition of the Scottish American Mortgage Company asking a reduction of assessment on certain property for the taxes of 1897. Read and referred to Claims and Accounts Committee. Pet. of E. J. Martin & J. Hoppel to remove wagon scales. By Alderman Morris, Petition of E. J. Martin and J. Hoppel for permission to remove scales from Colorado Street to West Fourth Street. On motion, the petition was granted. Pet. of Mrs. L. C. Pease asking to have certain taxes paid by her for 1891, refunded. The Mayor laid before the Council a petition from Mrs. L. C. Pease, asking the Council to refund to her certain taxes paid by her for the year 1891. On motion the petition was referred to the Committee on Claims and Accounts. Pet. of Nat. Davis for damages to horse cut by wire fence. By Alderman Maddox, Petition of Nat. Davis, asking damages to horse cut on wire fence. Read and referred to the Claims and Accounts Committee. City Officers Reports Reports of City Officers. The reports of the Assessor and Collector, City Clerk, City Treasurer, City Marshal, City Physician and the City Sexton were presented, and on motion, were referred to their respective Committees without reading, except the reports of the Assessor and Collector and Treasurer. The following is a synopsis of the reports:- Assessor & Collector By the Assessor and Collector. Do Collections as follows:- General Fund $4903.86 Interest & Sinking Fund Water & Light Bonds 3464.27 " " " Old Bonds. 391.16 School Tax 1714.01 Total Collections $10,473.30 Referred to Finance Committee. City Treasurer By the City Treasurer Balance on hand Jan. 3, 1898, account General Fund $9822.54 " " " " " Int. & Sinking " Old Bonds. 2764.59 Receipts from Jan. 3, 1898 to Feby 7th 1898. Ad Valorem tax 3445.19 Recorders Court 70.50 Miscellaneous 674.61 ___________________________________________________ [illegible] [illegible] 19787.53 --- Page break --- 754 Amt. Bro't Forward $ 9787.53 Licenses &c 713.50 Interest Sinking Fund Old Bonds 391.16 $10887.19 Paid Warrants from Jan. 3rd 1898 to Feby 7th 1898 $3807.97 Balances afc General Fund 3918.47 " " Int & Sinking Fund Old Bonds 3160.75 Referred to Finance Committee 10,887.19 By the City Clerk. City Clerk. Amount of Warrants drawn against the General Fund during the month - of January 1898. $3399.80 Referred to Finance Committee City Marshal By the City Marshal. Total amount of Fines Assessed in Recorder's Court 240.00 Paid in Cash 61.00 Worked Out 144.50 Escaped 8.00 Carried Forward 26.50 240.00 Collected on back fines 3.00 Pound fees 30.50 Total number of Arrests during the month 49. Referred to Police Committee. City Physician By the City Physician. Total number of Patients in Hospital January 1st 20 Number " " admitted during " 13 " " dismissed " 12 " " died " 4 " " remaining February 1 17 Number of visits to Paupers during the month 99 " " prescriptions to Paupers during the month 205 cases diphtheria " 2 No other contagious diseases reported. Referred to Hospital Committee. City Sexton By the City Sexton. Total number of deaths 16 White 16 Colored 1 Male 6 Female 11 Stillborn 1 Referred to Cemetery Committee. Alderman Fritscher entered the Council Chamber. Committee Reports. Fire Comt. report on repairs to Protection Fire Hall Building Alderman Roberdeau, for the Fire Committee, to whom was referred the matter of repairs for Protection Hose Compo.. No. 3, presented a report stating that the work is very necessary, and that it would take about $150.00 to make the repairs, and submitting an ordinance for that amount with the recommendation that it be passed. On motion, the report was ordered filed. --- Page break --- 755 Alderman Matt for the Claims and Accounts, Committee, to whom was referred the petition of Ollis Monroe, for pay, for two horses killed by the City, presented a report, stating that the horses were shot without warrant of law and recom- mending that he be allowed the sum of $20 as payment. Alderman Baylor moved that the matter be referred to a special committee of three, for further investigation, which motion prevailed, and the Mayor appointed Aldermen Baylor, Maddox and Matt as the special Committee. Unfinished Business Ord. defining duties of Bridge-keeper The Mayor laid before the Council an ordinance defining the duties of Bridgekeeper. On motion of Alderman Morris further consideration of the ordinance was postponed until the next regular meeting of the Council. City Atty's report on resolution in regards to additional or supplemental tax levy for 1894. The City Attorney presented the following report, and on his motion, further time asked for in the report, was granted: Austin, Texas, February 7th 1895. To the Mayor and City Council of the City of Austin Gentlemen. – In obedience to your resolution requiring an opinion from me as to the power of your body to make an additional or supplemental tax levy for the year 1894, to meet the debt embraced within the mandamus issued out of the United States Circuit Court in the case of Bartholomew, Receiver, V. S. The City of Austin, I submit as the result of my investigation. First. The Charter confers upon the City Council, the power to levy for general revenue purposes, the sum of $1 on the $100 valuation of property subject to taxation in the City. Second. This power is coupled with the general limitations that the aggregate amount which the Council may levy is $1.50 on the $100, and in this limitation it is declared that this shall embrace all taxes including public free schools, and in fixing the limit of $1 it is declared that “the money raised by said tax is to be used for the current expenses and for the general improvement of the City or its property”, and the question suggests itself, is the special school tax of 33 1/3 per cent levied for school purposes to be taken out of this dollar limit, or is it to be taken from the two subsequent provisions authorizing the issuance of bonds? It is not declared in the Charter specifying from which it is to be taken and to my mind it is not clear that it does not properly fall within the dollar limit, and exclude from the Council the power to levy more than this sum for other current expenses. Third. This question is material, for if it is to be taken from the limit for current expenses, then it is clear that the Council can not make a further levy, since it has already exhausted the power under this head. Fourth. It is well settled that the proper officers of a municipality can be compelled by mandamus at the suit of any judgment creditor, to exhaust the power given them by law to levy taxes for the payment of his claim, but when the full limit has been reached, he can not compel the Officers on request to meet the debt with current expenses that is, the tax levied for this debt must be levied, and would be driven from this limit fixed for current expenses, but --- Page break --- 756 City Atty's report on resolution in regard to addl. or supplemental tax levy for 1897. remaining $1.50, and that the City Council in making the levy for 1897 should have levied more than they did; in order to meet the current interest and more payment required to be all returned by the mandamus. I find the following facts to exist. Sixth. That the Charter, Sec. 30, confers upon the Council full power to provide for the prompt collection of all taxes and to pass all ordinances needed for that purpose. The Charter provides (Sec 103) that the fiscal year of the City shall be from the first Tuesday in December to the and including the first Monday in December of the succeeding year. An examination of existing ordinances disloses that Act 365 of the Revised Ordinances, requiring the Council to make the annual levy of Taxes on the first Monday in May of each year, was unconditionally repealed May 6th 1891, and that no ordinance fixing any definite time for the levying of taxes has been passed since. Seventh. I find that the Council has made the levy during the different years since that time as follows; viz; for 1891 on October 21st; for 1892 on April 9th; for 1893 on October 18th; for 1894 on October 11th; for 1895 on October 29th; for 1896 on November 24th; and for 1897 on November 16th. Eighth. It is apparent that when the tax levy is made so late as October or November, that but little time is given to make out the rolls and begin the actual work of collecting the levy, and that therefore by practical operation the taxes for any year under the mode of procedure which has been followed since 1891, becomes the receipts for the succeeding fiscal year. Ninth. Judge Dillon, in his work on Municipal Corporations (Vol. 2 Sec 769, pages 946 and 947) announces the following rule: “Where the Charter limit as to the amount of taxes or rate of taxation for any year is not exceeded, there may be different levies of taxes in one year, which, where the Charter is silent on the point, may be either a fiscal year or calendar year, in the discretion of the Council,” citing three cases, one each from Missouri, Michigan and Louisiana. Tenth. The difficulty lies in the application of this rule, even if it should be held applicable to this City, in the fact that both the calendar year of 1897, and the fiscal year ending the first Monday in December last, have expired, and in addition the further difficulty that the tax rolls for the year 1897 have been made out, completed and delivered to the Tax Collector, who has made collections thereon from four hundred and eight persons to whom full receipts have been given. Eleventh. The Collector's books show that he has made collections on the tax rolls so delivered to him as follows; viz; in November $655.12; in December $4538.70; in January $1438.08, and in February to this date $1656.48, and it follows that if the Council has the right to make an additional levy, it would have to be in form a supplemental roll, in no way connected with the existing rolls, and that the two should be in all respects separate and distinct. It is obvious that to pursue this course would result in confusion and dissatisfaction, and since we have no precedents, [illegible] [illegible] --- Page break --- 737 City Atty's report continued the City, or to its creditors for whose benefit the levy would be made. Therefore the law would have to apply to all taxpayers in the City, including those who have already paid, as well as those who have not; in order to satisfy the constitutional requirement that taxes shall be laid with equality. I would suggest that this matter can be postponed for a short time, in order that full opportunity may be given for more thorough investigation of the questions involved, and to this end I request further time before being called upon for a final answer. Very truly yours: J. R. Cochran, City Attorney. City Atty. reports on certain suits against G. C. Hamilton The City Attorney then presented a communication in regard to certain suits for taxes against G. C. Hamilton. On motion the communication was referred to the Committee on Claims and Accounts. Postal Telegraph Cable Co's acceptance of franchise granted by Council. The acceptance by the Postal Telegraph Cable Company of Texas of the franchise granted by the Council of the 17th day of January, 1898, was read and ordered filed. Dr. A. D. Graves granted leave of absence to attend Court. On motion of Alderman Maddox, leave of absence was granted City Physician Graves to attend Court in Blanco County. Resolution requesting the City Treasurer to state in his monthly reports, amts received & collected & disbursed by him. Alderman Maddox presented the following resolution, which was read: Be it resolved by the City Council, that hereafter the City Treasurer be requested in his monthly reports, to state the amounts received and disbursed by him, from, and on account of, the Water and Light Department of the City of Austin. Resolution granting Austin Sewerage Co. authority to extend their system of sewerage under any of the streets & alleys. without special permit from Council. Alderman Crooker presented a resolution, granting the Austin Sewerage Company authority to extend their system of sewerage under any of the Streets and Alleys of the City for the accommodation of its patrons; the extensions to be made under the supervision of the City Engineer, without special permit from the Council. Alderman Haynes moved to postpone consideration of the resolution until the next meeting of the Council. Alderman Maddox moved that the representative of the Company be permitted to designate the work that would probably be done before the next meeting of the Council. Mr. Guy Q. Collett then stated to the Council that certain parties were anxious to have connections made at once, giving locations, etc., and on motion authority was granted the company to make the extensions mentioned, and action on the resolution offered by Alderman Crooker was then postponed until the next regular meeting. Resolution instructing City Engineer to examine a Church building in 7th Ward. By Alderman Horton, Resolution instructing the City Engineer to examine a Church building in the Seventh Ward, immediately near the residence of C. K. Banks, Esq., and report as to its condition. The resolution was, on motion, referred to the Marshal. The Mayor laid before the Council, a bill of the Austin Water, Light and Power Co., No 1., for water for the year 1890. On motion the bill was referred to the Finance Committee. By Alderman Crooker. An ordinance appropriating the sum of [illegible] --- Page break --- 758 Ord. appropriating $31,085.08 to pay Salaries of Officers and employes for eleven mos. ending Nov 30th 1898. $31,085.08 to pay Salaries of Officers and employes, for the eleven months ending November 30th 1898. The ordinance was read first time, and a motion made to suspend the rule and place the ordinance on its second reading, which was lost by the following vote: Yeas Alderman Beaty, Crooker, Fischer, Haynes, Kuhn, Maddox, Mc Lemore, Miller, Nitsche, Roberdeau, Stumpf, Saylor and Townsend. 13. Nays, Aldermen Belvin, Horton, Morris, Nitsche, Powell, Redd, Rosengren, Shelley, and Zilker. 9. Alderman Morris moved that the Council adjourn, which motion was lost. Ord. appropriating $1760. to pay Salaries of 4 Drivers Sanitary Carts for Eleven mos. ending Nov. 30, 1898. An ordinance appropriating the sum of $1760 to pay salaries of four drivers of Sanitary Carts, for the eleven months ending November 30th 1898. Read first time, and on motion the rule was suspended and the ordinance placed on its second reading by the following vote: Yeas. Aldermen Beaty, Belvin, Crooker, Fischer, Haynes, Kuhn, Maddox, Mc Lemore, Miller, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 16 Nays. Alderman Horton, Morris, Nitsche, Platt, Powell and Redd. 6. The ordinance was read second time Alderman Maddox moved to amend by striking out "$1760 for eleven months ending November 30th 1898" and inserting "$160 for the month of January 1898". The amendment was adopted, and the ordinance, as amended, was passed, under suspension of the rule by the following vote: Yeas. Aldermen Beaty, Belvin, Crooker, Fischer, Haynes, Horton, Kuhn, Maddox, Mc Lemore, Miller, Nitsche, Platt, Powell, Roberdeau, Rosengren, Shelley, Stumpf, Saylor, Townsend and Zilker. 20. Nays. Aldermen Morris and Redd. 2. Vote reconsidered by which the Council refused to suspend the rule & place ord. on 2nd reading. Alderman Powell moved to reconsider the vote by which the Council refused to suspend the rule, and place on its second reading, an ordinance appropriating the sum of $31,085.08 to pay salaries of Officers and employes for the eleven months ending November 30th 1898, which motion prevailed by the following vote: Yeas Alderman Beaty, Belvin, Crooker, Fischer, Haynes, Kuhn, Maddox, Mc Lemore, Miller, Nitsche, Powell, Roberdeau, Rosengren, Shelley, Stumpf, Saylor and Townsend 17 Nays Aldermen Horton, Morris, Platt, Redd and Zilker 5. On motion the rule was suspended, and the ordinance placed on its second reading by the following vote: Yeas Alderman Beaty, Belvin, Crooker, Fischer, Haynes, Kuhn, Maddox, Mc Lemore, Miller, Nitsche, Powell, Roberdeau, Rosengren, Shelley, Stumpf, Saylor and Townsend 17. Nays Aldermen Horton, Morris, Platt, Redd and Zilker 5 The ordinance was then a second time read. Ord. amended by striking out $31,085.08 & inserting $4873.90 in lieu thereof, which was adopted Alderman Maddox moved to amend, by striking out "$31,085.08 for" the eleven months ending November 30th 1898", and insert in lieu thereof "$4873.90 for January 1898", which motion prevailed, and on motion, the ordinance as amended, was then passed, under suspension of the rule, by the following vote: Yeas Alderman Beaty, Belvin, Crooker, Fischer, Haynes, Horton, Kuhn, Maddox, Mc Lemore, Miller, Nitsche, Platt, Powell, Roberdeau, Rosengren, Shelley, Stumpf, Saylor, Townsend and Zilker. 20. Nays Aldermen Morris and Redd. 2. --- Page break --- 759 Kuhn, Maddox, Mc Semon, Miller, Mitscher, Powell, Roberdeau, Rossinger Shelley, Stumpf, Taylor and Townsend 18. Nays, Aldermen Morris, Platt, Redd and Zilker 11. On motion the Council adjourned. Jno. J. Finison Clerk.