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Austin's 1898 Budget Crisis and Judgment Payments

Monday, March 21, 1898 regular

Massive Financial Burden: The city faced nearly $50,000 in unexpected expenses for 1898, including judgment payments to the Old Water Company and debts to the Water & Light Commission, straining the budget beyond normal operations.

Judgment Payment Ordinance Passes: After heated debate, council approved an ordinance setting aside 30% of general revenue receipts to pay a judgment owed to E.C. Bartholomew (Receiver), with aldermen divided on whether funds should come from general revenue or other sources.

Water & Light Infrastructure Investment: A quarterly report showed the Water & Light Commission spending nearly $19,000 on expanding water and light service, with efforts underway to supply the Sixth Ward with these utilities.

Fire Department & Municipal Maintenance: Council allocated $100 each for repairs to Protection Fire Hall and East Austin Fire Co., while approving extra pay for sanitary workers and authorizing street work in South Austin.

Railroad Track Dispute: Citizens protested a proposed Houston & Texas Central Railroad track on Colorado Street, with the matter referred to committee as the city balanced infrastructure expansion with neighborhood concerns.

Full Transcript

775 'Minutes of a Regular Meeting of the City Council. Austin, Texas March 21, 1898. Hon. John D. McCall, Mayor, presiding. Roll called Present (17): Aldermen Braatz, Crooker, Haynes, Hulen, Maddox, McLemore, Morris, Platt, Powell, Robordeau, Rossy, Rumpkin, Shelley, and Taylor. Absent: Aldermen Beaty, Belvin, Fischer, Horton, Miller, Nitschke, Read, Stumph, Townsend and Zilker. Aldermen Fischer, Miller and Read entered the Council Chamber. Minutes adopted as recorded. The minutes were adopted as recorded without being read. Petitions etc. Pet. of Geo. H. MacDonuell By Aldermen Robordeau. Petition of George H. MacDonuell, asking perasking permission to bid on mission to bid on newspaper printing. Received and laid over to be taken Newspaper Printing. up with the report of the Printing Committee on the subject. Protest of Citizens against By Alderman Morris: Protest of Citizens against granting permission granting permission to lay a to lay a Railroad track on Colorado Street. On motion of Alderman McRailroad track on Colo. St. Lemore the protest was referred to the ordinance Committee. Reports of City Officers. Report of W & L. Commission. The report of the Water and Light Commission, for the quarter ending February for quarter ending Feby 28 1898. 28th 1898, was read and on motion, referred to the Water and Light Committee. The following is a synopsis of the report: Balance on hand Dec. 1st 1897, last report $ 3484.05 Receipts for the quarter 19,737.70 Total: $ 23'221.75 Disbursed Operating Expenses $ 9450.74 Extension of Plant 8713.79 18164.53 Balance on hand $ 5,057.22 Aldermen Norton, Stumph, Townsend, Zilker, Beaty, Belvin, Fischer, and Nitschke entered the Council Chamber. Mayor's report on examination The Mayor presented a report, stating that he had examined the of City Officers Reports for reports of the City Assessor and Collector, Treasurer and Clerk, for the quarter ending Feby 28 1898. quarter ending February 28th 1898, and found them Correct. On motion the report was referred to the Finance Committee. W. & L. Committee's report on Alderman Zilker for the Water and Light Committee, to whom was referred pet. of Citizens of 6th Ward. the petition of Citizens of the Sixth Ward, asking to be supplied with Water and Light, presented a report, stating that the request had been complied with. The report was adopted. Unfinished Business. Ord. to pay, extra Sanitary laborers Alderman Crooker called up an ordinance to pay extra Sanitary laborers for Decem. Jan & Feb. for December and January. Read first time. Also an ord. appro. amt Also an ordinance, appropriating the sums for the month of February. of $86. reimburse drivers This ordinance was passed under suspension of the rules, by the following vote: Ayes: Aldermen Beaty, Belvin, Crooker, Haynes, Fischer, Hulen, Maddox, Morris, Norton, Powell, Platt, Robordeau, Rossy, Rumpkin, Shelley, Stumph, Townsend, and Zilker. 18. --- Page break --- 776 <table> <tr> <td>Ord. Appropriating $100. to pay for<br>Repairs to Protection Fire Hall.</td> <td>Nays! Alderman Fischer.<br>Also an ordinance appropriating the sum of $100. for repairs to Protection Fire Hall<br>The ordinance was read first time, and upon motion the rule was suspended,<br>and the ordinance placed on second reading by the following vote:<br>Yeas, Aldermen Belvin, Crooker, Haynes, Horton, Kuhn, Maddox, Mc Lemore,<br>Miller, Nitschke, Platt, Powell, Redd, Roberdeau, Rossengren, Stumpf, Taylor,<br>Townsend and Zilker, 18.</td> </tr> <tr> <td>Ord. amended by adding $100.<br>for repairs to East Austin Fire Co.</td> <td>Nays, Aldermen Beaty, Fischer and Shelley, 3.<br>The ordinance was read second time. Alderman Haynes moved to amend<br>the ordinance by adding $100. to repair Hall of East Austin Fire Co. No. 4.<br>The amendment offered by Alderman Haynes was adopted by the following vote:<br>Yeas Aldermen, Beaty, Crooker, Haynes, Horton, Kuhn, Maddox, Mc Lemore,<br>Nitschke, Platt, Powell, Redd, Rossengren, Stumpf, and Townsend. 15.<br>Nays Aldermen, Belvin, Fischer, Miller, Roberdeau, Shelley, Taylor & Zilker 7.<br>The ordinance as amended was read third time.</td> </tr> <tr> <td>Ald. Beaty excused</td> <td>On motion of Alderman Beaty was excused from further attendance at<br>this session of the Council.<br>Alderman Maddox moved to reconsider the vote excusing Alderman Beaty.<br>Alderman Roberdeau moved to table the motion of Alderman Maddox<br>which motion prevailed by the following vote:<br>Yeas, Aldermen Belvin, Fischer, Mc Lemore, Miller, Morris, Nitschke, Powell,<br>Redd, Roberdeau, Shelley, Stumpf, Taylor, Townsend and Zilker. 14.<br>Nays! Aldermen Crooker, Haynes, Horton, Kuhn, Maddox, Platt & Rossengren 7.<br>The ordinance was then passed by the following vote:<br>Yeas, Aldermen Crooker, Haynes, Horton, Kuhn, Maddox, Mc Lemore,<br>Platt, Powell, Redd, Rossengren, Stumpf, and Townsend, 12.<br>Nays Aldermen Belvin, Fischer, Miller, Morris, Nitschke, Roberdeau,<br>Shelley, Taylor and Zilker, 9.</td> </tr> <tr> <td>Geo. A. Brush, representing<br>South Austin Good Government Club<br>addressed Council in regard to<br>working streets in South Austin.<br>And motion that four of the<br>Citys Teams be turned over<br>to the County Commissioners<br>for 60 days, for Street work.</td> <td>On motion of Alderman Horton, representatives of the South Austin Good Government Club<br>were invited to address the Council in regard to working streets in South<br>Austin. George A. Brush, on behalf of the Club, addressed the Council,<br>after which Alderman Horton moved that four of the Citys teams be<br>turned over to the County Commissioners to be used by them for sixty<br>days, the County to feed and care for said teams, which motion prevailed.</td> </tr> <tr> <td>Mayor's Message.</td> <td>The Mayor laid before the Council the following message:<br>Austin, Texas, March 18th 1895.<br>To the Honorable City Council,<br>Austin, Texas.<br>Gentlemen:<br>Your attention is called to the fact that I did not approve<br>the ordinance appropriating $11,500. to pay the first installment of the<br>judgment in favor of the Old Water Company. This installment, under the<br>said judgment, should have been paid out of the 1894 taxes and for<br>which D. fiscal year had end[ed]. In [illegible] [illegible] [illegible] [illegible]<br>[illegible] [illegible] special provision for its payment now [illegible] from<br>funds in this [illegible] [illegible] to make it so, now [illegible] [illegible]<br>[illegible] is presented, to me, providing that this<br>[illegible] payment be made out of the [illegible]</td> </tr> </table> --- Page break --- 777 Mayor's Message judgment is to be paid out of the 1897 taxes! I find this in the same condition as the first installment, in that no special provision is made in the tax levy for this year to pay the second installment. Now on account of the failure to so levy, there is no special provision to pay this second installment, which must be paid this year. Such being the fact, unless provision is made for setting aside from the receipts, as they come in, a sufficient amount to pay this second installment, we will not have the money on hand to meet it when it becomes due. Under the provisions of the charter my opinion is, that the judgment payable out of the 1897 taxes should have been specially provided for, before the payment of the judgment due last year, and for the reasons said not appearing in the ordinance. I respectfully recommend that special provision be made for this payment by setting aside a sufficient amount of the receipts, as they come in, to meet this second installment when due; and I hope that you gentlemen will agree with me in this. The City's obligations should be promptly met as they become due, and it is our duty to see that they are paid. As the situation now presents itself, which is not necessary to discuss, there being so well known, we have a herculean task before us. The City's expenses for this year have to be met, and in addition thereto we are expected to pay this year near $50,000.00 over and above what we paid last year without deriving any additional benefits. This amount includes the first and second installments of the judgment and interest against the City, and also $24,500 due from the City to the Water and Light Commission for Water and Light furnished the City. To meet this additional amount, or at least a part of it, I find from the retiring message of Mayor Hancock, there was a shifting of the tax levy amount to be paid into the Interest and Sinking Fund to the General Fund, which he explains as follows:"One of the items in the estimate upon which the above levy was based is the sum of $24,500, for water & light for public use from April 1st, 1897 to November 30th 1898. This is an extremely low price for the service rendered and should be promptly paid. It is only just that the tax-payers should contribute through the General Revenue to the support of their plant, to the extent that it furnishes water and light for public purposes. It is pertinent also to remark that this sum of $24,500 is relied upon by the Water, Light & Power Commission as so much revenue, in addition to their sales, which may be turned in by the Commission to the payment of Interest & Sinking Fund on the Dam Bonds for this year. Including this amount the Commission estimated that they would have a surplus of $36,500 to so supply, and relying upon this estimate the Council levied a tax of 60 cents for interest & Sinking Fund instead of the 95 cents levied last year. It is evident that if this amount due from the General Revenue to the Commission is not promptly paid the Interest and Sinking Fund will suffer to that extent." I find that on the day next preceding the date of this message, that the tax levy for interest and Sinking Fund was not lowered; in fact that the tax rate for ordinary and Sinking Fund was raised sixty cents higher than the requirements as now have been met, and that the $60,000 referred to has been used. --- Page break --- 778 Mayor's Message! Sinking Fund to pay Interest with. If the tax of 94 cents did not provide enough to meet the Interest and Sinking Fund, I do not well see how a tax of 62 cents will do it. It may be possible for the Water, Light & Power Commission to make up the deficiency from the earnings of the plant, but it is a question of grave doubt in my mind, for the reason that the plant is not yet perfected. I say to you gentlemen candidly, you will place your attention and earnest thought to this matter. The City will bring this before us. I feel that we can pull through but to do so, we must keep an eye to our receipts and disbursements, and above all provide such measures as will enable us to collect all taxes due, so the burden will fall on each and every tax-payer equally and justly alike. Very respectfully Jno. D. McCall, Mayor Ordv. setting aside 15% of General Revenues, for payment of the installment of the judgment obtained by E. C. Bartholomew, Receiver. The Mayor having laid before the Council an ordinance providing for the payment of the judgment obtained by E. C. Bartholomew, Receiver, against the City, and setting aside 15 per cent of all the receipts from general revenue for the year 1898 for the payment of said judgment. The ordinance was read second time. Substitute Ord. offered setting aside 30. p.c. of General Revenues. Alderman Morris offered as a substitute for the ordinance, an ordinance setting aside 30 per cent of all the revenue receipts for 1898 now in the City Treasury or that may hereafter be collected, for the purpose of paying said judgment. Alderman Maddox moved that the substitute, together with the original ordinance, and an ordinance on the subject introduced by Alderman Platt, be referred to the Finance and Ordinance Committee. Alderman Crooker moved to lay the motion of Alderman Maddox on the table, which motion was lost by the following vote: Yeas Aldermen Belvin, Crooker, Fischer, Kuhn, McLemore, Morris, Nitschke, Roberdeau, Shelley and Stumpf. 10. Nays, Aldermen Haynes, Horton, Maddox, Miller, Platt, Powell, Preddy, Taylor, Townsend and Zilker. 10. The vote was then taken on the motion of Alderman Maddox to refer, which motion was lost by the following vote: Yeas Aldermen Haynes, Horton, Maddox, Miller, Platt, Powell, Taylor and Townsend. 8. Nays Aldermen Belvin, Crooker, Fischer, Kuhn, McLemore, Morris, Nitschke, Preddy, Roberdeau, Rosengren, Shelley, Stumpf, and Zilker. 13. Alderman Maddox moved to adjourn. Lost by the following vote: Yeas Aldermen Haynes, Horton, Maddox, Platt and Taylor. 5. Nays Aldermen Belvin, Crooker, Fischer, Kuhn, McLemore, Miller, Morris, Nitschke, Powell, Preddy, Roberdeau, Rosengren, Shelley, Stumpf, Townsend and Zilker. 16. Alderman Morris moved the adoption of the substitute ordinance which motion prevailed by the following vote: Yeas Aldermen Belvin, Crooker, Fischer, Kuhn, McLemore, Morris, Nitschke, Powell, Roberdeau, Rosengren, Shelley, Stumpf, Zilker. 13. Nays Aldermen Haynes, Horton, Maddox, Miller, Platt, Preddy and Townsend. 7. --- Page break --- 779 Alderman Morris moved to suspend the rules and place the ordinance on its third reading, which motion prevailed by the following vote: Yeas! Aldermen Belvin, Brooker, Fischer, Huhn, Mc Lemore, Miller, Morris, Nitschke, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpy, Townsend, and Zilker. 16. Nays Aldermen Haynes, Horton, Maddox, Platt and Taylor. 5. Alderman Maddox moved to substitute the ordinance introduced by Alderman Platt, to pay this installment out of the Sinking Fund, of the Water and Light Bonds, for the pending ordinance. The Mayor ruled that the substituted ordinance was not now in order. Alderman Maddox appealed from the ruling of the chair. Upon vote had on appeal, the ruling of the chair was sustained by the following vote: Yeas! Aldermen Belvin, Brooker, Fischer, Huhn, Maddox, Mc Lemore, Miller, Morris, Nitschke, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpy, Townsend, and Zilker. 17. Nays Aldermen Haynes, Horton, Platt and Taylor. 4. Alderman Haynes moved to adjourn, which motion was lost by the following vote: Yeas! Aldermen Haynes, Maddox, Platt and Taylor. 4. Nays Aldermen Belvin, Brooker, Fischer, Horton, Huhn, Mc Lemore, Miller, Morris, Nitschke, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpy, Townsend and Zilker. 17. Alderman Taylor moved, that when the Council adjourn, it be until Wednesday night, at 8 oclock. Alderman Belvin moved to table the motion of Alderman Taylor which motion prevailed by the following vote: Yeas! Aldermen Belvin, Brooker, Fischer, Haynes, Horton, Huhn, Mc Lemore, Miller, Morris, Nitschke, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpy, Townsend and Zilker. 18. Nays Aldermen Maddox, Platt and Taylor. 3. Alderman Morris moved that the ordinance be now read a third time by caption, which motion prevailed. Alderman Morris moved that the ordinance do now pass, on which Alderman Belvin moved the previous question, which was seconded. Alderman Belvin withdrew his motion for the previous question. Alderman Roberdeau renewed the motion for the previous question, which was seconded and previous question ordered, and the ordinance passed by the following vote: Yeas Aldermen Belvin, Brooker, Fischer, Huhn, Mc Lemore, Miller, Morris, Nitschke, Platt, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpy and Zilker. 16. Nays Aldermen Haynes, Horton, Maddox, Taylor and Townsend. 5. Alderman Platt gave notice that he would move at the next regular meeting of the Council to reconsider the vote by which the ordinance was landed. Alderman Zilker moved to reconsider the vote ordering the passage of the ordinance, which motion was made to lie on the table. [Text in left margin:] Passage of Ord. settling and sale of West. Avenue to pay 2nd installment of judgment. --- Page break --- 780 The motion of Alderman Belvin was adopted by the following vote: Yeas Aldermen Belvin, Crooker, Fischer, Horton, Huhn, McLemore, Miller, Morris, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf and Zilker 16. Nays Aldermen Haynes, Maddox, Platt, Taylor and Townsend. 5. City Clerk directed to com- municate with holders of Bonds & ask for bids for $20,000 for Sinking Fund. Alderman Taylor moved that the Finance Committee be requested to advertise for bids for $20,000, Water and Light Bonds, for the Sinking Fund. Alderman Maddox moved as a substitute, that the City Clerk by directed to communicate with holders of the bonds, and ask for bids for $20,000, for the Sink- ing Fund. The substitute offered by Alderman Maddox was adopted. Ald. Fischer & Nitschke excused from further attendance. Aldermen Fischer and Nitschke were excused from further attendance at this session of the Council. State Convention of Epworth League invited to hold next State Convention in this City. Alderman Haynes offered a resolution that Mr. Q. C. Lomax, a delegate to the State Convention of the Epworth League, be authorized in the name of the City of Austin, to invite the League to hold their Annual Convention in this City, next year. Unanimously adopted. Ord. appropriating $2873.90 to pay Salaries of Officers & employes for Feby 1898. By Alderman Morris: An ordinance appropriating the sum of $2873.90 to pay Salaries of Officers & employes of the City for the month of February 1898. Read first time and on motion the rules was suspended and the ordinance placed on its second reading by the following vote: Yeas Aldermen Belvin, Crooker, Haynes, Horton, Huhn, Maddox, McLemore, Miller, Morris, Platt, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 20. Nays. None. Ord. amended by adding $75. to pay 2nd Asst in A & C's Office. The ordinance was read a second time. Alderman Shelley moved to amend the ordinance, by adding the sum of $75. to pay Salary of 2nd Assistant in the Assessor & Collector's office. The amendment was adopted, and the ordinance as amended, was passed under suspension of the rules by the following vote: Yeas Aldermen Belvin, Crooker, Haynes, Horton, Huhn, Maddox, McLemore, Miller, Morris, Platt, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 20. Nays. None. Ord. appropriating $160. to pay Drivers of Sanitary Carts for Feb. 1898. By Alderman Morris, An ordinance appropriating the sum of $160. to pay Drivers of Sanitary Carts for February, 1898. The ordinance was passed under suspension of the rules by the following vote: Yeas Aldermen Belvin, Crooker, Haynes, Horton, Huhn, Maddox, McLemore, Miller, Morris, Platt, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 20. Nays. None. Ord. appropriating $208.72 to pay Approved Accounts Street Dept. The Mayor laid before the Council an ordinance appropriating the sum of $208.72 to pay approved accounts of Street Department. The ordinance was passed under suspension of the rules by the following vote: Yeas Aldermen Belvin, Crooker, Haynes, Horton, Huhn, Maddox, McLemore, Miller, Morris, Platt, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 20. Nays. None. Reso of Ald Roberdeau to appoint a Committee to canvass returns of vote on sale of Old City Hall. Lost Ayes 6 Nays 14. Alderman Roberdeau moved that the Mayor appoint a committee of three to canvass the returns of the vote on the sale of the Old City Hall Building and report at the next regular meeting of the Council. Motion lost. Ayes 6. Nays 14. --- Page break --- 781 Officers of the Fire Department The motion was adopted and the Mayor appointed Aldermen Roberdeau, Crooker and Mc Lemore, as the Committee. Ord. Appropriating $16317.50 to pay Int. due April 1st 1898 on Water & L Bonds. Ald. Platt excused. By Alderman Morris. An ordinance appropriating the sum of $16317.50 to pay Interest due April 1st 1898 on Water and Light Bonds. Alderman Platt was excused from further attendance at this session of the Council. The ordinance was passed under suspension of the rules by the following vote: Yeas. Aldermen Belvin, Crooker, Haynie, Horton, Kuhn, Maddox, Mc Lemore, Miller, Morris, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 18. Nays. None. Ord. appropriating $7145. to pay Int. due April 1st 1898 on Ord. Bonds. By Alderman Morris. An ordinance appropriating the sum of $7145. to pay Interest due April 1st 1898, on Bonds issued prior to May 1st 1890. The ordinance was passed under suspension of the rules by the following vote: Yeas. Aldermen Belvin, Crooker, Haynie, Horton, Kuhn, Maddox, Mc Lemore, Miller, Morris, Powell, Redd, Roberdeau, Rosengren, Shelley, Stumpf, Taylor, Townsend and Zilker. 18. Nays. None. Ord. granting right-of-way to H & T's S. C. R.R. to lay certain side tracks By Alderman Zilker. An ordinance granting the right-of-way to the Houston and Texas Central Railroad, to lay certain side tracks in this City. The ordinance was read first time, and on motion referred to the Street and Ordinance Committee. Protest of Citizens against passage of said ordinance and granting right of way to H & T's C. R.R. and petition of Citizens to have certain Streets opened. By Alderman Kuhn. Protest of Citizens against the passage of the ordinance granting right-of-way to the Houston and Texas Central Railroad Company, to lay tracks etc. Read and referred to the Street and Ordinance Committee. By Alderman Zilker. Petition of citizens to have certain Streets opened. Read and referred to the Street Committee. Special Com'te report on returns of Fire Dept election The special Committee appointed to canvass the vote for Officers of the Fire Department, presented the following report, which was read and adopted: Austin, Texas March 21st 1898. Hon. John D. McCall, Mayor, and Gentlemen of the City Council: Your special Committee appointed to canvass the returns of an election held this day, by the Fire Department, find that for the office of Chief Engineer, the following received the votes: For Chief Engineer Joseph Stumpf received 138 votes William Achilles received 136 votes. For Recorder Gus. Bruex received 106 votes Clarence Woodward received 143 votes. Respectfully, P.W. Roberdeau E. M. Crooker Jeff. Mc Lemore Com of Aldermen Joseph Stumpf Chief Wm Achilles Asst. Chief Clarence Woodward Recorder On motion of Alderman Morris the Council adjourned. M.C. Johnson City Clerk. Approved, Jno D. [illegible]