595 Called meeting of the City Council Austin, Texas, October 20, 1906 Hon W.S. Shelley - mayor presiding Call Called Present Aldermen Armstrong, Quesa, Haynes, Miller Moore, Powell, Smith, Von Rosenburg, and Ham. Absent Aldermen Crooker, Wuacken, Petri, Redd & Beak. The following, Call of the Council was read. A special Session of the City Council of the City of Austin is hereby Called to meet in the Council Chamber, in the Waterworks, Council office building on West 6th street Call of Council at 8 o’clock. P.M. this the 20th day of October A 1906, for the purpose of making an appropriation to reimburse American National Bank of Austin the amount paid by them in negotiating and making the exchange of $320.000.00 Water works and Electric Light bonds of the City of Austin for a like number of Refunding bonds of the City of Austin, and to consider and pass such other ordinances and resolutions necessary in the premises and for the purpose of considering and making a levy of taxes for the year 1906, if thought advisable W.S. Shelley Mayor L.W. Moore Henry Crooker L.H. Crooker Austin, Texas, Oct 20th 1906 I hereby Certify that I have served the above Call by having same read by Policeman Mauford and Day, to each of the following named Aldermen to wit; W.A. Miller, W.C. Redd, A.R. Quesa, C.H. Powell, G.W. Crooker, Evon Rosenburg, Joe Wuacken, C.L. Armstrong, Henry Petri, E.J. Wilkhelms, H.L. Haynes, R.A. Ham, D.N. Smith, and W.L. Moore Jno. Wolley, Sergeant of Police acting City Marshal Aldermen Haynes, presented the following report Austin, Texas, October 20, 1906. To Hon. Mayor & Board of Aldermen of the City of Austin Gentlemen: We, your special Committee, appointed to effect Report of special an exchange of the $320.000.00 Refunding bonds of the Committee to exchange City of Austin for the $320.000.00 outstanding Water and Light bonds bonds of the City, beg leave to make the following statement in addition to the itemized report filed by us in connection with such exchange: First, by exchanging our refunding bonds for the water and light bonds of the City, we save one per cent a year in interest for Ten (10) years, or a total of $32.000.00 It Cost us to make the exchange $10.560.00, therefore we have. --- Page break --- 596 a net saving of $21,440.00 in the item of interest alone Second, We get rid of the litigation that has burdened the City for the past five (5) years, and we are now able to say, for the first time in sixteen (16) years that the City has been able to say it, that we have no litigation of any kind. or Character (with any person or persons in connection with any of the City institutions), or any other indebtedness, bonded debt or otherwise, it being the first time in sixteen (16) years that we have been free from that Character of litigation. Third, We get all of our bonds in one issue and all of them are subject to call at any time; and, while they bear four (4) per cent interest for the next ten (10) years and then go to five (5), if they keep on advancing in force as they surely will do, and as they have done in the past year, we can, before the ten (10) years expire, without any question, refund the entire indebtedness for three and on half (3½) or four (4) per cent at the outside. In other words, we are confident that the City will never again have to pay more than four (4) per cent on any of its bonded debt. Fourth, By making this exchange, we are unable to reduce the Tax rate materially, and unless another bond issue is made by the City within the near future, which is a remote probability, we do not think the Citizens need anticipate ever again a levy of Tax rate of more than 1.90% and, as soon as the claim of the Trustees of the old school and light plant is paid off, the taxes can be materially reduced, because we are now paying off that indebtedness at the rate of $22,500.00 a year. While we do not feel like throwing bouquets at the Council and Special Committee who had this matter in Charge; we believe that with this result attained all of our serious troubles are now ended, and the Citizens of Austin can congratulate themselves, and the Council can assure itself of the fact that by their persistent efforts, in the matter, they have wiped out all the litigation that the City has been burdened with, and all this without any additional expense for attorneys fees. The City Attorney's office has handled all the legal phases of the litigation, without any outside assistance. The City contends, and the Citizens of Austin in a word, that the welfare of the City in a word, that for many years, during the progress of the litigation of the City, thousands of dollars were paid out for attorneys fees to lawyers other than the City Attorney. Fifth During the Eight years the City has incurred --- Page break --- 597 $219.000.°° of its bonded debt during the past five (5) years it has paid $90.000.°° on account of the old water and Light plant and the judgements against it in favor of The old Water Company; More than $50.000 has been spent in Permanent Street Improvements, including storm sewer; enough money has been laid aside to build a City Hall; and no debt has been incurred. All of this has been accomplished with no credit for the City on the outside, and despite the persistent "knocking" of some of our citizens. With it all of our streets are in better condition than at any time in their history. Bearing these things in mind, we feel that we have a right to be proud of the record, and the City as a whole should rejoice that the Condition that exists now as Compared with seven years ago. H.L. Haynes Chairman Finance Committee On motion the report of the Special Committee was accepted. Thanks of Council Alderman Moore moved that the thanks of to City Attorney X the Council be tendered the City Attorney and Mr G.H. Allen for G.H. Allen for their legal efforts in the matter of exchanging services these bonds, which motion prevailed. Alderman Crooke Patri and Scott Smith By Alderman Haynes an ordinance appropriating the sum of $10.320.°° for the purpose of reimbursing the Expense of exchanging American National Bank of Austin, Texas, for expenses bonds X incurred in the exchange of $320.000.°° of Waterworks & Electric Light bonds for a like amount of Refunding bonds The ordinance was read the first time and passed under suspension of the rules by the following Vote Yeas Aldermen Armstrong Crooke Dunea Haynes Mueller Moore Petri Portsell Scott Smith Vou Roneberg & Wilhelm Nays none By Alderman Haynes An ordinance laying taxes Tax levy for 1906. for the year 1906. The ordinance was read the first time and passed under suspension of the rules by the following Vote Yeas Aldermen Armstrong Crooke Dunea Haynes Mueller Moore Petri Portsell Scott Smith Vou Roneberg & Wilhelm 12 Nays none On motion the Council adjourned Jno. S. Johnson City Clerk