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Austin: Highway Plans, Tax Penalty Stays

Monday, May 30, 1932 special called
  • Infrastructure Approved:

    Plans for a new Highway building were greenlit, detailing concrete paving, curb specifications, and oversight by the City Engineering Department.
  • Tax Relief Plea:

    Local banks urged the city to defer the 1931 tax penalty deadline from June 1st to October 1st, citing severe economic hardship. They also suggested considering future quarterly tax payments.
  • Heated Financial Debate:

    The proposed tax deferral sparked public discussion. Taxpayers and banks argued for relief, while the School Board and City Manager strongly opposed it, warning of disastrous financial impacts on schools and critical city services due to low general fund balances.
  • Deadline Holds Firm:

    Despite pleas for taxpayer assistance, the City Council ultimately voted to decline the extension, maintaining the June 1st penalty date for 1931 city taxes to safeguard essential city and school funds.

Full Transcript

310 the proposed new Highway building in accordance with the accompanying plan marked 2-G-174, which plan is hereby made a part of this resolution; and That the area between existing ourb and proposed new curb shall be paved with concrete or other approved type of pavement according to Oity of Austin standard specifications; and That that portion of the proposed new curb adjacent to the sidewalk shall show an exposure on the front face of at least six (6) inches; and That the construction of said pavement, new ourbe and sidewalks adjacent to the said proposed new Highway building, all as shown on attached plan marked 2-G-174, shall be done under the direction and supervision of the City Engineering Department. The above resolution was adopted by the following vote: Ayes, Councilmen Alford, Gillis, Mayor MoFadden, Councilmen Mueller and Steck, 5; nays, none. No further business coming before the Council, Councilman Mueller moved to recess, subject to call of the Mayor. Motion was seconded by Councilman Alford and same prevailed by the following vote: Ayes, Councilmen Alford, Gillis, Mayor McFadden, Councilmen Mueller and Steck, 5; nays, none. The Council then recessed. SPECIAL MEETING OF THE CITY COUNCIL: AW.M Faseden Approvedr Mayor. Austin, Texas, May 30, 1932. The Council was called to order by the Mayor. Roll call showed the following members present: Councilmen Alford, Gillis, Mayor MoFadden, Councilmen Mueller and Steck, 5; absent, none. The Mayor stated that the meeting was called for the purpose of considering the following communication from the Austin Clearing House Association: "Austin, Texas, May 27, 1932. To the Hon. Mayor and City Councilmen of Austin, Gentlemen: The Austin Clearing House Association, through all of its member banke, as undersigned, respectfully recommends that the penalty date on 1931 city taxes be further deferred from June lat to sometime in the fall, preferably not earlier than October 1st. The matter has been given careful thought, and we feel that our suggestion is well justified by general business and economic conditions now existing, and that its adoption by you will afford those of our tax payers who are affected the relief to which under the circumstances they are entitled Also, it is the unanimous thought of this Clearing House Association that you again give consideration to the collection of taxes in quarterly payments. We have not in mind the application of this plan to 1931 taxes now unpaid, but do feel that it has much to recommend it. Respectfully yours, Texas Bank & Trust Co. By Sam Sparks, Pres. Austin National Bank, By C.M.Bartholomew, V.Pres. American National Bank By R.C.Roberdeau, Pres. Republic Bank & Trust Co. By Walter Bremond, Jr.Vice Preв. 311 The Mayor then stated that the Council would take up for consideration the first item in the request, vis., a postponment of the penalty date from June 1st to October 1st, and would hear from the citizens present who wished to be heard in the matter. Mr. Dave C. Reed stated that he attended the meeting of the Clearing House Association and indorsed the petition and would like to see same put into effect if same could be done without greatly orippling the operation of the city government, but wished to leave the matter to the discretion of the Council. Supt. A. N. MoCallum and Messrs. R. G. Mueller and J. R. Reed, Members of the Austin School Board, vigorously protested any such action, saying that it would be disastrous to the schools of the City, and also presented figures showing how greatly the schools were in need of funds. Mesers. A. J. Eilers and M. H. Crockett spoke in favor of granting such extension in order to afford all relief possible to the taxpayers who, owing to the present economic situation, are unable to pay their taxes. City Manager Johnson spoke in opposition to deferring the penalty date, stating that the City had a balance of only $166,000.00 in the General Fund, out of which it must meet its monthly payrolle and other expenses, and stated further that such action would greatly retard next year's collections by making it impossible to open the tax rolls before March 15th. Following the discussion, Councilman Steck moved that, in view of the statements made by the City Manager relative to the matter, the request of the bankers be declined and the penalty date be not postponed. Motion was seconded by Councilman Gillis and same prevailed by the following vote: Ayes, Councilman Gillis, Mayor McFadden, Councilmen Mueller and Steck, 4; Councilman Alford voting no, stating that he would like to see the date extended to July 15th at least. The Council then recessed. REGULAR MEETING OF THE CITY COUNCIL: Approved WM Tadden Mayor. Austin, Texas, June 2, 1932. The Council was called to order by the Mayor. Roll call showed the following members present: Councilmen Alford, Gillie, Mayor McFadden, Councilmen Mueller and Steck, 5; absent, none. The Minutes of the last meetings were read and Councilman Gillis moved the adoption of same as read. Motion was seconded by Councilman Alford and same prevailed by the following vote: Ayes, Councilmen Alford, Gillis, Mayor McFadden, Councilmen Mueller and Steck,5; паув, пone.