Austin's Budget Battle: Taxes and Employee Pay
Employee Retirement & Pay Hikes:
The council debated a plan to lower the employee retirement age to 59 (costing the city $700,000 annually) and discussed significant salary increases for police, firefighters, and nurses to improve recruitment and retention.Budget Shortfall Concerns:
After accounting for new retirement benefits, salary raises, and other allocations, the city's projected budget balance for the year dropped from $1.6 million to a concerning $450,000.Property Tax Protest:
Citizens voiced strong opposition to a 105% property tax increase in the city's northeast quadrant and urged a complete, expedited reappraisal of all city property for fairer taxation.
Full Transcript
CITY OF AUSTIN, TEXAS 3 976 MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Recessed Meeting of Special Meeting of September 16, 1970 September 16, 1970 COUNCIL CHAMBERS, CITY HALL The meeting was called to order with Mayor LaRue presiding. Roll Cal1: Present: Absent: Councilmen Atkison, Gage, Janes, Johnson, Price, Mayor LaRue Councilman MacCorkle The Mayor announced that this was a continuation of the recessed Special Meeting of September 14, 1970, to discuss the 1970-71 Budget. The City Manager discussed proposed changes in the retirement system for City employees. It was proposed that employee funds going into the retirement system be increased from 4 per cent to 6 per cent, with City matching funds. The retirement age would be lowered from 65 to 59, which would benefit primarily individuals engaged in manual labor. The cost totthe City annually would increase by $700,000. A majority of the City employees would have to approve the plan before it became effective. Firemen would have to approve the plan separately since they were covered by a different plan. There was some discussion among the Council, the City Manager and Mr. Norman Barker, Finance Director, as to the effects of the proposed retirement benefits. Police Department The City Manager then presented some proposed increases in salaries for the Police Department. The intent was to increase the beginning salaries at a higher rate to attract and hold competent policemen, and to have a pay scale which would compete with other cities for the same men. Fire Department The one-year, in-grade step would be eliminated and incorporated into the base pay. The effect would be a ten per cent increase in the base pay. 997 CITY OF AUSTIN, TEXAS September 16, 1970 Registered Nurses The Registered Nurse (RN) I category would be eliminated and gradually phased into one Registered Nurse position. New nurses would be hired as RN II's at $600 per month. The proposed salary changes for policemen, firemen and registered nurses would not affect the City's ending balance in the Budget, but the $700,000 retirement benefits increase would affect that balance. Special Services Deputy City Manager Dan Davidson reported on special services which were funded by the City under various arrangements. He recommended the following: 1) Contract with each organization, instead of the present arrangement, where some contracts did not exist. 2) Require a financial statement for the previous year from the various organizations. TAX EQUALIZATION AND APPRAISALS Mr. Rogan Giles, representing the Austin Property Owners Association, appeared before the Council with regard to tax equalization for the northeast quadrant of the City of Austin. He was protesting the 105 per cent tax increase for that quadrant. He requested that a meeting be set up with the Council or a representative committee of the Council and several other City officials and the Austin Property Owners Association to work out the problem. Mr. Nelson Puett spoke in favor of a complete reappraisal of all property in the City. Mr. Woodrow Sledge, supported a sweeping reappraisal on a much faster cycle. Mr. Crow felt that too much emphasis was being placédoon the market value of property rather than tax equalization. RECESS The Council recessed for five minutes. SUPPORT FOR CITY EMPLOYEES Mr. Woodrow Sledge spoke in favor of upgrading the Police Department and in increasing the pay of City employees, plus a cost of living bonus to compensate for the past year's inflation. -CITY OF AUSTIN, TEXAS September 16, 1970 928 FIREMEN'S SALARIES Mr. John Burns, President, Austin Fire Fighter's Association, thanked the Council and City Manager for trying to upgrade fire fighter's salaries. He hoped that if a departmental-wide raise could not be possible this year, that one would be next year and that at least the fire fighter rank could be raised by another $10 per month to make the salary more competitive. There was discussion among the Council regarding the ending balance of the Budget. Initially, the ending balance stood at $1.6 million. However, after deducting $700,000 for increased retirement benefits, $350,000 for salary increases, $50,000 for Model Cities and $50,000 for Mental Health-Mental Retardation, the balance stood at $450,000. The City Manager and the Council agreed that the figure was too low. ADJOURNMENT Councilman Gage moved the Council adjourn. The motion, seconded by Councilman Johnson, carried by the following vote: Ayes: Noes: Absent: Councilmen Atkison, Gage, Janes, Johnson, Price, Mayor LaRue None Councilman MacCorkle The Council then adjourned. ATTEST: City Clerk APPROVED: Mayor