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Issues
**Comments in italics are solely the factual analyses by and opinions of the AMFuture candidates
The LD will maintain and operate the parks.
Additionally, while the LD may purchase necessary equipment to maintain, replace or upgrade park/pool amenities, it cannot acquire, purchase or lease additional or expand existing amenities.
**For example, while the kiddie slide at El Salido pool could be replaced, a new wave pool could not be built and installed.
City’s Level of Service
If there is no LD, the City of Austin will provide the same level of service Anderson Mill is presently receiving according to the City of Austin Annexation Service Plan, March 20, 2008
“5b. Maintenance of Parks. Playgrounds, and Swimming Pools. Ownership and title to all parks and recreational facilities then owned by the Anderson Mill Limited District shall vest in the City. The City will maintain such parks as recreational facilities at their current levels of service described in the March 2008 Anderson Mill MUD Parks and Aquatics Department Level of Services document. Services may be provided by the City Parks and Recreation Department or by private service providers under contract with the City.”
Park Awards
On September 25, 2007, “[t]he City of Austin Parks and Recreation Department recently became the only major city in Texas and one of 73 cities nationwide that earned national accreditation from the Commission for Accreditation of Parks and Recreation Agencies. . . . To become accredited, agencies must demonstrate their ability to meet 36 fundamental standards and 85 percent of other standards. Austin Parks and Recreation met all fundamental standards and 97 percent of all other standards.
This award marks the third national recognition for the City of Austin Parks and Recreation Department in the last five years. The Austin Parks and Recreation Department received the NRPA Gold Medal Award in 2004 recognizing the Austin Parks and Recreation system as the number one major metropolitan park system in the nation. In 2006 the National Recreation and Park Association awarded the City of Austin Parks and Recreation Aquatic Division the Excellence in Aquatics Award recognizing Austin as having the best Aquatic Division in the nation.”
**In that the City will provide the same level of service and given its award-winning operation, it cannot reasonably be stated that the quality of the parks/pools would decline if the City takes over.
The LD will maintain and operate the pools.
Pool Fees
Under the SPA, the LD may charge pool fees to Anderson Mill residents and non (city) residents. If there are no fees to residents, there are no fees to nonresidents. If there are fees, the fees to nonresidents cannot be more than the City summer pass rate. The LD may set a daily fee “for use of the Limited District’s pools at a uniform level for all residents of the City, including residents of the Limited District.”
**Under this SPA provision, the LD cannot set pool fees in a manner to exclude non-Anderson Mill (city) residents from LD pools. As a result, for all practical purposes, the pool will be available to all residents, living inside or outside of Anderson Mill. This will be the case even without a LD.
The Barracudas and the Westwood High School Swim Team
Should the City of Austin operate the pools, the Barracudas, through the City’s aquatic program, and the WHS Swim Team, most likely through a contract between RRISD and the City similar to the present MUD/RRISD contract, will be able to continue swimming at the pools.
The LD will provide security for the pools and parks.
The security is strictly for pools and parks. MUD security costs in 2007 were over $86,000.
The Austin Police Department will provide security for the whole of Anderson Mill. 911 will answer emergency calls. Austin police will be dispatched in response. The Austin police commander has expressed interest in using the present substation at Millwright Parkway as a police substation.
** AMFuture candidate Elizabeth Elleson proposed to city council using some of the $10 million reserve fund for capital projects like the substation. The council agreed.
The LD will provide trash service.
**It is unclear whether the LD will pay each customer’s bill or will offer the service and then bill the customer.
The current contract with Allied Waste expires at the end of this year. Each time Allied has renewed or updated its contract, the MUD has approved a rate increase.
**With Allied’s last request, the rate was increased, but your bill did not change. The MUD is subsidizing the balance of each bill. As a result, property taxes are being used to pay for trash.
**The Tanglewood Limited District in south Austin provided pool/park/trash service at one time. It’s tax rate was $.3675/$100. In 2007, it dropped the trash service and the City of Austin provides it. Tanglewood’s tax rate is now at $.22/$100 for parks and pools.
The LD will enforce deed restrictions.
**As long as a LD would/will exist, the LD will manage deed restriction enforcement and the City of Austin will enforce City Code. Alternately, if there were to be no LD, only City Code will apply.
Enforcement by the MUD
Presently, the MUD contracts with Treasure of the Hill Senior Center (TOH) for deed restriction enforcement at approximately $1200 a month. TOH sends out a notice of violation to a property owner.
** Complaints about the TOH’s approach have been raised. The MUD board stated at its April 2008 meeting that it would look into this. Questions about TOH or the MUD legally entering a residential property to inspect for a deed restriction violation have come up also.
If there is no compliance, the MUD may take the property owner to court. One recent court case cost the MUD over $100,000 in legal fees. The MUD board recently stated that it has not taken anyone to court.
**A recent AMNA poll found a majority of residents thought that things in the neighborhood appeared the same as before the TOH enforcement.
City Code Enforcement
Many of the deed restrictions are similar, if not identical, to city code violations, for example, tall fences, tall weeds, debris, unsecured or dangerous buildings, and unscreened boats or recreational vehicles (RVs) in driveways.
Anyone may call the city’s code enforcement hotline, 311, to report a suspected code violation or file a complaint through the city’s website. Calls/complaints may be anonymous.
An investigator visits the site, confirms that there is a violation, and then may send a Notice of Violation to the property owner or issue a citation. If a property owner does not comply within set time limits, any of the following actions may be taken:
• Hire contractors to clean property, secure dangerous buildings or demolish dangerous buildings. Property owners will be billed for the labor plus an administrative fee.
• File criminal charges in municipal court. A conviction in criminal court carries fines of up to $2000 per violation.
• Place liens on property for unpaid bills.
• File a civil suit.
• Present housing cases to the Building and Standards Commission. The commission may issue repair orders with fines attached or a demolition order for non-compliance.
Code Enforcement works with APD District Representatives to address chronic problems.
**Deed restrictions for each village are very few and have not much effect. Code enforcement may offer an effective (faster results) and efficient (moneywise) option for maintaining the quality of life in Anderson Mill.
Next: Who Will Pay for the Limited District? And How?
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**Comments in italics are solely the factual analyses by and opinions of the AMFuture candidates
The Money Source
Money for the Limited District will come from
• taxes paid by property owners,
• fees charged for the pool or other uses, and
• the surplus fund
The Surplus Fund
The surplus fund is a fund that was specially set up under the SPA for the LD. It has been funded from excess revenue collected from property tax and water/wastewater billing. The 2007 balance is approximately $ 9,827,089.
**The surplus fund will go to the City of Austin if voters do not approve the LD. The City Council approved in its March 20th vote using any money it receives for projects in Anderson Mill.
To alleviate worries about the City’s intentions, AMFuture would seek an amendment to the SPA or a transition agreement with the City, as allowed in the SPA.
The Money Flow
The taxes to be paid by property owners will depend on the expenses incurred by the Limited District. The directors of the LD will develop a budget for the year and will then set a tax rate to collect an amount to cover the budget expenses. These expenses will be for the parks, the pools, trash service and deed restriction enforcement.
**The MUD Board has not developed a budget estimate of the LD. For discussion purposes, a AMFuture has developed a budget estimate here.
Estimated Tax Rate
Voters will decide in the LD election on a tax rate. It cannot be less than $.10 per $100 of assessed value nor greater than $.50 per $100.
The MUD Board has given one tax rate estimate of $.10/$100 for the LD.
**This tax rate will not produce enough tax revenue to pay for all expenses as shown in the budget estimate.
It will be necessary to withdraw money every year from the surplus fund to pay for expenses.
The surplus fund will be depleted in the 8th year of the limited district, as shown, unless taxes are raised.
The MUD Board has stated taxes cannot be levied in the first year of the limited district. If so, the surplus fund will be emptied in the 7th year of the limited district, as shown.
After the fund runs out, the tax rate would have to be increased to an estimated $.46/$100 and higher.
Here's why:
1) The total costs in 2017 for parks/pools/trash/deed restriction
enforcement are estimated to be $2,352,595 (a 6% inflation rate is
assumed).
2) The present MUD tax rate is $.46/$100 and in 2007 collected $2.2 million in tax revenue.
3) Similarly, a .46 tax rate would be needed to collect the $2.3
million for expenses in 2017. This would be in addition to the city's
property tax rate.
For example, the Tanglewood Limited District in south Austin provided pool/park/trash service at one time. It’s tax rate was $.3675/$100. In 2007, it dropped the trash service and the City of Austin provides it. Tanglewood’s tax rate is now at $.22/$100 for parks and pools.
Taxes to pay for LD’s First Year
The MUD states that no tax money can be collected for the LD for its first year, 2009, so property owners will not pay any tax until possibly 2010.
The SPA states specifically that “The [MUD] and the Limited District may continue to levy an ad valorem tax in all of the areas within the District Boundaries as long as the District or the Limited District continues to exist, irrespective of annexations for limited or full purposes by the City of any areas within the District Boundaries.”
**The LD will automatically exist after annexation on December 31, 2008 and afterwards if voters approve. This provision appears to allow taxes to be assessed and collected for 2009.
Further, the MUD holds in retained earnings approximately $4,311,574 (per 2007 MUD Audit Report: $14,138,663 end of year balance less $ 9,827,089 surplus fund). These earnings could be used to pay for first-year LD expenses without having to use the surplus fund.
Will you see double on your tax bill?
The City of Austin tax bill WILL NOT be reduced for Anderson Mill due to existence of a LD. In other words, the city’s tax bill would not be offset by the LD’s tax bill. With a LD, Anderson Mill property owners will pay both the City's and the LD's taxes.
Alternatively, if the LD is rejected by voters, the City would maintain the Parks/Pools, Trash, and Code Enforcement services in addition to others. The City has agreed (in the SPA) to maintain these services at the current level of service for the 10 year duration of the agreement.
Next: When is the election for a Limited District?
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1 Limited District Budget Estimate
2009 and After
Developed by AMFuture
At the AMNA Candidates Forum held on April 24th, MUD Board members acknowledged they are challenged
to come up with a budget due to issues such as transfer of property to the City, potential changes in service
contracts, and determining personnel cuts. In a conversation on April 28th, the General Manager of the MUD
had indicated this process could take a couple more months.
In the absence of a 2008/2009 MUD Budget, AMFuture placed this Budget Estimate
(based on figures we've been able to obtain from the MUD) online on April 18th.
Revenues:
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2 Property Taxes
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$ |
476,520 |
3 Interest
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19,250
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4 Park and pool fees
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134,296
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Total Revenue
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$ |
630,066
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Expenditures:
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5 Parks
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$ |
625,400 |
6 Pools
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485,480
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7 Deed Restriction Enforcement
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15,264
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| 8 Trash Service |
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349,903
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Total Expenditures
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$ |
1,476,047
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Excess (deficiency) of revenues
over expenditures
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($ 845,981) |
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9 2009 Surplus Fund
Beginning Balance |
$ |
9,827,089 |
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10Annual Deficit
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Year-End
Balance |
2009
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$ |
845,981 |
$ |
8,981,108
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2010
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896,739
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8,084,369
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2011
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950,544
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7,133,825
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2012
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1,007,576
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6,126,249
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2013
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1,068,031
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5,058,218
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2014
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1,132,113
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3,926,105
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2015
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1,200,040
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2,726,065
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2016
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1,272,042
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1,454,023
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2017
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1,348,365
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105,658
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2018
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1,429,267
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- 1,323,609
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2019
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1,515,023
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- 2,838,632
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2019 Surplus Fund
Beginning Balance |
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-0- |
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1
The estimates used in this budget were figures compiled from the MUD’s
2007 Audit Report and the March 2008 Parks and Aquatics Department
Level of Services Report provided to the City of Austin.
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| 2 Tax
rate at $.10/$100 of $ 627 million property tax base valuation of 2007
with a 24% reduction of revenue calculated for property tax exemptions. |
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| 3 Budget amount reported in 2007 MUD Audit Report. |
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| 4 Revenue amount reported in 2007 MUD Audit Report. It is assumed that the fees (for example, swim tags) would not increase. |
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| 5 2007/08
budget amount reported in MUD’s Level of Service Report ($590,000) plus
6% inflation rate for 2009. Includes security costs. Does not include
capital improvements. |
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| 6 2007/08
budget amount reported in MUD’s Level of Service Report ($458,000) plus
6% inflation rate for 2009. Includes security. Does not include
capital improvements. |
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| 7 2008
monthly contract amount stated by the MUD Board plus 6% inflation rate:
$1200/month x 12 months; Does not include legal fees at estimated
$250/hr for cases sent to court. |
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| 8 Expenditure amount reported in 2007 MUD Audit Report plus 6% inflation rate for 2008 and 2009. |
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| 9 2007
balance amount as reported in the 2007 Audit Report. This 2007 balance
amount was not increased by 6% for 2008 or 2009. It is uncertain
whether any additional tax revenue will be available in 2008 or 2009
for deposit into this fund given that the MUD will no longer receive
water and wastewater revenue after June, 2008. (All water/wastewater
operations and collections transfer to the City of Austin on June 1st.) |
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| 10 Annual Limited District deficit total plus 6% inflation rate added annually. |
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**Comments in italics are solely the factual analyses by and opinions of the AMFuture candidates
History
Since its creation in 1973, Anderson Mill had always been planned for annexation by the City of Austin. The question was how would it be annexed.
Through the efforts of our State Representative Mike Krusee, a new law was enacted to allow MUDs and cities to enter into a contract called a Strategic Partnership Agreement (SPA). This would postpone annexation of an area and on annexation, allow for the creation of a Limited District (LD).
The Anderson Mill MUD and the City of Austin signed a SPA in 1998. It postponed annexation until 2004. In 2004, the SPA was amended to postpone annexation until 2008. Ten years is the most an area can be postponed from annexation. It is in the law. Anderson Mill is closing its final tenth year.
**AMFuture disagreed with the MUD in insisting on fighting annexation and wrongfully implying to residents that it could be further postponed. The law is clear: ten years is the maximum time allowed. The SPA, a legal contract, follows this.
A LD Election
In the SPA, upon annexation, a LD will be automatically established. The LD board may ratify the SPA and call an election on whether to make the LD permanent. The first available election date is most likely May 2009.
**AMFuture does not oppose holding an election. The entire platform of the AMFuture slate is that resident voters receive all information, pros and cons, in an unbiased fashion about the Limited District so that voters can make an informed decision on Election Day about whether a Limited District is right for them.
If approved by voters, the LD will then exist for 10 years. After 10 years, the City of Austin and the LD board may renew it.
**Residents will not get to vote on whether to keep the LD for another 10 years. Council member Brewster McCracken told residents in a recent meeting that residents might want to approach city council about the LD at that time.
If the voters reject the LD in the first election, a second election must be held within a year of the first. The next available election date is November 2009. The LD will continue in existence between elections. If the LD fails a second time, the LD will dissolve 60 days after the second election date. The City of Austin will assume all the LD’s assets and liabilities and provide all services.
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Nelson, Farley and Elleson
New Leaders with a New Vision for a New Future for Anderson Mill
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