Austin City Council Agrees: $10 Million To Be Spent in Anderson Mill

The Austin City Council approved the idea to spend the reserve surplus fund, now at $10 million, for projects in Anderson Mill should there not be a limited district after annexation.   Elizabeth Elleson spoke on March 20th before the city council and made an offer which council did not refuse!  She proposed that if the limited district is not approved by voters, surplus fund money acquired by the city should be used for projects in Anderson Mill.  Projects could include a branch library, a police substation or a community recreation center.  The council in a unanimous vote agreed. On April 7th, councilmember Brewster McCracken reaffirmed to Anderson Mill residents that council has directed city staff to return to council with recommendations on how to spend the money in Anderson Mill should the city get it.  McCracken suggested too that at that time, residents could create a committee, similar to a bond advisory committee, to develop and present project recommendations to council.   Following is the closed caption transcript from the March 20th council meeting on the council's vote:   OUR NEXT SPEAKER IS ELIZABETH BIT ELLISSON. WELCOME, YOU WILL HAVE THREE MINUTES.   Elizabeth Elleson:   I HAVE PASSED OUT A COPY OF THE SERVICE PLAN AND NOTES WHICH FOLLOW -- WHICH FOLLOW MY TALK. GOOD MORNING, THANK YOU FOR ALLOWING HAD HE TO SPEAK,   MY NAME IS ELIZABETH ELIZABETH ELLISSON I AM A 19 YEAR RESIDENTS OF ANDERSON MILL.   I WANT TO SPEAK ON THE SERVICE PLAN, THE CITY, AND THE 10 MILLION-DOLLAR SURPLUS FUND ACCOUNT THAT IS TODAY BEING HELD BY THE ANDERSON MILL M.U.D. AND POSSIBLY COULD BECOME THE CITY'S IN THE FUTURE.   LET ME EXPLAIN. AS PART OF THE ANNEXATION PROCESS, AFTER THE CITY ANNEXES ANDERSON MILL M.U.D. RESIDENTS WILL GET TO VOTE ON WHETHER TO ESTABLISH PERMANENTLY ON WHAT WILL BE CALLED A LIMITED DISTRICT. MAINTAINING PARKS OF ANDERSON MILL RATHER THAN THE CITY DOING SO.   TO PAY FOR THESE EXPENSES THIS ACCOUNT WAS SET UP YEARS AGO. THIS WAS MADE UP OF EXCESS TAX WATER AND WATER UTILITY REVENUE COLLECTED BY THE M.U.D. OVER THE LAST 10 YEARS.   THE M.U.D. AND THE CITY AGREED TO THIS ACCOUNT IN THE STRATEGIC PARTNERSHIP AGREEMENT. THAT AGREEMENT ALSO PROVIDES IN THE EVENT THAT THE LIMITED DISTRICT IS NOT APPROVED OR DISSOLVED THE CITY WILL TAKE OVER ALL OF THE M.U.D.'S ASSETS, INCLUDING THE SURPLUS FUNDS.   THE BALANCE OF THE FUND TO DATE IS APPROXIMATELY $10 MILLION.   I AM PROPOSING THAT THE -- SHOULD THE CITY TAKE OVER THE SPECIAL ACCOUNT, THAT THE CITY HOLD THE FUNDS FOR FUTURE PROJECTS FOR ANDERSON MILL IN A RESERVE OR ESCROW ACCOUNT.  THESE PROJECTS COULD BE A BRANCH LIBRARY, A COMMUNITY RECREATION CENTER, A PUBLIC HEALTH CLINIC OR EVEN A POLICE SUBSTATION. PUBLIC FACILITIES   FOR THESE PROJECTS ALREADY EXIST IN ANDERSON MILL. THERE IS A COMMUNITY BUILDING. A SHERIFF SUBSTATION AND A FIRE STATION WHICH WILL BE TRANSFERRED TO THE M.U.D. UPON ANNEXATION. SO ALL THAT REMAINS IS TO CONVERT THESE FACILITIES AND TO PROVIDE THE SERVICES FOR THESE PROJECTS THAT I'VE JUST DESCRIBED. AND THESE FUNDS COULD BE USED FOR THAT PURPOSE.   IT MAKES SENSE TO HOLD THE MONEY FOR USE IN ANDERSON MILL.   FIRST, THE MONEY IS TAX MONEY THAT WAS PAID DIRECTLY INTO THAT FUND BY ANDERSON MILL PROPERTY OWNERS SUCH AS MYSELF.   SECOND, ANDERSON MILL WAS NOT INCLUDED IN THE LAST CITY BOND, OF COURSE, SO IT WILL NOT BE RECEIVING ANY BOND MONEY FOR CAPITAL PROJECTS AS A RESULT. YET, ANDERSON MILL HAS NEEDS JUST LIKE OTHER AREAS OF THE CITY. AND THIS SURPLUS FUND WILL HELP TO FILL THOSE NEEDS.   THIRD RATHER THAN USING IT FOR SHORT-TERM EXPENSES IT COULD BE USED TO BUILD A LIFETIME OF GOODWILL BETWEEN THE CITY AND THE ANDERSON MILL RESIDENTS BY CONSTRUCTING THESE PROJECTS.   I RESPECTFULLY REQUEST THAT THIS COUNCIL CONSIDER INSERTING LANGUAGE IN THE ANNEXATION SERVICE PLAN THAT STATES THAT SHOULD THE CITY ACQUIRE THE SURPLUS FUND ACCOUNT THAT THE FUNDS BE HELD IN RESERVE FOR FUTURE PROJECTS IN ANDERSON MILL.   AND IF THAT LANGUAGE CANNOT BE ADOPTED TODAY, I AGAIN RESPECTFULLY REQUEST THAT THE SERVICE PLAN BE AMENDED TO INCLUDE THIS LANGUAGE AND THE -- AND THE DRAFT OF THAT LANGUAGE IS INCLUDED IN THE HANDOUT JUST GIVEN TO CITY COUNCIL. THANK YOU.   Mayor Wynn:  THANK YOU, MS. ELLISSON. MS. COLLIER, COULD YOU HELP US ADDRESS THIS ISSUE?   Virginia Collier:  APPROVING SERVICE PLAN TODAY AND GOING AHEAD KEEPING THE SCHEDULE FOR THE ANNEXATION IS IMPORTANT. THE COUNCIL CAN AMEND THE SERVICE PLANS IN THE FUTURE. SO IF THIS IS SOMETHING THAT, YOU KNOW, WE WOULD LIKE TO CONSIDER FURTHER AND MAYBE LOOK AT PRESS DEPARTMENT FROM ANNEXING OTHER MUDS AND WHAT'S HAPPENED IN THOSE CASES WITH ANY SURPLUS FUNDS WE CAN CERTAINLY DO THAT AND COME BACK TO YOU AND BRING YOU SOME MORE INFORMATION ABOUT THAT. IN ADDITION, WE'RE NOT SURE EXACTLY WHEN THE LIMITED DISTRICT WOULD BE DISSOLVED OR HOW MUCH MONEY WOULD BE LEFT, SO IT MAY BE APPROPRIATE TO -- TO ASK A COUNCIL AT THAT POINT IN TIME FOR DIRECTION ON HOW TO SPEND THOSE FUNDS WHEN THEY COME TO THE CITY.   Mayor Wynn: I WILL JUST SAY, COUNCIL, IT SEEMS LIKE A VERY LEGITIMATE REQUEST TO ME THAT THESE FUNDS WERE OBVIOUSLY ORIGINATED FOR THE PURPOSE OF BEING SPENT INSIDE THESE BOUNDARIES. SO I GUESS THAT I WOULD JUST LIKE TO -- PERHAPS SOME DIRECTION, MAYOR PRO TEM, AS TO WHAT PRODUCT WE MIGHT USE, WHETHER WE TECHNICALLY HAVE TO AMEND THE SERVICE AGREEMENT OR SIMPLY, YOU KNOW, STATE SOME POLICY AS A COUNCIL OR SOME -- GIVE SOME DIRECTION TO THE CITY MANAGER AS TO THE USE OF THOSE FUNDS. MAYOR PRO TEM?   Mayor Pro Tem Betty Dunkerly: WELL, I THINK THAT -- THAT PROBABLY THE -- THE BEST THING IS FOR US -- FOR THE USE OF THE MONEY IS IF THE LIMITED PURPOSE DISTRICT IS ESTABLISHED, THEN THEY CERTAINLY WILL RETAIN THOSE FUNDS AND USE IT WITHIN THE PARTICULAR AREA FOR ENHANCED MAINTENANCE OR CAPITAL PROJECTS OR WHATEVER THAT -- WHATEVER THAT GROUP CHOOSES TO DO. AND SINCE THE MONEY WAS COLLECTED FROM THAT AREA, I THINK THAT'S VERY APPROPRIATE. THE -- THE KEY THING, THOUGH, IS IF THE DISTRICT DOESN'T PASS, WHAT I WOULD LIKE TO DO IS DIRECT THE STAFF TO COME BACK TO COUNCIL AND HAVE US SET ASIDE THOSE FUNDS TO BE USED. EVEN FOR ENHANCED MAINTENANCE -- EITHER FOR ENHANCED MAINTENANCE OR CAPITAL PROJECTS WITHIN THAT AREA FROM WHICH THE FUND WERE COLLECTED. SO THAT WAY WE DON'T REALLY HAVE TO AMEND THE AGREEMENT AT THIS POINT IN TIME. BUT WAIT UNTIL AFTER THE ELECTION AND THEN IF -- IF IT -- IF IT IN FACT DOES NOT PASS THEN THE STAFF COULD BRING THAT BACK FOR OUR  DIRECTION. I THINK THAT WOULD BE THE -- MAYBE THE SIMPLEST WAY OF DOING IT.   OKAY.   Mayor Wynn: FURTHER COMMENTS? COUNCIL, I WILL ANNOUNCE THAT I TEND TO AGREE WITH THE MAYOR PRO TEM'S ASSESSMENT AND CERTAINLY WOULD BE VERY SUPPORTIVE OF THESE FUNDS ULTIMATELY STAYING WITHIN THE BOUNDARIES. SO THOSE ARE OUR TWO SPEAKERS ON THIS ITEM. COUNCIL, FURTHER QUESTIONS OF STAFF? COMMENTS? MR. OTT, DO YOU THINK THAT YOU HAVE ENOUGH DIRECTION VIS-A-VIS THIS LAST ISSUE AT LEAST?   City Manager Ott:  I DO INDEED, MAYOR.   Mayor Wynn: I WILL ENTERTAIN A MOTION ON ITEM NO. 11.   Dunkerly: I MOVE APPROVAL OF THE ITEM NO. 11 AND WITH GENERAL DIRECTIONS TO THE MANAGER TO BRING BACK FOR ADDITIONAL DIRECTION THE -- AFTER THE RESULTS OF THE ELECTION.   Mayor Wynn: MOTION BY THE MAYOR PRO TEM. SECONDED BY COUNCILMEMBER LEFFINGWELL TO APPROVE THIS ORDINANCE, ITEM NO. 11, WITH ADDITIONAL DIRECTION FOR THE CITY MANAGER REGARDING USE OF FUNDS WITHIN THE BOUNDARY. FURTHER COMMENTS? HEARING NONE, ALL THOSE IN FAVOR PLEASE SAY AYE.   Council: AYE.   Wynn: OPPOSED? MOTION PASSES ON A VOTE OF 7-0. THANK YOU ALL VERY MUCH.   Closed Caption Log, Council Meeting, 3/20/08 Note: Since these log files are derived from the Closed Captions created during the Channel 6 live cablecasts, there are occasional spelling and grammatical errors. These Closed Caption logs are not official records of Council Meetings and cannot be relied on for official purposes. For official records or transcripts, please contact the City Clerk at 974-2210. The complete meeting log is available at  http://www.ci.austin.tx.us/council/2008/council_03202008.htm