Council looking into how to spend extra LGA moneyPublished 5:54pm Saturday, June 1, 2013
The Austin City Council will face money problems at its next public meeting.
Council members will discuss what to do with increased Local Government Aid funds during a work session Monday, whether it be putting the extra $50,000-$100,000 toward capital improvements or using the money to decrease property taxes, among other things.
City Administrator Jim Hurm said the council is discussing LGA in advance of the city’s annual budget preparations to give city staff a better idea of how to plan for 2014, and Monday’s LGA discussions are preliminary in nature.
The city will also discuss whether to approve a contract with G&R Truck Wash to restore water service to the business.
The council formalized requirements for G&R to reopen earlier this year, as owner Garth Carlson owes the city more than $230,000 in fees and bills for its strong sewage discharge. G&R has run afoul of city sewage requirements for several years.
In February 2012 the council gave Carlson 90 days to pay all outstanding sewage and strong waste charges, and ordered G&R work with the city on an individual control mechanism agreement, as well as lower its waste discharges into the sewer system.
Rather than miss a May 7 deadline to meet those requirements, Carlson voluntarily closed the business. G&R has remained closed since May 1, 2012.
The city’s requirements for Carlson are to immediately pay $60,000 toward his debt as well as secure a letter of credit with the city for the next two years, which city staff would release after a two year period assuming Carlson makes timely monthly payments toward his debt.
Carlson has offered to pay $30,000, and told city staff he would not be able to secure a line of credit. City staff advise the council not to enter into a contract until the city and Carlson can agree on the terms.