Hutto seeks to hold first bond election
Despite being a century old, city taking many first steps

Hutto became a city nearly a century ago but is just now taking many first steps.

Once a tiny town, the city of about 17,000 residents is on the cusp of calling its first bond election for November. The election, which would pay for major city projects such as roads and parks, will shape the direction of this bedroom community, which had a mere 1,000 residents a decade ago.

"With the 100th anniversary looming on the horizon, we're looking at downtown and preserving our heritage (and) embracing the old and new," said City Manager Ed Broussard.

Hutto, incorporated in 1911, lies about eight miles east of Round Rock along Texas 79 amid the still largely rural landscape of eastern Williamson County. The city's historical character is largely intact north of the highway, and subdivisions of modest middle-class homes have sprouted all around.

The city recently completed its first long-range capital improvement plan, a list of water, wastewater, road, transportation and other infrastructure needs the city will have in the next five to 10 years.

Micah Grau, the city's finance manager, said the decision to call a bond election evolved from completing the long range plan in 2006. "Since then, we've done surveys and focus groups to find out what (residents) want the municipal government to provide," Grau said.

In the past five years, growth also has prompted the city for the first time to adopt a unified building code for projects that combine housing, retail and office space. Previously, new developments were approved without planning for how they might affect other projects or affect the city as a whole.

The city's staff also is growing: 10 years ago Hutto had four employees; now it has 84, including a new city engineer. And in the past two years, city staff for the first time have received training regarding sexual harassment and violence in the workplace.

"It's difficult to think of something we haven't had as a first in the last couple of years," Broussard said.

Despite the national housing slump, Hutto has seen a steady influx of new residents. Fifteen to 20 new homes are built a month in Hutto, Broussard said.

City officials are focused on bringing in commercial and retail businesses, which will help take the tax burden of paying for growth off the shoulders of homeowners. Right now, 24 percent of Hutto's $15.5 million operating budget is supported by residential and other property taxes, city officials said. Sales tax supports about 10 percent of the budget. The remaining revenue comes from water, wastewater and other fees.

Townwest Commons, a 300,000-square-foot development on U.S. 79, east of the Texas 130 toll road, opened its first phase in 2007 with a Lowe's Home Improvement store and a Holiday Inn Express. A Kohl's department store is also expected to open at Townwest.

The Crossing at Carmel Creek, planned to be near Texas 130, FM 685 and U.S. 79, could bring the city 1.5 million square feet more of shops, hotels and entertainment -rivaling the size of Austin's Southpark Meadows, which has 1.6 million square feet of retail. However, the initial phase of the Crossing was to open in 2010, but the soured economy has delayed the project indefinitely, city officials said.

With growth comes growing pains. Despite protests by Hutto residents and city leaders, the expansion of the Williamson County landfill, just north of Hutto, was approved by the Texas Commission on Environmental Quality and the county in February.

[HOT: Hutto encouraged urban sprawl and the development of rich farm land without concern for soil conditions, including expansive soil and arsenic contamination from decades of cotton farming. SEE RELATED STORY.]

And in September, state officials approved projects that will put a switching station for high-voltage electric transmission lines in Hutto. Residents and city officials said the lines, which will be elevated on single poles, would be a blight on the landscape and would hamper growth.

The city also has grappled with negotiating water contracts, establishing a water supply sufficient to handle the area's growth and finding a suitable location for a wastewater treatment plant.

"Because of the intensity of growth in Hutto, we've had an intensity of issues as well," Broussard said. "A lot of the difficulties cities see over time, this city has had to deal with in a short time."

Scott Martinez, director of the city's economic development corporation, which works to create new job opportunities in the city, said Hutto's future has more challenges in store.

The city still needs its own grocery store - most residents travel to Round Rock to stock up - and needs to lay water and wastewater lines for land extending to Texas 130 to bring in commercial development, Martinez said.

Money from the bond election probably will allow some of the infrastructure, transportation and recreational projects to be built.

"Now that we've got the city on good ground, it's time to look at the projects we've looked at for 10 years," Broussard said. "Everything is up in the air with what could happen."

 By Melissa B. Taboada (mtaboada@statesman.com; 512-246-0040),
Austin American-Statesman, 07/05/2009
http://www.statesman.com/search/content/news/stories/local/2009/07/05/0705hutto.html 

Reader Comments:

Licensing wrote:
It's amazing that the City of Hutto is proposing a bond election when both the city and school district are running deficits due to declining property values. The city's financial state mirrors expansive soil more than it does "solid ground." With "15 to 20 homes per month being built," this equates to only about 200 homes per year added to the tax rolls. The tax revenue from these new homes will be more than offset by the decline in revenues due to lower property values of existing homes. With 24% of the city's revenue coming from property taxes, the only way that a bond issue could be paid for would be to increase property taxes dramatically for everyone along with similar increases for water and wastewater fees. It's hard to imagine how the city could sell this bond issue if it is truthful about the city's financial state.

Boney wrote:
I'm guessing that expansive soil with cracking homes and arsenic covered ground is the city manager and councils idea of "solid ground." The only way to pay for this bond is to dramatically increase property taxes, water and wastewater fee, etc. Hutto will never be "on good ground" with the continued lack of leadership and disregard for it's citizens. Check out the city and school budget and see how deep the hole is already dug.

TServo wrote:
Can we please just get a friggin grocery store?

LDS wrote:
Of course, more tax and spend by an out of control local government. Is that why my property taxes are now more than half of my social security check, one that is larger than the average SS payment? This what I have looked forward to the last 40 years, to give it all back to the city of Hutto so the city council can build more monuments to theirselves and have bigger car allowances and leather chairs. What's a few more dollars from taxpayers if it keeps the hippos well fed.

OnlineReader wrote:
Jack, growth is going to come. The best bet is to plan for it and be ready, not play catch-up like Austin had to with it's infrastructure. Home Depot and Lowe's frequently build near each other. It's odd but it somehow works. I've seen it done in the D/FW and Houston areas.

JackTheBear wrote:
The only thing you Hutto Taxpayers have left to fight the developers and their puppet politricksters is the VOTE. Send them packing - Don't vote for ANY BOND, period. Your local officials are lying to you and if you think attracting more retail, more residents and more industry will help with your taxes, you are bigger fools that I thought you were. Vote NO to any bond election or go the way of your neighbors. Call someone in Austin and ask them how urban sprawl has lowered their tax rate. I think you know better - Now Just Do It!!!!!!!!!!!!1

JackTheBear wrote:
Congratulations Hutto - you have reached the "Just Like Every Other Sprawled-Out Tax Debt Ridden City in America" I will have to think of an acronym for that. Let's have a contest - Hutto will experience higher taxes, more traffic, more government, less services, more air and water pollution........Isn't that grand? Hey, Hutto Taxpayers, perhaps you could give tax abatements to every Fortune 500 company that comes your way and your city can be paved over just like Austin, Round Rock, Pflugerville, Georgetown and Bastrop. You can be proud to be a part of "progress" while looking like fools. Heck, you already have a Home Depot and Lowe's right next to each other - Now that is a great start!

AndrewB wrote:
Boy, you guys are right! If Hutto doesn't call for a bond election, everybody will suddenly decide to stop moving there and the need for infrastructe will disappear. We should just close our eyes, then all our problems will be solved! Genius!

PStern wrote:
Absolutely correct comment from bd. Bond issues during a major economic depression should send a real signal to residents. BEWARE!!! Intelligent, sensitive leadership would NOT opt to pushing bond issues during this time. The next step for poor leadership is to also raise the tax rate. This is nothing more than an economic Armageddon.

BillyDesperate wrote:
Watch Hutto residents, bonds are just taxes in sheep's clothing. Where do you all think the money comes from to pay for the bonds. This is what you're getting for allowing developers build homes and businesses WITHOUT CONTRIBUTING to the infastructure via correct pricing of the structures.