Rollingwood City Council members voted 3-2 to reject the proposed Rollingwood Community Development Corporation budget, even though the newest version included the requested and hotly debated $250,000 specifically for water lines.

The RCDC decided to acquiesce to the council’s request and skirt the legal grey area of a 4B corporation funding residential water lines by specifying that the funds be used for the commercial portion of the line that connects to Bee Cave Road. But, since the budget also included placeholders for items the majority of the council did not deem appropriate at an earlier meeting, a majority of the council decided on a wholesale rejection.

“We thought smiles would be on your faces after seeing the $250,000, but I don’t.” RCDC Chairman Jeff Grandcolas said after presenting the budget. “So I’m confused.”

The RCDC budget included items that the council had previously requested be removed, even though those items would have to come before council again before any money could actually be spent.

“There are a number of projects here that are already identified as projects,” Alderman Bill Hamilton said. “There are a number of items that are not yet fully identified as projects, so I’m concerned that if we were to approve this entire budget, it might communicate something we don’t want to communicate.”

These items included a reduced amount for shade structures in the park, the ADA restrooms and even the water lines that the council had asked the RCDC to approve. These projects are in various stages of approval but none have been put out for bid with a specific dollar amount.

“You give the public the impression that it’s a slam dunk and already a done deal when you put these numbers in the budget,” said City Attorney Patty Akers, adding that the RCDC budget can be amended as projects are approved.

She said that whether the items are included in the budget now, or later after they’ve been approved they will need a public hearing process and the outcome will be the same.

“The last meeting of the council where we took this up, we turned down the proposed budget originally made, but indicated specifically, we told you what we would approve,” said Alderman John Hinton. “I think my view personally, is that still stands.”

RCDC member Ron Hirschfeld bristled at Hinton’s comments, saying that Hinton should have attended the RCDC budget workshops.

“We’re trying to get a budget that gets funds into this city,” he said.

Since a large portion of the city’s budget is dependent upon decisions made for the RCDC budget, the issues must be resolved by the time the council has to approve the budget Monday. There will be another public hearing on the budget at a special city council meeting Friday.