The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-08
A PLAN To PAY THE CITY DEBT
AND REDUCE CITY TAXES.

| On the 23d of February, 1873, the Mayor
and Administrators of Finance and Accounts,
acting as committee under Ordinance No.
1897, submitted q report to the Council
| The report represented the p'tbhc dcbt OF
| the city, bonded and floating, as being about
| S24, 600, Co., calling for annual interest to the
amount of a million and a half. Reference
was made to several millions of taxes past
due and unpaid, which the Frustrated com
munity is unable to pay, to the constant de-
probation in all kinds Of property, to the i'm
possibility 10 provide for the current expenses
Of the city, at the same time to keep up the
previous payment Of interest on the city debt,
to the exhausting exactions of previous years
which prohibit the payment Of the taxes
which the laws compel the Council to levy,
to the fact that only about one half Of the city
tax due and collectible in 1874 had been paid
at the date Of the report, to the decreased
ability Of the people to pay taxes since last
year, to the reduction Of city expenses by the
City Council to the lowest practicable figure,
the want Of control by the Council over money
levied for schools, park, police and interest,
as we'll as over numerous officers, whose fees
and salaries are fixed by laws of the State,
| and to the absence of power in the Council TO
dispense with supernumeraries and sinecures.
| The committee notes the fact that out Of
the tax of two and half per cent which the
Council is compelled to levy, but little over
one and a half per cent is subject to the limi-
| Of ho nd
Of this half Of one per cent "a large sum
must be paid for court charges, Sheriti's fees,
Recorders Courts, Coroners, Board Of Health,
etc, which being fixed by law can not be
changed by the action of the city officials
| From these facts the committee infers that
the Council scan not any further reduce the
| burden unless the public creditor comes to
their relief.
Without great reduction Of taxation the
city government must stop for want Of means
to carry on its functions, thus bringing de
| struction alike to citizen and bon dholder.
It is therefore proposed by the committee
that city security and banking company be
formed by the bondholders under the bank
bonds rated at the present market value with
five per cent cash, and that in consideration
of the said banking company undertaking to
luniiate the whole bonded debt of the city,
principal and interest, the city will transfer
to the company on lease for term OF years,
The Water Works, the public markets, the
wharyes and landings, batture property and
accretions, also the reversionary right Of the
city in street railroads and their franchises.
and in the New Orleans Gas Light Company,
and the transfer of all such real estate as is
not dedicated to public use-all property to
be kept in good order and subject to present
public uses under necessary regulations and
charges.
Under this arrangement it is the opinion OF
the committee that the rate Of tax could be
reduced TO one and half, or one and quar-
ter per cent, and that the reduced taxation
would benefit the city and the association.
II pursuance Of this report, and in fur
therance Of the effort of the Council to ar
range with the owners Of city bonds, bill
has been drawn up, as we understand, with
the appreciation of the Council, to authorize
the consummation Of this plan BY contract
ing with the City Bondholders' Banking Com
and extingushment Of the bonded debt Of
said city, and relieving the property holders
Of said city from future taxation on account
Of said bonded debt
The second section authorizes the lease and
sales of public property as contemplated by
the committee.
The third section is in fifteen clauses:
l. The company to assume the city bonded
debt, and to pay it punctually, principal and
interest.
2. No taxes for debt or interest to be i'm
posed after January l, 1876.
3. Proceeds Of sale and lease Of property
and revenues derived therefrom to be applied
to the extinguishment Of the bonded debt.
4. The company shall make good any def
cheney in price and revenues and bear any
loss incurred thereby.
5. Until the present bonded debt is paid
ell city taxes, including police, school and
park taxes shall be limited to one or one and
u half per cent, primarily to be "appropri-
ated and by preference used to pay the cur
rent expenses Of the year during and for
which the same shall have been assessed and
collected
G. Each years budget shall be limited to
the actual receipts Of the preceding year,
unless accompanied by an increase of tax,
subject, however, to the foregoing limit.
7. All back taxes to be applied to the pay
ment of floating debts incurred prior to Janu-
AIRY 1, 1876, in the order in which they were
incurred, giving preference to the oldest.
8. Back taxes on city debt account, attested
before that date, shall be applied as assessed
and according to now existing laws
8 Wharf dues, market rents, water rates
md gas charges ana other transferred revenues
shplI not be changed from present rates. but