The daily Argus. (Rock Island, Ill.) 1873-1877, 1877-01-29
Funding thalnAhA.
The constitution Of this state commands
the CITY council as follows:


The constitution of this state commands |
5he city council as follows:
ANY county, city. school district, or |
other municipal corporation, mourning any
as aforesaid. shall, before |
Or at the time of doing so, provide for the
collection of direct annual tax sufficient
to pay the interest on such debt as it falls
due, and also to pay aud discharge the
principal thereof within 20 years from the
time of contracting the same"
The Union says:
This clause applies only to al
new liability and means that tax
to pay the interest must be levied
annually and provision made for the pay
ment of the principal by the time il
natures. 1t is not necessary to raise
money every year to pay the principal and
keep it locked up until the debt becomes
due, So that provision is made for the
ultimate payment of the debt. the con-
stitution is satisfied"
The Union is mistaken. The clause is
mandatory and requires that portion of
the principal shall be raised by taxation
every year in order that when the debt falls
due mot to exceed 20 years. the money
will be on hand to pay it. The constitution
says the council shall, before or at the
time of contracting a debt, provide for
the collection of a direct annual tax
sufficient to pay the interest as it falls due,
and also"-also what? Why, also pro
vide for the collection of direct annual
tax which will be sufficient to pay the debt
when due-nor exceeding 20 years. That's
the plain meaning of the provision. When
the people put that provision in the con-
stitution they intended to compel cities to
get out debt and keep out-beyond the per
cent. limit, To issue bonds on long time
and make no provision to pay them when
due is not a compliance with the con
stitution. The council which issued the
water bonds knew that fact, and therefore
passed an ordinance Feb. 26 1872, as
follows:
That the city council of the city of Rock Island
SHALL, from time to time, levy and collect, anc
there Is hereby levied an annual tax of three mills
on each dollars valuation upon all the taxable
property within its cOrpo ate limits, and said rate
Of taxation shall be. from year to year, increased
or diminished as the city council may find neces
sary therefor for the purpose of paying interest Il
become due, and the principal of said bonds a,
they become due; which said tax shall be collected
| at the same time and in the same manner as the
ordinary annual tax of said city. AND FOR THE
| PURPOSE OF KEEPING THE SAME sEPAR
REVENUE OF SAID CITY, THE ASSESSOR OF
! CITY CLERK SHALL EXTEND THE SAME IN
THE COLLECTORS BOOK IN A SEPARATE
4 n a "
VOTED TO THE PAYMENT OF THE PRINCI
PAL AND INTEREST OF SAID BONDS.
| Passed Feb &c, 1872.
Here it is provided that portion Q
the money to pay the principal of the wateI
bonds shall be collected every gear anC
kept on hand, so that when the bonds fall
due the money will be hand to pay them
Has there been even an attempt to enforce
| this ordinance? No. 1t has, to the dis
grace of every administration since it wa
passed, remained a dead letter since it wa
enacted. except to levy a tax to pay inter
est. No sinking fund has been created
and the time is approaching when thes
| bonds will become due and no provision
Except an ordinance lying dead and inop
erative) has been made for paying them
as required by the constitution. TIL
Union says: so that provision is mad
for the ultimate payment Of the debt tn
constitution is satisfied" Jesse, Mr.
Winslow, that's what we say. But pre-
vision is not made Passing an ordinance
to that effect, as was done in 1872, is no
making such provision as the constitution
commands the council to make The to;
must be levied and collected and the .tunt
kept ready to pay the debt a0hen 1t falls due
| We need new set of books in whic
shall be properly kept accounts with tn
the various tax levies, and no appropria
ton OF any kind should be made unes
the account under which the appropriate
is asked for shall show funds on hand
Under DR.. Calls administration $500
was levied for the beginning Of buiIdin
fund, so that when enough money ha
thus been accumulated, we could have
fine city hall erected in Union Square
What became Of the money! 1t was co
lected and Improperly used up by tn
next administration. Itishould be return
ed to the building fund and expended i
building the foundation, next summer, an
then with small annual tax we coul
complete the building in few years, an
not owe for it.
And now, in order to put it out of tn
power of Incompetent or Indifferent cour
cilmen to neglect this constitutional pre-
vision, no bonds should ever again be il
sued by this city which do not provide fl
} the payment of portion of the princip'
along with the interest every year, as
: done by the bonds now ordered by til
present council.
H. G. Wivill 4 Co, are selling DIR