The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-08-07

What the Council Can do..-what it
Must do.


The city debt is more than is permitted
by the constitutional limitation. The city
council is struggling with the proposition
to fund this debt. and they ask the people
to vote them permission to do this. which
the law already says they may do. Grant
that they may do it, by borrowing money
and with it pay illegal city orders, and
thereby create legal debt out of what is
now an illegal debt, or illegal form of debt.
Now the organic law of the city, Article
", Section 4, says: The city council
shall have control of the finances of the
city, and shall have power within the juris-
diction of the city, by ordinance: first, to
borrow money on the credit OF the city, and
issue the bonds of the city, therefore, etc.
Under the provisions of the law of
the state, in force July 4th, 1873, among
other things it is provided that mo city
shall hereafter contract any debt without,
at the same time. providing for the annual
| levy and collection of a direct tax suffi-
Gent to pay the interest and the principal
when it falls due"
1t is therefore the clear intent of the law
that no city can borrow money,a has been
done in this city on warrants, but must
borrow on its bonds and that 10 issuing ita
bonds must provide for direct annual tax
sufficient to pay the interest and the prin,
cipal when it falls DUE" To meet and
comply with this understanding of the law
Alderman Lundy has introduced the fol-
lowing ordinance:
IAN ordinance creating and providing
for the maintenance of fund to be known
as Rock island liquidation fund.
Be 1t ordained By the city council of tn,
city of Rock Island,
SEC. /. That In accordance with thu
provisions set forth in Sec of Article 40
the amended city charter, granting to thu
city council power and authority to provide
by taxation,a fund, to be maintained by tn
treasurer of the city's funds, distinct anC
separate from the taxes collected for gen
eral disbursement, or incidental expense!
incurred in the management OF munlcIDa
matters, and to be kept sacred and in
violate for the sole and specific purpose o
retiring at the time of, or prior to matur-
ity, the interest bearing bonds of the city,
there be assessed against the real and per
sonal property of the taxpayers. resident
within the corporate limits of the city o
Rock Island, and collected therefrom an
nuaIly the sum of $500, until all bonds
warrants or other evidences Of municipa
Indebtedness shall have been retired o
hquidated.
SEC. 2. That, after the passage of Thu
ordinance, each annual tax levy mad
against the taxable property situated with
in the corporate limits Of the city shall il
: clude for liqidation fund the sum Of 81
thousand FIVE hundred dollars, ($6, 500, an
I shall be regarded as a special tax aud b
! collected with the general fund; and, on ii
receipt from the tax CATERERS BY the cit
1 treasurer, by him be set apart and re
e linquished for no purpose except that sc
!. forth in Sec. of this ordinance.
. Resolved, That the president of the FRS
: National Bank, Rock Island National Banl
and the Peoples National Bank be const
tuted an advisory board, and that they /
consulted as to the investment of the hqu
dalton fund or its disbursement, and tn;
e the council will not retire or purchase al
bond or bonds without first having COZ
4 suited the advisory board, and that
them (the advisory board), in conjunctiC
s. with the mayor of the city and the char
man of the finance committee, be intrustt
the negotiation of any and all bonds nc
=, outstanding or that may hereafter be i
sued.