St. Paul daily globe., 1895-12-24
USE THE KNIFE.
Continued From First Page.

Continued From First Page.
gay until the close of the year 1900, the
entire principal of the funded debt should
stand. and that timely preparation Should
be made for refundng the present bonds,
as they mature, into bonds bearing
lower rate of interest. 1t is believed
that the credit of the city is such that
ifs refundng bonds should be salable on
d basis close to 4 per cent interest at
this time and that the obtainable rate
should decrease from year to year, re-
ducing the citys interest account to
moderate sum.
The next maturity date of city bonds
will be March /, 1897, so that ample time
TenainS for the perfection of a practi-
cable and economical refunding plan.
No floating debt of the city, beyond the
Suthciency of current assets to pay it,
now exists.
TAX COLLECTION CERTIFICATES.
Under existing laws. that part OF the
sums representing the expenses of the
municipal government and of the support
of the public schools, in the calendar year
1895. to be paid out of general taxes,
were not made the subject of levy
Gntil the month of October last. The du-
Slicate tax list for their collection will
not reach the county treasurer until some
time about the commencement or the
year 1896. No penalty for the non-pay,,,
ment of these taxes will accrue until
- L.
bur small proportion of them will be
paid before the laSt-named date; and,
even then from carelesSness in part,
and more from difficulty of procuring the
necessary money. a considerable percent
age will remain delinquent, and years
will be required for their complete col
lection. This system of taxation habitu-
ally leaves the city one year behind in
its finances. Three modes are available
for meeting such a situation:
INipSf 4, ha aif ~
credit
Second-To so increase taxation that
money for years expenses would be ac-
cumuated.
Third-To obtain the funds as needed
by temporary loans, repayable as the an
ticipated tax moneys come in.
The first mode would be so costly to
the city. from the increased price to it
of services and supplies, as not to be
worthy of consideration.
The second mode Is not theoretically
Objectionable. except as the presence in
the treasury of large balances might
prove a temptation to extravaganza. How
ever, the adoption of this plan has not
been considered up to date, for the very
practical reason that its execution would,
for a period, require a considerable in
crease in the rate of taxation, already in
conveniently large.
The plan of short anticipatory loans
has therefore wisely been adopted and
has been in use for many years.
BY section 90. Municipal Code 1898, it
Is provided that. at the beginning of each
calendar year the city council shall pass
an estimate OF the probable cost of oper-
ating each department of the city gov
ernment during such year, and of the
proportion Of such expense that will have
10 be raised by general taxation; the
same not being collectable. as before
stated, until the middle of the succeeding
year: and that, for the purpose of an
ticpating their collection, and of put
ting the funds for the city expenses into
the city treasury as they may be need
ed for disbursement. certificates of in
debtedneSs. bearing interest, may be is
sued from time to time. up to an amount
not exceeding so per cent of the amounts
placed in the tax levy for the several
departments. 1t is safely assumed that
at least so per cent of the taxes levied |
in any year will be collected during the
year following; and hence that the loans !
made in this way will surely be repaid
within an average period of not more !
than one year.
Two-thirds vote of the common council |
are required TO authorize the issuance !
of certificates; they are TO be made pay |
able not later than Nov Is Of the year |
following their issuance: are to bear in |
Ierest at a rate not greater than per |
cent per year. and are TO be in denomi- !
nations of $500 each, and sold at not !
less than par and accrued interest.
Balances belonging to the several de- /
partments not deemed necessary for use !
before the maturity of certificates may |
be invested in them. Certificates are not !
required to be sold upon competitive !
tenders; but it has been usage to dispose |
OF them in that way. For some years |
past they have been considerably sought |
after by Eastern as well as home in
vestors, and rates of interest have been
moderate.
For some time the average amount of
such certificates outstanding has been
about 600, of which about $3.50, 900
are held for investments of the water
bonds sinking fund. The rate of inter-
est is now not far from per cent, max
ing the expense of financing the city by
this plan about $50, 900 per year. AS the
expenses of the city government are re-
duced, the volume of tax collection GER
1iticates issued. and the interest charge
upon them. will keep pace.
Your committee advises continued use
of this plan of keeping the city treasury
in funds. but thinks some changes in
details should be made. Sales by COM
petition should be obligatory. Our own
people should be secured preference in |
purchase at equal price; and to permit |
and encourage investment of small saw |
ings. residents of st. Paul should be /
permitted to buy certificates in denomi-
nations as low as $50.
REVENUES.
The revenues of the city for municipal |
purposes ccme from general taxes upon |
property; upon special assessments upon
real estate for local improvements; from |
special taxes upon occupations, common
ly called licenses; and from fines i'm |
posed for violations of city ordinances.
The revenues of the city for support !
of its public schools come from a general |
TAX upon property, of not less than |
mills nor more than 21$ mills upon each |
dollar of valuation, to be imposed by the
common council; of general tax upon
property Of l mill upon each dollar of |
valuation, to be imposed by the county !
authorities; of the whole or part of fines |
imposed for minor offenses and of the |