The record-union., 1895-04-19
TIE SERIAL IMPROVEMENT PLAN.
1t Is EIabOrateIy Debated and Ex-
planned.
A Chat Between an Advocate and a
Doubter-An Objections Raised and
Answered-An Example.

The City Trustees have again 'laid
over" the serial improvement PROPOSE
sition. This has been done in Difference
to the wishes of some members of the
board, who claim that they do not thor
oughly understand the law. Since the
last postponement citizen deeply inter-
ested in the matter and having doubts as
to the pr2cticability of the scheme, and
not technically informed concerning the
law, has called at this office and debated
the question at length with some of
the staff. The following is a fair, but
necessarily abridged, report of the con-
versation, and is reproduced in the be-
lief that it may remove doubts and
misapprehensions. It will be noticed
that the questions of our visitor cover all
the objections raised to the serial plan:
Question-What is this serial bond i'm
provement law, as you understand 1t,
and how does it work a.? From my pres
ent information 1 have doubts about it.
Answer-It was passed in 1893, and, in
brief, is an installment system OF paying
for street improvements.
Q.-How is it set in operation?
A.-The law is simple and very easily
understood; read 1t.
Q.-I have done so, but too rapidly I
confess. l would like your explanation
of il.
Avery well. When a city resolves
to do certain street work it may adopt the
serial bond plan. This is done by the
passage of a resolution by the governing
body of its intention to improve streets
and alleys.
Q.-On what is this declaration to be
based-how do they come at it?
A.-On estimates made by the City En-
gineer of the cost of the street improve
ment, which estimates show that the cost
will be greater than 81 foot including
intersections.
Q.-Itdon't 90 unless the cost is 81 a
foot?
A.-Exactly. See Section for that
Q.-Well, what next?
A.-Then the resolution of the board
must recite that it has resolved that serial
bonds may issue.
Q.-All right. That is the starter; now
then, everyone on the street must have
his property bonded, and
A.-No; there you are wrong. The
property-owner may elect to pay cash
down. or to pay by installDents. 1t is
purely OPTIONAL no one is compelled to
accept the bond propositiou-let that be
kept in mind constantly.
Q.-Let US see where you find that. a
City Trustee gave me to understand diff
ferently.
Add he? Then he is incapable of
understanding the English language.
second: IF any person shall
at any time before the issuance of the
bond for said assessment upon mis- lot
notify the Treasurer in writing
that he desires no bond to be issued, then
no such bond shall be issued.n
Q.--How does he pay then?
A.-Why in the old way, of course-iust
as he does now; the law says SO.
Ooh, l see. Well, now, how long
do the bonds run?
A.-Not to exceed ten years. But let
Us proceed in order.
Q.-All right. want to understand it
clearly.
A.-For those who choose the INSTALL
ment plan, this system is provided by
law. The city fixes the rate OF interest
mot to exceed 10 per cent" 1t opens
fund known as the street instalIment
fund. 1t lists on that fund all the lots
whose owners wish to have the property
included. 1t then issues bonds for and
against the lot for the amount of the lot
assessment. On each bond is a margin of
coupons for interest, payable semi-an-
nually, and for payment of one-tenth or
one-tlfth or one-third of the assessment
annually. So that the owner has ten
years, five or three, or any other term Of
years under ten, If he wishes, in which to
pay the whole.
Q,-The bond is against the citv if the
taxpayer does not pay it?
A.-No, sir; against the property only,
1t is a prior or preferred lien, lust as is
any street assessment The law ex-
pressly says that the city shall not be
bound at any time.
Q.-Where is that? Let us read IT
A.-Here. Section 4: This bond Is
payable exclusively from SAID fund The
fund derived from payments of counons
of the bondsI, and neither the municipal-
ity nor any officer thereof is 10 be holden
for payment or otherwise eff its principal
or Interest"
Dwell, that's clear. Now go on, how
are the bonds paid?
Ave told you that you paid into the
City Treasury, and the contractor goes
and collects his Interest and instalIments
out of the fund.
Dwell, can one have a bond issue for
two years, and another for three, and an
other for five years. and 90 on?
A.-Ihere seems to be nothing in the
law to prevent that-nothing compelling
el bonds Tor all improvements to be cast
In the same mold of time. Section 2
speaks Of the Treasursr keeping a book
In which the date, rate, amount and
''series" shall be recorded. SO it is con-
templated that there may be various
serles"-Some for two, some for three
some Tor five years, and SO on not to ex-
ceed ten years. Again, the same section
says the description of the bonds shall be
set out in the resolution for each pro-
posed work. So you see the resolution to
improve Jones street may declare for
three year bonds; for Smith street for five
year bonds, etc, just as the board deter
mines, and 1t ought to reflect the wishes
of the property-owners
GLOW is the property described in
the bond?
A.-Section says it shall be sufficient
to describe it by number OF block and lot
Q,-Thaps simple. Who pays cost of
searching records?
A.-There is none. You are not going
on as II mortgagIng your lot
Ooh / see.
A.-Ges, street assessments property
must pay, no matter how much mort
gagged already. They are preferred liens.
The property Is bound for the benefits.
Q-Exactly. Now, then, if l have TO
pay interest on the whole sum Of the
bond for the whole time, when l want 10
pay earlier
A.-Who told you that?
Q.-Woll, that's what they saw
A.-Well, they say'' lies-Ihat's flat
You pay sum on the principal each
year equal TO the product OF division of
the sum OF the bond by the number OF
years. Thus, if the bond is for five vears
and the assessment $780, you pay $50 a
year.
Q.-And interest on the SlOO for five
years?
A.-No! no! What put that into your
Q.-Well, 1 heard that city official
said SO.
A.-Let us hope that someone lied
about him, then. man with brains
would not be 50 stupid. Here, read the
law: Section =. An even annual pro-
portion of the principal sum shall be pay
able by coupon on the I'd day of January
OF every year, until the whole is paid"
~ har San al .,,,-t