St. Paul daily globe., 1896-01-24

MHlGh lhey represent arrives, a sufficient fund
/ snail have been accumulated from water rents
| to pay it, the requirements of the act will All
nave been met. However, moneys of the de-
partment have been transferred to such a
auha, u winch, with earnings from the same of
$o3,z4''4S now amount to $685., ,910.67. Of this
total sum $196,000 are now invested in city
taX-levy certificates, bearing per cent inter-
est. The residue is unproductive.
REVENUES
These are: First-Rentals from private
consumers, which include occupants of build
1ngs, street sprinkling contractors and con
sulners Tor sundry small miscellaneous uur-
poses. 80
Rates in st. Paul to private consumers are
Win 1 lew exceptions, the lowest in the country
Inc following comparison of rates in ST
faul with those in MINNEAPOLIS and Milwaukea
mas been furnished by the water board:
st. Mime Mil
Paul apolis. waukee
Five-room house, with
one one closet .,:.........:..s 90 5000 IS 90
Seyen-room house, with
one closet and one
WaShboWl. ..... q e0 IN 5n :. m
Ten-room house, with one w
closet, one bath, one
washbowl and lawn
nose ............... -. 12 30 IA o. 10 IN
IWelVe-room house. with w
Two baths, two Closets
TWO washbowls and
!awn ESn n nose; 16 60 21 so 25 50
Ia
come due Those for the other two cities aro
required to be paid in full. CAV
o. oecond-Rentals charged against the citv
, doi water water USED in parks and public buildings
and delivered from fire hydrants. TbeSa rar3
ais are nXed by the water board but tho
sIedter part have remained unpaid during the
PSro pcs SiA years. NO rentals for fire hydrants
nave actually been paid since Dec / 1889 IN
Dec. L, 1885, the arrearages for these amount
ed 10 the sum of $249, ,771.21. The effect of tbis
necessarily is to transfer the cost of water
r. tbe pao.eceon patu from the body of taxpayers
70 the patrons of the works. Possibly tbis
nay nay not De unfair, as the benefits of the great
tnn nuih VI the expenditures for maintenance of
tnie IRE department are limited to the districts
NJ Theie the buildings of these patrons stand.
me hre hydrant rentals are not needed for
hiegting Ilig the liabilities of the water board
- III "a frontage tax of 10 cents annually
per linear foot of property fronting unon tbe
water mains. The duration of This tax 'Is i
nov no" limited to the period of ten years from
tne completion of the mains in front of tbe
Tue, Tue purposes OF this tax. the longer front of
corner lots fronting on two mains is excIudeG
which seems entirely equitable.
Inc following are the statistics of this tax.
Coilected up to Jan. l.
In arrears at that date. s491O7 81 1000 '4'o 0s
bsllang que IN 1885 141,35S 72 19O 466 35
years, on existing
ii"iis ..'.............. $50, ,450 Sc
With the extension of servica r,ain. 80 "
spohdins additions TO taxable frontage will of
course, be made. The complete abolition of
Tue iiIIontage tax has been strongly urged by a
considerable body of citizens. In favor of this
VieW' IL is correctly said that without this
.aA az the hnancial demands upon the reve-
nueS M OF tne water works, including interest on
all bonds issued on account of the works can
surely be met; that any considerable expendi
lures for additions, or improvements of tba
works viii be needless, for some years. at
merely accumulate in the city treasury IF is
urged that in these times, such thing is nm
"lse' and burdensome to taxpayers.
ONE DOLLAR A FOOT
>, On me other hand, it is to be remembered
that the total frontage tax payable on any
property, amounts to only 81 per front foot
Inc construction Of @ water main ir front of
any lot Immediately increases its intrinsic and
market market value several dollars per front foot
Undoubtedly, lot owners appreciate This fact.
and when they sell rut an addition unon wbst
would otherwise be the asking price of the
property of at least 81 per front foot. i'm the
arerage Tsr case. 1t would not be quite fair for
property owner to appropriate the benefits of
the outlay or capital required for building
new main, and then not be willing to nav
snrougn .,lio period of ten years, an aggregate
sum equalling a mere fraction of the benefits
directly and Immediately received.
The maximum of assessible frontage was
reached IN the year 1894 when it was 143, 900
feet. 1t Is now about 125,5O0. Divided among
the whole assessible frontage at its highest
the outlay for the works has been about 81 59
per loot; SO that the frontage tax requires the
lot owner to repay, in that way only about
two-1fths the amount of the investment made
Tor his convenience and benefit
Of the service extensions the water board
estimates that about fifty-five miles, in the
aggregate, do not return in rentals fair reye-
nue. on their cost Should the owners of
property along these ffty-fve miles Of mains
be relieved from the frontage tax the burden
of carrying the investment for these made
quately paying improvements would be
thrown on the patrons of the residue Of the
system, which hardly seems fair Resides
large amounts of frontage have already Daid
the tax, during the full ten years; and most
of the remainder during a large part of the
required period. To now make change, so as
TO demand less from property along the newer
parts OF the system, than has been demanded
from that along the older parts, seems dis
elimination hardly justifable.
The use by the city OF the tax-coIlection
certificate plan, for securing ready funds fur
nlshes good way for temporarily employing
the accumulations of the water department
Under existing laws, three-fourths of the sur
plus fund of any city department may be in
vested in such certificates. Present laws NAV
be amended SO as to allow a larger proportion,
or the whole, to be invested in that Way II
will be many years before the accommodations
of the water department will be enough to ab-
sorb even one-half the tax-collection certif-
icateS put upon the market To the extent
however, that such accumulations can be so
used they should be; and their Character of
mere surplus. at any time available for exig-
eneies VI TIC water DodTu, snoulc De pre-
served The transfer Of any more of them to
the sinking fund is hardly desirable at pres
ent. Once in that fund, moneys cannot be
withdrawn for construction purposes When
the time for paying off the bonds arises. all
the surplus moneys Of the department. wheth-
er in or out Of the sinking fund, will be avail
able. In the meantime, the department will
have money at its disposal, for necessary
work. without Issuing more bonds.
Your committee believes that the present
method Of managing the affairs Of the de-
partrnent by board of business men, ap-
pointed by .he mayor. and serving at nominal
salaries, will be adequate safeguard against
the temptation TO spend these moneys, merely
because they are on hand
Looking at all sides os the question there