The times. (Owosso, Mich.) 1882-1897, 1897-01-29
MORE MONEY NOT NEEDED.
Prudence and Economy Should GUIDE in
City Expenditures Treasurer
Sprague Voices Public Sen

ment to our charter, propose to amend
the charter so that we may raise q
per cent contingent tax instead of Ia
per cent as at present. Believing that
so serious a matter as taxation should
not be passed over lightly, l take the
liberty of taking exception to the
proposed change, believing that it is
unnecessary and uncalled for In sup.
porting my position,I wish to call your
attention to the city's financial coDdi-
ton during 1895 and 1896. In 1895 we
raised per cent contingent, and q
per cent highway tax, on assessed val
uation of 81, $50, 900, in round numbers.
During the year, the highway fund
paid for the bridge on Washington
street, about "a 900, kept up the streets,
and closed the year with money In that
fund. And would here state, that by
reason of resolution of the council,
the money in that fund was trans
ferred to the general fund to pay the
deficiency in the water works fund at
the beginning of business in 1895.
Now, as regards the contingent fund
that year, we raised only l per cent,
or $4,000 in round numbers, and took
care of a shortage accumulated during
the year in the water works fund of
$4,000 including the reservoir expendi-
lures, and when we balanced the books
March q, 1896, we had 81, 600 in round
numbers on hand, and owed floating
debt of $4 1000, or in other words. we
were in the same condition financially
as the year previous, and had in the
meantime placed a bridge on Washing
ton street, and built the water works
reservoir. Now, in 1896 the city was
confronted with valuation of about
$1,6s0, 600, and raised a per cent for
highway, and ~ per cent for contin-
gent purposes, which think am safe
in stating will take care of shortage
in the water works fund of about
$4,000, including repairs in reservoir,
and have several thousand dollars in
the treasury, March 2lst, with all debts
paid except $4,000 loan, and money on
hand to pay that. And further, wish
to state, the contingent fund has taken
care of shortage of about 1000 in
bond funds the present year, owing to
our being limited to three mill tax for
bond purposes, which, on a valuation
of 81 $50, 600 does not pay the interest
on the bonds and take up the $1,000
improvement bond, but as we take mp
the last one of the series last summer
that shortage will not appear again
until our $4,000 series becomes due,
which is not for some time, and then
they should not be taken care of out of
contingent fund without special reso-
luton. Our one-fourth per cent. high.
way tax has proved sufficient to take
care of the highway fund, and with
the 81 900 series of bonds out of the
way the bond fund can be taken care
of with three mill tax by slight
raise in valuation of property, or what
is better, taxing the large amount of
invisible property we have in the city
that at present does not pay tax.
After studying the matter, am of the
opinion that for some time to come our
taxes are high enough, and are enough
to meet the requirements of our
hustling city.
l also notice in their recommends
ton that they propose amending the
charter so as to provide for collection
Of city and highway taxes during July
each year, as in the old charter. Now,
the idea of the collection of summer
tax is, in my opinion, a good one, but
If collected in accordance with the |
provisions of the old charter it will be- |
come a burden for many instead of a |
privilege. The old charter provided |
for the collection of fee of one per
cent. during July and four per cent. |
on all taxes paid after July 81. Under |
the new system, it strikes me the col |
lection of fee on summer taxes paid |
during July or the following December |
up to January 10th is wholly uncalled !
for. The old charter called for ten per |
cent. interest on all taxes not paid |
during July. In view of the fact the |
city can borrow money for per cent.
and that the expense of spreading the
extra roll would not exceed one per |
cent. would suggest that 8 per cent.
computed from August LIST |
until summer tax is paid would be
more in accordance with the times. |
Open summer roll only during July, |
charge no fee for collection during |
that month, and If the people do not |
choose to pay at such time, charge |
them per cent interest per annum
from August LIST until time of payment. |
It would then be privilege instead of |
a burden to pay summer taxes during |
July, and If not paid during July, the |
interest only protects the city in so far
rs delinquency occurs.
That the people as a rule prefer to
paw part of the tax in July is evident,