The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-18
FOR LocAL z|IMpRovEMEN7s.
NATTER REFERRED BACK TO AS
CERTAINIF tHANGE CAN BE
MADM LEGALLY,
AND TO SUBMITsA FEASIBLE PLAN
Section. Relauar to the Board of
Public Work. and Engineer
ArefAdopted.

greater part Of last evening to discuss
ing the so-called installment plan Of
collecting special assessments for local
improvements. No definite action re-
suited, the whole matter being referred
back to the committee, with instruc-
tions that the committee ascertain
whether any change can legally be
made in chapter Of the present
charter, and if so, report If feasible,
| a plan for paying assessments by in
stallments, such plan, however, not to
involve any pledge of the general credit
| Of the city.
| The matter came before the commits
| sion in the shape of a partial report
from the committee appointed to draft
chapter Z, relating to local improve
ments and special assessments. Mr..
! Horn is the chairman of the commit
| tee.
The committee announced at the out
| set that it desired instruction upon
the question Of adopting the installment
plan Of paying special assessments,
which appeared to be favored by the
chamber Of commerce and a number of
| citizens. The report says:
The Indiana system in use in Indianapolis,
under the general law OF 1891, has received
considerable attention as precedent. In
street improvements the assessment of the
tfons, etc., Is assessed upon the lots AUDITING
on the improvement, according to their 'front.'
| age. and the city is liable to the contractor
to the extent OF the money actually received
from the assessment.
Under the foregoing system it Is pro-
vided that the assessment for the i'm
provement Of any street or alley may,
at the option of each property holder,
be payable In, ten annual installments,
whoever desires to exercise such privi-
lege Of payment by installment shall, at
any time before expiration Of thirty
days after the allowance Of the final
estimate, enter into written agree
ment that, in consideration Of such
privilege, he will make no objection to
any illegality or irregularity with re-
gard to the assessment against his
property and will pay the same as re-
CURED by law with the specified inter-
est.
Other provisions are made for fore
closing such assessments by lien
holder by action in court. under which
a decree Of sale Is rendered and the
property Of the delinquent owner sold
subject to one years redemption. Sec
ton 80 Of the Indiana law reads:
Failure to pay any installment of
principal or interest when the same is
due shall bring all installments of
principal yet unpaid forthwith due and
payable."=-In Iowa there is a similar
system under the general law, which
provides for seven ? .fnstallments. A
practical difficulty is to be considered
in this connection in making provision
for payment to the contractor, as these
assessments do not make the city liza
BILE except for the fund collected. In
Indiana. probably to obviate this diff
Guilty, there is provision In their
law under which bonds may be issued,
PAYABLE out of the fund collected and
bearing interest, which may be either
sold or paid to the contractor.
In conclusion the report stated:
We enclose one Of the form of certificates
Of the state of Iowa, and also their form Of
contract. One Of the difficulties in our own
system, outside the question Of payment Of
assessments to be made in installments, Is
the feature substantially similar In Indiana
and Iowa. and perhaps other cities, whereby
the city is not liable to the contractor except
for the fund collected. The contracts IN use
in this providing substantially that the con-
tractor is to receive his payment out OF the
proceeds Of the assessment. This provision,
no doubt has gone far to prevent competition
in bidding for work. and has tendency OF
greatly increasing the price at which con-
tractors are Wiling to do such work owing to
the uncertainty of prompt payment and the
difficulty sometime Of dfsposing of their Ger
tif1cate or claims as well as the necessity
of resorting to borrowing money to enable
them to proceed with their work. The prompt
taxpayer pays for this addition to the market
price for such work to the same extent as
the delinquent. Whether the other difficulty
in furnishing FUNDS to pay the contractor
under the installment system would be obviat-
ed by such provisions as are found in the
law Of Indiana and Iowa. and perhaps other
states, is a rfatter4to be considered
Chapter 255 of the Laws of 1887 OF our own
statutes, provides as follows:
THAT the certificates Of Indebtedness Is
sued for the creation and maintenance or a
permanent improvement revolving fund shall
not be considered IS portion Of the indebted
ness Of the city for the purpose or this sec
tion," referring to certain limitations as to
power Of city to borrow money; etc. sec
ton 10) This provision should be carefully
scrutfnized with the constitutional amend
ment, and may afford the means whereby
the city may safely issue certificates OF IN
debtedness in anticipation OF corrections from
assessments at low rate Of interest, SO as
to make up to reasonable extent dencNs
in collection from the assessments, and pro
vide fund for paying the contractor as MS
cash. The amount OF such certificates OF IN
debtedness outstanding at any one time might
be limited to certain fixed sum.
Mr.. Lightner, in opening the discus
sion. remarked that the privilege
granted by the existing charter al
lowing property owners to pay their
special assessments in five equal in
stallments was not taken advantage
of to any noticeable extent. But, II
the proposed installment plan was
adopted, the difficulty would be that
the city could not get the money with
which to pay its contractors. In Du-
luth the certificates issued for assess
ments for local improvements were
backed with the credit Of the city. Mr..
Lfghtner thought that, II the commits
sion was in favor Of the installment
plan. the committee should report to
the commission such installment plan
as 1t approved. Mr.. Lfghtner thereupon
put his suggestion in the form OF g.
motion.
Judge Lusk thought that the INSTALL
ment plan was indirectly an effort to
shift off on the city the burden Of pay
ing assessments on property the own
ers Of which neglected to pay their as
sessments. It was whipping the devil
around q stump. The result OF the
plan would be that the property own
ers will quit paying for the improve
the burden. Judge Lusk deemed 1t
the natural and legal duty Of the own
err Of q lot to take care Of his prop
erty to the middle Of the street, to
maintain It in proper order and condf-
ton. It was to the interest Of the own
er Of the property to keep 1t and the
street in an improved condition This
squirming around of property owners
to make some one else pay the expense
of taking care Oft It had been going on
since the days Of Adam. Judge Lask
cited the condition of things in Omaha
in support Of his assertion that the in
stallment plan was a failure. The
Judgment docket books there proved 1t.
Mr.. Lightner said he agreed with ale
most ali that Judge Lusk had said,
and he didn't think 1t would be wise to
ocndi& ~ offvr FOR 4y1A