The Saint Paul globe., 1898-02-01
PLAN A REVOLVING FUND
CHARTER COMMiSSiNN CONSIDERS A
SECTION ON THAT SUBJECT

| Referred Back to the Committee
After Spirited DIscussion-A
Good Deal of Opposition to It
A New Section Relating to Parks
Adopted-SidewaIk Construction.
The charter commission held a ses-
sion last evening, and devoted the
greater part Of the meeting to the dis
| cussion of a section which provided for
revolving fund from which local i'm
proVementS are to be paid The COM
mittee, consisting Of Messrs. Murray
and Horn, to whom the chapter devoted
| to local improvements and assessments
| had been referred submitted the sec
ton. which is printed in full herewith.
Mr.. Dean said it was the most radical
! change proposed thus far by the COM
mission. and he certainly was opposed
| to the plan. The revolving fund plan
had been tried before in st. Paul, and
| the result was that a fund of some
| 100000 had reVolved until it was all
spent. He did not think the city had
any right to issue certificates of in
debtedness for this purpose. 1t would
! be better to have the law read so that
no improvements could be made until
the assessments had been laid and col
lected. This plan was followed in Bal
timore. and, while it made considerable
clerical work, it was certainly much
| better than revolving fund.
Mr.. Murray explained that the trou-
BILE with the revolving fund in the past
| had been that the council had paid
money for assessments against exempt
| property from the revolving fund, in
| stead of the general fund. Certificates
| could be issued against or based on the
| particular Improvement to be made,
and the amount SO received kept from
| that Improvement.
hit hot I1n1 hO
theory of the revolving fund years ago.
but that practically the money had
| been used to pay Indebtedness in the
various departments.
Mr.. Fetter said he was opposed to
any scheme which would add to the
bonded Indebtedness Of the CITY.
Mr.. Murray stated that, according to
the comptroller, certificates of indebt-
edness did not constitute an indebted
ness against the city.
Mr.. Clough said the result had al
ways been in the revolving fund plan
that, after a while. the fund revolved
| so far that it was gone, and the public
had paid for private assessments. 1t
would be unsafe to adopt such plan
as proposed.
Mr.. Dean questioned what would be-
come of the certificates of indebtedness
! in case, after they were issued, the
courts should decide the assessment
was invalid When he accepted the po-
! sition on the commission, Mr.. Dean
said he determined that he would take
! no step which would increase the in
! debtedness Of the city. He believed
: the only salvation for the city was to
decrease instead of increasing the large
! debt. For this reason he would ask
| that the section be referred back to the
committee for consideration. This was
! carried unanimously. The following is
/ the section as reported:
| The proceeds of all local improvement
! lands heretofore hereafter to be issued,
and not otherwise provided for, and all
moneys collected upon local improvements
| and property condemned for public
not otherwise provided for, and all certifi-
| Gates of Indebtedness herein provided for
the purpose Of anticipating collection on
assessments for local Improvements shall
constitute a fund to be known the
local improvement fund of said city,
which fund shall be maintained per-
manent improvement or revolving fund.
All contracts heretofore to be here
after made for local improvements which
| are to be paid for by special assessments
| under the provisions of this chapter shall
| be paid for out Of said local improve
ment fund, and said fund shall be kept
inviolate for the payment of such con-
tracts as hereinafter provided, unless
herein otherwise provided.
In the case of property condemned for
PUBLIC use-f. after the expiration of four
months from the time when the whole
assessment for benefits of the improve
ment shall have been finally considered
the assessment shall not have been fully
paid fn-the common council of said city
may, in its discretion, advance out of
! said local improvement fund not herein
otherwise to be paid or distributed suffi-
cient to make up the deficit occasioned
by such failure, provided however that
| said advance shall in no case exceed =
| per, cent of the damages to be paid upon
SUCH condemnation. Such advance shall
be replaced in said Improvement fund out
| of the assessments which may thereafter
| be collected. not otherwise herein re-
quired to be paid or distributed.
The treasurer of said city shall keen
a separate account of the collections or
proceeds of special assessments of each
particular Improvement and the amount
or such collections and proceeds shall be
set apart In each instance to pay the
amount due the contractor, or in case of
condemnations. the amount due for dam
ages or upon the awards to the party en-
titled thereto-until the whole of the
| claim or amount due in each case is fully
paid.
The common council may from time to
time by ordinance first directing the
| same two-thirds of each body voting
therefor issue and SELL or cause to be
sold certificates Of indebtedness in antici-
patton of the collection from such assess
ments for the purpose of more effectualIy
| providing fund in the city treasury to
pay contractors for improvements afore-
said, and damages or awards to narties
entitled thereto in condemnation proceed
ings.
W suCi CeTIuCdCe Oh Indebtedness
| shall be issued to become due and PAYABLE
later than. .......years from its date. and
| shall be In such amounts and in such
manner as the city council may deter
mine, and bearing interest, payable semi
annually, at the rate not greater than
hVe (5) per cent per annum. Each certii-
cate shall state upon its face for which
OF said improvements said certificates
| shall be used. Such certificates in the ag-
gregate and then outstanding shall at no
tlIhe exceed the amount Of. ........ dollars,
and IN no instance shall more than
per cent of the amount OF any particular
contract, or award OF damages be paid
| therefrom. The city treasurer shall REPORT
monthly to the common council and
oftener If required by said council the
condition and amount of each unpaid as
sessment and Of the funds in his hands
| applicable thereto, and the probahIe
amount needed to pay the contractor and
| such Information as may be needful to
| enable the common council to act ed
| V1sedly in providing for such certificate Of
Indebtedness. The object of the same
be1ng to provide fund, If practicable in
the city treasury sufficient to pay the con-
tractor and persons entitled thereto for
improvements punctually when due
The same committee which reported
the revolving fund section handed in
| another one, which allowed propertv
| owners to construct their own side
walks within thirty days after the final
order had passed the council. This
| section was adopted
! Section 27 Of the present code, as re-
/ thn -