New-York tribune., 1902-12-21
OS4VE THE CITY MONEY
Plans Of administration To Better
Financial System.
NINE. HUMBERT

tion the first bill day of the session of the
legislature four bills which he and Mayor Low
confident will successfully revolutionize the
citys financial system. The four main objects
aimed at in these bills are
Reorganization of the Sinking Fund. by which
SS.J0o,000 of revenues of the Sinking Fund will
be turned into the General Fund, and cut down
by much the tax budget
Providing for the payment of taxes beginning
with January l. with rebate of per cent up
to December ], thus giving the city ready cash
with which to pay its bills between January L
and October |.
Providing for the payment of Improvement as
sessments in five annual instruments, instead
of I'm sum, at present.
Giving the Finance Department power TO issue
bonds for permanent improvements, instead of
raising money by budget appropriations.
Although Mayor Low has not stated. 1t Is
understood that he approves all these bills and
that he Will urge their passage The reorgan-
izaton of the Sinking Fund explained in
recent issue Of The Tribune. OF the scheme for
collecting taxes from January on to December
1. instead Of from October !, at present, Con
troller Crout said last night:
"It is a strange situation, and one that ought
not to be continued longer, that on the first OF
each January. the city of New York the
greatest and richest of American cities. starts
without dollar with which to pay the smallest
expense. and continues except as it relieves
its necessities and meets its obligations by bor-
rowing. UNTIL on the first Monday of October.
the years income by taxation falls dRe. II is
situation which cest7 the. city 81 to5essa year
for interest. say nothing of incidental ex-
penses and the worry OF its financial officers,
and which compels it. as constant borrower
instead Of a large depositor at the banks. to
cept per cent on its deposits where II other
wise might get 3 or 31a per cent. OF course, the
city is but agent for its citizens and taxpayers.
and whatever expense, loss and Inconvenience ii
suffers fall ultimately upon them. The obvious
business policy is that it should not pay until 1t
receives. But TO transform this situation. 10 say
TO the taxpayers that they must pay taxes in
January. when they have been used to pay in
October. would only shift the burden, and prob
ably increase it in the shifting l shall have
introduced bill leaving unchanged the date.
the first Monday of October. when taxes become
a lien, and the date, December l, when the In
terest penalty for non-Dayment begins to run,
but which viii provide that taxes shall be fixed
and may be paid and after January /, with a
rebate at the rate of per cent from the date of
payment to December l. This rate is from Y
per cent to l per cent less than we pay the
banks on revenue bonds, but sufficient, L be
lieve, to attract large payments The city will
thus save several hundred thousand dollars of
interest, while the condition of the delayed tax
paver will be no whit harder than Il is now.
The chief benefit to be derived from this pro-
posed change is summed up in saying that the
city would be taken out of the money market
and would longer have to borrow S'o,ooo'UOo
in anticipation of taxes, and then to repay 1t,
and would thus in both money and labor.
as well as in the convenience of itself and its
taxpayers"
OF the bill for the regulation of local assess
nents Mr. Grout said: "A local Improvement.
such as the grading and paving of a street or
the laying of a sewer. is now planned author
lied contracted for. executed and paid for. The
city advances the money. After a lapse OF
about two years an assessment is laid upon the
abutting neighboring property, payable in
one sum and carrying heavy penalties of in
terest if not paid promptly. 1t is a hardship
upon the property owner who prefers to pay
by instalments and a hardship upon the city,
since a large measure of its credit. about SO
100000 and upward, is always thus loaned out
to the localities In the interval which elapses
many people buy what they suppose is an
improved street paying an enhanced price, and
then find afterward an assessment levied upon
their property for the very Improvement which
they thought was already settled for. The bill
provides that such assessments be laid before
the improvement is made, and be payable in
five annual instalments, the work not to be con-
tracted for or executed until two-ffths of the
cost has been paid in. This will very substan-
tally relieve both the property owners and the
citv for it will make payment for the one easier
and reduce the expenditure loan of credit Of
the other If it shall be found practicable
will also have fixed dates when assessments
shall be levied and fall due, instead of having
them scattered. as now, throughout the year, to
the infinite annoyance and great expense of
nropertv owners who often do not learn of an
assessment until Il has been running against
them at penal interest for many months
There is no time when the expenditure of
money for great public improvements can be
better made than within the next two or three
wears" said the Controller. For that reason
ss I have urged before ! believe that it will be
economy through the increase of assessed yalu- |
alton of real estate to the full value basis, to
raise sufficient money by the sale of bonds TO
advance the building Of rapid transit tunnels
the competion of the bridges now under con-
NEW CHESAPEAKE & OHIO TRAIN WEST.
Leaves New York 23d-st. I2:55 noon. penn r.
RI arrives Washington 5:lo p. M. CINCINNATI next
morning and St Louis next evenlng'-Advt