The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-02-11
A HIGH DEBT LIMIT
Tighe Bill May Increase Difficulties
of Getting Home Rule for
Minneapolis.
Extends Limits of Municipal In
debtedness and May Make
Them Obligatory. !:

The eX1Scncles OF the finances or the
city of ST. Paul. which has no sinking
fund arrangement. for meeting it's bonded
indebtedness. have led to the introduce
ton into the legislature by Representa-
tive Tighe of an amendment to the home
rule charter act that is of great interest
and concern to every city that is or eN-
poets to be under that act. The amend
ment is of particular interest to Mime
apolitans, because it may initiate against
the adoption of a home rule charter here.
In brief the Tighe bill authorizes the
increase Of the limit of bonded indebted
ness of home rule cites from to 10 per
cent of the assessed valuation. and in
addition. deducts from the total of
bonded indebtedness to be taken in fgur-
ing the percentage Ave kinds of certifi-
Gates or bonds. 1t also provides that evil
dences of Indebtedness Of those classes OF
exceptions may be issued by city councils
without popular vote of approval.
Other forms of Indebtedness exceeding 5,
and under 10. per cent of the assessed
valuation must be authorized by a pop
ular vote; under per cent, however, the
council may issue evidences of indebted
ness without g. referendum. .s-".
The point is made that such extern
sion of the limits within which municipal
debts may be contracted and also such
an extension of the unchecked authority
of the council in borrowing money would
operate u CAUSE lHC COllSSl fdtl'c
apolis voters to reject a home rule char
ter, though. of course, it may be argued
that the Minneapolis charter may not
necessarily be made as broad as the au-
thority of the enabling act permits. The
Tighe amendment on this point Of NUM-
cipal finances reads as followst
The Tighe Amendment.
Except as herein otherwise provided it shall
| not be lawful for any such city to issue any
bonds. if, by such issue, the aggregate bonded
Indebtedness of such city shall be made to exceed
ten (10) per cent of the assessed valuation of the
taxable property of such city. according to the
last then preceding assessment for the. purposes
OF cy e
framed or amended under this act. if thereby
the aggregate outstanding bonded indebtedness
cent of such assessed valuation. util the propo.
sition of issuing such bonds has been approved
by the legal voters of such city voting at gen
eral special election, at which such PROPOSE
ton shall be submitted. But none OF the li1nita-
tions herein prescribed shall apply to
(a) Certificates of indebtedness at any time
issued to be issued. for the creation and main
tenanee of permanent improvement revolving
tb) Or to tax levy certificates of Indebtedness,
ton of the collection of general taxes for the
year in which they may be issued.
tc) Or to bonds at any time issued or to be
| issued to fund bonds already then outstanding.
td) Or to bonds at any time issued or to be
issued to pay the lawful floating Indebtedness of
any such city or village, which floating indebted
ness is existing at the time of the adoption of
such charter, and is not already funded into
bonds. .. -...- -7a, .. 49,. z.>.-..,s.
yte) Or to bonds at any, time issued or to be
issued for the purpose of purchasing. construct
Ing resnlating. maintaining, extending, enlar-
ging or improving water and light plants,
either, of such plants, or any income producing
Public utility which any such city or village
may lawfully own and acquire and which is
already owned. maintain ed and operated by such
city or village, or which it may determine to
operate. or for the pur pose of acquiring by pur-
chase or otherwise any real or other property
plants. ~. g..
Certificates Of indebtedness or bonds already
the adoption Of any such CHARTER of the " char
acter or for the purpose enumerated In. (a).
part Of the Indebtedness Of such city or Village
for the purpose Of determining Its authority to
in prescribed. and after the adoption Of any sucl,
charter or amendments by any such city or vii
So se 1T be a%g for ~ fn,s such city
adopted or amendments thereto. adopted, to
issue certificates Of indebtedness or bonds for
any or all Of the purposes enumerated in (a).
| ID, (c). (d) Or (e) hereof in excess of 10
per cent Of such assessed and with
proved by the voters of such city. ~.
| A Lawyers Warning.
| A Minneapolis member of the legisla-
ture has consulted an able Minneapolis
attorney as to the legal interpretation of
the act and has received from him a reply
(which raises the question whether the
provisions Of the act do not override any
home rule charter limitations as to in
debtedness which are less broad than those
of the act. This legal opinion follows:
! I have looked over the Tighe bill, House
File No. $50, a copy Of which you left
with me yesterday, as to its provisions
with reference to bonded Indebtedness
which are contained in the latter portion
of section 9, beginning with. line Sc of
section 9 of the printed bill. You will
! notice in the first place that this section
does not in terms put limitation upon
i the provisions which may be embodied
lin a charter. [ think it might be CON
Estrued as a direct authorization to city
governments organized under this bill to
. issue bonds up to the total Limitation
specified in the bill without regard to,
and even in spite Of, any provisions which
4 might be contained in a charter framed
under the bill. Indeed it hardly seems
to be that any other construction is pos
sble. If that is the case, it authorizes
bonds other than those of the classes
specified in subdivisions (a), (b),~ (c), (d)
and (e) to the extent Of 5 per cent of
4 the assessed valuation, without a vote of
the people, and to the extent of 10 per
cent with vote of the people, and in
debtedness of the classes specified in sub
: divisions (a), (b), (c), (dD and (e). with
, out limitation. These subdivisions re-
fer to:
t. (a) Revolving fund "certfcates." y
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