Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-08-24
Lngledue Vetoes Resolution
Making Levy Charging He
gality in Assessment
PAY INTEREST WITH FUND
System of Taxation, in Vogue for
Years, Receives JoIt-city Has
Been in the Habit of Using Water
Department. Sinking Fund to Pay
Interest on Departments Bonds.

The system of city taxation. which
has been in vogue for years, received .
jolt and the recent tax levy, proposed
and passed by the city councils reso-
luton. was vetoed and held up by
ing of the council Friday night The
mayor vetoed the resolution ordering a
sidewalk on North Thirteenth street,
and also the resolution which passed TO
it's third reading. regulating the con-
struction, inspection and hanging OF
signs.
At a recent meeting of the council
the annual tax levy. containing one
mill tax for sinking fund for the
water department, was passed. Be
cause of this one mill tax the entire
levy was held UP by the mayor. The
council made no attempt to pass either
the tax levy or the other resolutions
over the mayors veto, but the levy is
to come for reconsideration at another
adjourned meeting next Monday night
SO chat 1t may be passed before Sep
TENDER /.
Vetoed Because illegal.
In communication, setting forth al
length his reasons for vetoing the tax
levy, Mayor Ingledue held that the levy
for the sinking fund, for the water de-
partment was illegal. because the
money derived from the tax would not
be used for the purpose OF paying bonds
but instead it would be used to pay
the interest on the bonds of the waite.
department.
Mayor Ingledue holds that because
the water department is more than
self sustaining. and during recent years
has Melted profk of from $4,000 to
$l4, 1000 a year for the city. that the in
terest on its bonded debt should be paid
out of the water profits and that the
city should not be taxed for that pur-
pose The interest. he said should be
handled as part of the fixed charges
for the maintenance of the department
Continuing, he said, that if the coun-
Gil insisted on the levy that the money
must be held for that purpose and that
purpose alone. and that it would be
necessary to place 1T in the hands OF
the city treasurer, where 1t would lie
idle, without drawing interest, until
such time as the first of the bond be-
came optional and could be taken up,
which would not be until 1911 But the
money could not be used to pay inter-
est, when it was collected for the pur-
pose of taking up the bond. r@
Points Way to Pay Debt.
yyyl,i1o an Tho S11hiacf MavOr Ingla-
due pointed the council to a way to
wipe out the debt of the water depart
ment by setting aside from the net
earnings of the department each year
q certain sum over and above the
cost of maintenance, and when the
bonds become optional or expired to
take them up, or as many as the fund
thus accumulated would pay off. This,
the mayor said, would doubtless cur
tail extensions of the department. to
some extent, but it was a way in
which, If the council saw fit, it could
pay off the bonds without further tax
alton. He objected strenuously to
taxing the people, for a departmen t
which was showing a profit over and
above the cost of operating.
Ordinance Given Set Back.
The vetoing of the resolution, which
suspended the rules of the council, and
put the sign ordinance on Its third
reading, has the effect of bringing this
ordinance back to it's first reading
again. Otherwise it does not affect
the ordinance itself. This veto was ex-
ercised, the mayor said, because to
suspend the rules it required a three
fourths vote Of the council, instead of
a two thirds vote by which the rules
were suspended.
The vetoing of the resolution or
dering the Thirteenth street sidewalk
was exercised because one vote of the
necessary three-fourths was lacking,
which the law requires for the ordering
in of a sidewalk where the walk has
not been petitioned for by the owners
whose property would abutt it. This
resolution was adopted by seven, in
stead Of by the required eight votes.
Another resolution ordering in this
walk will be presented at the meeting.
One was introduced by Councilman
Gregory; but the city solicitor raised
the objection that it did not contain
the statutory declaration of intent with
time for the. property owner to comply
or object, and it went over until he
could examine the law and draft res
l..