Los Angeles herald., 1909-08-14
BUDGET SHOWS
LOWEST RATE IN
CITY'S HISTORY
BONDS VOTED CAUSE HIGHER
TAX PERCENTAGE
MAKE BIG CUT IN DEPARTMENT
ESTIMATES
Ordinance of Appointments Passed
by City Council After Two
Weeks Work by Finance
Committee

BY a peculiar paradox property
II owners of Los Angeles will have
to pay a higher percentage for
taxes than they ever have paid, and yet
the tax rate is lower than ii ever was
tefore i'm the history Of the city.
The property owners will have to
thank the present administration for
the low tax rate, and have only them
selves to fall back on If they have any
complaint on the amount of taxes they
must pay, for 62 cents on every $100
worth of property is assessed for out
standing bonds, chiefly the owens river
securities, and the people themselves
voted for these by an overwhelming
majority. The actual tax rate this
year viii be So cents. The amount for
interest and sinking funds OF bonds is
e. cents, making total of $1.47 that
VIII be assessed on each 500 worth OF
property. Another thing the property
owners must not forget when paying
his taxes is that he is not assessed on
the full valuation of his property, but
Cnly on 30 per cent. If the assessment
was based on the full valuation the tax
rate, including bonds would be but
1879 cents on each $780,
The ordinance for the tax rate was
passed by the city council yesterday
when the finance committee reported
the budget, after two weeks of the
hardest kind of work any committee of
the council has to do at any time of the
year.
Big Cut Necessary
When the finance committee began
its labOrs il found 1t would have to
trim 81 $50, 900 from the estimates of the
departments to bring the amounts
within the income of the city for the
next year. In some places the cuts
were so deep that they touched almost
to the raw, but it was necessary eth
tn m 10 those pr ha
tax rate, and this the committee was
not willing to do.
In presenting the budget Councilman
a. j. Wallace, chairman of the budget
committee, made the following report
I'm which he set forth the reasons that
had actuated the. committee in some
OF its recommendations:
Report In Full
Councilman Wallace said:
your budget committee has finished
its labors and today submits its report
and asks for approval This is the
third time your committee has brought
to you it's recommendations for the APP
portionment Of city funds for a years
municipal business.
Two years ago we faced our first
budget making with a deficit in the
outfall sewer contract. The bonds were
exhausted and it required $350,000 to
complete this absolutely imperative
work. To make good this amount $17O,-
600 was turned over from the depart
ment balances of the preceding year.
which left a net shortage of $3.50, 900
plus an empty treasury
''It needed at that time just $6S0,000
to carry on the citys business i'm a reg
ular way from July until the Octo
Der tax payments would relieve the sit
uation. That is, S0,00O-would finish
the sewer. and $500, 900, put with such
monthly licenses and other moneys as
would come, into the treasury, were
needed to pay salaries tand expenses
and contract bills for these three
months. BY an unpopular arrangement
with our banks in regard to salaries
end wages, and postponement of 9th
er payments, this council bridged over
these hard months and resolved to plan
for better conditions in 1908.
Funds Were Sufficient
when July l came one year ago we
had no bond deficit to make good and
found ourselves with sufficient funds
to meet the salary and wage demands
UP to the date of the October tax pay
ments. but fell short on many of the
other expenses of the city Today we
have cash enough on hand and in sight
to pay all bills of every character as
they mature right up to the time of
the incoming of the new taxes
Additional to this, we present a
budget that win take care ofAthe city's
business for one year and will leave our
successors in office in as good financial
condition as we now are that is, with
sufficient funds to take care of the
three dry months that are found at the
beginning of each fiscal year.
Additional to the more ordinary eX-
pense items of city government, this
councils administration has made pro-
vision out of the ordinary tax rate for
the construction and equipment of fire
a a n eo7E nd Of ha
contract for four large bridges, namely,
Seventh street, Main street, Los Pesos
and Buena Vista street The amounts
paid on these bridges in the last two
years and provided for and assured by
today's budget total $406,000. Fire
buildings and equipment and bridge
building have heretofore in this city
been financed quite largely by bond is
sues. but our $23.000,000 aqueduct enter
Prise has made 1t necessary in these
Gays to construct these permanent i'm
provements out of the tax levy.
y Limited to 81 Rate
"The charter wisely limits us to a 81
rate. This year new law places our
school district entirely within the tu-
risdction of the county and so the city
government is relieved from making
any provision for our public schools.
This means that So cents in the S100
will provide the funds needed for the
management or city aIfalfS this year
as fully as 100 cents in the $100 would
last year. This is the apology for the
S5-cent rate that our budget committee
recommends.
"Our rate fixing practically ends
when we determine on this S5 cents.
Il will be added to very greatly by the
amounts that have to be paid on bond
principal and interest. but the voters of
our city and not it's councilmen deter
mine that matter by their issuance of
bonds.
"The tax levy that we now recon-
mend for this year is the lowest pos
sible under existing conditions. and is
S1.47. IT is desirable that this council
and the public generally should under
stand that this rate is 10 cents higher
than the actual necessities of this year
win call for, because it includes 10
cent rate that should have been added
to last years levy This grows out of
(COntiDued Page EIght)