The Detroit times., 1911-04-01
z PER CENT TAX
LIMIT. Says HALLY
This Includes Bond Issues, and Means
That $4,000, 900 Must Be Cut
From Budget.

An opinion of far-reaching import.
ance to taxpayers by Corporation
Council Hally to Mayor Thompson,
Saturday. The opinion points to the
$3.50 tax rate demanded by the may
or in a message to the common coun-
ell. II also points out that some sew
ers and many other improvements ap-
proved by the council will have to be
cut out because OF the appropriations
exceeding the limit allowed by the
law.
According to the opinion, the city
is empowered to raise for annual
maintenance and improvements, only
two per cent of the assessed value
ton. This Includes both taxes and
bonds. 1t does not include primary
school money and liquor taxes, which
in 1910 amounted to 81 ,065,0 200 and arc
estimated at $1,260,O00 this year. This
means that at least $2,500,000 must
be cut from the budget. The law
Mr.. Hally says, limits the amount
which can be spent In one year for
sewers to 100000, so that Of $1,040,.
900 appropriated by the council this
year for sewers including the big
east and west side turnk sewers,
$4,000 must be cut off.
Discussing the opinion, Mayor
Thompson said:
"It has been my ambition to keep
low tax rate without crippling any
or retarding improve
ments. With this end in view, re-
quested the corporation counsel to
look over the law and tell just how
much can be raised for running the
city.
Under the facts presented in the
opinion, It is easily seen that the de-
partments must all be economical.
They will get as much as they did
last year, and while they will not get
as much as they wish, they will get
as much as they need.
The biggest job is for the board OF
estimates to cut $2,500,0OO from the
budget Based on last years assess
ment of $372,000,000, the maximum
that can be raised is about $7,440,000
OF course this will be somewhat in
creased by the new assessment
figures. The receipts from other
sources, such as primary school and
liquor tax, were s1,065,000 last year
and | am looking for them to be ST.
go 900 this year, which makes about
S8,700,000, all that can be raised by
taxation and other means for running
this city for the year ending June 80
1912. That is s350,000 more than was
allowed last year. The total amount
last year was $8,357 900, Of which S.,
S37 900 was raised by taxation, $i,-
065 900 by liquor tax and primary
fund. and $455, 900 raised by bonds.
THE common council has authoriz'
ed s1,04O,0O0 for sewers. Under the
opinion. Commissioner Haarer can
spend only 100000 year for sew
ers. and City Engineer McCormick
tells me that that is all that can prac.
tically be expended in work with
present facilities, so SS4O,000 viii
need TO be cut off in that one place
alone. Special authority has been
given at times to issue bonds for sew
ers. but the limit of this special auth
ority has been reached.
What il means Is that the board
OF estimates must cut off everything
that Is unnecessary. The people have
gotten along for years with limited
sewers. and I think they can go slow
ly now. There are many other things
which have been asked for which We
can do without. II s2.500.000 bonds
are issued, We shall see the $3.50
tox rate +"