The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-12-10
CITY METHODS Of
FINANCING IS BAD
DR.. ]. E. Boyle Declares Sys-
tern Employed on Bonds
Violates Constitution.
MURPHY
PRESENT SYSTEM
Declares that Running Ex-
penses are at Low Point
Reduction by State.

The question Of city financing wa.
thoroughly discussed and a humble,
OF interesting facts and figures brought
out at last nights meeting OF ths
Fortntghtly club: Mayor NJ. +. Murphy
read the main paper. in which he do.
clared that there is little prospect o,
a reduction Of the city taxes. DR.
James E. Boyle led the discussion. and
ne severely arraigned the city's moth.
ods ~ doing business. declaring then,
TO be unconditional and unbusiness-
like.
Mayor Murphy. in Introducing his
paper. spoke of the general method OF
making and adjusting taxes. after
which he referred tn the condition Of
Grand Forks when he first came to
the place. comparing them with the
present modern and up-to-date cor
ditions.
The speaker then referred to the
improvements thai had been ma lie
during the past few years and what
they have cost the residents. He spoke
Of the bonded Indebtedness and how
It was being paid. after which he re-
ferred to the decrease that is being
made each year in the levies for paw
ing. sewers and water mains.
Reduction From State.
Any further reduction in taxes in
this city," he declared. must come
through a reduction Of the state levy
OF 44.4 mills for 1872. OF the county
levy of 1875 mills from 1912, (there
is more likely to be a small increase
IN our county tax by reason of the
building of the proposed new court
house); a reduction in the school levy
Of 20 mills for 1912 or $S3.6O2 for
1912 in addition to which the schools
received from the state approximately
$4,000 more"
Mayor Murphy then referred to the
levies that had been made for running
the various departments.
Departments on Low BASIS.
After careful thought he con-
tlnued. my opinion is that no reduce
tion a be made in the cost of run.
ming any OF the city departments, ex.
cept possibly in the engineering de-
partment. which 10 affected somewhat
by the improvements that may be
in the city. such as paving. sew
water mains. sidewalks, etc. and
in the police department by using a
smaller force. which I think would
poor policy as our force Is none
too large at present.
There will be an increase Of abou;
5000, 900 in the assessed valuation Of
our property for 1913 by reason of
the extension Of the limit of city
was accomplished by a strenu.
Gus fight"
DR.. Boyle's answer to Mayor MUIR
phys paper was an arrangement o.
tne city's methods OF DOM things. He
.ave statistics covering the complete
record of the city's bond issue from
earliest times to the present, and
declared that the city had boz
fowed freely and. on only two occa-
sions. had met the debt when it came
The city has simply renewed the
debt: he declared, by issuing refund
ing bonds, which practice he said was
unconstitutional.
Interest Feature Important.
These statistics also show" he
said. that the taxpayers in Grand
Forks have An annual interest charge
Of over $4,000. And, this amount
does not promise to get smaller, but
larger.
These statistics further show some
queer notions Of public finance. For
thirty years ago a small fire
engine was bought for $4,000. But it
not paid for. The city prefers to
thirty-iv ear to pay for it.
making an interest charge of over
l 1000, SO that the total cost Of the
$4,000 engine is eel $4,000.
In 1914 a little debt. Of $40. 900 falls
Tue. II Will not be paid. In 1917
another debt Of 100000 falls due. This
debt is a renewal Of debts incurred in
1882. 1t will likely be renewed again,
FOR there is no sinking fund to take
care Of it.
For city purposes the city has bor-
rowed $4,000. The interest on this,
II no more refunding 10 practiced, is
II the present practice Of
continues, this interest bur-
den will be twice the original Lrinti j.
pal. Is it good business to bug a
piece Of FIRE apparatus for $1,000 and
pay $4,000 interest on 1t? Or build
$4,000 bridge and pay $4,000 for
lt?''
DR.. Boyle then gave a table. in
h" showed the present total
debt Of the city to be $%1.630,0a8.02
with an annual interest Of s~ss.167.67.
Special improvements.
n question Of paying for special
improvements was referred to, and
speaker declared that the city may
pay twenty per cent of the total cost
Df these improvements. but in practice
only ten per cent is paid. working a
great hardship on the taxpayer. He
illustrated by quoting example.
nfty-foot lot on University avenue
purchased for a site for a 81. 900
dwelling. Tho cost Of the lot was
500. but tho pavement, the water