The Birmingham age-herald., 1915-01-19
Report of Subcommittee, Headed by Frank Nelson, Is Made Public-IS Prac- tically Unanimous
COMPEL OFFICIALS
 TO LIVE WITHIN THE
 INCOME OF THE CITY
Bill To Be Introduced in Legislature Attached to Report as Is Proposed Constitutional Amendment = Rec ommend Separation of State, Coun- ty and City Taxes

An amendment to the state constitu-
 tion. which will "simply set this com-
 munity free,o and permit 1t to levy
 whatever rate of taxation it may deem
 necessary for the conduct of its gov
 ernmcnt is the main feature of n plan
 recommended for the permanent fnan-
 ciaI relief of Birmingham yesterday in a probable unanimous report of the sub
 committee of citizens headed by Frank
 Nelson, Jr.
 A second phase of the plan is a new
 law to be enacted by the state legisla-
 ture making it compulsory for the ad-
 ministrators of the city government to
 live within the city's income, and failure
 to do 50 a proper grounds for the re-
 call from office of members of the gov- erning body.
 Separate the Taxes
 The third phase of the plan is in the
 form of suggestion, in which the com
 mittee sets forth its opinion that the best interests of the state county and city will be served by a separation or
 divorcement of the taxes of the three. so that the taxes of the one will be inde- pendent of the taxes of the others. And as a plan for this arrangement. it is suggested that the state have the eN elusive power to tax railroads, telegraph and telephone lines and similar public utilities and quasi public corporations the county and municipality to have the exclusive power to tax "all other real and tangible personal property in the county and municipality Under these changed conditions, the report stated, i've ought, and your com
 mittee believes we will, provide all that is really necessary for our welfare and development, require every citizen to
 contribute his just proportion and then
 see to it that we get moneys worth" The report is signed by every member of the committee except one, M. V, Joseph, who is in New York city, and whom, it is generally believed, will sign, making it the second unanimous report by subcommittees of the committee of 100. Mir Joseph is expected to sign it upon his return home. Main Features of Report The main plan for the derivation of the city's revenues as set out by the com
 mttee is:
 That there shall be a permanent tax rate of l per cent of assessed valuation of real estate.
 That an estimated budget of the city S expense shall be made each year in ad- vance,
 That if more money is needed to meet this budget than is to be derived from the permanent rate of 1 per cent, there shall be an election held, at which the voters will have the authority to increase
 the rates of their taxes as much as 11a per cent
 That an increase of no more than 11s per cent can be made in any one year. That the increased rate can be made effective for one. two or three years fol- lowing.
 That if the increase in tax rate is de- feated at the polls. it will mean that
 the people wish thes governing body of the city to reduce it's budget That such shall then be done and an- other election held, if desired, for a smaller increase in tax rate. That any member of the city govern ment who shall knowingly and willfully expend more money during the year than what has previously been set out in the budget for that year shall be subject to recall.
 That any debt contracted by member of the city government, however, shall be binding on the city, no matter whether or not it does exceed the budget limit. That certain exceptions for emergen- cies and other conditions be made to the
 provision regarding expenditures in ex- cess of the budget.
 The committed offers with it's report two bills which it recommends the state legislature adopt. The entire report and | recommended legislative acts are as fol- lows:
 "To the Committee of One Hundred: Your special committee was appointed to recommend plan for the perma- nent financial relief of the city. We have proceeded on the assumption that. as result of the work of another spe- cial committee, the existing floating debt will be funded and that therefore the city will shortly be relieved of it's tenn