Palatka daily news. [volume] (Palatka, Fla.) 1919-1994, 1921-09-07
COUNCIL F AGING
MONEY SHORTAGE,
P running BUDGET
Cannot Transfer Funds
From Sinking Fund
Temporarily
BANK MAKES OBJECTION
Sunday Closing Ordi-
nance is Tabled Af-
ter Hot Debate

Hot weather added nothing to the
discomforture Of council last night
when Chairman Fred Merrill, of the
finance committee announced that
the city is badly in need of funds,
hasn't a sufficient sum on hand to
meet current expenses and that there
is very serious probability that the
loan, which council expected to make
to itself from the sinking fund, is
not to be made as it may be contrary
to law.
Alderman Merrill said that the
budget had been tentatively made,
but the necessity was immediate and
that some steps must be taken to re-
| lieve the situation. He said that
that the budget provision for the po-
lice department was inadequate, and
some members of council thought
that more provision should be made
to properly police the city. At pres
ent, and under the proposed budget,
provision is made for chief and two
regular patrolmen with $1,000 for
extra police service. He said that
| there are also some members who
favor cutting a half mill off the gen
eral fund item, making that eleven
mills, and giving the library a full
mill. These were matters, however,
pertinent to the budget alone and did
not relieve the situation of immedi
ate necessities incident to money due
or soon to be due, for paving.
May Be Illegal to Transfer
Before council met it was general
ly understood that the plans of coun-
ell, adopted at the last meeting, were
to be opposed by the East Florida
! Savings & Trust Co., holder of ap-
proximately fifty per cent of the
city's bonds, and depository for the
sinking fund. The bank took the po-
sition that transferring, even tenn
porarily, money from the sinking
fund would impair the negotiable
quality of the bonds, and would,
therefore, be a breach Of contract
with the purchasers of such bonds.
After considerable discussion it
was decided to refer this phase of
the matter to the city attorney, who
will report at the special meeting to
be held Friday night.
During the discussion it developed
that the city has more than $4,000
owing to it in back taxes, some of it
dating back as far as 1910, that the
chief of pcfice now has many distress
warrants in his hands for collection.
It also developed that the city is now
due $4,000 in paving assessments on
paving now due, and in addition to
this Clerk Burt dug up about $4,000
additional paving certificates and wa
ter rentals that are collectable. 1t
was the sense of the argument that
! what is most needed just now is a
rood collector. When these show
ings were made it was apparent that
the city would be in excellent finan-
cial condition if all the money due
it were collected, and a resolution
was passed that every effort possible
be made in the next few days to col
lect a sufficient amount of money due
to meet all pressing debts.
Sunday Closing Creates Stir
An ordinance brought in for the
purpose of restricting the sale of soft
drinks, cigars, drugs, newspapers
and ice cream to places that did moi
carry groceries or dry goods raised
stir. The ordinance was prepared
at the instance of the retail grocerS
of the city who maintain that there
are a number of places, especially or
upper Lemon street, that spread g
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