Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1922-03-31
70 the Citizens of Ladysmith:

build Il community building. that l have
decided TO give the public my views OF
the matter. as | am convinced there
are many who misunderstood. the pres
eilt financial situation of the city. and
who fear that such a building would
~he Il financial burden TO the tax payer
Most of the citizens have heard that
The city has received $4,000 from the
sale Of the Menasha Paper Company
plant. but it is not fully understood. by
,Ilany how the city came 10 get this
amount of money
Let me say in explanation that when
The Menasha Paper Company sold les
plant here TO the Great Western Paper
Company there was ii tax of approx
mately $15O.0O000 to be paid on the
profit realized. and under the state IN
come lax law the state receives 500 OF
This total tax and the city receives 900
or approximately S10j,0o0.oo.
The state tax commission permitted
the Menasha Paper Company to make
this payment to the city in three install
mcntS. of approximately S3o,Ooo.oo
each. The first insta1lment of S3a.0o0
was received by the city in January,
1922, and the second INSTRUMENT OF
SGT. 100000 will be made III January.
1923. and the third and last Install
ment Of $50. 100000 in January 1924.
In past years the city has been COM
pcllcd 10 borrow about S35.00o each
year for current expenses. The first M
4talLmcnt of S35.000000 paid by the
Menasha Paper Company in January.
1922. is now being used by the city
council to pay up Indebtedness present
IL due so az 70 free the city from debt,
.xcept of course. as TO outstanding
bonds. which are spread over term
Of years and Il portion OF which are
paid each year as they mature
BY using the first installment of S:'3,-
10000 for paying the city'S present ~
debtedness the tax rate for the cur
rent year will be made lower. The OF
fetal figures of the Wisconsin Tax Com
mission just published show that the
true tax rate for the city of l.adysmlth
for the year 1921. based on the true
the tlae tax rate Of thirteen other cities
III the state, and among those having Il
higher true tax rate are our neighbof
cities of Phillips and Park Falls, while
the true tax rate for Barron is lower
than the city of Ladysmith by such
Il trifing amount that the two cities
Ve practically the same rate.
!adysmith wishes to pave some more
streets this summer, and sewers Will
lhave to he extended in Il year or two.
ITbis can only he done by bond issues.
land the constitution of the state of Wis
sonSiu limits the total Indebtedness OF
any city. including all its bonds, to five
per cent of the assessed valuation Oh
the city. Thus ii will be seen that II
debts are created by bond issues for
having and sewers. the limit OF five pei
cent which we cannot exceed Will be
approached to such an extent that the
city cannot build the community bulld
ing by issuing bonds for that purpose
for the amount of such bonds necessary
10 build such building. together with
the bonds now issued and 20 be issued
for paving added TO the outstanding
bonded indebtedness would exceed the
live per cent limit. and in all probable
ity il would be ten or fifteen years
hence before the city would have sui
licicnt lceway. under the five per cent
limitation. to allow for bonds to be is
sued with which to pay for Il commun-
itv building.
ON the other hand with the second
installmcnt Of S3J000.00 TO be paid III
January 1923. the erection Of Il com
munity building could be started later
i'm the wear 1929. and the S35.000.00 re-
ceived in January of that year could
be applied ON the cost of construction
and by the time the building was com
pleted the third and last installment
Of S35.GO00 would have been paid III
January 1924. iii time to pay for the
total cost of the building upon IFS com
pietiml.
Many of the citizens who have asked
for my views of how this S10o.oooW
should he expended have suggested
thai il he used for building schools.
lind that ii is moi generally understood
mat the school district for the purpose
Of issuing bonds is Il municipality sep.
arate from the city The school dis
trict can issue its own bonds for build
ing. schoolhouses regardless of tho
bonds already issued by the city of la
dysmith provided. however, that the
school district does not exceed the CON
stitutional limitation Of its indebted
ness of five per cent Of the total as
sessed valuation The school district
embraces the whole of the city OF l.;t
dysmith and q small portion Of tbs
town of Flambeau and il has not neal.
Is reached its limit of bonded indebt-
cdness. Bond issues are the best
means which a school district has fol
building it's schoolhouses because the
bond issue spreads the cost OF The
building over IA term Of fifteen years
and residents who come TO LadysmitE
and make use of our schools during the
next fifteen years will pay their share
Of these bonds as they mature. where