The Republican. [volume] (Oakland, Md.) 1877-current, 1924-03-27

This Correspondent FayOrs the Pro-
posed Increase of Tax Rate In Oak
land So That the Town May Pay
Its Obligations and Also Wants the
Water Rate Increased to Meet OPP
Grating Expenses of the Water
System, Which Is a Sound Business
Proposition.
To the Editor of The Republican and
the Tax Payers of tile Town of
Oakland.
Believing an explanation is due the
tax payers Of our town because of the
bill now pending in the Legislature
empowering our town authorities to
increase the rate of taxation from the
present maximum rate of so cents on
the 500 to maximum rate of S1.00
on the 500 of assessable property
within the town, the same to be in
force for period of three years, and
assuming a share in the responsible
ity for said action, | will give my rea-
sons for so doing.
| find from the last financial state
ment of the town that the total re-
ceipts for one year with the tax rate
of so cents for general purposes and
36 cents for taking care of the bonded
and floating Indebtedness is the max
imum amount that can be levied I'M
der the present restrictions. This
amount, together with the amount re-
ceived from water and other sources
is not sufficient to take care Of the
present Indebtedness and pay the sal
aries of the town officers, viz: Mayor,
Council, police, tax collector, opera
ton Of pump stations and upkeep of
the same, lighting the streets, thus
leaving nothing for any other i'm
provements. The natural consequence
is that each year the floating debt is
being increased until now the last
statement shows a total debt Of $i9,-
442.7S. No provision is made CT can
be made for taking care of this under
the present restricted rates
You may say this floating debt
should never have been contracted. l
agree with you, but now that it has
been done, what will you do about it?
| also find that the receipts for
water falls short of tie amount re-
quired for operation and upkeep Of
pump stations. together with the in
terest and retiring of bonds issued
for the construction Of this system.
| think for this reason the water rate
should be increased because of the in
Justice done property owners in COM
polling them by taxation to pay a
part of the renters water bill.
Now in conclusion: The raising of
the tax rate is a very disagreeable
thing; nobody wants it if it can be
avoided, but can any tax payers sug-
gest better way out of the difficult
ty? 1t is evident that something must
be done, and done at once. | do not
believe our town can borrow more
money on bond issues or otherwise
unless the Mayor and Council are
granted authority to increase the rate
of taxation; therefore we have reached
the limit of our borrowing capacity
and hence insolvent under the pres
emit source of revenue, and the danger
is that we may be forced to default in
a short time on payment of interest
and bonds coming due when perhaps
some creditor may take possession of
our water and sewerage systems and
fix rate for us to pay that they may
get what is due them.
believe this plan of increasing tax
alton for the purpose Of taking care
of this floating debt is preferable to
issuing bonds even if they could be
sold, because if bonds were issued and
this debt paid with the proceeds we
have no assurance that the same pol
icy would not be pursued and in a
very short time another debt would
accumulate equally as large Then,
too, perhaps increased taxation will
have the effect of forcing tax payers
to take more interest in the actions
of our town authorities.
The cause of high taxation today all
over our country is because of heavy
bonded debts of our Federal, State