The Western news. [volume] (Libby, Mont.) 1933-current, 1934-01-18
Libby Officials Ask Citizens
To Pass on Question
February 7.
FEDERAL LOAN
rs APPROVED

9 At a special session held Monda,
evening, the city council of Iibb,
!, adopted by unanimous vote 4 resolu.
tion calling special election to be heIf
on Wednesday, February 7, for til,
purpose OF voting on the issuing O
bonds to defray the cost of a new cit,
hall. This action was taken in response
70 a telegram received by Mayor Swift
er from the Montana representative Of
the public works administration stating
mat the city's application for loan
! mad been approved and also stating tha,
bond election would be necessary.
The amount of the loan asked by the
city was SIS TOO and the application was
Tprraved in that amount. Under the
provision of the public works act, so per
cent of this is gift by the government
but 10 per cent of it must be renal,
over "a period of 20 years, what means
bearing per cent igtm to be repaid
the total pJg,y9o.OO. Divided into 20 an
woq" installments, there would be
S549.5O payable each year in principal.
The interest payments would grow less
from year to year. However, the first
years payment at per cent interest
would amount to $4,000 making the
first years payment in principal and
interest $685. The average payment
over the 20 years would be about $770
per year.
No Tax Increase.
Mayor Switzer and the other mem
bers of the council are insistent that
there shall be no material increase in
taxation for the first two or three years,
provided the bond issue is authorized
by the voters and the bonds issued.
Mayor SWltzer was very firm in that
determination and said additional taxes
should not be imposed for the next two
years, while business conditions are
getting back to normal Just how that
Is to be done is explained by the fol-
lowing
The total taxable valuation Of the
city of Libby for the year 1888 was
$338,825 II is proposed to reduce the
paTk fund levy from two to one mill
and also the fire department levy from
two to one mill That would mean two
mills that could be diverted to the city
hall fund A two mill levy on last
years valuation would return S677.65,
leaving $311.4 still to be raised to meet
the first years principal and interest
payment of $98910. Mayor Switzer
states that amount would be taken from
the general fund That would be pos
sible because of gradually lessening
debts against the city that have been
reduced during the past few years BY
a program of careful management Thus
for the first two or three years there
would need to be no increase in taxa
ton in order to meet payments on the
city hall.
To prove that this program is easily
feasible, Mayor Switzer and the coun-
Gil submit the following figures.
Have Saved Big Sum.
On May |. 1928, the Indebtedness
against the city was s13571. On Jahu-
airy |, 1884 that Indebtedness had been
reduced to S3,354. or a debt reduction
in little over five and half years
OF S10,2l7; or an average yearly reduc-
ton in round numbers of S1,857 That
annual saving leaves large surplus in
excess Of the sum needed yearly to
meet the city hall payments.
As further proof that such saw
ings are possible, the council points to
the fact that during this period there
have been certain unusual expendi-
lures A playground site was bought
costing S80563; improvements and
leveling thereon s1,625, dump ground
S400; airport S12125 or total unusual
expenditure Of S2,95l88. That additional
amount Of money could be diverted to
other purposes with no additional II
crease of taxation
Under this showing, Mayor Switzer
feels it is reasonable and logical to pre-
sumo that new city hall can be
financed without any increased taxa
ton. And the council went on record
Monday night to the effect that it was
not their purpose to increase the tax
levy at the present time provided the
bonds are authorized and the hall built
Fire Chief Hoffman was present and.
speaking for the fire department said
the department was willing to take a
lessened tax levy for time. 1t is also
understood there will be no objection
from the park board
Other Arguments Favor ii.
Those who favor the city hall advance
many other arguments in its support.
They point to the fact that the city
will obtain a building costing S15,70o
at cost Of Sl0,99O In other words, the
federal government makes the city
gift Of $4,710. Probably there will never
again be another opportunity to obtain
such saving and gift.
They also point out that it is the citys
duty to do some small part in support
ing President Roosevelt in his drive to
create employment and thus help break
the back Of the depression. The federal
government has been liberal in money
donations to Libby and Lincoln county
during the depression In this connec-
ton it Is interesting to note that last
,.yaak The CWA nayroll in Libby and