The Wyandotte news-herald. (Wyandotte, Mich.) 1943-1963, 1946-02-11

he is to make in Wyandotte. Mr.
Hutchins will definitely b in town
for a preliminary survey the las
two weeks In March.
Respectfully submitted,
Richard T. Kelly,
Councilman
Benjamin r. Yack,
Recreation Dtrecto,
Received and placed on file.
Honorable Mayor and Council
Wyandotte, Michigan
Gentlemen:
Kindly authorize the City Clerl
to issue voucher on the City Treas.
urer in payment Of County ant
School taxes and delinquent CITY
tax and penalty due on Lots 81 ane
2, j. ]. Perren's Subdivision.
The property has been acquired
by the City for street opening pur-
poses.
The amount of the tax due i.
$1076 for County and School take!
and delinquent City tax and penalty
for 1855.
Respectfully,
Edward w. Kane.
City Assessor
Referred to Council.
To The Honorable
The Mayor and Council
City of Wyandotte
Gentlemen:
There are certain pertinent facts
that have come to my attention rel
awe to the financing and interest
on unsolicited balances of special
assessment taxes which I wish IL
bring to the attention Of your Hon.
orable Body.
First, in the collection of Special
Assessment paving taxes, which are
spread over a period OF five years
We charge an interest rate on the
unpaid balance of So. This has
long been the practice and prob
ably at one time was warranted
from the fact that at the time this
rate was established, cities were
paying from 40 to TO interest on
special assessment bonds.
Now, from the fact that Wyan-
dotte over the past several years
due to its splendid financial posi-
ton, has been able to finance these
issues for 1Tc, or less, the costs at
tendant to the collection have not
increased in proportion. I find that
We can reinvest prepaid amounts
at an interest earning Of approx
mately 80. Therefore, it Ii my
opinion that We should not charge
the tax payers Of these districts an
interest rate that represents a diff
ferential of several per cent above
our actual need.
The Charter gives the Council
the right to establish any rate mot
exceeding six per cent per annum"
and I can find no statutory provis-
ion superseding this charter provis-
ion. Over and above the 6% rate,
we then charge an additional ~
penalty to those who are delinquent.
I also feel that this penalty may
be excessive.
I therefore recommend that this
matter be referred to the City Clerk,
to the City Treasurer, and to such
other departments as may have ex-
pense items that make up the nec-
essity Of this charge and penalty,
for thorough study and a recon-
mendation back to this body of
what would be the lowest safe rate
for these charges. I personally feel
that a substantial saving might be
made to the tax payer without jeop-
ardizing the city's position.
Second, 1t has been the policy, In
setting up sidewalk special assess
ment districts, to charge an excess
Of 1917 over cost, and this Is done
under a clause in the Charter in
Section Z, Chapter XVI, which says:
Sidewalks, except crosswalks,
shall be built, rebuilt, main.
tanned and repaired by the own.
ers Of land within the city In
the manner and within the time
prescribed by ordinance: pro-
vided that, in case Of the failure
OF any such owner to comply
with the provisions Of such ord
nance, the city may build or
cause to be built, such Sidewalk
and assess against such owner
the cost thereof, together with
an additional ten per centum
of such cost - a penalty for
the violation of such ordinance"
To my knowledge, 1t has not been
necessary in years for Wyandotte
to install sidewalks by ordinance.
Therefore, there is no reason, from
an expense to the city standpoint,
for charging this 1870 addition. We
have installed sidewalks by special
assessment district. which does not
involve this additional expense.
Again, with sidewalk specials. we
also charge SO interest and the 40
penalty. 1t is therefore simple arith.
metic to see that for sidewalk con-
struction, we are charging the tax
payer 1879 plus 40 penalty, II de-
linquent.
Again, this seems out Of reason
and I recommend that the City
Attorpov examine this section OF