Minutes 02/14/1956 - Laserfiche WebLink

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4 TurJS:;JAY FEBHUARY 14, 1956 noted by Councilmen Hill and Walker, viz., Counciln1-1.l1. Hill insisting that debt service should be finaneed through property taxes and that the proposed Charter amendment to increase the City's property tax rate limit should be enacted, whereas Councilman Walker inc1ieated that he was in favor of such an amencL'TIent only if by referendum the ci tizellS approved same: In a series of meetings, several months ago, the School Board clearly justified to the City Council the need for nevr school facilities in the amount of $1,h50,000. The School Board suggested that a bond election be held on 1Carch 15 in order that the bonds could be sold and the contract let during the spring so that construction could start irrunediately at the elose of school in ~Tune. In this vray construction could be completed by the close of summer after next (September, 1957) thereby causing the least possible interruption to the teaching orogram at those schools that were being demolished or receiving additions. March 15, 1956, was therefore chosen as the date for the bond election. ~~~ 0_ r~ i The City Council thereupon requested the Ci-bJ Manager and the Finance Director to prepare a financial staterent showing ways and means by which the bonds could be paid for. In making this request the Council realized that the City Charter has a ceiling of $2.25 for all property taxes including real estate, personal property, machinery and tools, and public servic e corporations. They further realized -~hat while the real estate and public service corpora- tions tax is presently ~~2. 00 that the other two catc)gories are already to the :Limit of $2.25. The Manager and Finance Director found that if these four classes of property were placed at the ~~2.25 maximum that an additior.a1 $60,000 a year revenue could be realized. To calculate the amount of principal and interest payments needed for the bo~lcls was a simple problem in arithmetic. The amount needed by the schools ~pl,h50,000 and if 25-year bonds are issued the annual payments on principal will by 1/25 of the total. 1/25 of $1,h50,000 is $58,000. Assuming an interest rate of 3% the interest for the first year will be 3% of $l,hSO,ooo which is $h3,500. Addiqs this interest payrnent to the $58,000 payment on principal shows that we 'Vlill need $101,500 the first year. The following year's interest Vlli11 gradually declim as the loan is reduced by the annual pri ncipal payments of $58,000. It was learned by the fo110vring schedule that in CIrder to increase our income by $101,500 it would be necessary to increase the tax rate to $2.38. AN:WAL nrCHK\SE OVER CUJli.ENT PROPEETY TAX COLLECTIONS llE: FIVE-C~~:NT II~CRE:L:.ENTS Oi'T TA:': Pw^tTE Real Estat.e Personal Prope.E.t.l $2 . oS 2.10 2.1,5: 2.20 2.2:; $ 2.25 2.25 2.25 2.25 2.25 Mach inery Public r< . I n c r e a s e ,~erVJ_ce and Tools Corp~atio~ Ar:lOunt % ~~ 2.25 $ 2.05 $ 12,037.61 1.88 2.25 / 2.10 2h,075.24 3.77 2.25 2.15 36,112.85 5.66 2.25 2.20 !,'),1c:'n.I!7 7.55 2.25 2.25 60,188.09 9.h4