Show HE HIT TAX LEW Two Contingencies That May Affect the Rate FAVORABLE FOR BONDS J E DOOLY WILL ENDEAVOR TO PLACE THE PROPOSED ISSUE Will Make a Considerable Saving Forte For-te Taxpayers Cost of the City Government the Next Ye Mayor and Pittance Committee Working I Whether the city tax levy for the current cur-rent year exclusive of the thirdmill rate for the public library will be as low as 6 mills as high as 8Y mills or midway between depends very much on either of two providential contingencies These are an early settling of eastern financial affairs termi fairs consequent upon the speedy nation of the war with Spain and a determination deter-mination of the state board of equalization equaliza-tion to increase the aggregate taxing val use in the city for the direct benefit of the state revenues in which action the I municipality would derive profit I HOPE COMES FROM DESPAIR Mayor Clark and the finance committee of the city council have had the question of the citys tax levy under consideration for several weeks Since it was known that the assessment roll showed an approximate ap-proximate city total of only 530000OuO after equalization by the county board as against over 33100000 for last year the executive and the finance committee believed that nothing the proposed funding fund-ing bond issue having failed upon the imminence im-minence of the war proclamation conld avert an excessively high rate unless something happened to cause a large increase in-crease in the assessed valuations of taxable tax-able property Now however two strong rays of hope for adequate relief are visible vis-ible ibleMORE MORE FAVORABLE FOR BONDS At a recent Informal meeting attended by the mayor and the committee on finance the information was revealed that things were shaping around favorably for a resumption and successful conclusion of negotiations for the issue of JSOOOuO worth of 4 per cent bonds to take the place of the 5 per cent issue of 1SSS for which a sinking fund of 50000 and annually hereafter here-after for ten years must be provided this year unless the scheme fails I was reported re-ported at the meeting tha Bankers Mc Cornlck and Dooly were of the opinion that such a bond Issue could be floated advantageously ad-vantageously to the city almost immediately imme-diately after the enactment by conress of the war revenue measure While on his trip east Mr J E Dooly will endeavor en-deavor to place the proposed issue of bonds He believes that by the time he reaches New York financial Conditions will have improved to such extent that he will not fail in his mission Should the funding bonds be Issued the taxpayers will not only save 55000 annually annual-ly for ten or 20 years in the amount of interest in-terest paid but also a tax of 16 or 17 mills which would otherwise be necessary this year to create the first 550000 of the sinking fund intended as a nucleus for the redemption at maturity in 1903 of the citys first issue of bonds A BASIS OF CALCULATION An estimate for the economical maintenance mainte-nance of the city government for the next 12 months shows that 0 a month will be necessary This is exclusive of the annual an-nual interest of 127400 on the citys total bonded debt of 52548000 An estimate of receipts for the coming 1 months from all sources other than by direct taxation gives 215000 leaving 5212000 necessary to be raised by a ta levy There is no margin mar-gin of a cash balance for the reason that the city treasury will be empty in less than two weeks hence PROBABLE INCREASE IN VALUES Seven mills on 30000000 net will yield 100 This rate will be imperative un less the state board equalization uses Its prerogatives in raisfng values 10 percent per-cent or so for the needs of the several state institution funds which cannot derive de-rive sufficient revenue on the low assessment assess-ment returned for Salt Lake City and county The belief is prevalent in official circles that the state Juard J will order such a rise V LOW AT 6JfrHIGH AT ShIn Sh-In the event that this is done the citys tax rate could be probably kept down as low as G mills presuming of course that funding bonds will be sold bus obviating ob-viating the necessity ofmaking a lj mill levy for sinking fund purposes On the other hand if the financial uterest in the eat and the war conditions continue to prevent the bond deal arid if the assessed values in the city are finally equalized at about 30000000 the municipal tax rate will of necessity be placed at SV mills for the current year However either or both means of relief from a high tax rate in the city are quite certain to come to fruition before the date arrives four weeks hence for fixing the rate The mayor and the finance committee commit-tee are justified in hoping for the best and at their next meeting to be held svithin a few days something more than progress will probably be reported |