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HomeMy WebLinkAbout01-23-40 Council Meeting MinutesBe it remembered that the Common Council of the City of South Bend met in regular session in the Council Chambers of the City Hall, Monday, January 22, 1940, at 7:37 P.M. President McCarthy presided. Councilman Richardson was absent. The reading of the minutes of the previous meeting was suspended. President McCarthy stated that all committees as set up the previous year would continue through 1940. COMMUNICATION Honorable Common Council of South Bend, Jan. 22 -1940 South Bend, Ind. Gentlemen: Your attention was no doubt attracted to the article which appeared in the Sunday edition, January 21st, 1940, of the South Bend Tribune, publicising a purported statement from the State Tax Board that they, by reducing the budget in South Bend, would save the taxpayers the sum of $265,728.00. Included in this item was an item of $133,095.00, which was taken from the budget of the Civil City for 1940 for Barrett Law liquidation. This statement is misleading. It is incorrect for the State Tax Board to claim that there was a savings to the taxpayers of any amount by elimination of this item of $133,095.00. Actually the elimination of this item will cost the taxpayers of the City of South Bend not only the sum of $133,095.00, but an additional penalty of 6% on twice this amount, as it was anticipated that this amount plus a fifty percent return on the bonds, which had been used as offsets against the city's liability, would reduce the city's liability in the total amount of $266,191.25. Actually the State Tax Board, by eliminating this item from the budget, has simply deferred the liquidation of this amount of city's liability for a,period of time, r ather until money can be raised by some means in which to t ake care of it, during which time the taxpayers of the City of South Bend must continue to pay the interest of 6% on the total amount. No saving has been effected, but rather a penalty added. At the time the budget was formulated, the full amount of the city's liability, as a result of the decision of the Supreme Court in-the Barrett Law Case, was uhknown and still is. However, the item which was included in the budget_was to take care of an item which was definitely fixed by the decision of the Supreme Court and was an obligation that definitely existed at that time, and required no audit to determine. It was my desire that as quickly as these matters were determined, we should pay out of present revenue, at as smal an outlay-on the part of the taxpayers as possible. It was our thought that when the audit was completed and the total amount of the city's liability determined, that the balance could then be taken care of through a bond issue or certificates at a small rate of interest spread over a period of years so as to not place too great a burden on the taxpayers_in any one year. However, since it has been eliminated from the budget, and the item continues to bear interest at the rate of 6% until paid, it seems that it would be more economical to try and work out some method so that it can be paid as promptly as possible, so that this high rate of interest will not continue to run to the detriment of the taxpayers We have on hand some $500,000.00 of Barrett Law Funds on which we are required to pay interest at the rate of 6% until these funds are disbursed. I had hoped that by this time, the audit of the rolls would be completed to such a point that this amount of money could be distributed to the bondholders and thus eliminate the continued accumu- lation of interest on the money which we have on hand, but which has not been distributed as yet. With the idea of determining how soon these funds could be distributed, and the interest stopped on this amount, I called a meeting last week and was informed by the County Treasurer and the chief Barrett Law Clerk, that within a few days they would be ready to s tart disbursing funds now on hand, so that the fU rther accumulation of interest would be stopped. ,The only thing which would interfere with the program of distributing this money within these few, days, would -be -'the fact that a controversy has arisen over the rights of certain attorneys to f ees payable out of these funds before the balance is distributed to the bondholders. It is hoped that this controversy will not delay the distribution of the funds. It is not possible at this time to determine what the total liability of the city will be. However, as *stated before, we do know definitely that this item of $266,191.25 is a liability which the city will have to meet and since this amount is definitely fixed, it is my thought that some ways and means should be immediately considered to liquidate at least this part of the city's liability. I suggest therefore, that you give this matter your serious consideration. Yours . very truly, (Signed) J. I. PAVEY Jesse I. Pavey Mayor of South Bend Councilman Hull made a motion that the Board of Works., Mayor, Barrett Law Clerk, Ways & ideans Committee, have a meeting and prepare a plan of action on matter. Councilman Niezgodski seconded the motion. Motion carried. COI]RUJNICAT ION To the Common Council City of South Bend, Indiana Gentlemen: January 18, 1940 I am bringing to your attention, a condition that has existed since the meeting of the County Tax Adjustment board, and would appreciate your group making a study of the situation and assist in making a decision. These items: Electric Department Traffic Signal Installation $ 2300.00 Street Traffic Commission 11245.00 were removed as separate items from the appropriation for 1940 and the City tax levy lowered accordingly. The County Board in striking out these items, recommended that their be financed out of gas tax refunds. The above totals are represented by the following items: $ 900.00 for paint 180.00 for use of car 200.00 for file and used typewriter 600.00 for replacing "No Parking" signs 1800.00 for replacing stated speed signs, "Dead End" signs, "Slow" signs and etc 200.00 for time limit parking signs 4500.00 for modernizing of eight overhead signal lights (Cont'd) $27.50.00 for new traffic signals 2300.00 for labor for change -over and new installation 60.00 for office supplies 55.00 for repair of equipment $13,545.00 I" or your information, the entire anticipated amount of the gas tax refund for the year 1940 was appropriated for the Street Department. With your approval, street and alley materials were increased $4500.00 to $14500.00 and the purchase of equipment amounting to $11,800.00 as follows: Asphalt Plant $2500.00 Tractor 800.00 Sweeper 3050.00 Flusher 5200.00 Sand and Gravel Spreader 250.00 It is plain to see that any appropriation for the Traffic Commission must necessarily be accompanied by a similar reduction in the appropriation of the Street Department, therefore, your decision must be well weighed. Very truly yours, (Signed) HARRY S. DRIGGS Controller Councilman Hull made a motion that the communication be referred to the Streets & Alleys Committee, which Committee shall meet with the City Traffic Engineer and any interested parties and study the matter. The Committee shall report their findings to the Council. Councilman Niezgodski seconded the motion. Motion carried. C OMMUNI CAT ION City Council: Dear -4irs: January 12, 1940 After observing all facts in an accident of the east bound car, of the South Shore .Railway at Orange and O'Brien St. at 3:02 P.M. on Tuesday, Jan. 9, I feel it my duty in the interest of safety to write. While I have never seen these cars going over 30 M.P.H. on the city streets, I feel all facts covering there operation on the streets of South Bend should be investigated very closely owing to the number of accidents envolved by them. Most cars blow an air whistle when about 125 ft. of the cross walk thereby usualy exciting drivers who may be approaching on a slipper cross street, while the use of the bell gong would serve the purpose much better and also would not be violating any city ordinances, In no instance have I ever seen a South Shore electric car attempt an emergency stop, such as reversing the power in the motors or setting the air brakes to the point of possibly sliding the car wheels when the occasion of avoiding an accident comes. I dont know there policy myself, but either the Company wishes to make a private right of way out of a city street, or, the cars are mechanicaly unfit to operate on a city street. In the interest of the driver who may not know of there trackes being on the next street ahead the South Shore should be run within the city at a speed of which there equipment will safely justify. (Signed) CLYDE L. DOUGLAS 814 S. 24th St. South Bend, Ind. Councilman Pulaski made a motion that the communication be referred to the Board of Safety and the Board shall confer with the South Shore. Councilman Hull seconded the motion. Motion carried. COMMUNICATION Councilmen: City of South Bend I wish to make a suggestion, that you start a movement to get a reduced rate on our city bus lines. I've talked with our mayor but nothing has been done. I would be willing to circulate petitions & get the public to sign it for a reduced fare if I had a permit to do so. I suggest 5 tokens for 25/. 10/ one fare - 02.X for transfers. More people would ride the busses if fare was cut. As it is now it cost = more to use ones private car. I suggest some- thing be done. My name and address - (Signed) Mrs. L. loll. Crosby Coffman 127 E. Irvington, South Bend, Ind. Councilman Hull made a motion that the communication be referred to the Board of Works for investigation. Counci Pulaski seconded the motion. Motion carried. Councilman Niezgodski made a motion that the Clerk notify the officials of the Northern Indiana to be present at the next meeting of the Council to discuss the matter of rates and service. Councilman Pulaski seconded the motion. Motion Carried. REPORT OF COMMITTEE ON MINUTES To the Common Council of the City of 6outh Bend: Your Committee on the inspection and supervision of the minutes, would respectfully report that they have inspected the minutes of the previous meeting of the Council and found them correct. They therefore recommend that the same be approved. Special Meeting - Dec. 12, 1939 J. M. McCarthy) Special Meeting - Dec. 2 , 1939 Leo M. Jordan ) Committee Regular Meeting - Jan. ', 1940 Geo. F. Hull ) Councilman Brannon made a motion that the report be accepted and placed on file. Councilman Bishop seconded the motion. Motion carried. (REPORT OF CITY CLERK - YEAR 1939 The annual report of the office of the City Clerk was read. Councilman Brannon seconded the motion. Motion carried. ANNUAL REPORT OF THE CITY COURT FOR THE YEAR 1939 Councilman Hull made a motion that the report be accept IThe annual report of the City Court was read. Councilman Pulaski made a motion that the report be accepted. Counci - man Brannon seconded the motion. Motion carried. (REPORT OF THE CITY CONTROLLER OF THE CITY OF SOUTH BEND Balance on Hand First of Month - - - - - - - - - - - $1,131,493.50 Total Balance and Receipts - - - - - - - - - - - - - - - - - - - - - - - - __ - 1,453,479.20 Balance 12- 31- 39------------------------ - - - - -- -- - - - -- - - - - - - 19166,162.03 178 Councilman Pulaski made a motion that the report be accepted. Councilman Brannon seconded the motion. Motion carried. RESOLUTION RESOLUTION ALLOCATING THE SUM OF TWENTY -FIVE THOUSAND ($25,000.00) FROM THE AMOUNT APPROPRIATED FOR WPA AND PWA IN THE 1,940 BUDGET UNDER ACCOUNT NO. H -27, DEPARTMENT OF PUBLIC WORKS TO SPECIAL WPA ACCOUNT BE IT RESOLVED by the Common Council of the City of South Bend, Indiana: That the sum of Twenty -Five thousand Dollars ($25,000.00) be and the same is hereby allocated from Account No. H- 27, Department of Public Works in the 1940 Budget to Special WPA account, and that this amount so allocated by the Common Council may be used during the year 1940, for the purchase of materials, labor and other items chargeable t the various City WPA projects, subject to the approval of the Board of Works. 'The amount so allocated shall be deducted from the sm ount of One Hundred Seventy -Five Thousand Dollars (0175,000.00) appropriated in the 1940 Budge under Account H -27, Department of Public Works, Councilman Hull made a motion that the resolution be carried by roll call vote of 8 ayes, 0 nays, 1 absent. RESOLUTION adopted. Councilman Bishop seconded the motion. Motion TRANSFERRING THE SUM OF $1500.00 FROM THE CONTINGENCY FUND IN THE SOUTH BEND CITY GENERAL FUND TO CARE AND UPKEEP OF CITY HALL, ACCOUNT KNOWN AS H -14A. WHEREAS the heating system in the City Hall has required for repairs all the monies appropriated for the year 1940 for care,and upkeep of the City Hall ($1500.00). WHEREAS the monies so expended were to provide a suitable connection with the vendor of live steam and the necessa automatic accessories and such connection eliminates the boilers installed when the City Hall was originally constructed. Now therefore, be it resolved by the Common Council of the City of South Bend that there is hereby set aside and transferred out of the Contingency Fund already appropriated in the South Bend Oity General Fund the amount of $1500.00 to be credited to the account known as H -14A for the care and upkeep of the City Hall. WHEREAS an emergency exists the provisions of this resolution shall be in full force and in effect immediately up its passage by the Common Council. Dated at South Bend, Indiana this 22nd day of January, 1940. Councilman Niezgodski made a motion that the resolution be adopted. Councilman Bishop seconded the motion. Moti adopted by a roll call vote of 8 ayes, 0 nays, 1 absent. RESOLUTION RESOLUTION TRANSFERRING FUNDS FROM CONTINGENCY FUND TO B AR.RETT LAW LIQUIDATION FUND FOR THE PURPOSE OF HIRING AN ADDITIONAL CLERK IN THE TREASURER'S OFFICE. :"IHEREAS, it is necessary to hire clerks for the purpose of auditing the books and keeping records in the City Treasurer's office because of the condition of the so- called Barrett Law funds, and WHEREAS, sufficient funds are not available for the purpose of hiring sufficient clerks to handle this work, NOW, THEREFORE, BE-IT RESOLVED by the Common Council of the City of South Bend, that $1,000.00 be transferred from the Contingency Fund of said city to the Barrett Law Liquidation Fund, f or the purpose of hiring -an additional clerk in the office of the City Treasurer, whose duties shall be prescribed by the City Treasurer in connection with the keeping of records incidental to the liquidation of the so- called Barrett Law Fund. Councilman Niezgodski made a motion for the adoption of the resolution., Councilman Bishop seconded the motion. Motion carried by roll call vote of 8 ayes, 0 nays, 1 absent. Councilman Brannon made a motion that the'representatives of the Union and the holders of the garbage contract be present at the next meeting of the City Council. Councilman Niezgodski seconded the motion. Motion carried. There being no further business, Councilman Niezgodski made a motion for adjournment. Councilman Brannon seconded the motion. Motion carried. Council adjourned at 9:10 �.M. ATTEST: 21 CLERK APPROVED: P SIL�ET ?T