12/12/1949 Meeting - Laserfiche WebLink

Home Browse Search

r"" 54 - - - -- I - - THE EMPLO YER IS ALLOWED-THREE PE R CENT OF THE AMOUNT OF THE TAX WITHHELD TO C OV E R HIS HANDLING EXPENSE. LAST YEAR ST. LOUIS COLLECTED $8,000,000 FROM T HI S TAX ALONG WITH A TOTAL ADMINISTRATIVE COST OF ONLY $40,000. THE CITY OF TOLEDO, OHIO, WHI CH HAS A SiMILAR TAX, WILL BY-THE END OF 1950 HAVE RETIRED EVERY CENT OF ITS BONDED INDEBTEDNESS AND WILL HAVE AN ACCUMI:JLATED SURPLUS OF OVER 8200,000, AND IT IS PLANNED'TO AT THAT TIME REDUCE THE TAX. ALL CITIES HAVING ADOPTED THIS FORM OF MUNICIPAL TAXATION WERE WELL SATISFIED AND RECOMMENDED IT-ENTHUSIASTICALLY. My PERSONAL OBSERVATION AT THE CONFERENCE WAS THAT EASTERN CITIES-ARE FAR ADVANCED IN TAPP I NG NEW SOURCES OF INCOME FOR MtJNICIPALITIESo PORTLAND HAS ENACTED SUCH AN ORDINANCE, BUT AS USUAL WHEN THERE IS NO'STATE ENABLI NG ACT, THE ORDINANCE HAS BEEN REFERRED TO THE PEOPLE FOR VOTE AND WIl:.l BE VDTED ON IN MAY; THE I R STOPGAP TAX ORDINANCE IS ALSO NOW I NVOL VED IN LITIGATION IN THE SUPREME COURT OF OREGON. ~ - . 20' FEDERAL HOUSING ACT (}F 1949 IT WAS EXPLAINED TO US THAT THE PRIMARY PURPOSE OF THE HOUSING ACT WAS TO ASSIST IN SLUM CLEARANCE AND ON THAT BAS IS THE ACT WOULD BE OF GREAT VALUE TO MUNICIPALITIES. IT IS PROVIDED IN THE ACT THAT MUNICIPALITIES COLLECT PAYMENTS IN LIEU OF TAXES. T HI S PROVISiON WAS INCLUDED AFTER MUCH WORK BY THE NIMLO. THE BILL, AS ORIGINALLY DRAWN,.WOULD HAVE ENTIRELY EXEMPTED SUCH PROJECTS FROM MUNICIPAL TAXATIONo CITIES WILL NOW RECEIVE NOT TO EXCEED 10% OF ALL RENTALS COLLECTED. I HAVE A VERY DETAILED HANDBOOK EXPLAINING T'HE ACT FOR THE USE OF ANYONE INTERESTED IN THIS SUBJECT. THERE IS NO DOU BT BUT, THAT UNDER CERTAIN CIRCUMSTANCES MUNICIPALITIES WILL BENEF"IT AS A RESULT OF THIS FEDERAL ACT. 3. PUBLIC UTIUTlES FRANCHISES AND RATE CASES . APPAREN TL Y THIS SUBJECT IS AGAIN BECOM I NG I IMPORTANT, DUE TO THE FACT THA T M ,AN Y UTI LIT IE S ARE FREQUENTLY ASKING FOR RATE INCREASES. CONFIRMING THE S TAT EM EN T S MADE BY OUR OWN LOCAL TRANSIT LINE SEVERAL MONTHS AGO, I FINO T HA T VIRTUALLY AL L STREET CAR LINES AND CITY BUS.LINES ARE OPERATING WITHOUT PROFIT AT- - THE,PRESENT TIME. CITY ATTORNEYS FROM VIRTUALLY EVERY C I T Y REPRESENTED STATED THAT THE I R C I T-Y HAS PERMITTED AN INCREASE IN TRANSIT f."ARES. . . . IT WAS STRONGLY RECOMMENDED THAT MUNICIPALITIES DO NOT ENTER THE TRANSPORTATION FIELD. T HE S E CITIES REQUIRING THE TRANSIT LINES TO MODERNIZE THEIR EQUIPMENT AS A CONDITION ATTACHED TO THE RATE INCREASE REPORTED VERY GOOD RESUL TS. THE IMPROVEMENT"Of' SERVICE OFFSET THE LOSS OF BUSINESS WHICH OCCURS IN EVERY CASE WHERE A RATE INCREASE IS ALLOWED. .. . MR. JEROME JOiFFEE, Pu BLI C UTILITIES COUNSEL F"OR KANSAS CITY, POINTED OUT THAT 1:J1'ILITY CASES ARE HIGHLY SPECIALIZED AND STATED THAT IT WOULD BE NOT ONLY BENEFICIAL, BUT MORE ECONOMICAL TO EMPLOY AN EXPERT ON RATES WHEN CONFRONTED WITH A REQUEST FOR AN INCREASE. THE AVERAGE C IT Y ATTORNEY HAS NOT HAD THE TECHNICAL TRAINING NECESSARY TO PROPERLY ANALYZE THE PROBLEMS INVOLVED. UTILITIES ALWAYS EMPLOY EXPERTS TO REPRESENT THEM. ALL PUBLIC UTILITIES OVER WHICH THE CITY HAS ANY CONTROL SHOULD BE REQUIRED TO FURNISH ANNUAL REPORTS FOR ANALYSIS BY ACCOUNTANTS Of' OUR OWN CHOOSING. ALL RATE CASES ULTIMATELY BOIL DOWN TO THE ES TABL I SHMENT Of' THE PROPER "RATE Of' RETURN". THIS IS :r HE WHOLE CASE AND THE ONLY PERSON WHO CAN ACCURATELY ESTABLISH T HI S FACT IS AN EXPERT ACCOUNTANT. I RE COMMEN 0 THAT THE'CITY OF EUGENE URGE THE LEA GU E Of' ORE GON CITIES TO TAKE AN ACTIVE PART IN ALL RA TE CASES COMING ON BEFORE THE PUBLIC UTILITIES COMMISSIONER OF THE STATE OF ORE GON OR ANY COMMON' COUNC Il IN THE STATE WHERE THE COS T OF THE UTILITIES TO THE C'T~~~~~~NY CITY MAY BE INCREASED. (JiNLY BY BE I NG CONSTANTLY ON THE ALERT CAN WE PROTECT/THE POCKET I BOO KS OF OUR CITIZENS. REQU I REMENTS 4. ZON IN G SETBACK AREA AND HEIGHT CASES ARE STILL BE IN G F I [E D AGAINST -- CITIES CLAIMING THAT THE ESTABLISHMENT OF CERTAIN ZONING RESTRICTIONS IS TAKING PROPERTY WIT HOU T DUE PROCESS Of'-LAW, AND IS, THEREFORE, UNCONSTITUTIONAL. IT IS, HOWEVER, PRETTY WELL ESTABLISHED NOW THAT ZONING RESTRicTIONS ARE A VALID EXERCISE OF THE POLICE POWER. THE CITY MUST' BE ABLE TO SHOW THAT THE ZONING REQUIREMENT IS FOR THE BENEF I,T OF THE GENERAL HEALTH, SAFETY A NO WELFARE Of' THE GENERAL PUBLIC AND NOT f'0 R THE BENEFIT OF AN IN 0 I V I DU AL . IT APPEARS THAT ZONING WILL BE A MAJOR PRO BLEM OF CI TIE S FOR YEARS TO COME. 5. LIABILITY OF C'I T Y ON, TU,RT CtAIMS IT APPEARS THAT EUGENE IS ONE Of' THE VERY FEW CITIES NOT HAVING EITHER CHARTER OR STATUTORY LIMITATION OF LIABILITY ON TORT CLAIMS. IT WAS POINTED OUT THAT THERE SHOULD BE REQUIRED SOME NOTICE TO THE C I T Y BEFORE THE CLAIMANT HAS A RIGHT TO FILE LE GAL ACTION. THE USUAL PROVISION IS THAT WRITTEN NOTICE OF THE CLAIM MUST BE GIVEN TO THE C I T Y VI IT H I N THIRTY ORSIXTY DA YS FROM THE DATE Of' THE ACCIDENT. IF NOT GIVEN, THE CLAIM IS .BARRED. I RECOMMEND THAT OUR CHARTER BE AMENDED TO INCLUDE A NOTICE REQUIREMENT AN 0 A LIMIT TO THE AMOUNT OF OUR LIABILITY TO AN Y PARTICULAR PERSON. THIS CHARTER AMEN OMEN T COULD BE SUBMITTED TO THE PE OPLE f'OR VOTE AT THE NE XT REGULAR ELECTION TO BE HELD IN MA Y, 1950. SUCH A CHARTER AMENDMENT WOUl:D NOT HAVE THE EFFECT OF MAKING OUR OFFICERS AND EMPLOYEES LESS VIGILANT BE CAUSE THE Y WOULD STILL BE PE RSONALL Y L I ABLE FOR ANY NEGLIGENCE ON THE I R PA R T. 60 MUNICIPAL REVENUES FROM FEDERAU Y OWNED PROPE RTY A VERY ACTIVE COMMITTEE Of' CITY ATTORNEYS ARE NOW WORKING ON THIS MATTER. A STRONGL Y WORDED RESOLUTION TO CONGRESS WAS ADOPTED BY THE CONFERENCE URGING THE IMMEDIATE PASSAGE OF FEDERAL L.EGISLATION PROVIDING FOR PA YMEN,T IN LIEU OF T AX ,OR TAXATION OF FEDERALLY OWNED PROPERTY BY LOCAL GOVERNMENTSo THE DEVELOPMENTS IN THE FIRST SESSION OF THE 81ST CONGRESS INDICATE THA T FAVORABLE ACTION I MIGHT WELL BE TAKEN BY THE CONGRESS, IF REIl,SONABl Y ACCURATE FIGURES ON 'T HE COST TO THE ~