Loading...
03-28-38 Regular 892 COUNCIL CHAMBER March 28, 1938 The Council met in regular session at 7:30 P.M. with the City Attorney and the following members present: Mr. Gwynn, Mr. Hall, Mr. Hill and Mr. Wodischek. Mr. Foote was absent. Vice- Mayor Hill presided. The minutes of the regular meeting of Maroh 14th, the adjourned regular meeting of March 16th and the speoial meeting of Maroh 21st were approved as read. The following letter of resignation was presented and read by the Clerk: MarDh 28, 1938 ~ TO MEMBERS OF THE CITY OOUliCIL: Gentlemen. .1J Due to the state of my health, I am obliged to submit, herewith. my resignation as Mayor, and member of the Oity Counoil of Delray Beach. E.B. Foote It was moved by Mr. Hall that the resignation of Mr. Foote be acoepted, and the offioe of Mayor and Councilman be declared vacant; that the City Clerk write Mr. Foote expressing the Council's profound regret. which is shared by the employees and citizens of Delray Beach, that the state of his health should deprive the City of his valued servioes. Mr. Wodisohek seoonded the motion. whioh on roll call, oarried unanimously. A communication from Maria K. Sterling was read asking the Council's approval of a project for the construotion of a number of guest cottages to face North on a rock drive she is having laid along the Horth line of her Beach property. en motion of Mr. Wodisohek, seoonded by Mr. Hall, and unanimously oarried, the oommunication was laid over for consideration when the zoning ordinance is placed on its final reading, April 9th. ~ 89: OOUNCIL CHAMBER - March 28, 19~8 , , A oommuniCation from W.V. Peterson was read aSking the Council's confirmation of its agree- ment to issue permit for ereotion of a hotel or apartment house on Ocean Beaoh Lot 10. Councilmen Hill and Hall expressed themselvesas being ~avorable impressed with applicant's plans for construotion on said lot and thought anything he built would be of a high olass type, and would be a oredit to the town. It was finally moved by Mr. Wodisohek that the Clerk be direoted to write Mr. Peterson. advising that the City Counoil would approve application for a permit to oonstruct a building of the type out- lined by himself at the meeti'ng of Maroh 22nd, pro- viding said permit was applied for during the present calendar year. Mr. Hall seoonded the motion, whioh oarried unanimously. A letter from Adams & Nowlin. Attorneys, was read, aSking that J.R.McFee be paid $50.00 in settlement of net loss sustained by him for damage to his car during a publio motoroycle riding exhibition, January 23rd. It Was moved by Mr. Wod- isohek, seoonded by Mr. Gwynn and unanimously oarried, that the City Clerk write Adams & Howlin denying any liability in the matter. The following oommunication was sub- mitted and read by the Clerk: .....,f' March 22nd, 1938 City of Delray Beach, Fla. Gentlemen, I hereby petition the City of Delray Beaoh to raise and repair sidewalk in front of my property, Atlantic Avenue and Seventh Avenue as per agreement with City Engineer. Estimated oost not over ninety dollars. Am enolosing oheok for forty five dollars being 5~ of estimated oost. Yours very truly, C.J. Smith Before taking aot~on on said request, it was reoommended that Asst. Sup!::. Cromer make a cheok of the situation to deter.mine whether the oonditiO'n oO'mplained of constituted a publio in- oonvenienoe and whether it was advisable to' raise the walk, as requested. Aotion was deferred ,until next meeting of the CouncUl. 89 COUNCIL CHAMBER - March 28, 1938 The fallowing letter from Mrs. ".C. Williams, giving the Council the right to make oertain improvemants and beautifioation of the right-of-way adjaoent to her property. in Blaok l40, was read and ordered filed. West Palm Beaoh, Flarida Maroh 17, 1938 City Counoil Delray Beach, Florida Gentlemen, 1 j, As heretofore requested by you, as and oonstituting the City Council of the City of Delray Beaoh, Florida, I, as owner of the fee simple title to the South Halt of Blook l40, east of the oanal in the City ot Delray Beaoh, Florida, do hereby grant to you gentlemen and to 'the Oity of Delray Beaoh, Florida, the right to make improvements on the right-of-way lying between the property hereinabove desoribed and the !nter- ooastal Canal, in the nature ot bulkheading and planting shrubbery for the purpose Of beautifi- oation. It being expressly understood that the granting ot this priVilege or right is done so with the oomplete understanding, and for the sOle purpose of improvement and beautifioation, and no rights other than these in and to the property are granted. It is also expressly understood th~1i< the right to revoke this privilege granted at any time that I see fit is hereby reserved, as it is not my desire that this property be used tor publioparks, or tor the use of the general publio for any purpose whatsoever. I might also state that I will not agree to any grant heretotore or hereatter made by the War Department to the City ot Delray Beaoh, exoept in striot oomplianoe with my wishes as expressed in this letter. Very trWlY yours, Ethel S. Williams Complaint tromthe Stewards and Deao6ns Union of Colored Churohes, that musio boxes dis- turbed their servioes and that the gambling house ot Goldie Howard constituted a nuisance to the oolare4 neighborhood, was read and discussed. It was moved by Mr. Wodischek that the Chief of Police investigate the matter, and entoroe the ordinanoes' ( , ~H COUNCIL CHAMBER , March 28, 1938 regulations governing such breaohes of the peaoe. Mr. Hall seoonded the motion, which oarried unanimously A letter from,Richard A. Little, photo- grapher, enquiring whether any ohanges were pro- posed in the City's Lioense Ordinance was read and the Clerk was instructed to reply to said enquiry. J. , A letter from Bror J. Carlberg with further reference to his olaim of ownership to oertain lands lying East. of ,the Ocean Boulevard, was by motion regularly made. seconded and oarried, referred to the City Attorney. r- Mr. W.J. Enright addressed the Counoil, 'asking that it maintain. its previous positian re- garding apartment house ~on1ng on the Ooean ~Qule- vard, and that same be not extended beyond the Horth line of the S 27.62' ot Ooean Beaoh Lot 12. Mr. Turpin also talked along the same line, requesting that the apartment house distriot be not given tQO wide an area and that the standard of construction which has prevalied on the Beaoh'be preserved. Mr. Cunningham enquired when zoning distriot lines would be definitely deoided upon and established and the Counoil informed him that this would be done when ....N.; the ordinanoe oame up on its final reading, April 9th~i W.A. Jaoobs, representing the Delray Beaoh Reoreation Club appeared before the members, stat~ ing the Olub had grown to suoh proportions that its . reoreation facilities were inadequate, and reoommended' that additional shuffle-board courts or bowling rinks', be provided, cost of same to be paid by tax levy or " by donation from oi tizens and business men of the town.. The popularity ot lawn bowling was disoussed, it being the opinion of many that suoh a medium of reoreation would bring a great number of devotees ot this sport to our City. It was agreed to take the mat~er under consideration and investigate as to' the cost and possibility of providing bowling riilks here. The Clerk reported payment and cancellat- ion of the following bonds and interest ooupons: Canoellation of Bonds Hos. 67 & 68 purohased from A.B. Morrison & Co. 0 50 oents (Coupon NO' l5 miSSing) 1923 SPECIAL IMPROVEMENT ISSUE of 45. 500.00 ea l,OOO.OO To L'~le & Shands 65 COupons II 23, due'Oo . 1, 1937, ott'bonds 886 to 820, 826 to 845, 856 to 865, of the 1926 900 . General Issue 27.50 e& l,787.50 007'- COUNCIL CHAMBER - March 28, 1938 10 ooupons #19 due Oct l,l935 off bonds 211 to 220, of the 1926 900M General Issue 27.50 eaoh - (TAX CTF FD) . 275.00 Ca rove Seourities Ino. To partial sat s. ot udgment, Case 328-M-Civil, U.S. District Court 145.00 Geo. Kless, to partial Satis. of Judg- ment Case 2452-M-Civil Vermont Investment 00., 2 ooupons #22 due Apl. 1, 1937, off Bonds Nos. 323 & 324 due Apl 1, 1937 1926 900M Issue 44.73 55.00 It was moved by Mr. Gwynn, seoonded by Mr. Wodischek, that the Clerk's aotion in paying and oanoelling said bonds and ooupons, be approved. The possibility of allowing Homestead Exemption to property owners who had failed to apply for the years 1935 and 1936 was discussed, and the Ci ty Attorney, explained that the Counoil was nat justitied in granting suoh, where property owners had failed to apply, as required by the law. The gasGline report, showing consumption of 805 gallons for month of Februaryl was submitted by the Clerk and ordered filed. The City Clerk requested permission to apply for Notary Seal for one of the olerks in her affioe, stating that a great deal of such work was demanded in connection with the Clerk's offioe and that it would be a matter of convenienoe both to the City and citizens to have suoh. It was aooord- ingly moved by Mr. Wadisohek that one ot the girls qualify for a notary's commission, the City to pay the cost. and same to be repaid from fees colleoted for suoh servioe. Mr. Gwynn secanded the motion, which oarried unanimOUSly. It was moved by Mr. Gwynn that the follow- ing statement, issued by the City Counoil, be inoorporatedin these minutes: STATEMENT IN REGARD TO BOND REFONDING The City Counoil of Delray Beach has issued the following statement. March 28, 1938 ~~'f ",' COUNCIL CHAMBER - Maroh 28, 1938 ", After years of apparently hopeless disagreement, the City Counoil has reaohed a oonoord with representatives of 1;he Bondholders' Oammittee whioh is believed to be of great advantage to the City and to happily solve the vital problem of refunding the outstanding publio debt. The proposed settlement is far more advantageous to the Oity than the settlements reaohed by a great number of Florida towns, and one which Delray Beach should be able to carry through to a triumphant oonolusian withou~ excessive effort or the imposition of taxes for debt servioe substa'ntitally greater than those now being levied. The tentative agreement must, of course, be approved by at least 75% of the aotual bond owners, but it was the opinion of the respresent- atives of the Bondholders' Committee that su~h approval would be given. The City Council is fully authorized by law toefteot a refunding program without a referendum, but it is the sentiment af the Council that a matter of so great importanoe and far reaching effeot should have the approval and firm support of the free- holders, and it is planned to hold a referendum eleotion before the plan is fonnally agreed to. Outstanding bonds are not liens upon property East of the Canal, therefore only freeholders West of the Canal are oonoerned in this matter. One of the outstandinRberits of the plan is its simplioity and pr8.dtioal workability, the oomplioations and difficulties which have developed in many towns where refunding pragramB have been attempted having been oarefully guarded against. As Delray Beaoh' is one of the last towns in the State to formulate a re- funding program, we can profit by the experienoe of and be warned by the errors of other munioi- palities. The usually heavy expense of refund- ing, almost always borne by the town oonoerned, will in the caBe of Delray Beaoh be assumed by the bondholders, the City paying only for the aotual printing of the new bonds and validation by the Courts. Wi th substantitally the same tax levy as at present, there will not only be a saving of interest amounting to about $30,000 a year, but the City will be in a position to acquire and oanoel large quanitities of bonds, thus continually reduoing the outstanding debt and oonBequently the amount of interest money . , ~ , " t- ) --'r, ~~~ COUNCIL CHAMBER - Maroh 28, 1938 required annually. Delray BeaCh should be able to not only meet its ourrent debt obligations, but retire the entire bond issue by maturity date. The possibility of turning over to our children a absolutely debt-free munioipality is not an idle dream. ~, A tair average of retunding settlements whi ab. have been made by Florida towns is found at our neighboring oity of Cocoa, and a oompar_ ison of that settlement with the one proposed for Delray Beaoh is illuminating. In both in- stanoes all outstanding bonds and interest delinquenoies are to be refunded in full, the Delray Beach refunding periad being thirty years and the Cooaa period thirty five years. Interest rates for Delray Beach are as follows: " ( , , 1st 3 years li per oent 2nd 3 years 2 " .. 3rd 3 years 2i " to 4th 3 years 3 .. .. 5th 3 years 3* 11 .. Next 5 years 4 " .. Last 10 years 5 " 11 Average for 30 years. 3.58 per cent ~ ,'''- In the case of Coooa, the interest rate starts at 3 per cent on the prinoipal sum. and at 2 per oent on delinquent lnterest.~~h an average over the entire period of 4.2l per cent on principal sum and 3.2l on delinquent interest. The cost of refunding, paid by Coooa, amounted to approximately $9,000.00. It should be partioularly noted that Delray Beaoh obtains the vitally important "breathing spell" of very law interest for a period of years, the rate for De.~ray Beaoh for the first six years being about 3/4 per cent, as against 3.08 per oent for Coo 1, or tOr 9 years, 2 per oent for Delray beaoh as against 3.2 per ce.nt for Cocoa. Under the Delray Beaoh plan, the City will be oalled upon for an annual* oarrying cost of approximately $20,000, while an applioation of the Coooa plan there would require '36,000. It is recognized that neither the re- funding plan under oonsideration, nor any other, could be suocessful unless tax assess- ments are kept down to reasonable levels, and that, in arder that assessments may be sa kept down, that there must be an effioient // -1 ~u COUNCIL CHAMBER - Maroh 28, 1938 \, colleotion of taxes. It is quite obvious that, if any given sum must be colleoted in a year, the assessment must be inoreased in exaot ratio to the percentage of assessments not oollected. If, tor example, $20~000 should be required, and thus sum would result trom the aotual oollection of a 20-mill levy, a 40 mill levy would b~necessary if only one-half of the assessments were colleoted. Therefore, the property owner who pays his taxes is acting to proteot his property against an inoreased levy, while the man who does not pay is acting to increase the levy against not only his own property but against that of every other property owner. The property owner who deliuerately fails to meet his fair share of the tax obliga- tion is riding on the backs of others and is the worst liability a oommunity oan sutfer. It will be the polioy of the City to oolleot munioipal taxes without permitting the long delinquenoies that have been tolerated in the past, and to bring the tax rolls to a sub- stantitally current status, by whatever means may be neoessary. It is believed that in this program the oity administration will have the whole-hearted approval and support of all soun~- thinking oitizens, even those who may have been oompelled through force of circumstances to allow delinquenoes to aooumulate on their own properties. Hawever, the City Counoil fully appreo- iates the faot that to initiate a campaign of unoampramising liquidation of delinquent tax and improvement liens would not only be impDaotioable, but in many instanoes wa~~ oruel hardship and injustice, besides deteating the very end sought, whioh is to' return to the tax- roll. on a ourrent paying ba~is. all property within the city limits. Sound business polioy dictitates that the City deal with its delin- quent tax-payers on exactly the same basis that any reasonable oreditor would with his debtors, predioating settlements w~th eaoh on the ability of the debtor to pay, taking the present value of his holdings as a basis for settlement. It must be remembered that delinquent taxe~ are not a personal obligation, for whioh an individual is liable, but an Obligation of the property ooncerned only. and no mOl!! en- toroeable against a rioh man than a poor one. There are many unimproved properties in Delray Beach not aotually worth the amount of taxes and liens now standing against them. .",..~ <,.1 :oil r L ,,~ ~Ul COUNCIL CHAMBER - March 28, 1938 and it is quite plain that suoh properties can never be restored to the paying tax roll until this oondition is remedied. It is the duty and business of the Council to put intO' operation a plan whereby this can be done in an equitable manner, that is, with least burden to the tax-payer and greatest benefit to' the City. It is believed that some four hundred thousand dollars of substantitally worthless tax and improvement liens can be converted into a hundred thausand dollars of assets, City owned bonds of the proposed refunding issue, thus reducing the City debt by that muoh, saving the annual interest on that amount, and proportionally reduoing seneral taxation, by an equitable readjustment of delinquent property Obligations. Under the delinquenoy-adjustment plan, there would be created a Soard, consisting of the members of the City Council and an equal number of especially qualified freeholders, whioh Board would consider every individual delinquent property on its own merits, taking the assessment of 1937 as a basis to establish a true ~alue, and oonsidering also the earning value, if any, of the property during the years for whioh taxes are delinquent, as well as the physioal conditian of any improvements. A very ald frame dwelling, for example, should, and would, receive more liaeral adjustment, to oom- pensate for age-depreoiation, than would a oomparatively new masonery structure, and a property whioh, because of its nature or 100- ation has been a consistent inoome-produoer could not reasonably expect the same consid- eration as one whioh for similar reasons has not been. It is entirely conoeivable that an unimproved, outlying lot whioh has reoeived no municipal benefits and been inoapable of pro- duoing any revenUe should be allawed to settle its delinquent tax liabilities for as 1,ittle as 10 per oent, while a business or residential property which has received all munioipal ben~fits and had an income-value, either through rentals or owner-oooupancy, should reoeive no reduotion. A property having received consid- eration by the Board of Adjustment and the amount determined whioh the City woqld acoept in full settlement of all delinquenoies, the OWner would be permitted to pay this amount in bonds ot the retunding issue, provided that he at the same time paid the 1937 taxes in full 90 COUNCIL CHAMBER - Maroh 28, 1938 r ~~ "1 I in cash. Inasmuch as he would buy bonds for this purpose at far less than face value, pro- bably around 40~ on the dollar, the individual tax payer would effect a large saving, even though he had reoeived no adjustment on delinquencies, and adjusted properties oould be cleared for less than one-half ot ::~ even the adjusted amount. For example, an unimproved, little-or-no-benefitted lot whioh has aooumulated a total liability of $100 might be adjusted to $40, and if this were paid in bonds bought at 40, the net oost to the owner of olearing all delinquencies would be but $16.00, together with the payment in oash of the 1937 taxes. The Citr, however, would receive for oanoell- ation, '40 in bonds and the ourrent taxes, and the desired end, the returning of the lot to the paying tax roll would be attained. An otherwise commeroially worthless lot is thus trans~ormed into an asset to both the owner and the City. Owners Of properties on which no adjustments had been allowed could, neverthe- less, effeot a saving of 60%, while the City Would lose nothing, but, On the other hand, collect ourrent taxes whioh might not other- wise be paid without delay and prObable lit- igation. From a business standpoint, it is quite immeterial to' the City how cheaply the tax-payer is able to buy bonds for tax settle- ment purposes. It would be the polioy of the City to oo-operate with tax-payers and bond- owners by aooepting trom owners bonds to be held in escrow, at agreed prioes. whioh oould be utilized in fraotional amounts by tax- payers. Should there be properties, the owners of which failed to' avail themselves of the settlement terms offered by the City, it would be the palicy of the City to offer tax and improvement liens at publio sale, or foreolose those already bought in by the City. as the pUblio interest might diotate. It is the belief of the City Council that this entire program fQr a fair, praotical. effioient and business~like administration of the City's financial affairs will meet the oamplete approval and energetio baoking of the whole people. (Signed) C.W. ~ll Vioe Mayor Emmett C. Hall Fred W. Wodisohek J. K. Gwynn ;F .. 90~ COUNCIL CHAMBER - March 28, 1938 The Clerk was instructed to write Various Florida Towns asking for information as to validation oosts and attorney's fees in conneot- t ion with debt refundings recently made by these munioipalities. The City Attorney was instruoted to offer owners of 'properties. on which the City is applying for tax title, a nominal sum, of around $25.00, for deeds to said paroels. By motion r~gularly made. seoonded and carried, the City Clerk was instructed to pay 1936 taxes amounting to $28.39 on the following desoribed properties, on whioh the City acquired title, a year ago. S 50 t Lot 8 All Lot 9 Block 101 1t ft "'r- It was moved by Mr. Wodisohek that a oonneotion charge of $2.00 bEl made to parties requiring water through fire hydrants, for oon- traoting purposes, the water oonsumed to be Charged, in addition, at a prioe of ten oents per thousand gallons. Mr. H.E. Case requested the Counoil to dUDpten or twelve loads of rook along the East side of N.W. Fitth Avenue, in front of the Prince Theatre, for parking purposes. It was pointed out, by members of the Council. that taxes were delinquent on the property in question and the paving lien against same had never been paid, therefore they did not teel justified in granting his request. It Was finally agreed to rock said area, as reque$ted. provided Mr. Prince paid the paving liens against the property, which oould be settled, on the 25% basis, for $37.44. The Chair appointed Mr. E.C. Hall as member of the Finanoe Committee, in plaoe ot E.B. Foote, resigned. It was moved by Mr. WOdischek, seoonded by Mr. Gwynn, and unanimously oarried, that billa numbered 2852 to 2875, having been OLK'd by the Finanoe Committee, be returned to the CounOil, and ordered paid. Council adjourned. APPR~D: /w q4,W 1f\~ {il~~~f