first day of March next ensuing, together with a statement of the amount of all revenues received by the city for the year ending on the first day of September, from other sources than taxation. He shall also, as soon as may be after the State Board of Equalization shall have completed its adjustment of the assessment of the taxable property in said city, report to the City Council a computation of a rate of tax levy which, with the amount of revenue received by the city for the last year, reported as aforesaid and applicable to the current expenses of the city, shall be sufficient to defray the current expenses of the city for the next fiscal year, according to the aforesaid estimate, and, at the same time, a computation of the amount of tax levy on the several wards of the city necessary to defray the expense of such wards, according to his said estimates.

SEC. 9. Revenues of the City, to what Funds Applied. The revenues of said city derived from licenses, rents, fines, except such fines collected from keepers or inmates of houses of prostitution as may be otherwise provided for, and all costs and judgments collected in favor of said city shall be devoted to the current expenses of the city. All receipts from sales of property shall be applied to the permanent improvement fund.

SEC. 10. Levy of Tax for Current Expenses. After the making of the reports of the City Comptroller, provided for in section eight hereof, the City Council shall levy such tax on all the taxable property in said city as it shall deem necessary, in addition to the other revenue of the city applicable thereto, to defray the current expenses of the city for the next fiscal year, but no such taxes for such current expenses shall in any year amount to more than one-half per cent. of the assessed valuation. SEC. 11. Comptroller to report expenses of first quarter of fiscal year. Duty of Council to reduce expenses. The city comptroller shall, as soon as may be, after the first day of June of each year, make report to the City Council of the actual expenses of the city for the first quarter of the then current fiscal year, the amount of taxes collected and outstanding, and of the revenues received from other sources, and if upon the making of such reports it shall appear that the current expenses for si.ch quarter have exceeded the estimates upon which the tax levy therefor was based, or that the revenues of said city are likely to fall short of their estimated amount at the time of making such tax levy, the City Council shall forthwith proceed to reduce the expenses of said city, in such manner as may be deemed advisable, and for that purpose may diminish the amount of service for lighting streets, reduce the force or number of men employed in the several departments of the city except the fire department, but in the discharge of such employees said City Council shall, so far as may be, provide that such discharge shall be operative only during the summer months of the year, and when necessary, for the proper reduction of such expenses, may reduce the salaries or compensation of all officers and persons em

current

ployed by said city, by a uniform rate not exceeding ten per cent. of such salaries or stated compensation. In all future contracts for lighting streets the right of the city to reduce the amount of service on account of deficiency of revenues shall be reserved.

SEC. 12. Levy of Ward Taxes. The city council shall also at the time of making such levy for current expenses, and upon the recommendation of a majority of the Aldermen of each of the several wards of the city, levy upon the taxable property in such wards such tax, not exceeding one-fourth of one per cent. of the assessed valuation of such wards as may be necessary to defray the expenses of such ward for the next fiscal year.

SEC. 13. Levy of Taxes to Pay Interest and Principal of City Debt. The City Council shall also at the same time levy, upon all the taxable property in said city, such taxes as shall be sufficient to pay the interest to become due during such next fiscal year upon all the bonds or debt of said city, and an additional tax of one mill on the dollar of the assessed valuation of all such taxable property to provide for the principal of said bonds or debt when the same shall become due, and the amounts collected pursuant to this section shall not be applied to any other purpose than herein named, but this restriction shall not prohibit the investment of the sinking fund hereinafter provided for.

SEC. 14. Council to Provide for Maintenance of Sinking Fund. In order to provide for the certain payment of the bonds and debts of the city, the City Council is authorized to maintain the sinking fund already established, and to provide by ordinance for the care, investment and security thereof, and from time to time to amend such ordinances in such manner as may be necessary or expedient, but shall have no authority to abolish such sinking fund until all the debts of the city are fully paid, nor shall it divert said fund or any revenue or increase thereof to any other purpose. All amounts, if any there be, collected of the tax to pay the interest on the bonds of the city in excess of the amount of such interest, the whole amount of the one mill levy for the payment of the bonds of the city provided for in the preceding section, and all revenues of the city not otherwise appropriated, shall be applied to the increase of such sinking fund.

The City Council shall by such ordinance provide for and appoint a board of Sinking Fund Commissioners, consisting of three persons, determine the time such commission shall serve, and define such of their duties as are not herein enumerated. Such commissioners shall have charge of said sinking fund, and by and with the consent of the City Council invest the same in the bonds of the said city, or such other bonds as are permitted for the investment of the permanent school fund of the State of Minnesota, or in the bonds of any city in the State of Minnesota having a population of five thousand or more, or in such county or school bonds in the State of Minnesota as may be approved. In case of invest

ment in the bonds of said city, the same shall not be cancelled, but shall be held by said commissioners and the interest thereon paid over and applied to the increase of such sinking fund. Whenever the principal of any of the bonds of the city shall become due, such commissioners shall, by and with the consent of the City Council, dispose of such of the bonds belonging to such fund as with the money on hand belonging to the same shall be necessary to pay such bonds. Whenever the amount of such sinking fund shall with the interest or revenue thereof, computed to the time of maturity of the bonds or debt of the city, be sufficient to pay all of said bonds or debt at the maturity thereof, the levy of the one mill tax aforesaid may be omitted, but in case by reason of decrease of interest or depreciation of investments, or other cause, said fund shall not be sufficient, the same shall be resumed.

In case the City Council, Sinking Fund Commissioners, or other city officers, shall violate or neglect to conform to any of the provisions of this section, any tax-payer of the city, or any owner of any of the bonds of said city, shall have the right to maintain, in any court of competent jurisdiction, any appropriate action to enforce compliance therewith.

The substantial maintenance of the provisions of this and the preceding section for the payment of the principal and interest of the bonds or debt of said city, is hereby declared to be part of the contract with the holder of any bonds of the city that may hereafter be issued, and shall be kept inviolate.

SEC. 15. May refund debt not paid by sinking fund; No other bonds to be issued or debt contracted. Whenever the sinking fund provided for in Section 14 hereof, shall be insufficient to pay all the bonds of the city that may at any time become due, the City Council may issue the bonds of the city, to run not exceeding thirty years, on such terms as to place of payment and rate of interest as may be deemed advisable, to such amount as may be necessary to meet such deficiency, but neither said City Council, nor any officer nor officers of said city, shall otherwise, without special authority of law, have authority to issue any bonds, or create any debt, or any liability against said city in excess of the amount of revenue actually levied and applicable to the payment of such liability.

SEC. 16. Permanent Improvement Fund how Established and Maintained. The City Council is hereby authorized to issue the bonds of said city to an amount not exceeding forty thousand dollars, for such time, not exceeding thirty years, and on such terms as to rate of interest, and place, and manner of payment, as may be deemed advisable, and to put the avails thereof into the treasury of said city, to be kept distinct from all other funds of the city, and designated as the Permanent Improvement Fund. The City Council may provide for the payment out of said fund of the expenses of any such improvement as may be assessed in whole or in part upon any special property to be benefited by such improvement, and in advans of the collection of such assessments.

From said fund shall also be paid all such portions of the expenses of such assessable improvement as shall devolve on said city, and also the expense of all bridges, buildings, water works and other permanent improvements not otherwise specially provided for by law. No part of such fund shall ever be applied to the payment of the current expenses of said city, nor to any other purposes than such as are herein designated. All sums collected upon special assessments, whose costs shall have been advanced out of such fund, shall be returned to said fund. The City Council shall annually, at the time of making the other tax levies of said city, levy a tax sufficient to replace all expenditures made from said fund, not provided for by such special assessments, and may by tax levy provide for the increase of such fund to such amount as may be deemed necessary, provided that the whole amount of tax levied in any year, on account of such fund, shall not exceed one-fourth of one per cent. of the assessed valuation of the taxable property in said city.

SEC. 17. Comptrollor to Report Deficiencies, and when not to countersign contracts. Whenever the amount contracted or appropriated to be expended out of such permanent improvement fund or of any ward fund shall be equal to the amount of such fund actually on hand and one third of the amount of uncollected taxes levied for the current fiscal year as aforesaid, and applicable to such fund, or when the amount called for by any proposed contract shall, together with the amounts previously appropriated or contracted for, exceed the amount of such fund on hand, and such one-third of the uncollected taxes, the City Comptroller shall forthwith notify the City Council of such fact, and he shall not countersign any contract payable out of such fund until the amount of such fund on hand, with one-third of the amount of uncollected taxes aforesaid, shall be sufficient to meet the liabilities created by such contract in addition to all liabilities previously contracted for, and he shall never countersign any contract payable out of the revenues of any other fiscal year than the one in which such contract shall be performed. He shall countersign no order upon the treasury until there shall be money in the treasury belonging to the proper fund wherewith to pay the same, and all orders on the treasury shall be countersigned in the order in which the claims are allowed, upon each fund respectively.

SEC. 18. How Taxes Levied. All taxes shall be levied by resolution of the City Council, and no tax shall be invalid by reason of any informality in the manner of levying the same, nor because the amount levied shall exceed the amount required to be raised for the special purpose for which the sum is levied, but in such case the surplus shall go into the fund to which such tax belongs and may be applied to the further uses of such fund.

SEC. 19. Statement of taxes levied to be returned to the County Auditor. The City Council shall cause to be transmitted to the County Auditor of Hennepin county, on or before the tenth day of Octo

ber of every year, a statement of all taxes by it levied, and such taxes shall be collected and the payment thereof be enforced with and in like manner as state and county taxes are paid and the payment thereof enforced.

SEC. 20. Avails of Taxes to be paid to City Treasurer. The County Treasurer of said Hennepin county shall pay over such taxes, together with all interest and penalties which shall be collected on account of the same, when collected, to the Treasurer of said city, and in the seyeral settlements of the funds to be so paid over as provided for by general law, said County Treasurer shall account for and pay over to the City Treasurer such portions of the interest paid by bankers with whom funds of said county are deposited, as have accrued upon funds arising from city taxes and assessments so deposited with such county funds or as parts thereof.

Whenever, previous to any of the settlements provided for by law, there shall be a lack of funds in the city treasury for any purpose and there shall be funds in the county treasury which shall have been collected on account of city taxes or assessments, the County Treasurer shall, on the application of said City Treasurer, advance and pay over such sums as shall be estimated to be the amount collected on account of such city taxes or assessments, and such advances shall be accounted for and adjusted at the next regular settlements with said city. The City Treasurer shall also forthwith, after such settlements, adjust and apportion the funds so advanced among the several city funds in his hands.

SEC. 21. County Auditor to make returns to Comptroller. (As amended November 4, 1881). It shall be the duty of the County Auditor of the county of Hennepin to make out and transmit to the City Comptroller of said city, on or before the first day of December of each year, a statement showing the exact amount of taxes levied on account of the several funds of said city, and each ward thereof, and of the Board of Education of said city, according to the tax lists made out by said Auditor, and at the same time make out and transmit to said Comptroller a statement of all abatements, corrections or additions to said tax lists, and of all amounts of all taxes cancelled as uncollectable, within the year next preceding, and the several amounts of such changes affecting each of the said several funds; and also a further statement of the amounts of taxes delinquent and outstanding applicable to said several funds, and in such statement to be made on the first day of February, A. D., 1882, he shall also state the said several amounts so delinquent on the tax lists for the years 1878, 1879 and 1880, and of 1877 and prior years. He shall also, at the time of making settlements with the County Treasurer required by law, furnish said Comptroller with a certified statement of the several amounts collected by said County Treasurer on account of each of said several funds as shown by such settlements.

SEC. 22. No Money to be Paid out of City Treasury Except on Orders. No money shall be paid out of the city treasury, except for