B 51207? Js \21z 3 I —' -I; _, R44=1QU III RUCI,"I'VED IN EXCIIA"'(;E FROM C';' Jay, - PIL%. 11 1 1.11,111.1............... T3 * - 2.*/ * i I REPORT OF THE NEW YORK CHARTER COMMISSION TO THE LEWISLATURE WI'THl A DRAFT OF CHARTER FOR THlE:. (ITY OF NEW' YORIK APP~ROVED BY THE COMMNISSION ON -MAR-CH 5, 1923 ".:.. s c.. /a 311,I- 3 / V MAY 3 1924 REPORT OF THE NEW YORK CHARTER COMMISSION WITH A DRAFT OF CHARTER FOR THE CITY OF NEW YORK 1923 THE NEW YORK CHARTER COMMISSION HENRY DB FOREST BALDWIN, Chairman JOHN F. HYLAN, Mayor GEORGE CROMWELL CHARLES L. CRAIG, Comptroller LEWIS L. DELAFIELD JOSEPH M. LEVINE EDWARD RIEGELMANN, HERMAN A METZ President, Borough of Brooklyn WILLIAM BARCLAY PARSONS JOHN J. KELLER, Alderman FRANK L. POLK HOWARD LEE McBAIN, Secretary ARTHUR 8. SOMERS EDWARD M. BA88ETT H. PUSHAE WILLIAMS FRANKLIN W. M. CUTCHEON, Counsel CONTENTS PAGE Legislative Authorization.......................... 4 Report of' 'Omlllissi(on............................. 5 Appendix A —Draft of Charte..................... 41 Table of (oo ntents................................. 43 Charter......................................... 55 Art. I Corlpoate Status;]lni Rights; Bol(ndaries; Powers.. 55 II Elect i e Officers.................................. 68 III lo;mir(l of Alderm en................................ 81 IV Hoard of Estimate and Apportionment............. S4 V (Conjoint.luris(id ction.............................. ) VI The M ayor....................................... 104 VII The om pitroller.................................. 106 Vl I l'President of the llloard of Aldermen................ 113 IX l ongl ' esid s............................... 11. X Dl)partments. Officers and Emloyees............... 115 XI iThe Corporation Counsel........................... 118 X II The ' haml erlain................................. 119 XIII The Comn isione of I inq iry....................... 121 XIV The P'olice Department............................ 123 XV Departlment of Pensions............................ 128 X VI Departmient of Taxes.............................. 138 XVII Municipal C ivil Service Commission................ 140 XVIII 1 11Bor'd of St1and(rds and Allppeals and Board of Appeals.......................................... 142 XIX The Publicii School Syst.......................... 150 XX Interim Provisions for Adlmillistl:tive (r1g'lliz:ttion...151 XX I The PB nll g(t....................................... 15. XXII Assessmenlt;id ll evy of Taxes..................... 165 XXIII Board of Review.................................. 176 XXIV Aciulisition of Title to Real rolperty for Publicl l'P lrposes....................................... 182 XXVN.Assessmonts and A -IardI s........................... 214 XXV1 IAiscellan.lsous Prl'ovisions.......................... 223 Table of Siourices.................................. 237 Index o)f Charter................................... 251 Appendix Wl ---)Opinion of Franklin W. M. Cutcheon, Concernio- thle lPossib)ility of a1 Systeml of Proportional Representatiol I Tlner'thlle Existing Constitulion of the St t of Nw Y- ]'o..................,I 9 LEGISLATIVE AUTHORIZATION PI'rom Chap. 84;:. laws of 1921. Section 1. Withinl thirty days afoter this act takes effect, the governor shall appoint a coililnission consisting of tfifteen persons, residents of tile city of New York, tt I t known as the New York charter commissionl, to ittIssire into the local government of the city of Newv York. and the o-n tilties colitinedt thilerein, witht power to investigate tile Inostlnlel of cotiduictintg olltd tratnsacting Illsiness Ino thet several departlents, boards and offices thereof. the effect anti working of the charter of Greater New York. sasd the acts amendatory thereot f tilail supplementary thereto, and of any sid olli other acts relating to este11 city, and to suggest sneh legislation an it til ly R deein advlisalls vith respect thtteeto. Ssh l tcolil n issiosn shall drft a nd submit wilth its linail report a new charter sttIa. witthins its disc retion. an admintstratlive code or other lody of Stpplemststary local law t or e rof(titmteit withint stch city. The governor shill ihids i natos te pevll e1g jlsonlls lpointed Ias tiemtbers of sucnh ommitssion the mayor and tihe (oliptroller of the (ity of New York tile president of one of the sevterall oroughs thereof. and st lnlll)e of tile board of aldermen thereof. to serve respectively d(Itlilig the periods ft tieir incumbency of SleCII offices, Tlsd StlCII alspo(lltlltslt shitll sot afflect in any manner the tit.le to any sunell office whihel ily oll, of tle stai persons is 1oldinig. rtile goverinor shiall, in like- isil!inle r fill ly als)ointinlelit.h11 s-.'s-i-its s oItsly st t -ily tiile sccur in thie emsbersii) of sellch (ollllisioll. ~ 2 ithilltr etn tys 'tlle ' t se l s.ssS.shall ii. ha been aptpointed, its memberls stha SIIt s t o' gsnize ry tle electlion frosss their ntuliller of st sllirtllllll and a se( retary. It shall se tile dllot of Snoll h ('tlnlllissiol floll tine to tinlie to report the progoess of its work to the legislature of nineteen hundred and twentytwo; Iblut if it shall not be practicahbl to report finlly, thereto. it shaxll sillmilit its finail report to tile legislati sts of nineteen hlstssed and twenty-three. together with bills to carry out iits, resscomlmendatiolts in tile prenises. Thle comnmission may, In and for tthe perfoll-l-lne of its dilties. philpshy (UIIIs l Sldsci lli! SO lnllny clrks, stenllogrltphels llI lh1 lsols s l Is it 5llIo deel l ne essarn. nl fix their colpensottdon. It miai listst its ileetingsat any tille, r plaece witiii the city of New York. Any extlllitiol invstiti o n lb tile t i'ilissioll IIV lI)e iliade by or before anv one or IlloSe of its mlemllers. plrsillltt to tile order of tile C011l i ntssioi dtilly ia sile nit] enitered oil the minilten of sIIy Inoeetil o-v thereof it which a qiornlu may be present. and flo- i)l rce(sdillgs of or before sl olllnissione r ov (sonllssioners shall be dteeieds to be the proceedings,f or befoltre tile. Olilolissoln is oI whole, whel approved and confirmsed hy it. (~in 3 alld 4 contain the Clstoinaly grallnt sl p el to subpo ena. dinister oaths.:tind ohthlewise o(noldllt- inves-stigstions fsn tIh lit' lpos d(qil-p.) 5. For tfile l)1irlpose of (.Slll-'Villg ollt tle i I'isi lis of this;act. tilhe sliUm Io twenty-five tilsisassssd dollars ($25.)00) is hereby -slsroiri-ttd ait of ossy fisinds tile lnds of tile olinpltroller sot hteetofore ellrisosj)rhlted. lPayments of or oll /count of til expmlis(s of tshe iot-llissioll 1sh 111:1( il( by tile comlptroller from tie sum so apipropriated ispon Votleters. in forin to lbe -tsplroved by si(th ol- ptroller. wvhe-ts csirtifiesd 1 sllt c ('olmllissiol. or Iby snl-h ofi'sesr or officers as it May designate. bt- proper re.solltion. for thillt puillpose.. 6. This sewt shall t-ke effect N ()vlslhot first. lilst*q',1 1llsl1l'd,1 qt(d twentyone. Approved April:'X). 1D21. REPORT of The New York Charter Commission To the Legislature of the State of New York: The New York Charter Commission, appointed by the Governor pursuant to the provisions of Chapter 343 of the Laws of 1921, submits to your Honorable bodies its report, together with a draft of an Act designed to constitute a new charter of the City of New York (Appendix A). Organization. The Commission was organized as required by the Act providing for its appointment and elected as its Chairman Hon. Francis M. Scott. Of his services and counsel, which would have been especially valuable by reason both of his conspicuous ability and of his unusually wide experience as Corporation Counsel and as Justice of the Supreme Court, the Commission and the public were deprived by his untimely death in February, 1922. Subsequently to the death of Judge Scott, Mr. Henry de Forest Baldwin was appointed a member of the Commission and was elected and remains its Chairman. Mr. Howard Lee McBain, one of the members of the Commission, was elected, and at all times has been its secretary. The Commission in the first instance appointed as its counsel Hon. Edward J. McGoldrick, and, after his resignation upon becoming a Justice of the Supreme Court appointed in his stead Mr. F. W. M. Cutcheon. Procedure. During the earlier months of the Conimmission's existence it held a considerable number of public sessions, which were devoted almost wholly to the formulation of certain basic principles to be observed in the later work of charter revision. Subsequently, in November, 1922, the Commission, desiring to expedite the actual work of formulating a draft of charter held many executive sessions as a committee of the whole. 6 The Commission has had the benefit of numerous conferences with a number of the present as well as several of the former officials of the City and has received many communications of value from individual citizens as well as from numerous civic bodies. The accompanying draft of charter has been printed in considerable numbers and has been widely circulated. Criticisms and suggestions have been freely offered and not a little of the value of the Commission's work should be attributed to the information and suggestions thus received. A majority of the members of the Commission are or have been associated, in official capacities, with municipal or closely related activities and therefore have a not inconsiderable familiarity with the organization and operation of the City Government. The Commission has had the benefit not only of the report of the Joint Legislative Committee appointed pursuant to your joint resolution of April 15, 1921, but also of the reports of the other legislative committees and of the various Commissions which have preceded it in the work of revision of the Greater New York Charter. Principles. The formulation of the draft of charter submitted with this report has been governed largely by the following considerations: First, and not the least important, the desirability of reducing the needlessly long, redundant and complex Greater New York Charter to manageable volume and of substituting a reasonably simple and compendious enactment. Second, the inauguration of a system under which the City, through the medium of its legislative bodies and administrative officers, will control its own affairs, within the limitations imposed by the letter and purpose of the State Constitution, thus rendering unnecessary and unwarranted those continual appeals to the Legislature which, upon one hand, result in mandatory legislation that robs the City of the power to direct its own expenditures and, upon the other, affords an excuse, not often a justification, for inaction or unwise action upon the part of City authorities. 7 Third, the regulation of the financial administration of the City in such manner that the injunctions of the Constitution concerning that subject may be observed and that there may be definitely established a " pay-as-you-go " policy which, in the opinion of the Commission, is requisite, not merely for the maintenance unimpaired of the City's credit, but as an assurance that the measure of home rule afforded by the proposed charter can be granted safely,-at least in the first instance. Revolutionary Innovations Avoided. No attempt has been made to introduce into the charter revolutionary or even especially novel features. The existing charter, cumbersome as it is, has, in the opinion of the C1(ommnission, provided a form of governmlent which has worked extraordinarily well, particularly when one considers the miagnitude of the experiment which it represented, the divergence of interests which have demanded recognition and the difficulty of securing for the administration of City affairs the same quality of ability and experience which are secured by private enterprise through the medium of greater continuity of tenure and more brilliant opportunity for advancement and reward. It should be clearly unider-stood that, subject to the reservation that it does not permit local control of the City's affairs, the Greater New York Charter, as amended, far from being a failure in practical operation is, except in form, a highly crmeditable monument to those who first devised and those who gradually have moulded it into its present substance. The Commission, therefore, believing that progress in the science of government rarely is made through the abrupt substitution of a device wholly experimental for an instrumentality which, even if defective, has proved itself workable, has contented itself in the main with providing for the increase of the City's powers of self-government, the protection of its credit and the simplification and improvenment of detail in charter structure. January 1, 1926, the Effective Date. The Commmission recommends that the draft of charter sulmmuitted, if enacted and if accepltedl by the City. shall 8 not conic into force ini its entirety until 1926. In its opinion there exists uo emergency which demands haste in making tnle cliannges proposed. It is plain that no revision of the existing, charter should be imposed upon the City against the will ot its inhabitants. Therefore the submission of the charter to the electors of the City for their acceptance or rejection at the election of November, 1923, has been provided for. If the proposed charter is enacted and accept ed, time must be afforded for aii examiniationi by the (Citv anthorities, and a r-eorganization, at least to sotie extent, of official and departmen tal fu nctions aiid for the prepairation of 01 di ituces covering many subjects which, although r-egulated iii (detail by th( ) pesenmt charter', are not so re-iiiated iu the proposed chat tet. It is also desirable thit the legislative policy with iespe t to publicservice iregiilatioin iid public-utility opet ation, with which thle Cominissioii has itot felt. at libertv to ileal except in very genei al wiay s, shall be cstablishlid befote this oi-gaitization of (lepartmtients 111n( official tunetions shall be undertaken. The Commission inoreov-er m-his reconmmenided various1 chan~ges, with r t sp( It to thle assesst u -mund collection of taxes which should inot be inaigurated except after a considerable )eui-id~ of tnot tice to taxpviert F or all of these teasoits the (Coittiissioti xx0o1( lel dpeuiate aii etlort to put the proposed chartetr imito fot cc i,, working schemie ait a dat~e earlier thiat that whicli it has s-elected, January 1. 1926. at which titu thle next city adminiiistration will commtence. Attention is unow invitted to thle conctete teims of the proposed chat-tet-. The Proposed Powers of the City. Extremely bi-oad poweis of local self-government and control of municipal affairs are comiferred upomi time City as such. Supplemmenting the general grant of powers., but not in derogation them-efrom, a very large inumuber of specific powers ate conferi-ed. This course has heemi followed in an endeavor to avoid litigation for which ati undefined grant of power offers temmilting opportunities. The specific grants are inteitded to, amid it is believed do, imiclude all powers with respect to local or municipal matters whiehm are now possess-ed by thle City or by anly of thle authoriities 9 of the City or its counties, as well as such additional powers as are essential to complete local governmental and administrative autonomy with the exceptions enumerated below: 1. The school-system, not including the College of the City of New York or Hunter College of thle Cit of New York, is left, except with respect to taxation, to be dealt with by the Legislature as a part of the state educational system. 2. Certain boards, officers and departments imay not be abolished or stripped of essential powers. These include thle Board of Alderminti, thle Board of Estimate and Apportionmient, elec(tive amild constitutional officers. thie Municip'al Civil Service Conmniission, thle departlments of Police, Pensions an(l Taxes amdl, tlheir respective Commiissioners, the Board of Review (dealing with taxes and assessmlents), judges, tile Corporation Counsel, (Chliamberlain and( CommissioinerI of Inquli y-. 3. The regulation of the rates and practices of public service corporations is restricted to such services anld matters as shall not be regulated by State or Nation. 4. While thle powers to construct anid acqluire revenueproducing iniprovemients and to lease them for operation by others are not limiitedl, the power of the City directly to operate such inlprovements is limited, substantially, to the exercise of such powers as it now possesses and such as hereafter may be confeirred upon it by thle Legislature. 5. The powers to contract and refund long-termi debt are limited and a pay-as-you-go policy is otherwise enforced by numerous provisions with respect to the budget, the collection of taxes, the administration of pension funds and the constitution of the sinking funds. 6. The method of exercising the powers of taxation, eminent domain and assessment of benefits, severally, is prescribed as to essentials. The City's powers are distributed, for lmurl)oses of exercise, between various officers, boards and departmients. as indicated below. but. except as stated, all such powers may be exercised, redistrihluted or assummed by the Board of Aldermen or the Board of Estimate and Apportionment, or by the two Boards acting in conjunction. 10 Distribution of Powers..In the matter of governmental organization, the Commission has adhered to the somewhat illogical, hut practically successful, scheme of the present charter, modifying it in detail hut retaining its principle. One set of powers, including the power of taxation and, it. is believed, all powers which are purely legislative in their natnre, is confided to the Board of Aldermen. Another, confined almost, wvholly to those pertaining to administrative routine or requiring essentially sound business judgment and ptromp~tness of decision in their exeicise, is conferred upon the Board of Estiniate and Appor tioinment, the composition of wN~hich rem tins on ilterid. Admitnistra 'tive powers of uinusual. impoirtance, par ticularlyV those the exercise of which is likely to involve (.oisisdeItitons ot political expediency and], a's well, the iniking of the appiropriations (a function which vitallx attects b)0th odi daty idministiation on the one hand and taxation upon the othleir) aire to be exercised by the two boilies conjointly. City powers, not. expressly or by necessary in~tendmient ent rustedl to the Bloard tif Elstimate and Apportionment 01 to thle two boards, acting in conijunctioni, or specifically vested in other City agencies, are vested in the Boardi of Aldermien, which thuls becomtes the repository not only of matit, specified powers but also of all of the 11itdethiied and residluar~y powvers of the (itly. Powers of the Board of Estimate and Apportionment. The powver-s conferred upon the Bloard of Elstimate and Apportionmenit, actilig alone, comprise: 1. Contol of the official and departmental organization andi thte transfer of powers fromt (oie municipal authority to another: thle tran'sfer of un1used budgetary appropriations to othber purposes. sanctioined by the budgaet. 2. Authioriziatioii (of all street-ohpeiings aii(l iniiprovenients, aid of all other public, including local, in hio'enients, exceelt suhel as niay cost, severally, more than $500,000; authorization of the( coitdeiinuation of excess lands. 3. Coat rol cf the routine of assessment proceedings and awards in connect ion with i mproveinent s. 4. Authorization of stock and bond issues, except any 11 such as may exceed $50,000,000 for a single purpose; authorization of refunding operations. 5. Control and management of city property, including water-front property, and of the sinking funds. 6. Control of the operation of such revenue-pro4ucing improvements as the City is empowered to operate. 7. The granting of franchises: control of the use of streets by public service corporations; unless the subject has been taken over by the State or Federal government, the regulation of their rates and practices. 8. Regulation of zoning and control over the city map. 9. The auditing and compromise of claims and the initiation, defense and settlement of legal proceedings. Conjoint Powers of the Board of Aldermen and the Board of Estimate and Apportionment. The powers which are to be exercised by the Board of Aldermen and the Board of Estimate and Apportionment in conjunction are the following: 1. The creation and definition of the constitution and powers of local improvement boards. 2. The authorization of public, including local, improvements (except street improvements) costing in- excess of $500,000, severally, the establishment and maintenance of street and park opening and other reserve funds. 3. Cession of city property to the State or to the United States. 4. The determination of the number and the salaries of officials (with a few specified exceptions) and of all employees to be maintained by the City Treasury. 5. Authorization of stock and bond issues, in cases in which the issue (for any single purpose) exceeds $50,000,000. 6. The authorization, subject to prescribed safeguards, of the operation or lease by the City of revenue-producing improvements. 7. Supervision of pension, retirement and similar funds and the inauguration of a consolidated system. 8. The adoption of annual budgets for city and educational purposes: the making of appropriations otherwise. 12 The Board of Aldermen. The draft of charter reported herewith does not deal with the constitution of the Board of Aldermen or with the apportionment of aldermen. The matter of apportionment should be dealt with by the Legislature or by the City, under legislative authority, after the method of electing aldermen shall have been determined. Enough has been said in the preceding paragraphs of this report, to demonstrate that the accompanying draft of Charter contemplates investing the Board of Aldermen with very far-reaching powers. Not only does the proposed Charter aim at conferring upon the board very numerous legislative powers, under which it may direct the exercise of the police power of the State in many respects of the utmost importance, but it requires the participation of the Board of Aldermen, with the Board of Estimate and Apportionment, in the determination of many of the most important administrative decisions of the municipal government. The Commission is of the opinion that it is desirable that the importance, and therefore the power, of the Board of Aldermen shall be thus increased, (first) in order that the electorate of the City may have imposed upon it a constantly recurring sense of responsibility for the conduct of the municipal government and the necessity of informing itself concerning and of interesting itself in municipal affairsthat is to say, in order that a genuine, and not a make-believe, system of home-rule may exist-and (second) in order that all of the elements of the electorate may have an immediately effective medium of expressing their opinions and exercising their influence upon the decisions of particular municipal problems. It is a trite statement, but one which expresses a fact that cannot be too frequently recalled, that the citizenship of New York is composed of many diverse elements, that it is divided not only into dissimilar geographical districts but into groups, distinguished by origin, occupation, living conditions and other characteristics which socially and economically have distinct and sometimes divergent interests. In a body such as the Board of Estimate and Apportionment, which is most often controlled by the votes of officials who have been elected by the City at large and in which no member ever represents any district smaller than 13 a borough, it may often become difficult to obtain proper representation for, or appreciation of, the needs of relatively minor groups of citizens, which, nevertheless, are entitled to, and in the interest of the City at large should, receive most serious consideration. The Board of Aldermen, with a membership representing relatively small and more numerous constituencies, and comprehending the entire city, is a natural medium for the expression of the views and the exercise of the influence of such smaller groups. The proposal to transfer sucih large powers now exercised by the Legislature to the local City government, and particularly the proposal to increase the powers and importance of the Board of Aldermen, will be more readily accepted and approved by many, if such transfer of power could be accompanied by provisions which will give some hope that the Board of Aldermen may become more completely representative of the people than it is at present. We may expect that the important city officers who sit in the Board of Estimate and Apportionment will always be selected by the organizations of the two great national parties, and that all of them, since they are elected together at one municipal election for four years, may quite usually be selected by the same national party. Those voters who may feel that they are not adequately represented by thre party inr power (and not infrequently they amount in the aggregate to a majority), cannot very well be given representation in the local city government elsewhere than in the Board of Aldermen. And this is the place where all the elements of a political opposition properly should be heard. But under our present election machinery no group of citizens in an aldermanic district, other than the organizations of the great national parties, can run candidates for aldermen with any hope of success. We all know that there are many citizens who are very loyal in national and state affairs to the political parties of their choice who, if they could unite to some extent irrespective of tile lre(ise location of their residences and be given a hopeful opportunity to ble represented, would act indeplendently of tile mnatiolal party organizations in local matters. It seems to a majority of the Commission that these citizens should be given a hopeful opportunity to secure representation in the city government. The fact that they ooul1d be so repr-esenrted might very well react upon the 14 national party organizations and tend to cause them, to a greater extent than has heretofore been the case, to select their aldermen with reference to the more important local problems which denmand solution. Proportional Representation. The Commission has considered various suggested solutions of the problem thus presented and a majority.of its members are of the opnion that, of all possible expedi ents that have come to their attention, the system of proportional representation is the most promising. The entire draft of charter has been prepared, and, in particular, the very broad authority vested in the Board of Aldermen has been provided for, upon the assumption that the Legislature may deem it wise that some system of proportional representation shall be required or permitted in the selection of aldermen. Regardless of the wisdom of applying such a system to the election of Members of Congress or Members of the Legislature or to the election of any body in which it is primarily desirable to maintain the two party system, a majority of the Commission believes that in a body, the duties of which are or ought to be discharged in a spirit almost wholly non-partisan, from the point of view of National or State politics, the most important functions of which are to decide administrative, financial and other business problems, a system of proportional representation not only should operate unobjectionably from a political point of view but may well assure much more general and attentive consideration of the views of the people as a whole and much more scrupulous examination of the City's problems than is possible under the system of party government now in vogue. A majority of the Commission believe that a system of proportional representation, if applied to the election of aldermen in the City of New York, may tend to improvement in at least the following respects: (1) representation in the Board for any group of voters, adhering to some common program of municipal action, provided it is so numerous that its views should be afforded an opportunity for expression in the determination of the policies of the community, even though it may not be sufficiently powerful to prevail 15 in an election under the present system as against either of tlhe establishled political parties; (2) a fair representation, and no more, for each giroup; (3) hopeful candidacies sponsored by goUlps independenit of flie control of the organizations whi(ch ordiinarilv direct the activities of established parties; (4) selection by the minority groups of their best available candidates, chosen solely witli relation to municipal issies, IIwhich in time, almost necessarily, should force like selections by the major parties; (5) closer relations between an aldertman aind those who have elected him, betweei whom inl the case of a minority group no national political organization \vill iltervene; (6) a vigilant and an active-minded criticism by eveiry group in ol)l)osition to the party in power in the Board of Estimate and Apportionment; (7) vastly increasedI pblic interest inl the selection of membels of the board Iand( in its debates a.dl decisions; and, consequently, (8) a 'geater security against hastily conceived, unconsideredl oi one-sided, enactments. The question whether a system of proportional representation shoulid be imposed upon the City of New York or should be tendered to it for voluntary adoption or rejection is one the decision of which the Comulission does not believe to be within its province. The Commission is advised Iby its counsel that, under the State Constitution, as it now exists, the inclusion in the charter of provisions for proportional representation in aldermanic elections would in all probability, if attacked in the courts, be held to be unconstitiltional. A copy of Counsel's opinion upon this subject is appended hereto as Appendix B. The Commission accordingly will submit a draft of a concurrent resolution, for adoption by your honorable bodies, if they approve, which provides fori an aimenlidment of the State Constitution byv the additiont to Section 2 of Article X of thle (onstitiution of provisions which would empower the Legislature either to reiquire the adoption oif proportional representation in City elections to such extent as it may deem wise or to provide that cities at their own option may adopt the system by iuch method of decision as the Legislature may pirescribe. 16 Reasons for Withholding and Granting Certain PowersChecks Upon the Exercise of Certain Powers. 1. The School System. The best opinion of those who have had adequate opportunity to observe the management and operation of the educational system of the City appears to favor the incorporation of the school system, proper, in the State system, rather than the maintenance of a separate city system. The Commission has adopted this view and has provided in the prolposed charter that the territory of the City shall constitute a school district, distinct from the City considered as a public corporation. This accords with the policy of the pIresent law which, the (Commission may assuime, represents the considered judgment of the Legislature. On the other hand, the prolposed charter provides for the support of the schools by tlhe City, except for ontriblutions whichli may be lmhde by the State. It is Irequiied that each annlual educational budget (whlich in the tirst instance is to be pvrep)aread by the Boaird of Education) sliall provide for tlie necessary expense of maintaining the City schools upon at least the same level of service as thliat then currently existing but leaves to the discretion of the City authorities additional and emergency appropriations. Funds appropriated for existing service are to be subject to the unrestricted control of the Board of Education. This does iiot differ in substance from the Ipresent atrrang-emient. The accompanying draft of charter does provide, however, that the educaitional buldget shall at all stages remain separate from the City budget proper alndl that the school tax shall be extended and shall appear upon tax-bills and iax-receipts in distinct, segregated amounts. This is for (lie purpose of coinpelling not only the city authorities but the Board of Education, thlie Legislature and the public to recognize the precise extent of the provision made and of the burden assumed for ordinairy school purposes. The Commission recommends that the College of the City of New York and Hunter College of the City of New York ie left, so far as appropriations and taxation therefor are oonceelled, under the jurisdiction of the City. These institutions are not in a true sense parts of the public school 17 syst~em foi wvhich the Constituition imposes responsibility uiponl the Legislature; nor has the State anly peculiar interest which lictaites the assertion lby it of control over them..11)01 the contrar'n vthey are peculiarly the concern of the Citv anid ill the opinion of the Commission the City should be permnittel to detcrmine for itself the extent to which their usefulness justities their cost or warrants increasing it. Thle City is tilkld w ithi their gyradlrates, many of themn occupying positions of' iihif ii e.e arid rio apprehension needi he felt that these institutions wvill. not lbe justly or adequately caredl for. 2. Permanently Established Offices, Departments and Procedure-Administrative Reorganization-Transfers of Powers. Except as stated above (uinder tile heading, "The Propioseil Power-s of the City"), the acconipinauing- draft, of' char1 -ter- auithorizes the City, through the Board of Estiniate and Appoutionment aii(l wvith tile M1ayor's approval to establ isli In leti ne tilie, oweis, of ottices, (leparitineiiits aind ot her agencies hiothl cit, aoll( eomirt-11 t and to tr(i-a sfei- lowers and fune( — tions from one officer, department or agrency to another. The lpr-olosedI charter does not attempt to estabilish any officers, boards, departments, b~ureaus or commissions except such as thle Commirission believes should he regarded as essential and therefore should he permanent. No explanation need be griven of reasons for giving a permanent character to the two g-reat City hoards-the Board of Aldermen and the Boardl of Estimate and Apportionment-to elective (ineluding all constitutional) offices, t-o judges, to the Municipal Civil Service Commission or to the Corporation Counsel. The Police TDepartrnent, coiisidered 1)0th from the standpoint oif the public's dependence upon it for the Inainteriance of order arid the enforcemient of law and frorr the standpoint of its natural suiscepti~bility to political interference and the infirerice of other interests, occupies a unique position of importance and permil. Tn the opinion of the Commission, the initerest of the State in its proper organizaition and discilpline -and in its protection from political or other interestedl interference is So grreat that the State itself should prescribe the eon(lit ions8 which it. regardsd, essential to its efficiency and integrity. By making the Mayor solely respon 18 sible for the administration of this department, as is the case under the existing charter, we believe we are insuring a continuance of what has proved, after many experiments in dividing responsibility, the most successful solution of a most baffling municipal problem. The Constitution of the State requires the Legislature to restrict the City's " power of taxation, assessnient, borrowing money, contracting debts * * * so as to prevent abuses in assessments and in contracting debt." (Sec. 1, Article XII.) This, in the analysis, means that the Legislature is to deterl'mine the City's financial structure and organization, for in no other way can it effectually give vitality to the constitutional mandate. It must also define the processes of taxation, condemnation and assessment of benefits, both because the Constitution enjoins the duty (see also Sec. 7, Article I) and because reasonable protection of the taxpayer and the property owner is incompatible with leaving these vital matters to the unrestricted discretion of the City, which must exercise the requisite powers for its own ends and often in hostility to individual interests. The Commission, therefore, has incorporated in the proposed charter articles prescribing the methods to be observed in making assessments, both for taxes and benefits, in levying taxes and in exercising the power of eminent domain. In addition to other reasons for specific definition of procedure in these matters, the Commission is advised that certain of the provisions with respect to them, which authorize and define judicial jurisdiction and procedure, involve the exercise of legislative power which cannot constitutionally be delegated to the City but must proceed from the Legislature itself. Accordingly, on the one hand, the proposed charter defines the financial powers of the two great City boards, the powers and duties of the Comptroller, establishes, as independent officers, the Chamberlain (to be the collector and custodian of the public funds) and the Commissioner of Inquiry (now the Commissioner of Accounts) and creates the Department of Pensions, all of which the Commission regards as essential parts of a proper municipal financial organization. On the other hand, it establishes the Department of Taxes, the Board of Assessors and the Board of 19 Revie\w ais necessary components of the City's taxing and assessment system. The Board of Standards and Appeals, which exercises certain powers which the Conmmission is advised should possess direct legislative sanction, is continued, with somewhat enlarged powers. Neither the Board of Standards and Appeals nor the Board of Assessors is protected against disturbance by action of the municipal authorities. As to the remainder of the administrative officers, departments and other agencies which may be deemed necessary to a proper municipal organization, the City is left free to establish, to abolish and, as to powers and functions, to alter them as the Board of Estimate and Apportionment may deem best, although administrative functions of borough presidents are not to be transferred except by unanimous vote of the members of the Board. Pending January 1, 1926. the existing Board of Estimate and Apportionment is authorized and directed to establish an interim organization (to become operative on that date), as to which it is left a free hand, except that it must permit the powers of the Department of Health for the protection of life and health to reside, without disintegration, in a single department or officer and must leave intact the obligations now imposed upon citizens with respect to these subjects. 3. Ownership and Leasing of Revenue Producing Improvements-Their Operation-Regulation of Privately-Owned Public Utilities. The proposed charter grants to the City practically unlimited power to construct and otherwise acquire revenueproducing improvements. The cost and earning capacity of the improvement, nevertheless, must be ascertained as nearly as possible and corporate stock or bonds may be issued to finance it (within the constitutional limits) only to the amount upon which the estimated annual earnings of the improvement will suffice to pay interest after providing for the estimated expense of operation, maintenance and other proper charges and an amortization charge to be so calculated as to amortize the investment within its life (not 20 excevdliii, lifty years). The Commission is of the opinion illhit, considering the legal limits of the C(ity's debt-incurring power (even if enlarged to the extent suggested in this report), and the effective limitation thereof imposed by its practical ability to 'borrow money, a great municipality such Nas New York City shohldl be permitted to exercise its own discretion as to what it must oi should provide in the way of public utilities-for which private capital not infrequeiltl cannot be found. On the other hand, a majority of the members of the Commission, in view of the strong probability that your honorable bodies will deal at their present session with the subject of municipal operation at least of transit facilities, have deemed it wise to confine the grant of power to operate revenue-producing improvements to such as now exist or may hereafter be granted specifically by the Legislature. The proposed charter, however, contains checks upon the exercise of all such powers whether heretofore, or hereafter granted. It seems reasonable, considering the difficulties under which a municipality labors in the operation of public utilities and the opportunity for political abuse which is inherent in anyv such undertaking, that, before the City shall have the right to enter upon any such enterprise upon a very large scale, the consequences shall be ascertained as far as practicable and that there shall be ground for believing that the undertaking will not be disastrous. For these reasons. the accomnpanying draft of charter provides that before the operation of any revenue-producing improvenient involving an investment of more than $50,000,000 for a single purpose shall be entered Upon, it shall be judicially determined, after investigation by a competent commission of disinterested citizens, that the proposed enterprise probably will be selfsupportingr, taking its entire life into consideration. and that both the Board of Estimate and Apportionment and the Board of Aldermen slhall determine that the proposal is wise. Provision is made also for the sublmission of such proposals to popular vote. With respect to improvements of less imagnitude, it is provided that the ability of the imnproveitent to be self-sustaining shall be determined by engineers of. or sappointed by, the Board of Estimate and A pportionmient and that the project shall be authorized by concurrent action of 21 that board and the Board of Aldermen. An attempt, also, to assure tile financial soundness of enterprises undertaken by tie City, after they comie into operationl will he found inl tile sectionll which Iprovides for a rea(ljustment oft rates in such manner as (it' possible) to avoid deficits and which gives taxpayers and creditors tile right to enforcel the terforillmance of its (1duties by tile Board. The Citv is given broad power to lease municipally-owned revenue-producing improvements, subject to lprovisions for the reservation of adequate rental and for recapture. 4. Stock and Bond Issues. Aside froum corporate stock or bonds issued to finance reve(uie-prd'('(l(,ilg imrprovements (a suobjcct already dealt with), long terml oblligations may be issued for the following pur loses only: (1) Those for which specific authority already exists, to the extent to which it has not been exercised; (2) Sites for schools, colleges, museums. etc., and the construction and equipment of buildings therefor; (3) Assessment bonds, in anticipation of the collection of assessmlenLts for belnefits —to maiture in not more thair ten years; ( 1) G(e('eral Fund bonds; (5) Refunding bonds, issuable only to refund issues wliliel iight rbe lawNfullyv Inade at the date of thie refundinrg; (6) Upon thie establishment of a consolidated pension systerm. bonds to provide for imaking good then existing deficiencies in pension and retirementt funds consolidated in thie new system. Hond issues rmiay be serial and comrplete amnortizat ion of every'- isslei of stock or oiunds within tlhe life of the' issue rilrust bie provided i for. The Comptroller is authorized to issue and sell revenue and special revenue Iond(is and tlax notes substantially of the descriptions now authorized. It is required tlhat each annual budget shall provide not onlv for speeial revenue bonds issued during the preceding year but tfor revenue and special revenue bonds issued after January 1, 1926, which have not in fact been redeemed out of the taxes levied theirefor. Other Details. 1. Taxes. It is proposed to abolish the Board of Taxes and Assessrments and that its functions shall be discharged by a Commissioner, to be the administrative head of the Department of Taxes and by a nmnber of non-piermanent tax-boards, to be apl)ointed by the Commissioner, as needed, from the entire number of depulty tax-conimissioners, of which boards the Commissioner and his Assistant Commissioner, also, Inay be members. It is also prol)ose(l to establish a Board of Review, independent of the Tax l)epartment, by which all applications to review decisions of tax-boards must be heard in the first instance and from whose orders, iade 111pon formal appllications. appeals will lie to the Appellate Division of the Supreme Court. Provision is made for informal applications to this Board. lint without right of appeal from orders made thereon. Certiorari in tax matters is abolished. The Hoard of Review is also given jurisdiction to review assessments not confirmed by a court of record. By fart the greater part ot the city's revenue is derivsed from the tax on real estate which in 1922 yieldled over $280,000,000. The Tax Department apportions this huge annual tax levy by an assessment of real estate in acco(rdance with its actual value. It is of the greatest impl)ortance not only to the individual property owner blit to every mleniber of the community that these taxes be levied fairly andi that the community have (onfidence in tile operation of the Tax Department. Tlie eeonomie blrdeln of tile taxes (ollected is increased 1)y inequality in assesslmenlt. People pay more willingly taxes which they believe to be fairly apportioned. Lack of confidence in tlhe fairness with which the tax is apportioned creates unprofitable andl uiinnecessa1ry dissatisfaction and lessens, insofar as any inequality exists. the amount the city can collect. Therefoire any impr(vement in the procedure which will facilitate the correction of errors in assessment must be of advantage to thle city. The methods at present in use in the City of New York for the assessment of real property confortii to t he best modern practice; ulit of course there must always be cases 2:1 of ditfer-ence of opinion betweeii the Tax Depaitiment aii(l] the property owners. The, (iief (lefect of the assessment inachiiiei-y in this city is that the property owner miust appeal for the correction of assessments,., to the officials who are responsible for the valuation, and that hie has no further appeal except by conrt proceedings. The values of properties are fixed by Deputy Tax Commis.sioners andl appeals are heard by members o;f the Board of' Tax (Commissioners who (10 riot themselves make original valuations. The members of the Board, however earnestly they may eiideavoi to review apIpeals liiilpartiallv. are obliged to work luiri odis and must always be somiewhat influenced by a naturai tendency to uphold the work of their subordinates; aiid ev en if they successfully overcome that tendency the propert h owner is ap~t to feel that lie is a victim of it if his appead is rejected eveti for the best of reasons. Where the propeirty ow ncr Is appeal to the Tax Comimissioners is drenired his oav irented~ mN i to apply to the 'Supremie Court for a writ, of certiorari to have the assessmniit icviewed by the couirt. This necessitates the employmrent of coutisel amnl real estate experts and all the expenise andi delay incident to cumrt p)roceedinigs and the preparatioii of expe t testinon iv Competent authorities estimaute thait in this city~ unless aredllctioii of oiie hundred thosisandl dollasi on the assessed valuation can be obtaiuied, the expenses of certiorari proceedings are likely to be in excess of the relict to he obtained by a successful litigation. This 1)racticlky deprives the large niass of p~roperty owiiers of ain adeupiuate rin( ii(y Tni om-der to afford a slimple and less exlpeisive method of tax anpp('ls the Commnission has adopted the plain lbriefly outlined above. The first appeals which will lbe referred as now to Boards coml)0sed of Tax D~epartmnent officials, should have the resuilt of correctinu& obvious errors aiid ought to( work as satisfactorily to the property owiiers as unuder the lpreseiit svsteni. I After the taxes are levied, the property owner who is dissattistiedl withi the (lecision oif the Tax Department will still have the right of aii appeal to the Board of Review, hiiovidled his appleal lie seasoiiably taken. He can present 24 a comI)laint informally to the Board of Review, w hich is empowered to hear and deide summarily and to order any adjustment or refund of taxes that may be necessary. No appeal will be allowed to tlihe courts from a decision oin such -an informal complaint but whether or not an informal coImplaint has been made or decided, the property owner is given an additional right; of submitting a formal and detailed complaint, and if this is not decided to his satisfaction an appeal can be taken (directly to the Appellate Division. Althougl such S a formal complaint would require careful preparation, as is now necessary in certiorari proceedings, the procedure before the Boarii of Review would be much simpler than in the Supreme Court and the case would be rea.ched witli much less delay. Moreover an al)pp)ellate lody which gives its attention exclusively to questions of taxes and assessments should tbe in a far better position to decide appeals equitably than a court (f law. The present head of the Tax Department is a Board of seven members. The President of the Hoard usually exercises supervisory power, although this can be exercised by a majority vote ot' the Board. The need of having such a large Board under the present system is chiefly to hear appeals. The change proposed in the mrethod of' determining appeals makes a large Board superfluous. It is proposed therefore to have one Commissioner as hliead of the Tax Department so as to concenrt iate the responsibility for routine administration. A first tax-payment of one per cent. of the tax assessments is required to be made, beginning in 1927 (that is to say, nearly four years hence), on the second day of January; the balance becomes due May first but payment in either case may be postponed for four mronths by paying interest at the rale of six )er cent. per annuirn; thereafter defaulted taxes are to bear interest at thle rate of three-fourths of one per cent. pler month. This arrangement should obviate in part thle necessity of issuing revenue bonds and as compared withl the present arrangement should mean a large annual saving to the City in interest (paid and received). Such provision is made that the loard of Aldermen, in its discretion. may reasonably classify taxable property and 25 mayi provide for its assessment 111)01 differing bases of valination or for ifs taxation at different rates. 2. Condemnation and Assessments of Benefits. The existing law upon these, suib jects fias been completely revisedl, rediiidaiit firovisions have been eliminated and provisiolis iearranged so as to bear logical relationship with one aniotlier. The laws Av itich aie applied in lpractice, however,. have beeii retained wvith imlnaterial alterations. Thle priolposed cliartr i rIov ides that all forms of public improvements, except piillic bliildings, may be hirovided for, in wvhole or in part, if iii the judgmenit of the City authorities the eolnditioiis jilstlfx such course, by the assessment of private property esfpetially b) ieneited tfiereby. Upon0 the Board cif Review fias been conferred the powver to review tlhe work of the Bollrd of Assessors, in lplace of the ireseit Iloard orf Revisioii of Assessments as under the existing charter% 3. Pension Funds. Provision is niade for a siiigle iigency to administer, investig~ate aiid report upon peiisioil and retirelient fnnds, t0irough wvhich a veiy great and oiily fpartially appreciated city obhigat ion (nioiral if not legal-probably legal in part) is -raduallx accnmnlating. The ]hoard(, of Pension Fund Trnstees, xxhichi is proposed, is to be composed of City officials, thiree ot whlonm are already directly interested in the rianagemeut 'inid protection of existing funds. Tile remainiiir iiemibers of the Board ai e to Ile the most responsible airiong the possible iepiesermtatixes of the City. Pending a cinsolidatiomi of aldl pension systems (which is antliorized to lie niade bx joilt ac tion of the Board of Aldermen and the ]-loaid of Estima~te oin(h Ahpportionrmenlt, pursuant to a Illan whlich she lBoiaid of Pensioii Fund Trustees is directed to forniul-ate amnd report), f le existing funds are to be kept dlistiiict but not exteiided. Permamnuent pi-oxisiom is made agrainst the impauirmeiit of acci ued benefits lint the pi-oposedl charter contemplates the incorporation of all fumids, froui the dlat~e of collsolidlatioii, in a single fund to he uainlutained] upon an actuarial basis whiel xx-illI properly pirotect the benetliciaries amid w-ill assuire the City tcagainst the future dis 26 covery of obligations that many not have been provided for. Retirements which entitle the persons retired to pensions or like benefits are to be made by thie Board of Pension Fund Trustees. The beneficiaries of the various funds, actual and contingent, are afforded wide supervisory privileges, to be exercised through the medium of an Advisory Committee. 4. The Budgets. The proposed separation of thle city and educational budgets already has been explained. The proposed charter provides for the appointment by the hoard of Estihmate and Apportionment of a Commissioner of the Budget, whose duty it shall be to gather materials for and to prepare a proposed city budget for submission to thlat board. lie is given full authority to secure information fromlI city officials at any time arnd official and department estimates, including a very full statement by the Comptroller, are required to be transmiiitted to him not later than the first (ay of Septerimber of each year. The Commission is of the opinion that in a city, the affairs of which are of the magnitude of those of the City of New York, the work of budgetmaking should go on comtinuously. This is particularly true because supplementary appropriations mnust constantly be considered and acted upon. It is appropriate that the (Commissioner of the Budget shall be a subordinate of the Board of Estimate and Apportionment, both because as such he will be supported by the authority of that body and because, by making him a part of its organization, the duplication of an established machinery may be avoided. In making up the annual budget, the Board of Estimate and Apportionmnent, in effect, is left with full discretion as to all except contractual and quasi-contractual obligations, except that provision must be made for the state courts and any boards, if any, that in substance serve only the City or'one or more of its subdivisions. It is also provided that all taxes and assessments levied after January 1, 1926, and in default for more than four years shall be deemed "uncollectable" and that provision for an equal revenue be made in the next ensuing burdget. Tax-liens now are subject to sale after three years and it has been assumed that this period will riot be extended. 27 The initiative of the Board of Aldermen in the formulation of the budget is greatly increased, but its action thereon is subject to tlie approval of the Board of Estimate and Apportionment to be given within a limited period. 5. Borough Presidents. Each of thle Borough Presidents is required to appoint a Commissioner of Public Works who is authorized to exercise all of the administrative powers of the Borough President, irrespective of the latter's absence or disability. It is believed that the power of the Board of Aldermen over appropriations, together with this provision for Coimmiissioners of Public Works, who should quickly become tlie executive heads of the Borough Presidents' offices in routine matters, may be regarded as a reasonably sufficient answer to the criticism that the power that spends is the power that appropriates. (As a matter of fact, the Borough Presidents do not, either in theory or practice, control the Board of Estiniate and Apportionment.) The system provided for. in practical effect, does not differ from the British governmental system under which taxation, appropriation and expenditure are all controlled by Ministers, subject only to the necessity of obtaining the approval of the House of Commons. That system certainly has stood successfully the test of experience. 6. The Chamberlain. In deference to the opinion that the principal auditing officer of the City should not be also the collecting agency of the City or the custodian of its funds, the Commission has recommended that the Chamberlain be made the independent head of the city treasury proper and that bureaus for the collection of (1) taxes, (2) interest, rents and waterrates. (3) arrearages of taxes, assessments and water-rates, and (4) license fees, shall be maintained in his department. 7. The Board of Water Supply. The Board off Water Supply is not abolished but the Board of Estimate and Apportionment is empowered (a) to leave it in existence, (b) to consolidate it with the departnient charged with the control of water distribution in the 28 City, or (c) to convert it into a department of the city government. 8. Commissioners of the Sinking Fund. It is prop)osed to abolish the Board of Commissioners of the Sinking Fund and confer its powers upon the Board of Estimate and Apportionment. 9. Reports-Audits-Publicity. The proposed charter contains numerous provisions for reports by officers, departments and the executive officials of revenue-producing improvements, for the examination and audits of their accounts (both by the Comptroller and the Commissioner of Inquiry), for the investigation of methods of adini listering the City's affairs, for public hearings, for the furnishing of information to citizens, for piublicity through the publication of notices of proposed action and of data and for tax-payers' actions. 10. Appointments and Removals. All departmental hreads and all independent app)ointive officials (except tile Commliissioner of the Budget arid subordinates of bor-ough presidents) are to be appointed and may be renmoved by the Mayor. All elective officers, except Aldermen, and also the l'oli.e Commissioner, may be removed by the Governor. 11. Repeals. In an ordinary case, the repealer clause incorporated in this draft would probably be sufficient and the wisest fori of effecting the necessary,iodification of existing laws. But in this case, xwhere the Ipurpose is to eliminate, to the utmost extent i)ossible. the mandatory effect of existing legislation, and particularly since the City, if it be not repealedl, may attempt to supersede murch of it by enactments of its own (with resulting confusion), a very careful examination of the existing Charter. thle Consolidation Act and all statutes now in force which affect the City should be made to determine whether the specific repeal of acts which may inot be affected by the repeal clause lproposed is not de 29 sirable. The proposed charter provides that the existing Boaird of Estimate and Apportionnient shall transmit to the Legislature, with a irepoirt of its action in creating an interim official and departmental reotrganization, its recommendation as to desitable specific repeals. In this connection the Commission desires to call attention to the l)igcst of Special Statutes Relating to the City (f New) York, which -as prepared hvy a legislative committee pursuant to Chaplter 530 of the Laws of 1914, and was published in 1922 under the direction of this Commission pursuant to a special appropriation therefor made by the legislatule in 1922. This Digest will be of great service when this whole prioblem of specific repeals is taken in hland. The Comlmission also calls attention to a study made by Mr. Arthmi W. MAlacmahlion of the Statutory Sources of New York City Goierinment which will also be of service in this conniection. This study, published in pamphlet form by the C(ommission, is an able discussion of the difficult legal problemis that are involve(d in pioposals to simplify the statutory soutlces of tl e City's govetrnment. New Policies. Sinking Funds. The City maintains a number of sinking funds from which p)rovision is suppose to bc i made for the payment at maturity of its funded debt, otlier than serial bonds and short-dated paper. These sinking funds are the following: (1) The Sinking Fund for the Redeml)tion of the City Debt (i.e., that of ithe o(ld ('ity of New Yoirk), which at the end of 1921 secured about $24,000,000 of debt all outstanding in the hands of tile public, and shoild cease to exist inl 12!); (2) The Sinking Fund for the i)ayment of Interest upon the City Debt (the debt of the old cit y), which has prtactically been absot-bed in Thle Sitnking Fund for the Redemption of the City Debt; (3) The Sinking Fund of the City of New York, which secures the funlded (iebt of Greater New Yortk not w;ectue(l by special r-i(enues and not including serial bonds, water bonds and shorlt-dated plaper, amounting at the same date to about $5-65 000,000 of publicly held debt; (4) The Water Sinking Fund of the City of New York, which secured at the en(l of 1921 about.$1SO,000,00 of lpublicly held obliga 30 tions; }5) The Rapid Transit Sinking Fund, which at the same dalae secured more than $193,000,000 of obligations in the hands of the public; (6) and (7) two sinking funds of the old City of Brooklyn and (8) one of Long Island City, the three last imentioned funds at the (late mentioned securing less than $8,000,000 of obligations in the hands of the public. With negligible exceptions, the sinking funds of the City are invested in its own obligations and the revenues of these funds, as they accumulate, are invested and by ordinance are required to be invested in the same way. The surplus revenues of the Sinking Fund for the Redemption of the City Debt, which amounted for the year 1921 to about $34.000,000, are withdrawn in exchange for so-called "General Fund Bonds," which in effect are mnerely receipts for the payments of the money thus returned to the City but which nevertheless draw interest. The money thus obtained is used as if general revenue and its return to the City operates to reduce current taxation. This, under the existing law, will continue in a generally accelerating volume (by reason of the increase of the City's special revenues pledged to the sinking fund and of the regularly increasing volume of General Fund Bonds upon which the City pays interest to the sinking fund) until 1929. After that date, the surplus and revenues of this Sinking Fund for the Redemption of the City Debt will be transferred to the "Sinking Fund of the City of New York," a sinking fund for the amortization of such of the City's funded debt as is not otherwise provided for. The revenues of the other sinking funds and the amortization installiments (raised by taxation outside the two per cent. tax limit, as permitted by the Constitution), so far as they are not; used for the extinguishmenit of the debt secured, are invested, as a rule, in new obligations of the City which are purchased from the City for the sinking funds as they are issued. In this way in 1921 about $10.000,000, net, of sinking fund revenues were invested in city obligations (exclusive of General Fund Bonds) upon all of which interest is paid into the sinking funds. The result of this process is two-fold: (1) The surplus revenues of the Sinking Fund for the Redemption of the City Debt, becoming. as they do, a part 31 of the general city resources, enables the City to spend for general purposes just that much more money than it could spend otherwise; for as the City taxes its property up to the full constitutional limit otherwise than for the debt service and possesses substantially no other means of raising revenue for current exp)enses, it would be compelled, but for this recaptured sinking fund revenue, to confine its expenditures for general purposes to tile amount that would be produced by a two per cent. tax upon, the assessed valuation of its taxable property. The vice of this system, from the point of view of sound financing, is that, as the greater part of these transferred revenues are derived( from prol)erty which the C(itv has acquired through the medium of outstanding issues of corporate stock and bonds, at least an equivalent should be app)lied to retiring or amortizing the City's funded debt, which as things are arranged is care(d for in much the larger part by taxat ion outside of t lhe two per cent. tax-limit. (2) So fir as the money paid by the City as interest upon IGeneral Fund Bonds and reinvested in bondils of that issue is concerned, it is merely paid out of the General Fund upon a fictitious debt owed by the City to itself and reabsorbed into current revenues. The whole thing is an " in-and-out" account and amounts to a more or less frank withdrawal of thlie large surplus revenues of the Sinking Fund for the Redemption of the City Debt and their use in the same waay in which they would have been used had not that sinking fund been over-served. Bult with relatively minor exceptions, the interest upon city obligations held in otlier sinking funds is raised by taxes in addition to those comprised in the fixed two per cent. levy. In 1923, the amount of interest thus to be paid upon bonds held in the variois sinking funds, other than General Fund londs, and to be raised by taxation outside the two per cent. limit, is fixed in the budget at more than $6,460,000. In addition, there will be raised by like taxation in order to pay the amortization installment due to the Sinking Fund of the City of New York (the new fund) $7,100,000. There ws-ill be other revenues falling into the sinking funds other than tlhe Sinking Fund for the Redemption of thie City Debt, which in 1921 amounted to more than $3,200,000. Except as these sinking fund accretions are used to redeem or bv can 32 cellation to extinguish the City's funded debt secured by sinking funds-less than $15,000,000 of which falls due fromIl 1923 to 1927, inclusive-the moneys thus raised (most of it by taxation outside of the two per cent. limit) are invested in city obligations (principally new) for the interest upon whlic a new tax not included in the two per cent. limit is levied during succeeding years; the proceeds of this tax and pre-existing taxes are used to pay interest to the sinking funds, the amortization installments and miscellaneous revenues are added and all these again, except as secured debt is retired, are invested in further city obligations. And so the process goes on progressively. When the revenues of the Sinking Fund for the Redemption of the City Debt fall into the Sinkino' Fund of the City of New York (in 1929), this process will be greatly accelerated, unless some device, similar to the vicious practice with respect to General Fund Bonds, be adopted. According to present practice, these sinking fund moneys which are invested iin new city securities (other tlian shortdated obligations) are paid out, when re-taken by the City, for various forms of improvements, some of which, like docks, may be prospectively revenue-producing and some of which, like school sites and buildings, are unproductive fromn the standpoint of revenue. The money thus raised and so invested does not represent, in any real sense, an amortization of existing debt, imuch of which-in excess of the ten per cent. debt-limnit-hlas been incurred upon the assumption of its annual amortization, blut mierely enables the City to keel) down the amount of new obligations which otherwise it woiuld sell to tlhe public. It is in reality raising a part of the cost of imlprovements by taxation in excess of the two per cent. limit. This it. would be doing, also, if it sold these new bonds to the public and afterwards paid the principal and interest hy tieans of taxation. But it is not amortizing the debt securiied by its sinking funiids and in particular it is not amnortizing those portions of its debt which it has been perm-iitted to incur upon the strength of its obligation to amortize theim. To the extent that this p)rocess maintains (theoretically) the reserves required for amortization of the debt sectired by the sinking funids and held by the public, the practice may be justified in its legal aspect, but, inasmuch as the 33 City's obligations held in the sinking funds are not real additions to its ability to redeem its debts, this justification is theoretical rather than real. It must not be thought that there is anything new about what has been described. All of it dates back as far as 1903, when Mayor Low's administration secured the passage of the General Fund Bonds Act and the practice of investing sinking funld moneys in newly issued city obligations goes much further back. Now, sinking funds have very well-defined legitimate functions. Their primary purpose is to secure to the creditor the promlpt payiment of his claim. They constitute savingsfunds which assure tlhe debtor the means to pay his debt or some part of it. In cases p)ermlitting such retiremlent, they permit obligations to be retired before maturity and thus save interest charges. They may assure or facilitate the amortization of thie cost of an improvement which has been financed by means of the principal issue and thus automnatically convert it into a real asset. By furnishing security for payment and providing a mlarket for tlhe issue secured, they maintain thle market price of tile issue and enhance the prices which the debtor niay obtain or restrict the rates which he must pay witli respect to other loans. In the case of the City, they are intended, in large part, to constitute tile justification under thlie (onstitultion for exemptinig various large corporate stock and bond issues froinm the constitutional debt-limit by assuring the accumulationi of special funds for their amortization. Only in indirect ways are such purposes served by the City's sinking funds. It is plain that the mere accumulation inl a sinking fund of the City's.own obligations, unsecured by lien, cannot add( anything to the debtor's security. Nor does it increase the City's ability to pay tlie debt at maturity, except as it supplies a reserve of the City's own obligations which thecoretically ilay be sold in the case of an issue that the City is not authorized to refund or cannot conveniently provide for inl the budget. The sinking funds, however, may be saidl to all'odl, indilectly, a real1 security to clreditors and a real resource to the City in tliat the annual income of the funds, and particutlarly lie surplus income of thle Sinking Fund for tlie Redemption of tlhe City Debt, has become so 34 large that, it practically assures the City's ability (sometimes in a round-about way) to pay almost any installment of the existing funded debt as it natures. But this resource would have existed if the sinking funds ha d not been created. Tle other purposes ordinarily served by sinking funds are not satisfied except indirectly and incidentally. By the use of sinking fund revenues for the purchase of inew issues of city obligations and particularly by assisting temporary financing (the carrying for a time otf revenue and sp)ecial revenue bonds, tax-notes and corporate stock notes), they doubtless operate, if wisely utilized, to save interest-chlarcges and at tirmes to maintain the C(ity's credit. They certainly do not serve, but their' administration rather results in evasion of, the purpose of the Constitution to compel the current accumulation of real assets for the retirement of existincgl debts. In view of the possibility that large increases of city debt will occur in the immediate future for thle purlpose ot financing enterprises which imay produce no surplus revenue for several years, it seems highlly desirable that the sinking 'funds shall be placed upl:o a footing at least resembling that which the Constitution unquestionably contemplates. This wvill be even more desirable if thle constitutional debt-limit be enlarged. Unfortunately, the City's financial operations have so long been founded upon tile existing laws and practice that to inaugurate a complete reformn of tile sinking fund system does not seemi presently practicable or wise. If thle draft. of charter sulimitted herewith be enacted, the Comptroller will be required to calculate periodically tihe reserve which must be maintained in each sinking fund in order to amortize each issue secured on or before its maturity. This reserve will. be required to be made up, eventually, of or from (1) obligations of tile issue secured, (2) revenue or special revenue bonds, (3) othler city obligations having maturities earlier Ihlan that of the debt secured, and (4) obligations of the United States, the several States and municipalities other than the City whiich are qualified investments for savings banks in the State of New Ymork. Tlie investument of revenues or moneys of any sinkingii fundll in obligations of the C(ity, otiler than those sl-ecifiled unless the required reserves have Ieen established and are beinig maintained, is prohibited. When that condition exists, suchi 35 investments may be made. Securities held in tile sinking funds are to be kept alive and interest thereon collected. Obligations held in a sinking fund may be sold for the purpose of paying oi redeeming the debt secured or for reinvestment within the limitations in that respect summarized above. Obligations, other than those of the City, comprised in reserves are to be valued for actuarial purposes at their true market value. The Board of Estimate and Apportionment is authorized to apply any surplus sinking fund assets and revenues to the retireinent of the principal issue secured and of course, if invested in refunding bonds or exchanged for assets of other sinking funds app)licable to the purpose, they may be applied to the retirement of other city debt. Taxation, outside of the constitutional tax-limit, for the payinent of interest upon city obligations held in sinking funds, except to the extent necessary to maintain the reserves for amortization, is forbidden. Constitutional Debt and Tax Limitations The demands upon the current resources of the City are constantly and necessarily increasing. It is extremely likely that these demands will greatly increase in the near future. Even with the exercise of tlhe most rigid economy, the revenue necessities of tlIe City will in the very near future exceed the yield of a 2% tax. Bridges, tunnels, water-front improvements, schools and other public buildings iust be constructed; streets must be opened, enlarged and repaved; a great variety of other public improvements must be provided; in each instance, large expense that cannot be recovered through assessments upon private Iroperty must be imet; constantly enlarging demands for educational facilities must be met; the -uadministrative staff, the police and fire force, andl thle operative employees of the City must be increased as the City grows in numbers and in occupied territory and as its communal activities are extended. It is only at this Iprice that its development as a great metropolitan lbusiness center can be continued and its prosperity and usefulness to the State and Nation assured. The State of New York, outside of the City, shares largely in thle benefits. direct and indirect, of the City's prosperity and develop 36 ment, and has an evident interest that they shall not unnecessarily be checked. Aside from the fact that the City comprises one-half of the population and more than one-half of the wealth of the State, the fact that its commerce, its enterprise and its wealth, create, furnish the facilities of, and stimulate in so large a degree the business of the entire country, including the remainder of the State, renders the City's prosperity the prosperity of the State. The State should see to it that in the City of New York business may be done more easily and in greater proportionate volume than anywhere else in the world. A substantial proportion of the taxes for City purposes paid by the inhabitants of the City are, in truth, merely a part of the business expense of those who prosecute their enterprises with the help of the facilities it affords. Already the City's educational system absorbs about onethird of the budgetary appropriations. In 1923, the City must raise by taxation for the service of the public school system approximately $80,000,000, out of a total of about $250,000,000 raised by that means-or 31.9% of its entire tax-levy for city and county purposes. Fully to meet the requirements of the public schools, in a city of heterogeneous and largely of unassimilated foreign population, is an imperative and a paramount necessity. Until this obligation has been discharged, subways, street and water-front improvements, bridges, tunnels, parks and public buildings must wait. Only police, fire and health protection stand on the same plane. Much of the care given to the instruction, discipline and hygiene of the City's school children is given, however, not merely to render them more efficient economic units, or individuals better equipped for life, but to prevent the growth of elements hostile or unadapted to American institutions and laws, and in that sense is given for the benefit of the State and the Nation. It must be quite evident to any observer of reasonable intelligence and detachment that the City's present resources of taxation cannot long support the growing needs of normal administration, of its educational system and of its physical development. It is axiomatic and susceptible of verification that. in a community situated as is New York City, the public requirements must increase more rapidly than does the value 37 of its taxable property, for the increase of value is tlie product of the increase of business, which cannot occur beyond narrow limits without provision in advance for tilhe facilities which are necessary to the expansion of population and territory which in turn are essentials of the expansion of business. We see an example of this in the existing need of transportation facilities which demand investments so much greater than any probable early returns will justify that private capital declines to provide them. Accordingly, we find that the City has reached tile limit of its constitutional power to tax property within its limits. If the Coimmission's recommendations with respect to the sinking funds sand taxation therefor should be adopted, the legitimate pressure for an enlarged tax-limit would be somilewhat fur ther increased. The City's debt almost hIas reached the constitutional limit, if indeed, including all charges which (morally, if not legally) are unescapable, such as the provision of pension reserves, that limit lhas not been passed already. Evidently, some relief soon must be given. There seem to be only two practicable methods of affording iimmediate relief: First: The State, if it will, can provide relief in the matter of the schools. Education is and by the Constitution is declared to be a state function. The State canl assume financial responsibility for its support as well as responsibility for its administration; it can determine for itself, through its own agencies, what in its interest as a whole shall be supplied to tile City in the way of schools, teachers and administrative staff, and then, by direct taxation, it can provide the means to sustain the schools, to acquire sites and construct buildings for them and to pay the interest upon the indebtedness which in the past has been contracted to supply and maintain themi, levying its taxes proportionately throughout the State or upon the New York City school district, as may be deemed just and wise. This would leave the City free to apply such part of the moneys which it now raises for school purposes as may be necessary to its other rapidly increasing needs: Or the State can by constitutional amendment free the hiands i(f the City to some less extent by establishing a 38 separate tax-liniit for service of the edlucational budget, placing the power to deteriline and allocate tile gross amount to be raised by taxation for suclh purposes, within tlhe prescribed limit. in the hands of the Board of Education or other body administering tlie city school district. In that event, the tax to be imposed for all educational purposes, including the acquisition of sites and the construction of buildings, except as the City may efect voluntarily to aid therein, might perhaps be placed at 8 iills per dollar of assessed valuation $(100,000,000 upon the basis of 1923 tentative assessments). If this expedient were adopt ed, the tax-limit for proper city purposes (other than service of the city debt) might be placed at I.70 cents per dollar of assessed valuation, which would result in increasing the aggregate tax-limit by onehalf of one per cent, and the limit of taxes available for new or additionall ity purposes by about. 34/100 of one per cent. The Commission coimends tliese alternative suggestions to the consideration of the Legislature. If either of them should be adopted, it wAould be reasonable iand wise to insert in the City Chartei a provision requiring 'all net revenue derived 1romi revenue-producing improvements to b)e applied, whether after or' without withdrawal firol0 the sinking funds to the retirement or to pIrovision for the amortization of the principal of the City's funded debt. Second: Tlie Commission ihas recommended the judlicial ascertainmient, in advance of' autlhorization, of the probable cost and earning power of any proposed revenue-I)roducing improvement to cost inore thanl $50,000,000 and the granting to the City of power to issue bonds (within constitutional limits-whatever they may be) fto tlie i)pulipose of financing the improvement to an amount proportionate to the ability thus determlined of the improvement to provide for interest upon its investient after providing for all other proper charges, including amortization. This is an attemlpt to grant to the City aplproximately the same discretion (within constitutional limits) andl to compel it to exercise the same foresight and iprudenee which a well-mianaged private corporation possesses and exercises. It would seem not imprudent, considering the real necessity for permitting the City to regulate and meet tlie deiiands tof its own devielopmllent and consider 39 ing tlie pi-actical fliniitatioris which the market for securities imposes, to perit bond~s to the extent thus (refined to be issiedl irresliective of the constitutional ten per cent. debt liumitation, not, however, permitting theni to be excluded iii calculating the City's debt-incurring power for other purposes except as and to the extent that they actually may hecoiae 1 self-supportijug." The Commiission wvill submit in connect ion wvith this report, a draft of amendment of Section 10 of Article VI1II of the Constit utioni, which provides (1) for such exeniptiori ('2k) 'ipplies to the entire existing rheit contracted foi mrexenue-pmrodrmcimi iiiilroveuieuts (so far as riot alretady a IhollN exemupt) the sine raile of proportionate exemptioii which is alirea dy applicable to the (debt incurredl for revenue-piroducing i101rouseriiensts incurred Jprior to 1910, and (3) codifies tlic provisioins of Section tt, Article VIII, which ap)ply only to the City. T le Commiiission submits this as a riot unrieasonable suggestion for consideration by the Legislature. As a riiatter of fact, unless soriie such expedient be adopted, the giftt to the City of hiome-rule ini the matter of rapidi-transit construction and operation miust for a longy tirie i-cmain iii large part riierely illusory. The Commission's Appropriation and Accounts. The Commission believes that it will complete its work within te liemIiiits of its original appropriation. This it could not have domie if Mr. Crutclieoii had iiot preferred to serve the comnindssion as its coinisel without conipensation. It will,annex an accounit of its expenditures. Conclusion. While thme Cominiission has given to the (ilaft of proposedi charter submitted herewith a very great deal of consideration anad labor, it is frilly conscious that errors arid inicongruities mnay have crept into it-conscious also that concerning many of its recomiriendations more than one view rmay be urged arid supported] by reasonable argument. It asks that the Legislature, in reviewing its work, accord to it some reasonab le measure of indulgence and tire same ((pen-minded consideration of its recommendations which the Commission has conscientiously endeavored to give to all aspects of the in 40 terests of the City and State with which it has been called upon to deal. It would be impossible for the Commission to exaggerate its debt to its counsel, Mr. F. W. M. Cutcheon. He has given his time prodigally to the work of the Commission; and on almost every page the proposed charter bears the results of his profound study of, and reflection upon, the facts and problems of our municipal life and government and the impress of his (clear mind. Respectfully submitted, HENRY DE FOREST BALDWIN, Chairman HOWARD LEE MCBAIN, Secretary JOSEPH M. LEVINE J. J. KELLER GEORGE CROMWELL HERMAN A. METZ ARTHUR S. SOMERS EDWARD M. BASSETT IH. PUSHAE WILIAMS LOUIS L. DELAFIELD WMA. BARCLAY PARSONS Dl)aed, New York, March 5, 1923. APPENDIX A CHARTER OF THE CITY OF NEW YORK (1923) TABLE OF CONTENTS ARTICLE I. Corporate Status and Rights; Boundaries; Boroughs. Section 1. Short title. 2. Corporate status and rights. 3. Boundaries and boroughs. 4. Powers: 1. Ordinances. 2. Assessment and taxes. 3. Apportionment and assessment of costs of improvement. 4. Assessments and taxation for local improvements. 5. Appropriations, accounts, special funds. 6. Contracts and suits. 7. Acquisition of property, excess condemnation, cession to TJ. S. or state. S. Public improvements and facilities. 9. Public buildings. 10. Educational and welfare institutions. 11. City property; vesting title, payment of awards, management; sup.plies for courts; improvement of navigation; inalienable property. 12. City plan; approval of maps; regulation of buildings on unospenesi streets; opening, closing and use of streets; agreements with other municipalities. 13. Building regulation: zoning. 14. Organization and control of administrative agencies. 15. Control of oflicers and employees. 16. Franchises ansd permits. 17. Regulation of public utilities. 18. Operation of putlic utilities directly or under lease. 19. Incurring of debt; form of obligations; sinking funds and serial bonds: limitations upon and purposes of incurring debt: general fund bonds. 20. Pension fund: consolidation of existing funds. 21. Control of city money: contracts; equitable claims. 22. Public offices and records. 23. General police powers. 24. Referendum as to improvements. 25. Investigations; publication of city advertisements or information. 26. General grant of power of self government. 5. Distribution of powers conferred upon the city. ARTICLE II. Elective Officers. Section 6. Titles. 7. Board of Estimate. 8. Manner of election and terms of officers. 9. Aldermanic districts. 10. Nmnber of aldermen to be elected in each district. 11. Manner of election uand terms of aldermen. 12. Elections. 13. Change of districts or apportionment of aldermen. 44 14. Removal: 1. By Board of Aldermen. 2. By Governor. 3. Removal of aldermen. 15. Vacancies. 1. Mayor. 2. Comptroller. 3. President of the Board of Aldermen. 4. Borough president or alderman. 16. Salaries. ARTICLE III. Board of Aldermen. Section 17. Powers as legislative body. 18. President of the Board. 19. Vice-President of the Board. 20. Officers; publicity of proceedings. 21. Meetings, quorum. 22. Record of vote. 23. Delay before vote. 24. Action by Mayor, action of Board after veto. 25. Elective officers, right to attend Board meetings. ARTICLE IV. Board of Estimate and Apportionrmment. Section 26. Powers. 1. Powers in subdivisions 11, 12 and 17 of Section 4. 2. Improvements not over $500,000 and streets; improvement defined. 3. Excess condemnation. 4. Apportionment of cost of improvement. 5. Zoning; building regulations; public hearings. 6. Organization and control of administrative agencies. 7. Franchises andl permits. 8. Audit and allowance of certain claims. 9. Transfer of budget appropriations. 10. Issue of stock or bonds. 11. Refunding debt; fixing conditions of stock or bonds; sinking funds; general fund bonds. 12. Payment and compromise of taxes. 13. Actions at law: compromises. 14. City Record. 15. Other powers. 27. Estimate in respect to revenue-producing improvements. 28. Public hearings required in certain cases. 29. Action by Board: quorum. 30. Mayor to preside. 31. To appoint Commissioner of the Budget. 32. Rules; delegation of powers, secretary. ARTICLE V. Conjoint Jurisdiction of the Board of Aldermen and the Board of Estimate and Apportionment. Section 33. Powers of boards acting conjointly. 1. Authorization of improvements not under power of Board of Estimate and Apportionment; improvement defined. 2. Carrying out and assessing cost of such improvements. 45 Scct'oti 33. Plowers of boards acting conjointly. 3. Local imptrovement districts and boards; powers. 4. iReserve foods and accounts. 3. Cession of property to State or United States. 6. Control of officers and employees. 7. Financing improvements over $30,000,000. 8. Authorization of revenue-producing improvements; estimate of cost and, if over $30,000,000, unless for water supply, court determination of probable gross annual earnings andl operating costs. 9. Lease of revenue-producing improvements; conditions of contract or tease. 10. Powers as to pension funds. 11. Appropriations; making and adoption of budget. 34. Ltevenue-producing impirovements to be self-stupporting, If practicatte; cross expenses defined; taxpayers' suit; section not to apply to imiprosvements nosy operated. 33. Conjoint action by joint resolution. 3f. Veto of Mlayor; passage over vetoi. ARTICLE VI. The Mayor. Se(-tion 37. Chief Executive Officer. 38. Powers of Mayor. I - Appointment and renmoval. 2. 'Supervision of city governmenit..3. Enforcement of lawv aiii ordinances. 4. Catling special meetings; of boards. 5 Making reconinendatious to boards. 6 tiAlinnu statemno-t to Board of Aldernien. 3 9. May or at magistrate. ARTICLE VII. The Comptroller. Section 40. Financal officer. 41 tControl of citv money. 42. Prescrititng acounting methods. 431 A( Ioumnts, oi ertitions of revenue-producing improv-ements. 1. Audit of accounts. 2. Publication of re-ott of oleration of res-entue-producing impr-ovements. -I-. Payment of pulittc nmonev, 43). Audit of contracs 46. Certificate of sufficient unexpended balance necessary fur contracts untess tavatle ly -isosusment on property. 47. Adjustment of' claims. 48. Examination of U uimauts. 49. Audit as to aino-mit ot (111111 in suit; wvbea conclusise. 50. Claim on Comipti-oller before aetina to enforce umoney liability; one year limitation titan 1)1inging certain actions. 51. Custody of securities. 52. Consent to purdiase of remit estate. 53. Appiroval of confession of Jiiludgmnt wainimst city. 54. Forni. time of paym ntali suite of obligations of city. 55. Short term obligations. 1. In anticipation of taxes. 2. Special revenue bonds. 3. Corporate stock miotes. 56. Report to Btoard of Aldermen. 57. Appointment of lepitties. 46 ARTICLE VIII. President of the Board of Aldermen..Section 58. Presiding officer of boaed. RI. Acting May-or. ARTICLE IX. Borough Presidents. Section 60. Olt1ee in Borough. 61. Appointment of Commiissioner of Psblic works; poswers of commissioner. 62. Powters wvithin the lborouigh. 1. Street work. 2. Street clearing.:1. Street signs. 4. Surface railwesy tracks. 5. Permits afciting streets. 6. Bridges, viaducts and tunnels. 7. Drainage and sewers. 8. Puhlic buildings. 9). Other establishments. 1(1. Fencing, lilting, digging d]own tots. ARTICLE X. Departments, Officers and Employees. S'ectio n 63. Permanent departments. 64. Chief executive officers. 65. Permanent offices. 66. Power of appointment att(l renioval by chief executic-e officers. 1. First deputy. 2. Other deputies. assoistants. and employees. 67. Officers and employees other tisan first deputy only those psrovitdetd for in budget. 68. Repo~rts to Mayor. 69. Records to he public and ptsbhlheI lit City Record. ARTICLE XI. The Corporation Counsel. Section 70. tegal adviser of city tsnd its officials. 71. Trial of cases, comnpromnises. ARTICLE XII. The Chamberlain. SEeetion 72. Treasurer tf city and its officials; receiver and custodian of cIty inoney; payment of warrants.. 73. Bureaus established by Chamberlain. 1. Taxes. 2. Assessments and arrears. 3. City revenue. 4. License colleetion. 47 ARTICLE XIII. The Commissioner of Inquiry. Section 74. Appointmlent of deputies; designation of deputy as acting commissioner l)y Mayor. 75.7. Examinations to be niade by commissioner; reports. 1. l'Financial condition of city every three months. 2. Operatiom and organiiz.tion of all parts of administration;(ld revslle-pro(ulcillg imuprovements. 3. RIeports to Mayor and Board of Aldermen. 4. limits of examinaition of certain officers. 5. Power to (c'ioi)(l testiillony. ARTICLE XIV. Police Department. Section 76. Police commission 'r: removal by Mayor or Gove(rilor. 77. Powrer of police coissioller. ]. (Coneral. (a ) Aplointment of deputies; designation of acting ( lllllissisOller. (1b) Assignmient of captain or inspector as chief inslector; power of chief inspector. (c) Assignment of capltains as inspectors. (d) Detailing of officers as detectives. (e) Details to duty; leaves of absence. (f) Rales and rCegulations. 2. Subiject to powers of Boards of Estimate and Apportionment and Aldermen. (a ) Appointment of members of force. (b) Estiablishing of ranks and grades and so forth. (c) Uniforms and so forth. (d) Speeial patrolmen; park police. (e) Stations andi patrols. (f) Rewards for information. (g ) Control of traffic. (i) Supervision of certain occupations. (i) Conduct investigations: power to compel testimony. 7S. Special detail not to affect promotion. 79. Duty of inspector or captain. 0S. l)uties of members of department. 81. Powers of imemniers of force. 82. Absence from duty; resignations. 83. Board of Aldermen to specify causes for discipline; trial; court review limited. S-1. Present force and rules continued.,S5. Exemption from military or jury duty or arrest. ARTICLE XV. Department of Pensions. Section SO. Definitions. 87. Powers of comllmissioner. S,. Members of board; rules; powers.,t). Board to mainage pension and retirement fiunds. 9O~. Pension funeds to be kept seplrate until consolidated funid establisled. 48 Section ')1. li'(' ers of board. 1. Make investillels ilndl 111niage filuils. 2. Appoint actuary. 3. I ix lo lilentAs inlto funds.. tPowersy of Advisry tte. ):. 11lMeetiol of s tHllicll. ipl,1i lsts. t:e.t: p;ll'ti(,il)alits filt xislillg flillds. 5. Advice b omptro odler. 96. hBoard to have i stod iint of fundis. 97. Pension ]Fuid Advisory Committee. '9.8. Departmenerst o f is ittaxes. 1.. Desiettiit. i esiin e t pllle t of polillitlt Ie; lt d l ' I Is.I('( s. 2. ExiTliie tioeks l(i recordils. 3. oMaket ti i(viehl: mlldit. 4.. u eeties o f deartiilts. 5. Advice to boerd. 99. Board to have sole righit toi (,fl'icer',s:lan[ eplnldl)'os. ARTICLE XVI. D epartment of Taxes. Section 105. CMayor is asio irt al resive on cauie s.s. 1.. Orani l tion officer actison of celilyst.is. 10. P llteies ff idepulities: on. records Ind ll L. Offlct ill cato:h;riois. Board. ofter poandardseal Apropeals an ordxl of Appeals.l c testriiin.y. 102. C(,lo issioner tof Appeals.int ties. 10~. Commissitler to appoint ii.,s lhe corrli.tl, tx assssssllellt xs.:104. Pities of depltienil t. ARTICLE XVII. Municipal Civil Service Commission. S(ctiom 1(05. May.or to appoint ald rem ove on charges. 1(i;. Organiization:and actioa orf commission. 107. Power ol c-inmissioi.l 1t. Chlassili iation; riles. 2. \plpo)illtimelltS.el-liig Ol' SitiltS u ish."::. 1.,1,1f-renlent of ci-il sl-rviles ARTICLE XVIII. Board of Standards and Appeals and Board of Appeals. -t ionL 108. 0rg1allizitioll of boa:d. 1. Memlbers. 2. Qu,,lifivitioii o' appoie(lo wenl'ibes.:j. (''hdirll::11 a111nd se:e'l~ta'y. 4. Comp1eol t:vstimony... BOtIl'rI of' Aplpeals. G. Official imeiribel s. 10.(). Powers of bollI1d. 1. Test min terhils: 1ilmtk inv(,stig,_ loi,. 2. Rlt-h,. and:'egulation.< g~mer'll y.:4. Iill is,l0l r'egu-!:ltionll ill I',Sl)(q.t t{ coIr:nill bu)lihlit]'<'. 4. Cerltabil pwoers over lniiimjilds. I!) se1til22 ]11..\cliI o1nll 'll'e 2t1' I I' I tll io'g l I i l(.:1Iio lI. ]]. Ac.tion of bo222d2: lliblic recold: lIlldplicltio l ill Ih 4lil. 1'2. Inslpection. 11:. 1((xisting rIles colill ill f2 r(ce 011 til ('lm.ged. ]14t. Plowers of' Board of Aplpels. 1. Appl)els al(nd rviews. 2.:Matters refe'rred(l by Board of lEstimate; llildings inll 3. Mehiber disqualified on certlain questions. 11.. NIIIumer of vo1te5s necess1ary' for reve'rsaIl. 116. ActionIs fl'roin which a11peal IIIyV be laken: whlo imay appeal. 117. Time of taking appeal. IS. Appeal to act as stay. 119). Itearing: action on appeals. 120. Review o2l motion of meliber of Bloal of Ap)le1als. 121. Petition to Suipremie Court for review. 122. Certiorari; restraining order. 123. RIeturni of copies of pIapers siufficient. 124. Preference: action of court. 125. Costs. ARTICLE XIX. The Public School System. Section 120. City a school distrit; admillistered separate from concerns of city. 127. Schools administered by BIoard of Education. 128. School apI)propriation inl control of PBoard of Edlucation: funds of board 11ot cit;y 1money. 129. City (College and HMnter Co)llege. ARTICLE XX. Interim Provisions for the Administrative Organization of the City and County Governments. Section 1I.30t. Board of Estimate and Apportiolnment to provide for initial administration under act. 1:31. Schedule of laws to be repealed. 132. Comlptroller to preserihe rilles. 1'3. Effect of action by Board of Estimate and Apportionnllnlt and Comptroller. 134. Estab)lishmenllt of Htealth Department. 1~5. Teln vo(tes of 1lBoard of Elstiliate ne(essary. ARTICLE XXI. The Budget. Se1(tion 1:36. Board of Elstilimate an(l Apportionment to 111(1ake an11a1111l 1ity and educational budgets. 137. Transmission of estimates of expendllitulres a11nd receipts. 132. Comptroller's estimates. 1. Tax limit. 2. Debt incurring power within debt lilit. 3. Revenues. 4. Expenditures. 1:11. TPreiparation a1nd form of (ity lbudget. 140. Prep(iration andl( form of educational lbudget. 50 Section 1-11. Provisions ill city budget. 1. City debt. 2. State taxes. 3. Compensation of officers and emiployees..1. Administration a1nd minteiinance. 5. Elections. 6. Itegistry of voters. 7. Unpaid assessments. S. Uncollected taxes and assessmlills. i. Judkments payable. 10. Other purposes, contingent fund for eitergeniwes. 142. Provisions ill educational budget. 1. Operation anid maintenance of schools. 2. Sites and buildings. 3. New eduicational service; emergencies. 143. Proced(ure oni bliudget. 1. Completion after tearings: transmittal to Bloard of Aldermen. 2. Publication, consideration and adoption by Board of Aldermen. 3. Consideration by Board iof Estimate iid Aplpo rtionlmelnt if changed. 4. Alayor's veto of changes.;5. Filing in Coimptroller's office. (;. Publication as adopted. 144. No appropriation of specific revelies except to to the debt. 145. lnudget, to exiibit changes. ARTICLE XXII. Assessment and Levy of Taxes. Section 140(. Depu)ty tax comlllissiollers to 1iiilke asssiessellts. 1. Assessment generally. 2. Real estate. 3-. Personal property. 4. Details of returns. 5;. Classes of property. 147. Taxable stiatus: fixed on Octoie( 1. 148. Tax Board to fix valuations. 149. Record open to Public. 150. AppI)licltion for revisioii or cancellation it' asscfsineits. 151. Alteration of assessment: addition of omitted property. 152. Preplairaitioii of issessilecnt rolls. 1. Reial estate: paiyment of first inistallment of tax. 2. Excess payments. 3. Rolls ret iurnied to comnmissioniier. 1. Personal prolelty.,!. Correction of errors. f0. Delivery of rolls to Board of Aldermcen. 15>3..\ssessmlellt rolls; fornim ind resiult of errors. 1. TIn general. 2. Real estate. 3. Personal property. 154. Comptroller's statement of iniomit of tax: levy of tixes. 155. Board of Aldermen to levy tax. 156. County taxes may be leviedl on coiunties. 157. Action of Board of Aldeirmen in ficxingi rcitis 'lcc l omlitlettnig assessrnenlt rolls. 158. Entry of tax on assessment rolls..150. Delivery of rolls to receiver of taxes. 1ft. Taxes enforeed a:s: uniit. 51 Sectio I1 I. I' oyLcllent of tolX(s. 1. 1lulblic nolic(( I 'I rl'cvivc' il' IIll(, dllt. 2. lPenallt for del:. 1iG2. ]-eceiver to pay over tlxc t, (' lihnlberlloill. 1.63. Apportionment of tax amonl lpartlies in interl>t. 104. Taxes a lien on day due. 1(;~5. Power of Board of Alderimen to make regulations. 166. Exemptions. 167. Dates of taking effect. ARTICLE XXIII. Board of Review. Section 16;s. Alenliershilp. 1. A pl)Oinlt ml'llt '2. Tero office.;I. (11o1vll 011 o*llc]rges. I. Fillingo of v(fli('ies. 16l. R1evisionl or eancellatio of ']ss0essimeit. 1. Applieations. 2. Grounids for review. 170. Informal applieations; no appe:ll frol lac tion oln. 171. P'ro(edure 011on forlll:alllicatio( for re'ie('w. 1. Presentation of appllication. 2. Proceeding of board.::. ('orection of assesslllenit 111id tax rolls. 1 l. egulation of plrocedur'e. 1.72. Appleal to Supreme Court. 173. Refufnd of excessive tax. 174. ltestrictions as to remedies. 175.. ('onfirmllationf of alssessenl(lets 1llts l aid wlords tof JItll' t (if AssesARTICLE XXIV. Acquisition of Title to Real Property for Public Purposes. Section 17f;. D)efinitiols. 177. Acquisition of real property; appllication t:o the coIurt to conl17S. O(rder granting applieation to condemn; lproperty owners to file elaims; proof of ovwnership; trial of proceeding; court to view. 17f9. Tentative decree. 10fS. Notice of filing the tentative decree; filing of objections: awards not to be reduced nor assesSlifenlltS increased without notice. 181. Fina:l decree; preparation thereof; whlat to conltlin; partial (lel ees. 182. App)l(l to the Appellate D)ivision. 183. Appeal to Court of Appeals. 184. Ex(ess lands. 1 95. The ascertainient of tile lamoullnIt Iprolperly assessable in a plroeeding in which excess lands nmay be acquired. 186. Daimages from change of grade. 187. P'roee(dings to acquire title to real property for wlater slupply purposes. 181. C'laiis for compensation to owner of contiguols property: whflen to Ile presented. 1.,9. 'Closillng streets; sale to abutting owners. 19iO. Real lproperty mIly be conveyed or ceded to the city on such terims andI condlitiolns as the Board of Estimate and Apportiollfinelft may prescribe. 52 S(ectitm l!Jl ihIrch;St (d:' Plr )Ip'(cI ' I (y 1 er r.(ldI4hlnlItilI h II;\'[v;an' thelrtfor. 1!)2. V\sl.ing o.f title. l1. T'i( title to t1) acquired by the city. 14. (City entitled to compenisation and liablle to assessilent. 19 5. Contracts of 1ila(lord and telnant; or otieroi ro llcting part ies; how iffected. 196. (orploration Coiunsel to relresenit interest of city before the (olr t an(ld Iprovidle clerks 1111d offices; eXp(ilSeS. 19')7. Board of Istilmate and Apportionment to direct who shall furnish maps, etc. 198. Cost of malts, etc.. to )e certilied to the Corporation Counsel. 19.9. Costs:1lld charges; t:lmition t(h'leOf. 200. lDlmiiges for reail P)roperty taikeil; owheni to (e paid. 2'01. Instrumients assigning or pledging awards to) Ie iledl ill tile 'Iffice of the (omplitroller. 202. Moneys of persons iunder distability, how (lisposed of; onOlleys paid to persons not entitled thereto. 203:. Sumis assessedl to be lienls; Iprovisionls o~ Arlticle XXV oft tilis act lnot applicable. 204. Notice of filing the final decree of aissessillients. 205). Interest to b)e charged onl assessillelits it' lnot paidl inll sixty (dit ys. 206. Ass(esslients lmay be set off against award. 207. IIow notices slhall be posted. 208. l'ultli(citioll of noticcs wlie l)lropelrty is iithoul tilt, (cily. 209. Order of court granting ap)plication to condelin to be filed in tlie office where instruments:affecting real lproperty ar required to bie recorded. 21(0. I'roce((lire ill (se l)opcrlt t( to 1:l( qltlir(ed is sitfult(tel ill |-i (r M1ore Counties; fililng of ord(hr's. repir'l, 11d decrte'l,((,S ill 211. lDiscolntillnaic ol' (proceedings by BPoird ipf' I:-sti,,:t,:mid Appl)ortionmelnt. 212. Dis()lontinuilllanclc of n Procclilng Iy tile (cirt. 21';. Amellmilient of defects, etc. ARTICLE XXV. Assessments for Local Improvements and Awards for Damages Caused by Grading Streets. $Section 214. hoard of Assossors. 215. A-ward of (lah n ges to 1l,:1d I1llil t)hlilding's },y I',:lsc>l! o1 ' ( l: ing streets. 216. (ertificates; description of triperty. 217. Notice of complehtioln of assessilent.s 41or iawIrlds to be1(? g'iven. 218. Conlfirm:ltion of any award filinal a(li conlusive. 219!. Awalrds for illntended regulation. 220. Assessmients iafter registration of contract. 221. Asoessuinents tol le trltilsiIitto(l f(or (ently (( cl (,ttllIon (illt awards (ertified for 1(layoliit. 222. Awards; when to be patid. 223. Rtemiedies. 224. (Comptroller's power. 225. Petition t.o the( Suip)r(ei1e Cou' t il( l f ('1s ol I' l'rl1l t ' iror: power of court limited. 22(6. A\ssessmlilts llot to lie s(' lnisid( t f lr ( t(rlt:lill i]ie'iltl:lttiecs Ill(i techniienlities. 227. te-assessmient. 228. AlH (laims mniy 1 (1lill(-((I il It ro to((glig,. 229. When prtceledings to I( l(ro(ghIlt. 53 ARTICLE XXVI. Miscellaneous Provisions. S('' I iOmI 2:'(. l ).ilit i(m S. 231. Inferior coullrts tilllled. "32. City lRecord. 2_:,. Plrelaration (o l'e"zistry I' N({m'S: lrls )liclti,,I i ilj Ite(.<,II. 234. ll)li "lvatim() I,' r-c-'-r (d':sl,s,('( I v;II~ti( l ',:ll vst:lle it City Record. 2':,55. ],'xl,-)Climitd lil ii{ c 1, ulexpellled ltl]aitece. 2:t1 Offlic(r or empl)loyhfe iot to ijNve iifltrst ill tr.l'istactiolls with tihe (iity: Ilmlty. 2:/7. Officer 4' emplky{'i' mot,{ t1~ inllu{,n'e eh,(,tioll (t Illp iltillelt t 1o officc(: l pel'lty.;IS. Offci(.m' tu)lt t1,:;llq)oillt,r.lili ill:any- ofTie.o,r1 {,mlv)h )ym1w11t:1113, Iesmi)l dismissed o0i charges; ipenlllty. 2' 1). Ietiflties to this act il 'dditiioi fit ti(ther lp(baalties. 2t40. -i1t ito ii ata4mpl isthin( }y r 'etltiIred ib i it i ffi(iial. 211..\(. (ss of piifuli 14, t lolts. b 14'(', c IIII f111a l t:1 1 1'sl. 1. Copies to 1)e furnished. 2. Open to inspection. 3. Court order to compel eomipliain(e. 242. Court olrder for examillation oft tlpliffi (,'f i o. l. r(' 11' ld f ' ijSSlllll"'-" ' 1{1-t l. 2. Procedure. 3. Costs. 24:1. It' ri':l tu l tiyS s aits: ";i1 ftic(llrs. 24-1. Alcits rgpillst fti city. 1. N orvi ce o f l m lT.'(. 2. 1'11ei of tri'1. 4.,x(, ( ti ll (if i I jlldtltlm l. 2-45. Ti'1,wxe~.ute(l{ ('m)lltl'l'ts 1~ 1,4 11w 'l'f,~H' lld. 2-11;. Se'1.s ~f e-iy:clid its,leplrlmtmtit. 247. Acts repeahI. 2-4S. t 'm{.t islulti4,mtnlil y. 24". Time idf iniit-,f 'off.l. 25.0. Act q. Im idi,.':wl. AN ACT To Provide a Charter for The City of New York Thle 1cople of the State of New York, rrepl scnteed in S('i(te al