Many U.S. cities are having trouble making ends meet. The Municipal Finance Officers Association reports that some of them have chosen to raise funds by charging fees for services instead of increasing tax rates or imposing taxes on new items.

The association takes note of this trend in its new "Municipal Nonproperty Taxes—1956," which brings up-to-date an earlier study, "Where Cities Get Their Money." The new publication gives information on twelve nonproperty taxes and two service charges and lists by name over 800 cities over 10,000 population, giving the kinds of taxes they impose and the yield for each tax.

The most frequent service charges are for garbage or refuse collection and for sewer rental, the new report says. As of February, 1956, more than 300 cities over 10,000 population charged their residents for garbage collection, and about the same number were collecting sewer rentals.

These communities got almost $40 million from garbage service charges in 1955 ($3.84 per capita) and close to $99 million from the sewer rentals ($3.25 per capita).

Garbage and sewer services are among the most expensive of city functions, the report says, pointing out that when these costs can be met by special charges it frees more of the property tax funds for other services and needs.

Sewer rentals are being used by at least one city in every state except Nevada. Often they are the only main source of revenue, except for property taxes, allowed a city under state law.

Garbage collection charges are used in 41 states, according to the report. These charges vary conciderably. Sometimes they are imposed on both residential and commercial establishments, sometimes only on commercial. The charges may be fixed at a certain amount per container or may vary with the size of the receptacle. Some cities also base costs on the location of the container, or the length of time needed for pick-ups.

Sewer rental charges also vary. There may be a uniform rate, or charges may be set according to the number of sewer connections, type of property, number of plumbing fixtures or water consumption. Sometimes the sewage is metered. Many municipalities are billing residents for sewer rental along with their water or electric service bills.

The property tax—long the standard source of revenue for city governments—is being supplemented more and more often by sales and income taxes.

A special report of the association says that in the last five years more communities adopted the sales tax than any other nonproperty tax. At least 171 cities over 10,000 population had a sales tax by February, 1956, producing an estimated annual return of almost $400 million.

City income taxes have become more frequent since 1951 but are still limited to the four states in which they were first used: Kentucky, Ohio, Missouri, and Pennsylvania. Pennsylvania cities make the most use of this tax, 420 municipalities in that state having adopted it as of April, 1955.

In the new report, "Municipal Nonproperty Taxes—1956," the association notes that changes in population since 1946 have altered the tax picture and created a need for sources of revenue in addition to the property tax. For instance, the higher birth rate of the postwar years upped the amount, of money spent on schools. The shift of population from the central part of cities to outlying areas called for new services and meant that older services had to be expanded.

At the same time, this mobility of people meant that they do not always have their homes in the city where they work or trade. As a result, the city cannot count on the property tax to bring in enough revenue by itself. This explains in part the state of adoptions of nonproperty taxes like sales and income taxes in the postwar years. Other nonproperty taxes adopted by cities include admissions and amusement taxes, cigarette and tobacco taxes, motor vehicle taxes, and gas taxes.

According to the association, the municipal income tax will yield more than a municipal sales tax imposed at the same rate. This is because sales taxes normally apply only to sales of tangible personal property and to a few services. Income taxes, however, are usually levied on a total earned income of individuals and on the net income of businesses.

________________________________________________

Trees may be "lovely poems," the way the poet said. But the American Society of Planning Officials points out that unless the variety is carefully chosen and unless they are properly planted, trimmed, and otherwise looked after, a community will get more trouble than pleasure from its trees because, among other things:

Their overhanging branches can block vision at street corners and lessen the effectiveness of street lighting, thus creating traffic hazards.

They can interfere with overhead utility wires.

Their roots can clog sewers and crack open sidewalks and pavement.

(Continued on page 164)

TREES TO BRING MORE BEAUTY
(Continued from page 157)

The society summarizes a number of municipal provisions for tree programs and makes recommendations for carrying out such a program in its latest Planning Advisory Service report, "Land Development Ordinances."

To achieve city-wide planting and uniform maintenance of trees, cities should have their own tree programs and not leave the matter to private groups or individuals, the report says. But where planting is left to property owners in residential areas, it is advisable for the city to make available the best suited trees at little, if any, cost.

If persons other than city employees are allowed to work on trees, a city should have a tree ordinance that either sets strict standards itself for planting and care or gives the power of setting such rules to the city official who will be in charge of the program, according to the report.

One provision found in most tree ordinances prohibits the mutilation and destruction of shade trees, although public utility companies usually are permitted to remove branches or even whole trees that interfere with existing overhead or underground lines. When new lines are to be installed near shade trees, the city official in charge of the tree program usually has to agree before the companies can prune or remove the trees.

Some cities specify the varieties that may be planted, because some trees have undesirable qualities, such as thick leaves that keep out too much light, low branches that interfere with movement on streets and sidewalks, unpleasant odors, excessive production of nuts or fruit, tendency to develop diseases or to attract insects, or excessively large root systems. Among trees not favored for street planting for one or more of these reasons are poplar, willow, cottonwood, fruit (except ornamental varieties), nut, and mountain ash.

Sometimes, however, a tree that might not do for one city will be just the thing for another, because of climate, the report notes. For instance, the first choice of the planning commission in Anchorage, Alaska, is white birch, a tree that is seldom used in the rest of the U.S. but is very adaptable to the cold.