KALAMAZOO

Opotiki News, Volume I, Issue 49, 27 June 1938, Page 3

KALAMAZOO

TOWN WITHOUT A DEBT P A Y-AS-Y 0 U-G O POLICY Kalamazoo, which is in Alichigaii, has just had its name inscribed on the civic temple of fame of the U.S.A. It lias the distinction of being the only city in the States of over .30,660 population that is Iree of debt.

“.V few weeks ;tgo the city discharged its last outstanding bond, and the occasion was marked by appropriate American ceremonial.” says the Al'unicipal Journal. “The last- bond was symbolically burned, and the ashes have been preserved in a glass tube, sealed at both ends by a glass blower. “A photograph was, of course, taken of the ceremony, and this is to hang in the city manager’s office, with the tube containing the ashes permanently attached to the frame. What will happen if Kalamazoo gets into debt again my American correspondent does not say.

“This successful effort by Kalamazoo dates hack, lor 2i) years. Bel pro the city manager plan was adopted the council, kept the rate low and borrowed money. Thou there was a change of policy ; the tax rate was almost doubled, and, as the years went oil, the debt and the tax rate steadily declined.

“The city took a long-term view of ■municipal expenditure-, and put itself on a pay-as-you-go basis. Cash reserves have been built up from unappropriated surpluses in annual budgets. But, while Kalamazoo has been economical, it has not been parsimonious. It has constructed a beautilu/ new. city hall costing over one and ahalf million dollars; it has acquired and operates a 3(JC-acre airport; it has secured two municipal golf courses; built bridges; motorised its fire department; purchased and improved several large park sites and city playgrounds and undertaken other improvements.

“The burning of the last bond is to serve as <\ reminder to all future city managers, and to warn them for ever to support the policy of pay-as-you-go.