The daily gazette., 1879-07-01
CITY Finances,

Considerable commenr is now being
made iD certain oircles. in relation to the
tax rate just hxed by City Council, and
the probability that 1t viii only be sum-
cient to run tho city affairs until the
flrst Of April next, after which time 1t
city purposes until the taxes for July,
1850, come In. An organization of citi-
scns has been talked OF for the purpose
Of preventing, by legal measures, the
borrowing Of any more money by City
Council, for the purpose of meeting tho
ourren mt expenses Of the city.
A GAZETTE reporter, this morning,
talked with Councilman John Guthrie,
ic relation to city finances in general.
In regard to the proposed organization,
for the purpose Of preventing Council
from borrO wing m oney next year for the
purpose Of running the city affairs until
the July taxes come In. Mr.. Guthrie
expressed no opinion beyond the state
ment that In this event the members Of
Council should resign and insist upon
these gentlemen being elected to their
places, In order to give them an oppor-
tunity to carry their own financial Opin
ions into effect.
The present financial condition Of the
city, according to Mr.. Guthrie's views,
IL far better than 1t was when tho last
City Council dropped the reins OF num-
cipal government. Then, there WAS .
floating debt OF s83, 900, with the bulk Of
the July taxes all In, aud very little
prospect Of any revenue beyond that de-
rived from the water rents. Next Sep
tenn ber, when the new Council Sssumc3
control of the city, there will be cash In
bank to the amount of $l3O,OOO, making
o d ference of $2l3,0000 between the
financial condition Of the city then, and
the time the present Council took 0ou-
troll. This state of affairs IL due to the
funding of the floating debt, and also to
the economical manner Ia which the al
fairs Of the city have been conducted
during the past year.
The present floating debt of the city,
which will be met by the taxes receive
during the current month, IL about S6e,-
600. or this amount $4,000 is money
owed to the Board OF Education, for
bonds sold by the City Council of 1877,
the proceeds Of which, instead OF being
turned over to the Board, were applied,
unlawfnlly, to city purposes.
Mr.. Guthrie calculates that the July
taxes, If they are up to the average ex-
| tent, will be sufficient, after paying this
| floating debt, to leave q balance In bank
September LIST Of Sl30,00O. This amount,
with the Water Department and other
revenues, will be sufficient to run the
city on cash basis until the first OF
I
sary to depend upon the bank for the
three ensuing months, until the July
taxes como iu. This will create a small
floating debt-probably not more than
$50 ,0O0-but not near 70 much a. was
previously created, and which can be
lessened, by economical management
from year to year, until in short time
1t will be avoided entirely.
Under the present fiscal arrangement
Mr.. Guthrie does not see how IT, would
DO posi- BILE to avoid this small floating
debt without burdeninR the people will
heavy and unnecessary tax rate. Tht
fiscal year commences January 1st, ant
the taxes do not come until July, whlci
necessarily leaves q blank between thu
establishment of the appropriations ant
the reception of the money to NEE
them, which cannot be bridged over a
once without the imposition of an Oner
Gus tax, which people would not stand
This would burden the people, ant
would leave large sum OF money lyiDl
idle in the bank for the best part OF thu
year, drawing no interest, and imposing
a drain oD the citizens heavier than thu
slight amount of interest necessary to b'
paid under the present arrangements du
ring the last quarter of each year.
During this year the funded debt o
the city was reduced $40, 1920, ant
next year it will be fur. her reduces
S2O, 900. This will result in a saving o
about $1,000 interest, and this reduc io
of interest will be continued by the par
tial reduction IF the debt each year.
In short time the majority Of tn
finance committee, on behalf OF the ma
iority of Council, will make q detaile,
statement of their manner Of coDductin
the city finances during the past yeal
and Of the beneficial results which the.
claim have resulted from their course.