The daily gazette., 1880-12-17
CITY FINANCES =
THEIR PRESENT CONDITION AND FUT-
u. lURE PROSPECTS. -

At the meeting OF City Council, last
evening, the City Treasurer reported
balance In bank Of $15,277 "a, against
| $33, ,244.55 reported about the same time
last year. Add to the present balance,
however, the $4,000 Of extraordinary
appropriations made and met out Of the
present years receipts, and the present
b lance would be $27,27f.o4, or only
$5,066.61 less than the balance at this
time last year. When it is considered |
that the tax rate for 1880 was made five |
cents on the 500 lower than the tax
rate for 1879, it will be seen that even |
with this apparent discrepancy the city's |
financial condition 10 just about as good |
as it was last year. The reason for add
ing the $4,000 OF extraordinary appro-
pliations TO the balance In bank is that
these appropriations were made after
the fiscal year had been completed, and
therefore took just that much money
from the amount raised for the regular
appropriations. They will be provided
for by taxation next year, otherwise
they would become floating debt, and
as it is absolutely certain they will be
included IN the appropriations TO be
made next month, it can be truly said
that with the exception Of a few bills
against appropriations that are exhaust
ed-amOunting TO not more $1,000 to
$2,50O-the city has no floating debt
whatever. thHt ~ fa ..4
Again the great problem arises how TO
conduct the affairs Of the city on cash
basis until the July taxes come in. A
year ago, by the exercise OF the greatest
economy, coupled with the fact that the
Board of Education had balance In
bank that enabled the schools TO be run
up to the first Of July without drawing
upon the city for any money, the Coun-'
ell accomplished the unprecedented feat
: of conducting the city government for
eighteen months upon the revenues Of
I one year, without borrowing money
from the bank. 10 do this next year is
au impossibility. The items Of revenue
from now until the first Of July cannot
amount TO more than $50, 900, out OF
which interest and the public school in
sLalments will consume at least $65, 600.
. To the balance at least SAC, 900 will have
to be added to meet the ordinary cur
rent expenses up to July LIST, and 10
raise this $4,000 there is only one re-
, source--a note in bank.
Under the present financial system
this trouble is likely to occur every
year. The appropriations-taking
Z 1851 for example-are made in Janu-
> airy, and The taxes to meet them are
not collectable until July, leaving six
3 months of these appropriations to be
: expended on credit. 1t is clearly evil
J dent the intent of the law was that the
; July taxes should be used in paying
the debts contracted during the first
e mohths of the year and in meeting the
9 current expenses of the remaining six,
g but this arrangement was 80 abused
l by Council after Council that frequent.
: ly all the July revenue would be con-
. sumed in two or three months and the
city run on credit basis for the re-
; mainder of the year, while floating
debts were piled up with the most un
> failing regularity. 1t was this STATE
, of affairs that led to the formation O
u the sscommlttee Of twenty six, " whos'
express mission was to prevent th'
city from borrowing money from thu
= bank, which mission proved success
!. full.
I'll In this case, what is to be the RENE
!: dyp BONE people say make the ia,
Z rate high enough, but against this i
!. the prohibition Of the law, which de
!. clares that taxes shall be laid only t.
,. meet the appropriations of the yea
T. then current. But even if tLis wer
Il not so there is still another difficulty il
" the way. The appropriations ar
Ie made in January, and the tax rate lai'
of in July. Take the year 1881, and sa,
,e the appropriations amount Qn con
venieut numbers) to $2OO, OO0, while II
" .July next, in order to meet these ap
% propriations and overrun six month
a. of the succeeding year, the Counci
:, laws tax rate sufficient to raise 500,
4. 600. Well and good. But after mex
Of September in comes another Counc
'g and makes appropriations 1or 1867
- ~ amounting to $SO0,OO0. Here Is
n hitch right away. The tax rate ha
, been laid to meet the appropriation
e. of 1881 and leave balance for 81
so months of the appropriations of 1882
. but the latter appropriations are 8
10 high that $780, 900 will be required t
:, meet them for the first six months, AN
~ with all the care and fOrethought ex
" ercised here is deficiency of 500, ,00l
W The idea of this illustration, it will b
~ - seen, is that one Council cannot an
~ tioipate and provide for the expend
~ lures of q succeeding Council, as som
st people would like to see attempted.
:" is, then clearly evident that TO ru
40 the CITY government exclusively upo
cash principles another financial syste
On mast be adopted. Suppose next year u
Gil CITY Council could make appropriallal
be to Commence on the first of July an
ey continue until the first of July 1882. 4
he the same time tax rate yuld be laid
no meet these appropriations. Would not th
-, be solution OF the great difficulty l.
~, ne US see. Say Appropriateness were In
ne made amounting to $30O,00O. Coul
'e- Gil could then take the assess ment, al
ra- after making fair and reasonable allo
It'll ance for errors and commissions, lay
nd TAX rate sufficient to cover every penl
ed of the appropriations for the year
- There could be no uncertainty as TO u
amount of money TO be raised by TAX
ton, aud only cowardly failure on Z
Da rt of council to make the revenue 81
or fictent to meet the appropriations, cou
Wis create a floating debt. True, exigene
' might arse requiring extraordinary
propriations of the ensuing year,
they are now.
Members of Council are heartily tir
of this yexatious "tiding over" from :
| 6rat NJ January until the July taz