The morning call., 1893-10-08
THE CITY'S FUNDS.
Sad Prospect for Local
Legislators.
A BIG DEFICIT PREDICTED.
Report of the Finance Committee of
the Supervisors on NUM-
cipal Finances.
A BIG DEFICIT PREDICTED.

| Supervisors yesterday had prepared
statement on the present financial con-
dition of The city. The statement was
made In order to give the public clear
| idea as to what is being done by the COM
mittee regarding the payment OF judgments
! against the city for materials and supplies.
A number of garbled reports have been
lately published regarding the condition
/ of various funds, and the Finance Com
mittee believes it is no moro than right
| correct statement should be made.
| The report which will be presented to
the board on tomorrow afternoon is a
| very long one. 1t SHOWS that the pros
poets ahead for the present board are very
| gloomy, and predicts deficit of $500, 900
for the present fiscal year. The principal
cause of this Is that owing to a miscalcula-
! ton $50, 900 less will be collected from
taxes than was estimated. Again, $3.50. 900
of last years salaries were paid out of this
| years funds under decision of the Su-
| preme Court on the June salary question.
In its report the committee says:
Your committee on finance deem it their duty
TO present a statement as to the condition OF
the municipal indebtedness, its causes and the
action OF this board 10 prevent the reputation
OF just and honest dem nds for supplies fur
nIshed the public ins titutions and for materials
and labor performed for the public departments
Of This city and county, as follows:
First-At the close of the fiscal year ending
June 80. 1898, the floating Indebtedness ag
gregaed about 1894, 1000, OF which about
S22O, 900 was for expenditures over which this
board had no supervision or direction, but
which were paid out of the treasury on de.
mands approved by other departments or by
orders of court or imposed by statute. The ex-
penditure was made from moneys raised for
other purposes OF the government. That made
deficiency and prevented bills bein ng paid 10
that extent for supplies furnished our hospitals,
AlmshOuse and other public institutions and
departments for which provision had been
made.
The indebtedness arising in and from liabiii-
ties incurred by the board in addition 10 ap-
propriati0ns made at Ihe close of the fiscal year
aggregate ABOUT STA, 600 and arose from insult
hcienJ appropriations made which in the main
could not be Oyerruled. as The obligations had TO
be met; the supplies for prisoners had TO be fur
nshed, the public buildings bad TO be lighted
and other necessities could not be dispensed
with simply because the appropriations were
| insufficient. The Indebtedness covered period
| OF about three years and averaged about $685.
| 600 per year.
On the realization of this large aggregate of
| floating debt the board under the restrictions
! plac d upon tile members as 10 the limit of
I taxation 0uly provided revenue sufficient for
| the estimated expenditure of the fiscal year
| 1893-94. when making the levy Ignoring prac-
! tically this indebtr dness, believing that some
solution would be reached in subsequent lltiga-
| ton, which would enable the Indebtedness TO be
met and provided Tor.
| DECISION OF SUPREME COURT.
In an action brought by George T. Lewis
| against the city peremptory writ OF mandate
was issued by the supreme Court requiring the
| Treasurer 10 pay the salaries of The city and
county officers and employees for the month of
/ June, S93. out OF the funds raised and pro-
ylded for he expenditures OF the fiscal year
commencing July /, 1893, deciding that so far
as these salaries were concerned they were not
| such an inde bl edness aS>was contemplated by
section 49, article Al, OF the State constilu-
| ton.
Thus the general fund was drawn upon to
| the extent OF S150,00o for these salaries and,
consequently, deficiency to that amount will
| exist at the close of the fiscal year.
| Il Is competent TO 81 ate specifically that all
| of The salaries were provided for and the money
placed In the treasury to meet all drmands, but
The money was diverted for other purposes
dillon TO The $4,000 provided for that pur-
pose, and cost bills. ETC., wholly Independent
and outside of the control of this board
In order to illustrate The phase more f0rciby
! the S154OO0 additional incurred for ell cton
| purposes did not ana does not constitute an In
debtedness like amounts incurred by this board
| In excess OF appropriations, but was actually
expended and taken out OF moneys III the
treasury raised and set aside for other munich
pal purposes, thereby preventing the payment
| of Just and honest demands for supplies and
materials furnished principally under contracts
and other demands of a similar character.
POSITION OF THE CREDITORS OF THE CITY.
The question as to the action to be taken was
brought 10 the attention of the board and your
committee about two months before the close
OF the last fiscal year by the creditors
! Of the city and county, who under
coutracI were furnishing supplies to our jails
| AlmshOuse and Fire Department, claiming that
| unless some assurance could be given OF their
demands being acknowledged and payment
| assured they would and could not continue
! fo furnish auu-,liee rhe edt 0f tha ait
! also set up that IN dealing with the municipal
| ity they were supposed TO know the law and the
condition OF the funds; that being aware OF this
Ihey Lad satisfied themselves before contract
| ing with the city and county that appropriation
had been made and the revenue raised sufficient
TO meet their demands, but that notwithsiand-
ing Ihe knowledge and the facts the money so
raised and devoted 10 the payment of their de-
/ mands had been laken out OF the treasury for
| other purposes BY higher authority than the
| board. Assurance being given the contracts
| were continued and completed, material and
| supplies furnished.
PROVISION FOR CITY OBLIGATIONS.
! The board, considering that the faith and
| credit OF the city and county was dear 10 every
citizen, and that any attempt TO Illustrate the
| payment of honest obligations by technical
| evasions or unnecessary delays wouid meet
| with the just feprobation OF every good citizen,
! made an oder. which it seems is lmperfectly
understood. requiring your Finance Committee
| to examine in all cases where suit was brought
| every obligation, and IL IC was clearly ascer-
| tanned that The same was just and the charges
! reasonable then to Instruct the City and County
| Attorney 10 confess Judgment.
| Any other course would harass the city's
| creditors. lead 10 great expenses in litigation
and to ultimate defeat, in view of the decisions
of the Supreme Court. The creditors of the
| city embrace a great many of our mrrchants
| business men aud small traders, aud II such
| action of the city was TO contest their claims
would tend TO their defeat aud would be re pud.
alton pure and simple. The members OF this
board do not desire as legislators TO evade the
just obligations OF the city and county or take
any action other than they would as private
citizens with their just obligations
FINANCES OF THIS YEAR.
In making the levy OF the present year on
recommendation of the committee your honor
able board set aside in the general fund the
sum of S74. 120 for the payment OF Judgments
1t was reasonably anticipated that In addition
u the Miles and Butler judgments, aggregating
S3177 81, the creditors of the city to the extent
OF the balance OF the appropriation made would
receive judgment as suggested prior to the 1st
OF July, 1898. This was rot tile case, however
owing 10 delays, Judgment not being obtained
until the present fiscal year. or these tile sum
of $50 075 81 was allowed by your honorable
board, and is now In the hands of The Auditor
All of the obligations under which judgments
were obtained were investigated, passed upon,
aud found 10 be correct prior to the City and
County Attorney being instructed to confess
Judgment. the total amount OF judgments up TO