Omaha daily bee., 1899-03-10
CONFRONTED BY A CONDITION
Revenue Not Sufficient to Take Care Of
Current Expenses.
FACE TO FACE WITH A PROBABLE DEFICIT
Reduced Valuation of Property in
the city Cuts the Reye-
nue. to n BEDROCK
Basis.
FACE TO FACE WITH A PROBABLE DsFIC

Under the new system Of assessment a
decrease of almost one third is looked for
in the city's revenue next year and the
municipal officers are much perturbed over
the prospects OF having to face deficiency.
Under the old system, property was sup
posed to he assessed at It's full value, but
1t was general, although unwritten law
among the assessors throughout the state
to assess at about one-third. The new law
provides that assessors shall ascertain the
actual cash value of all property to be as
sessed and take 25 per cent of such value as
the basis for making the assessment. This
method, 1t Is said. will reduce the income Of
the city about e-third and leave 1t with
out sufficient funds to run the municipal
government. Under the old system the as
sessed valuation of the city amounted in
round numbers to 81 500 900, but under the
new law it will be decreased to about So, ,000,-
000
A decreased valuation would of necessity
mean an increased tax levy, but so far as
the general and water funds of the city are
concerned this cannot be. Under the law
the levy for the general fund Is restricted
to 10 mills and the water fund to 5 mills.
From the general fund all expenses for the
maintenance of the city government, such
as police and fire departments, salaries of
city officers and employees are paid. Under
the old valuation the general fund has re-
ceived about $4,000, but under the new
method of assessment. this fund will be re-
duced to about $40 900.
AS to the water fund, 5-mill levy on the
decreased valuation will realize but SIS 900.
whereas the contract between the city and
the water works company calls for the
yearly payment Of s26.15O as hydrant rental.
hi c-,.l In, IL
of S11,15O, which would have to be taken
from the general fund, thus further re-
ducing that fund that amount, leaving only
about $4,000 available for the running ex-
penses of the city.
Outside of the 1O-mili levy the only reve-
nue. to swell the general fund is that OBJ
tatned from saloons and from, Mayor
Jennings termed it yesterday, "soforth." I"
The "soforth' referred to by the mayor
meant the gambling houses.
The prospect of a deficiency in the city's
revenue was the subject of discussion at
conference of the city officials and the
mayor yesterday afternoon and all agreed
that the situation was far from encourag-
ing.
At conference held between the finance
committee of the city council and City
Treasurer Brooks Reed the latter declared
his Willingness to pay either the old or cur
rent warrants IL the committee would show
him any legal authority for doing so. In
face, however, of the ambiguous ruling OF
the supreme court in the Phillips warrant
case, he is not willing, he said. to take the
risk of paying any money out of either the
general or water fund until he had such
legal opinion. The finance committee has
submitted the question TO eminent coun-
sci and is now awaiting an opinion The
name of the eminent counsel the COM
mittee declined to make public.