The Providence news. (Providence [R.I.]) 1891-1906, 1900-05-18
The FINANCES
OF THE CITY.
Real Meaning Of the Reduction
Of the Tax Rate.
NEVER HAS BEEN A SURPLUS.
All Mousys Collected for Tarss Have Been
Expended for Public Purposes.
THE APPROPRIATION OF BALANCES.
Question Of lis Legality Vas Raised and In 1897
aBIl Authorizing Il En Passsl G
ths General Assembly.
All Mousys Collected for Tarss Have Been
Expended for Public Purposes.
THE APPROPRIATION OF BALANCES.

There has been a great deal of con-
lecture and a great many questions
asked in relation to exactly what the
remarks Of Alderman Reynolds upon
the resolution to assess the city tax
exactly meant. Some people had the
dollars lying around loose somewhere.
as the result of the surplus resulting
from the excess in the amount needed
for the state tax and for the sinking
fund and interest on the city debt.
Others said that there was no such
20 know what had become OF II, and
there were other questions OF a like ma
ture asked. AS a matter Of fact there
is no surplus whatever and there never
has been. all the money resulting from
the city tax having been used for pub
lie purposes. Prior to 1897. whatever
amount there was after paying the
state tax and turislng over the sum
necessary for the sinking fund and in
terest on city debt, was. by action of
the city council. used for general ex-
penses. Under the statute, however.
this did not appear to be legal. as the
provisions of the law were very ex-
plich.
In 1897, City Treasurer Granger de-
clined to acquiesce in the proposition to
further dispose OF the funds in this
way, and the city council instructed the
city solicitor 10 apply to the general
assembly for a change in law. whereby
the amount of all unexpended balances,
including state tax, sinking fund and
interest on city debt. could be trans
ferred TO. the general expense account.
and such an act was passed and be-
came law. Under this law since that
time the finances OF the city have been
administered, and thus all the proceeds
OF the city tax have been used.
Under the new order of things.
brought about hy the reJolution passed
Yesterday, redicing the city lax from
81 c. to s1.6o. the city comes within the
provisions of the law which preScribes
that no city or town shall assess tax
of more than one per cent. OF Its valua-
ton for general expenses. The proceeds
of the ,city tax are divided into three
parts. These are for state tax. for sink
Ing funds and interest on debt and for
general expenses. Last year the amount
set aside for the state was Is cents. and
IL has been reduced TO IL cents. the
amount for sinking fundS anu interest
on city debt was 56 cents, reduced to
46 cents. and the amount for general
expense account was 81 cents increased
to 81 cents.
This, as will be seen Is reduction
of IL cents on the state tax and sinking
fund and interest accounts, and an in
crease Of six cents for general ex-
penses, and 1t is by this six-cent in
crease that the sum Of over 100000
more will be available for general ex-
penses over last years amount. On the
other hand there will be no unexpend-
ed balances, or practically none, to
draw upon, so that really in the eyes
of. some people the increase in the
amount available is looked upon as
fictitious.
1t is argued that there will probably
be an increase in the city's valuation
this year, but this is by no means GER
tain, and there is also an increase in
some of the appropriations There
are some appropriations that cannot
be cut down. such as fire, police and
lights. but II looks as IL some other
would have to submit
to a reduction in September next.