The daily morning journal and courier., 1904-12-09
FINANCE BOARD
 RECEIVES MOTION
(contlnued from FIrgt Paga.l

dAhuLli anu lneredittE dIl taxes paid during the month of January when they become due shall be subject to a discount of one per cent.
 Second, the time provided by the charter for the board of assessors, the board of relief, the board of finance and the board of aldermen to consider the various questions of taxation shall be so changed as to not to conflict with the above amendment.
 Third, the board of finance shall ap- proriate not less than s25,OOO each year for the purpose of paying the floating indebtedness of the city until said in debtedness is cancelled, and hereafter whenevr a discrepancy shall be found to exist, at the end of any year, be tween the actual income and total ex- penditures, the difference shall be ad- justed when making up the next es inmates. If a defict exists, the total amount of such deficit shall be includ- ed in the appropriations for the en- suing year, and if surplus exists. the total amount of such surplus shall be included in the income for the ensu- ing year.
 This resolution is offered as a busi- ness proposition in the interest of sound finance and betterment of the financial condition of the city, by grad ually eliminating the floating indebt- edness and providing a working capi- tai whereby current expenses may be met without resorting to the expensive plan of borrowing in anticipation of taxes.
 The fiscal year of the city begins on the first day of January, and the city is absolutely without funds to meet ex- penses until the first day of July, an interval of six months, except through the proceeds of borrowing, which en- tails an interest charge against the city of several thousand dollars annu- ally.
 The proposed plan of gradually bring ing about the desired result reduces the burden to the taxpayers to . mini- mum, while corporations, or others who wish to make but one change In the date of paying taxes have the option of doing so and receiving discount at the rate of six per cent. per annuni on the amount advanced
 While the proposed change advances the date on which taxes are payable, by six months, no two payments pe- come due in the same calendar year. While the proposed change advances 1.-the date on which taxes are payable by six months, no two payments become due in the same calendar year.
 There exists at! the present time a floating debt Of about s25OOOO, created by the failure to realize the estimated income, and unusual expenses forced upon the city by court judgments, etc.
 The charter provides that the board of finance shall estimate the income of the city, and may appropriate a sum for expenditures equal to the estimated income. When these figures have been approved by the board of aldermen the amount appropriated for expenditures becomes a fixed charge, while the es- timated income remains an unknown quantity. If the actual income falls short of the estimated income deflct lis created, and money is borrowed in anticipation of taxes. If allowed to ac- cumulate this indebtedness may reach enormous proportions, and the board of finance becomes, in effect, a debt ere ating power, condition not contem- plated by the framers of the charter.
 During the past three years the float ing indebtedness of the city has been materially decreased, but the net amount to-day is practically the same as 1t was at the time of the consolida- tion of the city and town governments. During the past seven years the city has failed to realize it's estimated in come six times, and has realized an ex cess above the estimated income but once, with the net result as stated.
 It has been suggested that the city be bonded for the floating indebted ness. This indebtedness was created by current expenses and for that req son should be paid from current re .ceipts, rather than from the proceeds of "a bonh issue.
 If the proposed plan of collecting tax es on the first of January is carried
 
 until November, and these notes can be paid ill January, making an interest charge for the two months of about $1 600. This amount would be gradually reduced so that at the end of ten years tho average annual interest charge would be but $500. To issue hons at H3# #1-2 per cent. would create a fixed in- terest charge of $s,750 annually, as against $500, difference in ten years of nearly sSO,OOO. In the interest of economy this large amount should be saved.
 It must be apparent to any one who will carefully consider the existing con ditions that radical change should be made in our financial system. Whether the proposed plan is the best than can be devised remains to be seen. A full discussion of the mater may develop something infinitely better, and for that reason ask that the resolution be ta- bled for future consideration.