Arizona republican., 1906-05-12
THERE $ NOTHING
 10 BE SCARED AT
This City Has Only Been DiscOUnting
 the Future a Little.

An unnecessary scare about city warrants has been started Reports have been put into circulation that the warrants now out are valueiess and that those who have claims against the city which have not yet been satis- ! fled even by warrants are likely to hold them for a long time. There is no danger that anything of the sort will occur. It has been further reported 1 that certain parties are about to bring | injunction suits to restrain the issu- ance of any other warrants until the Indebtedness ot the city is reduced within the limitations of the Harrison act Even that may be done without impairing the credit of the city at home and will result only in a change in methods which have prevailed from the earliest times and which it is admit ted have brought about an emparras- sing state of affairs.
 The following are the facts in rela- l ton to the present situation: At the last meeting of the council the retiring members having gone over the current claims left to their successors who sat immediately. the business of approv- ing and authorizing warrants. The new councilmen declined to act at once. having been in office only fifteen
  day night, when the matter is to be taken up What will be done then Is uncertain. The Harrison act limits the | total indebtedness of the city 10 four | per cent of the valuation for taxable purposes. This valuation is the valua- | ton fixed by the county and not that i fixed by the city assessor. In round numbers the county valuation of Phoe- mix is $5,OOO, coo while that of the city assessor is nearly s5,5OO,0 0O0 Both of them are probably lower than they ought to be.
 ] On the county valuation the city
 would be allowed to sustain an indebt- edness of $2OO. 900. The present indebt- 1 edness exceeds that by about S30.0OJ 1 and is made up as follows: There are ! old bonds, chiefly for the fire depart
 ment, of many years standing and in | two issues amounting to about s4O'OOO. There are the more recent Mesa Roosevelt road bonds 7 amounting to ! sC7. .5O0 In addition there is a floating indebtedness of $l15C0O on which inter | est has accrued to the amount of S6.OO0, ! bringing the total indebtedness to little more than $22S,0O0.
 ] The warrants have been issued ] Iagainst the general fund which under
 the present charter can amount to no
 more han s6S. GOO or $70.000 from all sources yearly. The law provides that the city can incur no indebtedness in any year beyond its income. It can.
 however, use up the full amount of it's income so that 1t can issue warrants to
 the full amount of the general fund. 1 The warrants so far issued for this fiscal year including an estimate for May is about $7s.0OO. But it can easily
 be shown that $20OO0 or more Of this sum has gone in unusual though ad- lvautageous expenditures which. how l ever, might not have been made. For instance large sum was paid for real
 estate for the widening of a street in
 Bennett addi ion; improvements have
 been made at the fire house and the
 city hall which will not have to be made next year and altogether the cur
 rent expenses can easily be brought
 within the next general fund It is
 estimated that there has been spent on the streets within the last year not
 less than $12.OOO or S15.000 though the precise amount for street repairs and
 improvements is not obtainable since if cannot be distinguished from the ! total expenditures in the street depart
 ment which amount 10 more than
 $40, 900.
 1 It is the experience of all cities, that
 is. all growing cities that the cost of
 street improvements increase year by
 year under the strictest economy but
 stress might compel the cutting down of improvements in Phoenix next year
 in which event taxpayers would prob-
 ably complain more loudly than they
 would at the unauthorized issuance of
 warrants.
 Further relief may be asked at the
 hands of the legislature in an amend ment of the charter providing for more liberal general fund than the city now has. There are numerous ways out of any financial difficulty in which lthe city now seems to be.
 | But the main purpose of this article
 has been to remove, by a statement of the facts in the case. any apprehension
 that might be felt that those who have
 claims against the city may not get
 them soon. It may be that the city
 vii depart from the custom which has
 always been followed. regard ess of the
 state of the indebtedness, and refuse