Every evening, Wilmington daily commercial., 1906-06-04
InvItIne Another penoIt.


1t requires only the most cursory ex-
animation Of the figures presented by the
finance committee of City Councilat last
Thursday nights meeting OF the latter
body, upon which the tax rate Of sl5O
on the 500 for the.ensuing fiscal year was
based, to show that in adopting this tax
rate the City Council has deliberately
invited a larger deficit than ever at the
close Of the fiscal year l9O6-7
The appropriations for next year
amount TO S77S.6571l. This represents
the total expenditures of the fiscal year
as there is not the remotest probability
that the City Council with the limited
field in which it may exercise the virtue
Of economy. the great bulk Of the appro-
priations being fixed charges may save
even few thousand dollars Manifestly.
therefore, il was the duty of Council to
iix a tax rate sufficient to meet every
dollar Of these appropriations, after maxi
ing due allowance for whatever revenue
might be derived from sources outside
Of the years tax levy.
But this the City Council has not done.
In the iifst place, il has depended upon
estimates Of revenue outside Of the year. s
tax levy that are far too liberal. Included
in these estimates is an item Of $50, ,6S3 "a
in outstanding taxes, the entire collection
Of which even under the most favorable
auspices, is gravely doubtful. Should
this estimate fall short Of expectations
from 30 to 40 per cent, as it is almost sure
10 do, there will be a deficit Of 10000 TO
S400O from this source alone.
Tho Council has been even more unbusi-
nesslike in its presentation of how ac-
counts are 10 be evened during the year.
Besides including this entire item Of more
than $4,000 taxes due and payable, il
has counted on collecting every dollar
OF next years tax levy during the next
fiscal year, maniiestly impossible ac-
complishment. According 20 the COM
mittee's financial statement, the total rev
enue from Sl.5O tax rate will be S699, =
741.77. To this the committee adds an
estimate Of other receipts, including the
item Of uncollected taxes, amounting in
all to SlOS,9l5.34 This makes total
revenue from all sources Of SSO8, ,657.l1.
From this grand total the committee de-
ducts the sum Of $4,000 for errors and
for rebates TO be allowed on taxes paid
during July-an estimate that is as likely
TO be too small as 70 be excessive
leaving as the net revenue for the year
on paper only, however-the sum OF
SITS, ,657.ll.
And the appropriations, the expendi-
lures for the fiscal year, will also amount
to SITS ,G57ll.
Therefore, IN order to come out even
at the close Of the next fiscal year, the
City Council will have 70 collect every
dollar of It's estimated revenue outside
Of this years taxes, amounting to Sl0s,-
0l5.34, including an item Of more than
$4,000 IN back taxes fully half Of which
may not be realized; and in addition col
lect every dollar Of next years tax levy
save only $4,000 which must be allowed
for the unavoidable errors and rebates.
This we have no hesitation in saying
is a financial task Of absolute impossi-
bility, and well the City Council knew it
when il fixed tho tax rate at Sl.5O on the
500.
We make the prediction that as a re-
suit of this kind Of frenzied fnancierine
the deficit in the city treasury at the close
of the fiscal year leO6-7 will be at least
100000. There will be a lapse Of at
least $4,000 in the estimated revenues
and of SEQ 900 in the collections Of the
years tax levy.
However, this is a condition which
City Council has deliberately invited b,
failing to provide sufficient revenue b,
taxation. Il will resort to the same ole
illegal policy, of borrowing money fo
current expenses, and creating Aoatinl
debts, that has been followed for the pas
ten years. When shall we have a reform