Every evening, Wilmington daily commercial., 1906-05-28
cItv - Rate fer Nesl Year.

city Tax Rate for Next Year.
Il is not surprising That the finance
committee of City Council should find
itself IN a dilemma oyor the tax rate for
the next fiscal year, in the fixing Of which
il will have on important duty For as
a rule the City Council acts upon the
Judgment of the finance committee in
laying the tax rate, depending upon the
committee for that close examination
into the condition Of city finances upon
which alone it is possible TO determine
how much money must be raised by taxa
tion in order 10 meet the current expenses
Of the city government for the fiscal year
next ensuing
The great dilemma that conironts the
committee Is that Of the large deficits
thaEhavo been plunged into, through the
careless and incompetent management
Of the citys fiscal affairs by the City
Council. Year after year the tax rate
has been Fixed at Sl.50 ON the SiO0, de-
spite q knowledge Of the fact that this rate
would not produce sufficient revenue
And year after year the illegal expediont
of borrowing money for current expenses
has been rcsored to. the amount Of the
illegal floating debt thus contracted grow
ing larger and larger. until there is q
probability that this year t win exceed
$4,000 And this condition necessitates
an increase in taxation.
There is no doubt. even in the absence
Of definite figures that aside from pro-
viding for this large floating debt, the
prevailing tax rate of $50 on the 500
would be sufficient for all the purposes Of
the next fiscal year. But the floating
debt must be provided for IN next years
budget. The custom heretofore has been
10 provide for 70 by creating another
floating debt that is, by making no
special provision for it. but paying IL out
of the current revenues of the year, and
then making another floating debt for
, The purpose Of covering the deficit thus
made in the years revenues But there
Is reason 20 helive that the present finance
committee ioels that the time has come
when this kind Of hap-hnzard 6nancier-
ing should give way To- practical business
procedure, and the only way TO bring
about a substantial reform is by increasing
the tax mto to "a figure that win produce
revenue sufficient TO pay off the floating
indebtedness and meet every dollar Of
current expenses throughout the fiscal
year loO6-7 This is what may be called
heroic remedy, hut il is the only sane
and practical one. whether the tax rate
be advanced to Sl.65, Si75 or even $3.50.
Il is a fact that under existing condi-
tions a tax rate of Sl5O on the SlO0 of
assessed value Of real estate is as much
Of burden as the property holders of
Wilmington should be required to stand.
But experience has shown that il will not
be sufficient The city has been running
behind for the last ten years. by reason
of insuihciency of revenue and the eV-
pedients Of borrowing money. so fre-
1uently resoried TO, are fatty illegal. tho
city charter prohibiting them by the
plainest OF provisions. In order to get
back upon the solid ground of paying as
we 20 in our municipal government. It Is
absolutely necessary 20 increase the tax
rate for a year at least, In ordcr that the
burden Of floating indebtedness may b,
wiped out instead of carried from veal
90 year, growing larger as It is continued
That the taxpayers will protest against
any increase in their burdens Of taxation
goes without saying, and it is only natural
that the finance committee and the City
Council should hesitate before deliber
ately bringing this condemnation upor
themselves. But they must either dc
this or temporize with a serious situa.
tion by prolonging the evil. which vii
only make it worse. For If a halt is not
called and a reform instituted. the float
ing debt VIII increase until It viii be abso
lutely necessary TO provide for it by
bond issue and thus add It TO the interest
bearing debt Of the city.
So far as the indignant complaints o.
the people are concerned. they may b,
met by the sound argument that the con
diiion which plainly necossitatcs an in
crease in their tax burdens Is one Of thoi
own bringing about Year afterycar the,
saw the financial afairs of their city gov
eminent mismanaged, and yet thgy
failed to take sufficient interest In th
question Of good government to even givl
consideration to the subject Of reform
Year after year Every Evening pointe,
0ut the situation which is now 80 insist