Evening journal., 1908-04-10
new FINANCIAL
SYSTEM OF CITY
commune PROM FIrat psrsl


The government by boards. or rather.
the division Of authority in the conduc,
OF the affairs Of the city CORPORATE ZEN
ders a plan OF Capitalization Of the city S
accounting features extremely awkward
1.-THE moneys collected by the city for
corporate purposes should be carried IN
one corporate fund and payments should
be made upon warrants drawn BY the city
auditor and approved by the treasurer
for such expenses not 10 exceed the ap-
propriations.
I'VE would respectfully suggest that an
ordinance be passed requiring that all
city departments who have the collection
Of city funds be required to make de-
poslts daily for the full amount Of such
collections, and that such departments
be provided with petty cash funds sufh-
cient to take care OF small items Of ex-
pense"
Higher Tax Penalty.
From time immemoriai the law has
been Interpreted by the receivers OF
taxes TO mean that the five per cent.
penalty In the month Of September is
the extreme penalty, ana while the law
IS ambiguous II was certainly intended
that an additional penalty OF five per
I cent In addition 20 tile five per cent. /
Imposed IN September should be added. !
from tho fact that no legal action could +
pc taken to enforce the collection mi- |
I'll year elapsed. AS a further evil /
dence Of the intent Of the law, the re-
celvers Themselves are allowed the sum
OF eight per cent. on the collection Of |
such delinouencies, or, In other words, /
three per cent. more than the penalty. /
we are fearful that IN the construc- |
tion Of the law in the past the citys |
interests have not been as carefully /
guarded as that Of the delinquent tax 4
payer.
Under the present plan OF account /
ing the receivers Of the Northern and |
southern districts are required under |
the new system TO make a daily repor.
to the city auditor Of all tax collections /
together with discounts allowed and /
penalties imposed This in turn is
checked against their remittances 10
the city treasurer.
Danger in the Plan.
I'm this connection We desire to point
out to YOUR honorable body the danger
Of continuing the present plan OF
finance, under which plan the boards
have the actual control Of the funds
appropriated TO them by the City Coun-
ell.
Under the new plan Of accounting
we have provided a method Of report
ing by which the auditor can at any
time submit to the mavor and Council
complete statement Of the city's
finances, respecting not only its cur
rent assets and liabilities, contingent
and deferred as well.
"The collections Of taxes, liens and
water rates should be handled by the
city treasurer ana we beg to remind
you OF the fact that the city treasurer's
duties extend over all Of the city'a
fiscal transactions, and he is a much
I the treasurer Of the water and street
and sewer funds as he ia Of the mayor /
and Council.
with the division OF the city's fiscal |
transactions you have drifted away /
from economic and safe business meth
DDS
Water Department Reform.
I'VE direct your attention to the |
method of handling the revenues of the
Water Department. As in the case Of
the delinquent taxes OF 1906 and prior
years, the Water Department has
never reported to the city auditor the
total amount of water rates assessed
for any fiscal year, The city has
been content, therefore, to accept from
the Water Department statements Of
their cash receipts.
1--WE have asked the department 10
supply the auditors office with a state
ment Of the gross revenues, in order