Omaha daily bee., 1908-10-07
CITY AUDITOR CALLS HALT
Points Out to Council Condition of the
Various City Funds.
RAPIDLY NEARING OVERLAP
Informs that Body He Will Issue No
Warrants in Excess of Amount
Appropriated Before the
Opening of Year.

The condition of the municipal finances,
due TO the unusual expenditures incurred
and authorized by the city council, to-
gether with the prospect Of a deficiency
instead of an excess in the anticipated
revenue of the general fund, decided City
Auditor McAneney that It was time the
city council took cognizance of the gravity
Of the situation. In a communication to
the city council last night Mr.. McAneney
called attention to the fact that not only
were several OF the appropriations ex4
hausted. but that obligations had been in
CURED to meet which there were no funds
and that he would decline to draw any
warrants on the general fund in excess
Of the amount appropriated at the begin
ming Of the fiscal year.
The communication from the city auditor
was deemed of such Importance that 1t
was decided to hold a special meeting Of
the committee of the whole Friday even
ing to consider II.
The communication follows:
Part of paragraph IS of section ess Of the
supplement of the code of Iowa reads as
follows:
"Appropriations-In cities Of the first and
second class, the council shall make the APP
preparation for all the different expendi-
lures of the city government for each fiscal
year, at or before the beginning thereof,
and It shall be Unlawful for It or any Off
Ger, agent or employee of the. city to issue
any warrant, enter into any contract, or
appropriate any money, in excess of the
amount thus appropriated, for the different
expenses of the city, during the year for
which said appropriation shall be made.
Any such city shall not appropriate. in the
aggregate, an amount IN excess of its an
nual legally authorized revenue; but nothing
herein shall prevent such cities from antici-
pating their revenue for the year for which
such appropriation is made. or from bond
ing or refunding their outstanding indebted
ness
i quote you also supreme court ruling on
this law, Windsor against Des Moines
THE object of this subdivision requiring
expenditures only as the result of appro-
priations, is to place municipal corporations
on a cash basis, preventing the accumula-
ton of a floating Indebtedness"
At the beginning Of the fiscal year the
city council, in accordance with law. antlci-
pating the total revenue of the city and in
elusive of the small balance then I'm the
treasury, appropriated $4,000 for the current
expenses of the year.
As you know, the anticipated income OF
the city is based only upon the regular 10
mill tax levy, which will give the city about
$4,000 per annum, but also from all other
sources as police department, electrical de-
partment, city pound and minor matters
contributing ordinarily about sufficient
revenue to make up the amount appro-
priated,
INV
I The anticipations upon which the $50, 900
estimate was based have not been realized
and every indication points to the prob
ability that the total general revenues of
the city for the fiscal year will fall short
of instead of exceeding the amount upon
which the different appropriations were
based.
The executive department appropriation
! remains intact and no emergency will prob
ably arise to change the status of the bal
ance in same. M
THE annropriatton for tba anoinaar;n1 do
partment was $500, which covered the
salaries of the regular force only In ad-
feeding and shoeing of the horses belong
ing to the department., the employment of
two special engineers and the additional
IT will require about 500 to cover this def
cheney and will come from emergency APP
preparation.
The high prices existing for forage for
department horses will probably cause a
deficit in both police and fire departments,
and in the police department will be
about the amount of the fuel bill, which
last year was $500.
Due to the fact that there was expended
for repairs, etc, on city hall, $50, IS, there
remains In the city hall appropriation a
balance of 1892 to pay custodtan's salary
for seven months, amounting 10 $t55. The
Incidental expenses and the coal bills for
seven months, which last year amounted to
about SioO, making in all, practically $50
TO be paid from a balance of 1898. rs. and
the poor old emergency appropriation will
have to bear the burden of the deficit of
! ABOUT $OOO.
The amount appropriated for streets and
alleys, 5000, is exhausted and the 'auxil-
larry" road fund is running low, and In
case we have some more of the bad
weather we had in the early part of the
year we may have to appeal to emergen-
cies for relief.
In the health department there will be
another deficiency TO he made up from
the over-worked emergency Appropriation,
great deal more, dependent upon the final
action as a problem with which your hon
orable body has been wrestling for the last
No appropriation was made for election
purposes, and the appropriation for print
In gand supplies will be barely sufficient
to defray the regular expense anticipated
when the appropriation was made.
The electrical department by close
economy from now on. viii keep within the
bourds Of its appropriation, a bad sleet
storm during the winter of course will add
additional expense, which would be charged
TO emergencies II anything remnins in that
Appropriation.
The expense of the fire department has
ssDy yer per month for i've months;
$14.225.20 for the balance of the year. leav-
ing a balance Of the original appropriation,
Of SlO6 to pay fuel bills, which last year
cost the city $7Os.s0
where the Pinch Comes.
There has been paid from the emergency
appropriation of $3.50 on account Of state
examiners fees, refund taxes and sundry
small items, 1881. %, leaving a balance OF
NAa@ HAS-A
favorable conditions and Management, the
city coal bill alone, will absorb this bal
ance. and we are up against a proposition
TO provide for the balance OF any deficit
that may crop out In the departments
and we have a more serious proposition
OF contracts made, and obligations incur
red recently, to the amount Of at Least
5000. which under the opinion OF the city
attorney cannot be paid from any speciaI
fund and which section 6S OF the supple
ment to the code says cannot be paid from
the general fund.
The way the law appears to me. is thai
the city auditor cannot draw warrants or
the general fund for more than the S0.OO'
appropriation. and that, dependent on tbs
income of the city. and these warrants car
he drawn only for the purposes named
in the appropriation ordinance. adopted by
the city council in March. 1908. 1t Is up tc
your honorable body TO. meet the present
emergency, as I win have to decline tc
draw warrants on the general fund for
eny purpose other than provided for un,
der section 66S, until a legal oninion Il
rendered covering the matter fully.
Check Ordered Returned.
The letter from Contractor Wickham II
which he consented TO accept the return
from the city of the $4,000 certified checl