The Richmond palladium and sun-telegram., 1910-02-22
An Ordinance Appropriating
$4,000 for Improvements
Passed, But the Treasury
Is "Oead Broke"
FINANCES OF C|TYA
VERY TOUGH PROBLEM
And the Mayor Thinks Assist
ance From Municipal Plant
Is Absolutely Required
Parry Roasted.

AT the meeting OF the city council
last evening an ordinance appropriat-
ing $4,000 for the general improve
ment fund of the city, was passed on
the third reading. Inasmuch as
there is practically no money in the
city treasury at present the ordinance
is really null and void at this time
However to remedy this defect, Mayor
Zimmerman devisedsa scheme, which
he unfolded to council last evening,
whereby the Municipal Light plant
should furnish light to the city free,
during the remainder of the year or
for SO long a time as it is deemed nee
essary to place the financial status of
the city treasury on firm basis.
The finances of the city are at low
ebb at present, in fact, there being no
money whatever in the treasury, it is
said. In view of the number of need
ed improvements and the fact that
mands, the condition of affairs was as
suming alarming proportions, and the
need of radical measures to solve the
problem of the city's finances was very
apparent.
The Plan Of the Mayor.
1t is the plan of Mayor Zimmerman
that while the lighting should be fur
nished free. in estimating the monthly
earnings of the plant, the cost of the
city lighting at the present prices be
included, but that the amount usually
paid for lighting can be used for gen.
eral purposes. The city now ha l3,-
600 in the municipal light fund. Aft
of the plant during February, the city
will have $4,000 to the credit of this
fund on March 1. If the earnings Of
the plant continue in the future as
in the past, there will be by January /,
1911. more than $4,000 in this fund.
If the fund could be used to pay the
general expenses of the city, it would
not be necessary to make loan at this
time, but the law plainly provides that
money in the municipal light fund
shall be used only for the benefit of the
of the city. The methods under the
last administration in effect permitted
the use of the income of the plant in
paying the general expenses.
The board Of works does not deem it
advisable to make any additions to
the plant this year and the board be-
lieves that the accumulation of large
>ums in the plant Is unnecessary.
Could Avoid a Loan.
BY appropriating the money, which
would originally be paid into the Mu-
nicipal light fund. the city will avoid
the necessity of borrowing the money
from bank or other similar institu-
rowed from bank would be 5 per-
cent, but the interest paid under the
mayors plan would only amount to 2
percent, so the city could save the
difference, or percent, which on
$4,000 would amount to $500.
Before final vote was taken on the
ordinance. Mayor Zimmerman explain
ed why the money was needed, in a
communication, which he read. He
said that former city controller, Web
ster Parry, in making his estimate of
ent year. figured the city's share of
streets, alleys and sewer improve
ments to be $4,000. This low figure
was one means. by which the former
administration was able to make the
tax rate for the city at $1.05 per hun
Gred dollars assessed valuation. How
ever, on the contracts made by the
former administration, the $4,000 has
already been used. or will be. There
is no appropriation provided for the
additional improvements. this year.
Mayor Zimmerman showed these out
standing amounts to be as follows:
Some Of the Expenses.
City's share of Fairview sewer. S.
173.42: North West Second street i'm
provement, s1,141.25: city's share of
proposed improvement to Eighth
street between North and South A
streets, $4,000; Tenth street improve
ment, $S9S.15: sewer between Boyer
and Ridge. $500: making a total Of
s10.012.S2. spent by the present ad-
ministration on the old boards con-
tracts and with only $4,000 in the
treasury with which to meet these ex-
penditures.
The Interesting part of the mayors
communication follows:
"Mr. Parry estimated the city's part
of the street and alley intersections.
TO be paid for this year. at $4,000 and
as he only levied taxes to raise this
amount. it is very apparent that the
city will have no money this year to
pay any part of any new Improve
Continued on Page Seven.l